Determinants of technological innovation success and failure: Does marketing innovation matter?

Abstract

Innovation is attracting increasing attention from public authorities, enterprises, and academics. Although emerging evidence has indicated that marketing innovation should be regarded as critical as technological innovations for enhancing companies' competitiveness, few studies have considered this topic.This study aims to address this gap by examining the role of marketing innovation in the relationship between technological innovation and innovation success and failure. This study analyses the 2010–2012 Community Innovation Survey sample of German enterprises by using a double hurdle model and a probit model with sample selection. The results show that when enterprises undertake a technological innovation, introducing a marketing innovation is observed not to play a significant role regarding innovation success and failure. Notably, when the four types of marketing innovations are disentangled in the analysis, new findings emerge. Innovation in product packaging and design is positively related to innovation success. Innovation in product promotion is negatively related to innovation success and positively related to probability of innovation failure. Academics are called to study the role of marketing innovation, regarding innovation success and failure, by devoting their attention to the level of each marketing innovation. Enterprises should then carefully consider which marketing innovation should be introduced.