Literature recognizes innovation as a positive phenomenon, capable of creating value. The research analyzes the innovative dynamics as regards fresh unprocessed horticultural products, and outlines some of their developmental and diffusion trajectories. By using the Grounded Theory Methodology, the research intends to generate theory through the description and understanding of processes, while maintaining a considera- ble degree of flexibility. The paper shows that innovation may change some of the distribution channel orders, but that the structural constraints of the supply chain in certain circumstances may act by inhibiting these changes, sometimes to the point of influencing the outcome of the innovation process.
Keywords: Grounded Theory, innovation, channel relationships, retail, supply chain, agriculture.