
Volume 12, Issue 2 (February 2025), Pages: 181-190

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Original Research Paper
The mediating role of open innovation in enhancing the Saudi food industry’s integration into the global value chain
Author(s):
Abdullah A. Aljofi *, Mazen Mohammed Farea
Affiliation(s):
Faculty of Finance and Administrative Sciences, Al-Madinah International University (MEDIU), Kuala Lumpur, Malaysia
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* Corresponding Author.
Corresponding author's ORCID profile: https://orcid.org/0009-0003-6425-3402
Digital Object Identifier (DOI)
https://doi.org/10.21833/ijaas.2025.02.020
Abstract
This study examines the integration of the Saudi food industry into the Global Value Chain (GVC) by assessing the influence of key external factors, including Trade Policy (TP), Digital Business (DB), Collaborative Partnerships (CP), Ethical Issues (EI), and Sustainability Environment (SE). Open Innovation (OI) is analyzed as a mediating factor linking these elements to GVC participation. Using structural equation modeling (SEM), data from 178 decision-makers in the Saudi food sector reveal that while external factors significantly impact GVC participation, their effect is primarily channeled through OI. OI facilitates knowledge sharing, technology adoption, and collaboration, serving as a critical enabler of GVC integration. These findings underscore the transformative role of OI in leveraging external factors to enhance industry competitiveness, aligning with Saudi Vision 2030's economic diversification objectives. The study emphasizes the need for policymakers and industry leaders to promote initiatives that strengthen the global positioning of the Saudi food industry.
© 2025 The Authors. Published by IASE.
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords
Global value chain, Open innovation, Trade policy, Digital business, Industry competitiveness
Article history
Received 29 September 2024, Received in revised form 3 January 2025, Accepted 5 February 2025
Acknowledgment
No Acknowledgment.
Compliance with ethical standards
Ethical considerations
All participants provided informed consent, and their data were kept confidential. Participation was voluntary, and no personally identifiable information was collected.
Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Citation:
Aljofi AA and Farea MM (2025). The mediating role of open innovation in enhancing the Saudi food industry’s integration into the global value chain. International Journal of Advanced and Applied Sciences, 12(2): 181-190
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