Seeding innovation: the role of internal and external digital data in agri-food product innovation

Abstract

PurposeSince previous literature provides fragmented and conflicting results about the use of digital data for product innovation, the article aims to comprehensively explore and shed light on how agri-food firms utilise external and internal digital data sources when dealing with different product innovations, such as incremental, architecture and radical innovation.Design/methodology/approachThis paper adopts an exploratory multiple-case study and a theory-building process, focussing on the agri-food industry. We collected primary and secondary data from eight manufacturing companies.FindingsThe findings of this research show an empirical framework of six agri-food firms’ digital data utilisation behaviours: the supervisor, the passive supervisor, the developer, the passive developer, the pathfinder and the conjunction behaviour. These digital data utilisation behaviours vary according to a combination of data sources, such as internal data related to inside phenomenon measures (e.g. data generated by sensors installed in the production plan) or external data (e.g., market trends, overall sector sales), and innovation purposes.Practical implicationsThis article offers guiding principles that assist agri-food companies when utilising internal and external digital data sources for specific product innovation outcomes such as incremental, architectural and radical innovation.Originality/valueThe significance of external and internal data sources in stimulating product innovation has garnered substantial attention within academic discussions, highlighting the critical importance of analysing digital data for driving such innovation. Nonetheless, the predominant approach is to study a single innovation outcome through the lens of digital technology. In contrast, our study stands out by adopting a fundamental perspective on data sources, enabling a more nuanced explanation of the overall product innovation outcomes within the agri-food sector.