IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2024i1p65-d1556030.html

Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture

Author

Listed:
  • Viktoriya Onegina

    (Department of Economics, Finance, Law and Systems, Clermont School of Business, 63000 Clermont-Ferrand, France
    Department of Global Economy, State Biotechnological University, 61002 Kharkiv, Ukraine)

  • Lesia Kucher

    (Department of Entrepreneurship and Environmental Examination of Goods, Lviv Polytechnic National University, 79013 Lviv, Ukraine)

  • Anatolii Kucher

    (Department of Management of Organizations, Lviv Polytechnic National University, 79013 Lviv, Ukraine
    Department of Innovative Economics, International Relations and Informatization of Scientific Research, National Scientific Center “Institute for Soil Science and Agrochemistry Research Named After O. N. Sokolovsky”, 61024 Kharkiv, Ukraine)

  • Vitaliy Krupin

    (Department of Economic Modelling, Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, Poland)

  • Marek Kłodziński

    (Department of Rural Economy, Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, Poland)

  • Vladyslav Logos

    (Department of Psychology, Tarleton State University, Dallas, TX 75204, USA)

Abstract

Innovation is a crucial driver of competitiveness and development of enterprises. Access to innovation is influenced by a multitude of factors, including, among others, an enterprise’s strategy, operation efficiency, and the availability of resources. Middle, small, and micro-enterprises (MSMEs) are pivotal to agricultural production, employment, and food security in Ukraine; however, innovative technologies have predominantly been accessible to large enterprises. The aim of this study is to examine the innovation capacity of MSMEs in the Ukrainian agricultural sector and to identify potential strategies for integrating them to improve access to and inclusion of innovative practices. This study undertakes a quantitative evaluation of the innovation capacity of agricultural enterprises in Ukraine for the years 2019–2022, the latter marking the onset of wartime conditions. A comprehensive framework comprising indicators across technological, resource, financial, managerial, and human capital dimensions was developed to assess the innovation capacity of these enterprises. Utilizing data normalization techniques, composite indicators that offer a unified measure of innovation capacity were derived. Our findings substantiate the Schumpeterian hypothesis within the Ukrainian agricultural sector, revealing that MSMEs exhibit significantly lower innovation capacity compared to their larger counterparts, which causes serious problems with access to innovation. This disparity is particularly pronounced in terms of resources and technological capabilities, whereas the gap in financial performance and managerial and human capital is not significant. Conclusively, the recommendations on strengthening the innovative capacity of agricultural MSMEs—based on integration strategies—have been developed.

Suggested Citation

  • Viktoriya Onegina & Lesia Kucher & Anatolii Kucher & Vitaliy Krupin & Marek Kłodziński & Vladyslav Logos, 2024. "Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture," Agriculture, MDPI, vol. 15(1), pages 1-21, December.
    • Handle: RePEc:gam:jagris:v:15:y:2024:i:1:p:65-:d:1556030
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/1/65/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/1/65/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Johanna Gast & Matthias Filser & Katherine Gundolf & Sascha Kraus, 2015. "Coopetition research: towards a better understanding of past trends and future directions," Post-Print hal-02010684, HAL.
    2. Antonia Madrid‐guijarro & Domingo Garcia & Howard Van auken, 2009. "Barriers to Innovation among Spanish Manufacturing SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(4), pages 465-488, October.
    3. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    4. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD Publishing.
    5. Antoine Pierre & Anne-Sophie Fernandez, 2018. "Going Deeper into SMEs’ Innovation Capacity: An Empirical Exploration of Innovation Capacity Factors," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 139-181.
    6. Nola Hewitt-Dundas, 2006. "Resource and Capability Constraints to Innovation in Small and Large Plants," Small Business Economics, Springer, vol. 26(3), pages 257-277, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephen Roper & Nola Hewitt-Dundas, 2017. "Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?," Small Business Economics, Springer, vol. 49(3), pages 559-577, October.
    2. Masahito Ambashi, 2017. "Competition Effects and Industrial Productivity: Lessons from Japanese Industry," Asian Economic Papers, MIT Press, vol. 16(3), pages 212-249, Fall.
    3. Pietro Moncada-Paternò-Castello, 2016. "Sector dynamics and demographics of top R&D firms in the global economy," JRC Working Papers on Corporate R&D and Innovation 2016-06, Joint Research Centre.
    4. Ndubuisi, Gideon & Mensah, Emmanuel B. & Avenyo, Elvis K. & Sakyi, Daniel, 2025. "Global value chains and the innovativeness of firms in Africa," Technovation, Elsevier, vol. 146(C).
    5. Lucas Bonacina Roldan & Peter Bent Hansen & Domingo Garcia-Perez-de-Lema, 2018. "The relationship between favorable conditions for innovation in technology parks, the innovation produced, and companies’ performance," Innovation & Management Review, Emerald Group Publishing Limited, vol. 15(3), pages 286-302, August.
    6. Ngo Hoang Thao Trang, 2025. "The Role of External Network, Government Support, and Absorptive Capacity on the Innovative Activities of SMEs in Vietnam," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1437-1463, March.
    7. Jaakko Simonen, 2005. "The innovativeness of the Finnish high technology firms – The role of internal factors, cooperation, and the mobility of labour," ERSA conference papers ersa05p462, European Regional Science Association.
    8. Leon Schjoedt & Mark Kroll & Krittaya Sangboon, 2025. "Proactive and reactive motivation for coopetition and the role of partner trust: a quantitative study of small business ventures," Small Business Economics, Springer, vol. 65(4), pages 2063-2088, December.
    9. Nguyen, Ngoc Minh & Sun, Sizhong & Welters, Riccardo, 2024. "The impact of FDI on R&D investment of small and medium-sized enterprises in Vietnam: The role of institutions," International Review of Economics & Finance, Elsevier, vol. 95(C).
    10. Souresh Saha, 2007. "Consumer preferences and product and process R&D," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 250-268, March.
    11. Xhavit Islami & Enis Mulolli, 2025. "When and How Does Innovation Augment the Effect of HRM on SME Performance?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 11(2), pages 225-251, July.
    12. Nieto Sánchez, María Jesús & Santamaría Sánchez, Luis, 2006. "Technological collaboration : bridging the innovation gap between small and large firms," DEE - Working Papers. Business Economics. WB wb066620, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    13. Burak Dindaroglu, 2011. "R&D Productivity and Firm Size in Semiconductors and Pharmaceuticals: Evidence from Citation Yields," Working Papers 1101, Izmir University of Economics.
    14. Naqeeb Ur Rehman, 2016. "Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan," ADBI Working Papers 577, Asian Development Bank Institute.
    15. Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    16. Symeonidis, George, 2001. "Price Competition, Innovation and Profitability: Theory and UK Evidence," CEPR Discussion Papers 2816, Centre for Economic Policy Research.
    17. Kelly D. Edmiston, 2007. "The role of small and large businesses in economic development," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q II), pages 73-97.
    18. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre.
    19. Tamer Khraisha & Keren Arthur, 2018. "Can we have a general theory of financial innovation processes? A conceptual review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-27, December.
    20. Hyo Kang & Lee Fleming, 2020. "Non‐competes, business dynamism, and concentration: Evidence from a Florida case study," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(3), pages 663-685, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:15:y:2024:i:1:p:65-:d:1556030. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.