Abstract

Sustainable innovations in food packaging are important in terms of preventing food waste and reducing environmental impact, but existing industry regimes and networks may hinder their diffusion into established markets. However, research on reorientation of existing industries, and value networks in that situation, has been limited. This study examines the changes to existing industry value networks that can facilitate the diffusion of sustainable innovation in food packaging. Empirically, the transformation and distribution of agro-food waste into a new bioplastic packaging through the existing food packaging value network is investigated. As a result, the changes to the existing value network and their connections, facilitating the diffusion of the sustainable innovation, are identified at three levels — firm, network, and macro. The findings show the importance of opportunity recognition, but also the role of new actors, resources, activities, and relationships in the restructuring of the existing value network and actions creating supportive regulative framework and increasing market demand for such renewal. This creates understanding of how the adoption of sustainable innovations, such as new packaging materials, which might seem simple, is complicated by the broad changes required from the existing value network.