This study investigates how local entrepreneurs innovate in production areas. In particular, this study considers the implementation of the changes in production areas by local entrepreneurs from other industries, instead of by inside entrepreneurs, a topic of interest in existing research.
Today, society emphasizes regional activation, especially innovation in the region through cooperation between different industries. Prior studies point out that the realization of strategic sociality is a key to gaining legitimacy in the region for small and medium enterprises with roots in the region, and existing work discusses the realization of regional innovation from the view of entrepreneurial activities. However, previous research mainly addresses innovation arising from groups in the same industry, and does not sufficiently examine the innovation of production areas originating in different industries. This study explores this kind of innovation through a case analysis. Specifically, this study analyzes the utilization business of waste mandarin oranges by a butcher in Mikkabi Town, Kita Ward, Hamamatsu City, Shizuoka Prefecture, and clarifies the route of the business creation and changes in production areas.
The case analysis indicates two findings. First, it was not easy to obtain cooperation from producers, even if the venture created a business satisfying strategic sociality. Secondly, the key to transforming the production area was that the local entrepreneur modified his business model and encouraged producers to participate in his business. This case analysis suggests the significance of the entrepreneur who changes the region itself, which is different from the image of the local entrepreneur as the entity using local resources, as presented in prior research.. Abstract
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