A New Framework of Blue Ocean Strategy for Innovation Performance In Manufacturing Sector

Abstract

Innovation research has got a very significant value in modern research. Innovation has significantly altered the human life through research-and-development and production of technology, including the outcomes in the economy. Understanding the determinants of innovation is important because innovations establish companies' competitive advantages (Porter, 1992). In contemporary galvanized world, supremacy of new innovation strategies has taken over older strategies. There have been research on the relationship of these business strategies with innovation performance. Blue Ocean Strategy value innovates for the organization and customer. There has been a need to determine the model of BOS which supports innovation performance. But there was a great need of the empirical research on the impacts these strategies make on innovation performance in Malaysian manufacturing industries. As Malaysia is on slide on world innovation index from 31st to 37th in last five years, an alarm for academics, researchers, industry and government. This endeavor meets that objective. A research framework is tested and developed which support innovation performance. This is an empirical study so the hypothesis are formulated. It is a quantitative research study so data was collected from all over the Malaysian manufacturing organizations. PLS is used to predict the model. Results reveal that three of the five BOS constructs enhance innovation performance.