Process innovation in milling stage in olive oil sector: evidence from an empirical analysis in Umbria (Italy)

The purpose of this paper is to investigate the role of the modes of organizing the technological knowledge (make, buy and hybrid organization) in the decision to innovate the production process. Design/methodology/approach: The study first develops a conceptual framework drawing the concept of mode of organization from the Transaction Cost Economics. The three research questions are coherently formulated which concern: the influence of the modes of organization on the decision to innovate and to invest in supporting instruments; the variability of this influence and the complementarity degree between the decision to innovate and to invest. The empirical analysis is carried out with respect to the olive oil sector considering a representative sample of olive millers (Umbria, Central Italy) and a complementary accidental sample drawn from an existing database.