A Willingness–Propensity–Ability Framework for Innovation Capability in Agri-Food SMEs: Evidence from the Sardinian Sheep Dairy Sector

Innovation is a central driver of competitiveness, resilience, and sustainability in the agri-food sector, particularly among small and medium-sized enterprises (SMEs). However, traditional science- and technology-based models may not fully grasp the innovation dynamics in this domain, and research explicitly addressing agri-food SMEs remains limited. This study adapts, integrates, and extends existing Innovation Capability (IC) and related constructs into a unified WI–PI–IA framework (Willingness to innovate–Propensity to innovate–Innovation Ability) for agri-food SMEs. The framework is empirically tested through a sectoral quantitative case-study based on structured questionnaires administered to twenty SMEs operating in the Sardinian sheep dairy industry. The findings confirm the framework’s validity, highlighting the role of contextual factors and revealing distinct innovation patterns between cooperatives and private firms. This study is, to our knowledge, the first to conceptualise IC in agri-food SMEs as the outcome of the three above constructs and offers a comprehensive and context-sensitive approach that contributes to academic research and directs policymakers towards factors that affect agri-food SME innovation outcomes, considering their unique structures and specific challenges they face.