Abstract
The aim of the study is to investigate the effect of competition strategies and product innovation on firm performance and to examine the mediating role of product innovation in relation between competitive strategies and firm performance. One of quantitative methods questionnaire technique was used to test the proposed theoretical model. The research sample 225 enterprises which was listed in Istanbul Chamber of Industry (ISO) The data collection process was completed in June-July-August 2021. In this study, data were collected by questionnaire method. The obtained data were analyzed using regression analysis. The hypothesis that the idea of competitive strategies affects firm performance level was tested with simple linear regression and it was found that the hypothesis was significantly supported. According to the regression results are examined, in simple regression models in which competitive strategies and product innovation are the independent variables and firm performance is the dependent variable, it is seen that competitive strategies (β=0.654; t=16.543) and product innovation (β=0.632; t=8.043) have been seen that it has a positive and statistically significant effect on performance. Thus, in the multiple regression model product innovation variable has mediating role, between competitive strategies and firm performance. In addition, as for relationship of firm performance with the sub factors of competitive strategies, the correlation is found to be the highest between focus strategy and firm performance.
Highlights
Today, with the effect of globalization, the intensity of competition has increased rapidly and businesses have implemented some competitive strategies in order to gain competitive advantage
According to results of analysis the Cronbach Alpha reliability coefficient of the scales used in the study was 86.4% for competitive strategies, 85.7% for firm performance and 83.3% for product innovation
As a result of the factor analysis for the items of the competitive strategies scale, which is the independent variable of the research model, the KMO value was found to be 0.920 after some iteration
Summary
With the effect of globalization, the intensity of competition has increased rapidly and businesses have implemented some competitive strategies in order to gain competitive advantage. Competitive strategy is a set of decisions that describe how the business will address customers, whether it will target a particular or all of the market in which it operates, and what methods it will use to compete with its competitors. According to Porter, the presence of new entrants to the sector in which a business operates can cause a negative effect on profitability by causing current prices to decrease. In this case, the costs that businesses have to bear increase. Differentiation and focus strategies to combat the five forces he identified
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