The impact of innovation on agribusiness competitiveness: the mediating role of technology transfer and productivity

Abstract

The pre-eminence of innovation and technological transfer in promoting agricultural productivity and competitiveness in developing countries is widely acknowledged. However, the disparate streams of literature on productivity and competitiveness have explored innovation and technology transfer as independent predictors. Consequently, the mechanisms through which innovation and technology transfers jointly affect productivity and competitiveness of small, medium and micro enterprises (SMMEs) in emerging economies remain under-explored in literature. The present study sought to examine the relationships among innovation, technology transfer, productivity and competitiveness of small-scale agricultural businesses (SSABs) in selected regions in South Africa and Zimbabwe, neighbouring countries which have been plagued by food insecurity in recent years. A total of 400 questionnaires were distributed to SSABs owners based in Free State and Mashonaland provinces of South Africa and Zimbabwe, respectively. In total, 268 usable questionnaires (67%) were returned for analysis. Partial least squares structural equation modelling (PLS-SEM) and Process macro (based on SPSS) techniques were used to analyse data. The results supported direct significant paths between innovation and technology transfer; technology transfer and productivity; and productivity and competitiveness. Furthermore, the results suggested that technology transfer and productivity consecutively fully mediate the relationship between innovation and competitiveness. The use of a survey could not provide sufficient explanations as to why the variable examined related the way they did. The study provides useful insights into the significance of considering the dimensions and methods of innovation and technology transfer in agricultural business activities and processes to improve productivity and competitiveness of SSABs. The study provides some insights into how innovation and technology transfer could be employed by small scale agricultural businesses as critical mechanisms for heightening productivity and competitiveness of these firms to guarantee food security and employment creation for emerging economies. To the researchers' knowledge, this is one of the pioneer studies to examine the impact of both innovation and technology transfer on productivity and competitiveness of SSABs in two countries in Southern Africa. The study also constitutes a significant contribution to examining serial mediation of technology transfer and productivity of innovation and competitiveness.