Innovation Diffusion in the Bakery Industry of Indore: Patterns, Drivers, Barriers and the Role of Networks and Suppliers
DOI:
https://doi.org/10.31674/ijrtbt.2026.v010i03.001Abstract
Introduction: Small and medium bakery enterprises in Indore operate between traditional family production and modern café, patisserie, and online formats. This study examined how equipment, ingredient, and digital innovations diffuse across small, medium, and premium bakeries and how suppliers, peers, and training actors influence adoption. Methods: A cross-sectional mixed-methods design was used. Quantitative data were collected from 90 bakery owners or managers, with equal allocation across small, medium, and premium outlets. Qualitative evidence was obtained from 15 semi-structured interviews with owners, suppliers, trainers, and advisory actors. Descriptive statistics, Pearson chi-square tests, and thematic analysis were interpreted through the Diffusion of Innovations and Technology-Organization-Environment frameworks. Results: Premium bakeries recorded the highest overall innovation index (80), followed by medium bakeries (57) and small bakeries (36). Digital tools were adopted more widely because they were relatively affordable, visible to customers, and easy to trial. Bakery category was significantly associated with the reported drivers and barriers. Equipment and ingredient innovation was constrained by capital cost, skill gaps, supply inconsistency, and uncertainty about returns, particularly among small bakeries. Supplier demonstrations and peer observation were the strongest diffusion channels. Conclusion: Innovation diffusion in Indore's bakery sector is uneven, socially mediated, and shaped by organizational readiness. Inclusive modernization requires practical demonstrations, affordable trials, supplier support, and locally relevant training for smaller bakeries.
Keywords:
Bakery Sector, Diffusion of Innovation, Digital Transformation, Food Smes, Indore, Mixed Methods, Supplier Networks, Technology AdoptionDownloads
References
Alawamleh, M., Al-Hussaini, M., & Bani Ismail, L. (2022). Open innovation in the food industry: trends and barriers—a case of the Jordanian food industry. Journal of Global Entrepreneurship Research, 12(1), 279-290. https://doi.org/10.1007/s40497-022-00312-6
Baker, J. (2011). The technology–organization–environment framework. Information Systems Theory: Explaining and Predicting Our Digital Society, 1, 231-245. https://doi.org/10.1007/978-1-4419-6108-2_12
Bisht, B., Rawat, K., Vohat, A., Jangid, N., Singh, N., Nishinari, K., ... & Kumar, V. (2025). Industry 4.0 digital transformation: Shaping the future of food quality. Food Control, 170, 111030. https://doi.org/10.1016/j.foodcont.2024.111030
Braun, V., & Clarke, V. (2021). Thematic analysis: A practical guide. SAGE Publications.
Creswell, J. W., & Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3rd ed.). SAGE.
Crupi, A., Del Sarto, N., Di Minin, A., Gregori, G. L., Lepore, D., Marinelli, L., & Spigarelli, F. (2020). The digital transformation of SMEs–a new knowledge broker called the digital innovation hub. Journal of Knowledge Management, 24(6), 1263-1288. https://doi.org/10.1108/JKM-11-2019-0623
Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555-590. https://doi.org/10.5465/256406
De Mattos, C. S., Pellegrini, G., Hagelaar, G., & Dolfsma, W. (2024). Systematic literature review on technological transformation in SMEs: a transformation encompassing technology assimilation and business model innovation: CS de Mattos et al. Management Review Quarterly, 74(2), 1057-1095. https://doi.org/10.1007/s11301-023-00327-7
District Administration Indore. (2026, July 13). District Indore, Government of Madhya Pradesh. https://indore.nic.in/en/
Fetters, M. D., Curry, L. A., & Creswell, J. W. (2013). Achieving integration in mixed methods designs—principles and practices. Health Services Research, 48(6pt2), 2134-2156. https://doi.org/10.1111/1475-6773.12117
Frambach, R. T., & Schillewaert, N. (2002). Organizational innovation adoption: A multi-level framework of determinants and opportunities for future research. Journal of Business Research, 55(2), 163-176. https://doi.org/10.1016/S0148-2963(00)00152-1
Garzoni, A., De Turi, I., Secundo, G., & Del Vecchio, P. (2020). Fostering digital transformation of SMEs: a four levels approach. Management Decision, 58(8), 1543-1562. https://doi.org/10.1108/MD-07-2019-0939
Greenhalgh, T., Robert, G., Macfarlane, F., Bate, P., & Kyriakidou, O. (2004). Diffusion of innovations in service organizations: systematic review and recommendations. The Milbank Quarterly, 82(4), 581-629. https://doi.org/10.1111/j.0887-378X.2004.00325.x
Gupta, S., & Jagtap, S. (2024). Unlocking digital growth: overcoming barriers to digital transformation for Indian food SMEs. Discover Food, 4(1), 55. https://doi.org/10.1007/s44187-024-00131-6
Hassoun, A., Jagtap, S., Garcia-Garcia, G., Trollman, H., Pateiro, M., Lorenzo, J. M., ... & Câmara, J. S. (2023). Food quality 4.0: From traditional approaches to digitalized automated analysis. Journal of Food Engineering, 337, 111216. https://doi.org/10.1016/j.jfoodeng.2022.111216
Hu, W., Fernández-Olmos, M., & Depetris-Chauvin, N. (2026). Quality over Quantity: The Role of Digital Adoption Depth in Driving Firm Flexibility and Sustainability. Cleaner Environmental Systems, 100399. https://doi.org/10.1016/j.cesys.2026.100399
Kahveci, E. (2025). Digital transformation in SMEs: enablers, interconnections, and a framework for sustainable competitive advantage. Administrative Sciences, 15(3), 107. https://doi.org/10.3390/admsci15030107
Kallmuenzer, A., Mikhaylov, A., Chelaru, M., & Czakon, W. (2025). Adoption and performance outcome of digitalization in small and medium-sized enterprises. Review of Managerial Science, 19(7), 2011-2038. https://doi.org/10.1007/s11846-024-00744-2
Kapoor, K. K., Dwivedi, Y. K., & Williams, M. D. (2014). Rogers’ innovation adoption attributes: A systematic review and synthesis of existing research. Information Systems Management, 31(1), 74-91. https://doi.org/10.1080/10580530.2014.854103
Lohr, S. L. (2021). Sampling: design and analysis. Chapman and Hall/CRC. United Kingdom.
Marczewska, M. (2024). Digital transformation: a challenging opportunity for the food industry companies. British Food Journal, 126(5), 2027-2040. https://doi.org/10.1108/BFJ-01-2023-0065
Martínez-Peláez, R., Escobar, M. A., Félix, V. G., Ostos, R., Parra-Michel, J., García, V., ... & Mena, L. J. (2024). Sustainable digital transformation for SMEs: a comprehensive framework for informed decision-making. Sustainability, 16(11), 4447. https://doi.org/10.3390/su16114447
Melesse, T. Y., & Orrù, P. F. (2025). The digital revolution in the bakery sector: Innovations, challenges, and opportunities from Industry 4.0. Foods, 14(3), 526. https://doi.org/10.3390/foods14030526
Ministry of Food Processing Industries. (2025). State profile: Madhya Pradesh. Government of India. https://www.mofpi.gov.in/
Ndiata, F. K., Masood, T., & Mehnen, J. (2025). Enabling digital transformation in food manufacturing small and medium enterprises: key drivers, barriers and strategic frameworks. Journal of Innovative Digital Transformation, 2(3), 233-251. https://doi.org/10.1108/JIDT-02-2025-0008
Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press. United States
Sedgwick, P. (2014). STATISTICAL QUESTION Cross sectional studies: advantages and disadvantages. BMJ-British Medical Journal, 348. https://doi.org/10.1136/bmj.g2276
Selviaridis, K., & Spring, M. (2022). Fostering SME supplier‐enabled innovation in the supply chain: the role of innovation policy. Journal of Supply Chain Management, 58(1), 92-123. https://doi.org/10.1111/jscm.12274
Sharma, M. (2026, April 16). West Asia crisis hits Indore confectionery units; makers slash output by 50%. The Times of India. https://timesofindia.indiatimes.com/city/indore/west-asia-crisis-hits-indore-confectionery-units-makers-slash-output-by-50/articleshow/130292806.cms
Sikombe, S., & Phiri, M. A. (2019). Exploring tacit knowledge transfer and innovation capabilities within the buyer–supplier collaboration: A literature review. Cogent Business & Management, 6(1), Article 1683130. https://doi.org/10.1080/23311975.2019.1683130
Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. Lexington Books. Maryland
Vahdanjoo, M., Sørensen, C. G., & Nørremark, M. (2025). Digital transformation of the agri-food system. Current Opinion in Food Science, 63, 101287. https://doi.org/10.1016/j.cofs.2025.101287
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view1. MIS Quarterly, 27(3), 425-478. https://doi.org/10.2307/30036540
Wang, X., & Cheng, Z. (2020). Cross-sectional studies: strengths, weaknesses, and recommendations. Chest, 158(1), S65-S71. https://doi.org/10.1016/j.chest.2020.03.012
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Journal on Recent Trends in Business and Tourism (IJRTBT)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
