Exploring strategic resources and open innovation practices in regional wine clusters: insights from SMEs in Brazil

Purpose This study aims to examine the strategic resources and open innovation practices of small and medium-sized enterprises (SMEs) within a Brazilian wine cluster, focusing on their knowledge management strategies for product and process development and their openness to external collaborations. Design/methodology/approach The research uses a mixed-methods approach, based on interviews, questionnaires, field observations and document analysis conducted with 19 wineries in the Midwest region of Santa Catarina, Brazil. Data were transcribed, coded and analyzed using a systematic methodological framework to ensure robustness and validity. Findings The findings indicate that knowledge appropriation for product and process innovation remains low, with wineries predominantly relying on industrial property registration as a protective mechanism against knowledge spillovers. While firms exhibit strong engagement with suppliers and customers, their interactions with universities, research institutes and sector associations are limited, suggesting a preference for a semi-closed innovation model. Research limitations/implications Its focus on a single regional cluster limits the generalizability of findings. Practical implications The study highlights the need for enhanced engagement in open innovation among SMEs in traditional industries. Strengthening collaboration with external knowledge sources, such as research institutions and industry associations, could enhance the innovation capacity and market positioning of wineries. Social implications Adopting open innovation practices could drive local economic development, create jobs and strengthen the regional innovation ecosystem. Originality/value This research advances the literature on open innovation in traditional industries by integrating resource-based theory and open innovation frameworks. It provides empirical insights into how SMEs in a wine cluster manage strategic resources and interact within their innovation ecosystem, offering relevant implications for policymakers and industry stakeholders.