Innovation strategies of micro and small enterprises on the peruvian food sector

Abstract

Faced with the globalization phenomenon, unemployment and economic crisis, the Peruvian population was obliged to seek new solutions to survive and improve their life quality. In this case the Micro and Small Enterprises (MSEs) were a great opportunity to solve this problem adding value to foster the innovation process. Some MSEs, specifically from the agri-food sector employ innovation strategies based on the development of new functional food that benefits the health of consumers. This study aimed to analyze the factors which influence the innovation strategies in the Peruvian micro enterprises through the food products development with functional properties. This research that is an exploratory case study, analyzed three Peruvian organizations: Delicias, Galletera and Silvia in the city of Arequipa in Peru. It was concluded that incorporation of local raw native materials, (cañihua, quinua, kiwicha, maca, habas, maiz morado, mamão arequipenho and sauco), with functional characteristics and quality, added greater value to final products. The organizations showed incremental innovations of product, process, distribution and management along the value chain of the focal firm. Peruvian MSEs grew up to become competitive through the development of innovation strategies resulting in economic and social gains to the local entrepreneurs and the country.