Abstract
Innovation is highly demanded for achieving competitiveness and sustainability in value chains. However, few empirical studies have been conducted to identify causal conditions and measurements of innovation capacity in value chains, particularly in developing countries. Combing concepts and methods from value chain upgrading, technological capability and sustainability-oriented innovation system literature, this study aims at identifying a condition or combination of conditions for promoting innovation capacity for inclusive sustainable value chains. It then empirically analyzes the necessary conditions and identifies multiple paths for developing innovation capacity by taking up the cases of two local and two globally linked value chains from Ethiopia. The study also develops a comprehensive innovation capacity evaluation model by combining different capability building strategies and learning mechanisms, and applies a comprehensive fuzzy evaluation method for measuring the level of innovation capacity of the four value chains. The study identifies eight main dimensions of innovation capacity for sustainable value chains, which are categorized into four groups in order to identify necessary and sufficient conditions. The study finds that the simultaneous presence of technological upgrading, value chain restructuring and green governance reforms is sufficient conditions for the development of innovation capacity. We also find that public-private partnership (innovation platform) is necessary condition for achieving outstanding value chain innovation capacity. By developing and applying a fuzzy comprehensive evaluation model for measuring value chain innovation capacity and fuzzy set qualitative comparative analysis for identifying necessary and sufficient conditions for innovation capacity development in a sustainable value chain, the study makes an important methodological contribution to existing literature. It also provides relevant insight for policy makers and practitioners in designing strategies and policy instruments for achieving a high degree of innovation capacity.
Highlights
Forests are the foundation of sustainable development
The research question, is what condition or combination of conditions leads to the development of innovation capacity in the non-timber forest product value chain and can successfully introduce innovation for an inclusive and sustainable nontimber forest product (NTFP) value chain and for sustainable forest resource management? The objective of this study is to identify the combination of conditions for building value chain innovation capacity and to develop a comprehensive evaluation model for measuring the level of innovation capacity
This study explores causal conditions for the development of value chain innovation capacity by taking four cases focusing on two non-timber forest product value chains, honey and coffee from Ethiopia
Summary
Forests are the foundation of sustainable development. Recognizing their critical roles in providing multiple functions for achieving local and global sustainable development, the United Nations’ Sustainable Development Goals (SDG) have given due attention to protection, restoration and sustainable use of forests and ecosystems and included them as one of its key targets. The forest cover of Ethiopia has dwindled at an alarming rate and reached less than 3% as of 2001, as compared to its original coverage of 35-40% four decades earlier (Bishaw, 2001, August) Such severe deterioration of forest resources has threatened the ecological and biodiversity conservation functions of forests and severely affected the livelihoods of local communities. Several challenges and constraints have confronted the nontimber forest product (NTFP) producers in realizing the potential of NTFP commercialization in Ethiopia These challenges include, among others, low competitiveness of actors along the entire market chain, poor use of modern technology and knowledge, poor capacity of actors and a weak and fragmented marketing system (Bognetteau, Haile, & Wiersum, 2007, March; Deffar, 1998; Woldu, 2004, November). It comprises wide ranges of innovations occurring in the functions of a firm and within chains to changes in supply chain as a whole
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Schedule a callMore From: Journal on Innovation and Sustainability. RISUS ISSN 2179-3565
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