This study explains the role of local wisdom as community-based knowledge within the open innovation ecosystem of community enterprises in Thailand. It investigates the mechanisms through which local wisdom generates multidimensional impacts on economic, social, cultural, and sustainability outcomes, and proposes the PCEI (Place–Capability–Ecosystem–Impact) conceptual model. A qualitative multiple-case study was conducted across regions of Thailand, drawing on data from 38 key informants, including entrepreneurs, group leaders, and representatives from supporting institutions. Cases were selected using purposive and theoretical sampling based on criteria such as a minimum of three years of operation, evidence of innovation rooted in local wisdom, and active engagement with ecosystem actors. The findings provide empirical evidence that: (1) local wisdom operates as place-embedded knowledge reflected in context-specific practices and resource use; (2) this knowledge is transformed into organizational and collective capabilities through codification, learning, and standardization; (3) multi-actor ecosystem interactions involving communities, public agencies, universities, and market actors enable knowledge exchange, coordination, and innovation development; and (4) these mechanisms generate sustainability outcomes, including enhanced competitiveness, income stability, cultural preservation, and ecological resilience. Overall, the results demonstrate that the PCEI framework is empirically grounded in observed processes, offering a process-oriented explanation of how local wisdom contributes to sustainable competitiveness. The study highlights the role of ecosystem governance in supporting community-based innovation in emerging economies.
Nakudom et al. (Wed,) studied this question.