When Traditional Knowledge Meets Digitalization: The Italian High- Quality Olive Oil Value Chain and The Platformized Markets

The Agrifood sector is one of the recognized pillars of the Italian economy, generating 31,8 % of its GDP (Federalimentare, 2023) and providing labor to 17% of the Italian labor force (Istat, 2017). It is also one of the engines of the Italian exports, generating 8,1 % of annual Italian exports (Federalimentare, 2023). Some products are considered symbols of the agrifood "Made in Italy", such as pasta, olive oil, cheese, ham and wines. The agrifood sector has performed very well in the last decades, representing an excellent example of Italian food culture worldwide. In this paper, we will focus on the high-quality olive oil value chain. In 1960 the Italian government established the controlled appellation system for olive oils, designing the Protected Designation of Origin (PDO or DOP) and Protected Geographical Indicator (PGI or IGP). The support for this classification and certification is that the olive oil producers operating in a particular area owe their success primarily to the quality of their products and the inseparable link between these products and their terroir, i.e. the particular geographical area and environment that give their olive trees and olive oil their distinctive features (Vaudour, 2002; Conti et al., 2024). In addition to this classification, the production and designation of "Extra Virgin Olive Oil" was controlled and protected by European regulations. This research will analyze the high-quality olive oil value chain, to identify its internal and external strengths and weaknesses. In particular, the aim is to provide an accurate analysis of the strategic successful factors of the high-quality olive oil value chain, as well as its challenges related to market forces, climate change and certification and quality processes and identification. Secondly, this research aims to explore the implications of the new digital technologies applied to the agribusiness sector, in particular, the high-quality olive oil sector. The paper focuses on the pivotal role of digital business platforms in enabling high-quality olive oil producers to expand their market reach, optimize supply chain efficiency, and respond dynamically to evolving consumer preferences. Concerning scholars, the paper integrates the extant literature on high-quality olive oil, clearly identifying the sources of advantages of PDO and PGI olive oils in digital platformized markets. Concerning practitioners, the paper provides a multidimensional strategic framework of analysis to support the main stakeholders within the high-quality olive oil both in physical and digital ecosystems in adopting sustainable and regenerative practices for a higher co-creation of value in the value chain. Eventually, the paper will provide suggestions for future research paths.