Food Tech Startups and AI-Driven Innovation: Transforming The Future of the Food Industry

J. Saradha; K. Veeramanikandan; S. Kavisarathi; P. Gayathri

doi:10.34293/sijash.v14iS1-June.11199

J. Saradha Assistant Professor, Department of Management Studies, SRM Institute of Science and Technology, Tiruchirappalli
K. Veeramanikandan 1st M.B.A, Hallmark Business School, Trichy
S. Kavisarathi 1st M.B.A, Hallmark Business School, Trichy
P. Gayathri II BBA, SRM Institute of Science and Technology, Tiruchirappalli

DOI: https://doi.org/10.34293/sijash.v14iS1-June.11199

Keywords: FoodTech Startups, Artificial Intelligence, Innovation Capability, Sustainability, Startup Performance

Abstract

The digital transformation of the global food industry has accelerated the emergence of FoodTech startups leveraging artificial intelligence (AI) to enhance innovation, efficiency, and sustainability. This study investigates how AI-driven innovation influences startup performance and environmental outcomes within the FoodTech ecosystem. Grounded in the Resource-Based View and Dynamic Capabilities Theory, the research proposes an integrated framework linking AI adoption to innovation capability, operational efficiency, supply chain agility, and sustainability outcomes. A sequential explanatory mixed-method design was employed. Quantitative data were collected from 248 FoodTech startups and analyzed using Structural Equation Modeling, followed by qualitative interviews with 20 founders to contextualize the findings. Results reveal that AI adoption significantly enhances innovation capability and operational efficiency, which in turn improve startup performance. Supply chain agility mediates the relationship between AI adoption and sustainability outcomes, demonstrating AI’s role in reducing food waste and optimizing resource utilization. Entrepreneurial orientation and funding access strengthen the impact of AI implementation. The findings suggest that AI serves as a strategic capability rather than a mere technological tool, enabling competitive advantage and sustainable growth in the evolving food industry.