Tradition vs. Eco-Innovation: The Constraining Effect of Protected Designations of Origin (PDO) on the Implementation of Sustainability Measures in the Olive Oil Sector

Abstract

Although eco-innovation in the agri-food sector is receiving increasing attention, the heterogeneity of firms operating in the sector encourages the development of specific sub-sectoral studies to define specific strategies. In this regard, the main goal of the present study is to evaluate the drivers of eco-innovation in the olive oil production sector. Our empirical method relies on data from Spanish olive oil mills, and uses qualitative comparative analysis (QCA). The results show that large olive oil cooperatives have an important commitment to sustainability, and that cooperation with a wider range of different agents encourages the implementation of eco-innovation, particularly among smaller firms. However, the main finding of the study is the limiting effect of belonging to a protected designation of origin (PDO) on the implementation of eco-innovative measures. Although traditional production of olive oil (production under a PDO) is still perceived as a central competitive advantage in olive oil firms, further efforts should be made to coordinate traditional elaboration with production under a more sustainable management approach.

Keywords

• quality label
• geographical indication
• cooperatives
• olive oil mills
• traditional production
• cooperation