Experience economy, innovation and traditional industries

Isaac Kwamena Arthur
2013 Innovation and Development  
This thesis investigates the role experience-based innovations can play in rural Denmark. The objective is to understand how food enterprises in Danish rural areas are reinventing themselves as viable units in the contemporary world by exploiting the potentials of the experience economy, and in practical terms, advise on its potential to enhance the competitiveness for food enterprises and implications for local development. This has been necessitated by the increasing competitions in the
more » ... porary global business/economic environment and the need for strategic measures to bolster the competitive prospects of traditional rural enterprises and socioeconomic vibrancy of rural areas. The guiding research questions to address the thesis' objective are what characterises the experience-based innovations of food enterprises; what are the mechanisms that shape the experience-based innovations; and how external resources and institutions influence the innovative strategies of rural food enterprises. This study includes 16 case studies of food enterprises located in the municipalities of Thisted, Morsø and Bornholm. Semi structured interview data obtained from managers and owners of food enterprises as well as public and private actors in the three municipalities are analysed. Based on a qualitative analysis of empirical data it was discovered that enterprises are reinventing themselves by offering experiences as innovative strategy to create value. The extent to which this strategy is implemented however differs. While some appear to be very explicit about what they are doing, others are unaware of the experiential implications of their business activities. What characterises experience-based innovations of rural food enterprises are food products/services imbued with aesthetic, ideals and symbolic laden objects as added value. These added value objects are storytelling, guided tours, music and concert events, interior decors and designs, themed events, product tasting experiences, amusing side attraction, fishing experience, themed events, agro-tourism experience, display and sale of local cultural products, serving customers with antique dinning wares, festival and trade exhibitions. ii The most common experience offering is storytelling embedded with contents such as local image, history and heritage (e.g. the national park in Thy), local sources of raw materials, quality conventions (e.g. animal health, organic, environmental consciousness, animal welfare, etc.) and authenticity (product traceability and origins). The mechanisms through which enterprises construct experience offerings include the mobilisation of resources such as cognitive acumen, geographical location, technologies, raw materials, enterprise premises, etc, through their organisational and dynamic capabilities. Networking relations of some enterprises have also been crucial. Furthermore, these experience creations have been inspired directly and indirectly by public policy and local public-private actors. Basically experience-based innovation of food enterprises in Thisted, Morsø and Bornholm is seen as the result of a systemic process involving the internal resource combinations of enterprises, networking relations with other enterprises, as well as the influences of local actors, local conditions, policy and public actors. The findings of this study hold a wide range of theoretical and practical implications. Although enterprises have the capabilities to combine assets in new ways to create experience for consumers,
doi:10.1080/2157930x.2012.721528 fatcat:xa6hquy5ubb2bcxcfwxyppj74i