Digital Food Hubs as Disruptive Business Models Based on Coopetition and “Shared Value” for Sustainability in the Agri-Food Sector

Abstract

The chapter introduces digital food hubs as disruptive business models in the agri-food system shifting away from the unsustainable industrialized and conventional food sector and moving toward a re-localized food and farming pattern. They are new digital business models developed to support small and mid-size farms with a value focus, forming new ways to leverage the technology as a facilitator for coopetitive organizational forms. Indeed, they respond to a competitive strategy constituted by a “value strategy” oriented to the production and distribution of “shared value.” Second, they are based on an “organizational strategy” that shifts from individual competition to “coopetition” through the development of local “strategic networks” among small size producers. Central to the development of these business models is the digital disruption that has offered the space for the creation of unconventional exchange and transaction mechanisms distinguishing them from the already existing traditional ways of work. The agri-food markets exhibit structural holes that impede small farms from connecting with local consumers. This is due to a lack of material infrastructures and organizational forms on behalf of small farms that cannot reach the consumers, as well as the concentration of power in the hands of a restricted numbers of distributors, which causes the unequal redistribution of the economic value and impedes small farms accessing the food market. The advent of the digital technology is reshaping the market relationship by allowing out centralized intermediaries and creating new bridges between producers and consumers.

Citation

Berti, G., Mulligan, C. and Yap, H. (2017), "Digital Food Hubs as Disruptive Business Models Based on Coopetition and “Shared Value” for Sustainability in the Agri-Food Sector", Sindakis, S. and Theodorou, P. (Ed.) Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms (Advanced Strategies in Entrepreneurship, Education and Ecology), Emerald Publishing Limited, Leeds, pp. 415-438. https://doi.org/10.1108/978-1-78714-501-620171023