Abstract
New product innovation and R&D are important sources for firms to obtain competitive advantages, and market knowledge is the core element for firms to obtain new product innovation performance. However, it can be also found out that the relevant discussion upon innovation has been still limited to restricted theories and the developing empirical researching area by reviewing the literature. Based on knowledge-based theory, a questionnaire survey of 220 high-technology and internet firms in China was conducted to empirically analyze the relationship between innovation driven, potential absorptive capacity, and new product innovation performance. The study found that: the potential absorptive capacity mediates the relationship between market orientation and new product performance, technological opportunity and new product performance, and the potential absorptive capability positively adjusts the relationship between technological opportunities and realized absorptive capacity. It is possible to understand more clearly the process of firms acquiring and digesting information, transforming and mining knowledge to achieve new product innovation performance by analyzing the process of knowledge absorption and conversion.
Highlights
In the era of knowledge economy, with the market competition becoming gradually more and more intense, firms that facing the dynamic, complicated and highly uncertain competition environment shall take the continuous innovation as the responding strategy for survival and development in order to maintain the advantageous competition capacity (Porter, 1980)
In model 1, the independent variables are 3 control variables; firm establish time, firm scale and firm stage as well as market orientation, while the dependent variable is new product innovation performance. This model aims at studying the effects of these control variables and market orientation on new product innovation performance
There is a relative lack on the formation of absorptive capacity and internal change mechanisms, and there are still differences in the function path of absorptive capacity on new product innovation performance
Summary
In the era of knowledge economy, with the market competition becoming gradually more and more intense, firms that facing the dynamic, complicated and highly uncertain competition environment shall take the continuous innovation as the responding strategy for survival and development in order to maintain the advantageous competition capacity (Porter, 1980). According to the authoritative data from National Development and Reform Commission of China, around 150,000 firms are born in China every year while annually about 100,000 come to death; almost 60% bankrupt within 5 years while 85% in 10 years; more impressively, private firms share a 2.4-year-old life on average. It is just because of the rapid changing of the market and the progress in technology that the amount of competitors from different industries and different areas is becoming larger and larger. Developing new products with unique benefits is crucial for firms to increase profits (Langerak, Hultink, & Robben, 2004; Li & Calantone, 1998)
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