In the bustling agricultural landscape of Thailand, a recent study sheds light on how digitalisation and circular economy principles are reshaping the approach of small and medium enterprises (SMEs) towards sustainable farming practices. The research, spearheaded by Wutthiya Aekthanate Srisathan from the Business Administration Division at Khon Kaen University International College, dives into the interplay between technological advancements and eco-innovation.
The findings underscore a notable divergence in how startups and established firms harness digital capabilities. For startups, the agility and innovative spirit shine through, particularly in their adoption of digital strategies that significantly drive open product and managerial eco-innovation. “Startups are uniquely positioned to adapt quickly and creatively,” Srisathan notes, emphasizing their role as pioneers in embracing new technologies to transform agricultural residues into value-added products.
On the flip side, established firms, with their robust resources and experience, show a slightly stronger relationship between digital capability and open product eco-innovation. They excel at optimizing existing processes for sustainability, proving that experience can sometimes trump agility. The study analyzed 304 agricultural enterprises, revealing that while startups are quick to innovate, established firms leverage their stability to enhance operational efficiency.
This research paints a vivid picture of the agricultural sector’s future, where the integration of digital tools is not just a trend but a necessity for survival. The circular economy concept, which emphasizes minimizing waste and maximizing resource use, is becoming increasingly relevant. Srisathan highlights, “The shift towards a circular economy is not merely about reducing waste; it’s about creating new opportunities for growth and sustainability.”
As the industry faces mounting pressures to adopt sustainable practices, the ability to transform agricultural waste into new products could very well be a game changer. For SMEs, the insights gained from this study could guide strategic decisions, helping them navigate the complexities of digital transformation while remaining committed to sustainability.
Published in the International Journal of Sustainable Engineering, this research is a clarion call for agricultural enterprises to rethink their business models. By embracing digitalisation and eco-innovation, they can not only enhance their operational efficiency but also contribute to a more sustainable future for the industry. As the agricultural sector stands on the brink of this digital revolution, the lessons learned from this study could pave the way for a new era of sustainable farming practices that benefit both the economy and the environment.