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

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...

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Main Authors: Viktoriya Onegina, Lesia Kucher, Anatolii Kucher, Vitaliy Krupin, Marek Kłodziński, Vladyslav Logos
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/15/1/65
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author Viktoriya Onegina
Lesia Kucher
Anatolii Kucher
Vitaliy Krupin
Marek Kłodziński
Vladyslav Logos
author_facet Viktoriya Onegina
Lesia Kucher
Anatolii Kucher
Vitaliy Krupin
Marek Kłodziński
Vladyslav Logos
author_sort Viktoriya Onegina
collection DOAJ
description 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.
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spelling doaj-art-cf60b35a9aba42298e7ad7fd1d49eb3a2025-01-10T13:13:34ZengMDPI AGAgriculture2077-04722024-12-011516510.3390/agriculture15010065Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian AgricultureViktoriya Onegina0Lesia Kucher1Anatolii Kucher2Vitaliy Krupin3Marek Kłodziński4Vladyslav Logos5Department of Economics, Finance, Law and Systems, Clermont School of Business, 63000 Clermont-Ferrand, FranceDepartment of Entrepreneurship and Environmental Examination of Goods, Lviv Polytechnic National University, 79013 Lviv, UkraineDepartment of Management of Organizations, Lviv Polytechnic National University, 79013 Lviv, UkraineDepartment of Economic Modelling, Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, PolandDepartment of Rural Economy, Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, PolandDepartment of Psychology, Tarleton State University, Dallas, TX 75204, USAInnovation 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.https://www.mdpi.com/2077-0472/15/1/65innovation capacityagribusinessMSMEsinnovation strategytechnologyresources
spellingShingle Viktoriya Onegina
Lesia Kucher
Anatolii Kucher
Vitaliy Krupin
Marek Kłodziński
Vladyslav Logos
Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
Agriculture
innovation capacity
agribusiness
MSMEs
innovation strategy
technology
resources
title Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
title_full Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
title_fullStr Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
title_full_unstemmed Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
title_short Unlocking Innovation Capacity: Strategies for Micro-, Small, and Medium Enterprises in Ukrainian Agriculture
title_sort unlocking innovation capacity strategies for micro small and medium enterprises in ukrainian agriculture
topic innovation capacity
agribusiness
MSMEs
innovation strategy
technology
resources
url https://www.mdpi.com/2077-0472/15/1/65
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