Innovation and Cooperation in Agri-Food Value Chains in Latin American Developing Countries: Exploring the Role of Proximity Theory from Economic Geography

Cristian Geldes; Cristian Morales Opazo

doi:10.4067/s0718-27242025000300101

Authors

Cristian Geldes Facultad de Economía y Negocios Universidad Alberto Hurtado https://orcid.org/0000-0003-2391-1854
Cristian Morales Opazo Agrifood Economics and Policy Division, Food and Agriculture Organization of the United Nations (FAO), Rome, Italy.

DOI:

https://doi.org/10.4067/s0718-27242025000300101

Keywords:

Innovación Tecnológica, Agronegocios, Proximidad, Cadenas de Valor

Abstract

Innovation is an important strategy for enhancing the competitiveness and sustainability of agri-food value chains, especially in developing countries where it significantly contributes to rural development. Innovation is increasingly viewed as a cooperative process involving various actors. However, few studies examine cooperation within extended agri-food value chains, which include both the actors within the chains and supporting organizations. Therefore, this study explores and compares cooperation for innovation among actors in two extended value chains: one in Nicaragua (dairy milk) and another in Paraguay (corn), using proximity theory, which considers non-spatial dimensions such as institutional, cognitive, social, and organizational factors. Additionally, a method for measuring personal proximity is proposed. Data from 157 participants across the two chains are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results highlight the significant roles of social and institutional proximities in promoting cooperation and demonstrate how such collaboration accelerates innovation. The study discusses both theoretical and practical implications.

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Author Biography

Cristian Geldes, Facultad de Economía y Negocios Universidad Alberto Hurtado

Cristian Geldes is an Associate Professor at the Faculty of Economics and Business at Universidad Alberto Hurtado. He holds a Phd and a Master in Management from Universidad Adolfo Ibañez (AACSB). His research interests are in strategy, innovation, and sustainability. He has published in journals such as Technovation, Industrial Marketing Management, Journal of Business Research, and Technological Forecasting and Social Change.

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