Abstract
Innovation efforts aim to attain important competitiveness by improving performance criteria. It has led to very strong ties between innovation and performance, which is also accepted by the recent business understanding. The purpose of the current study, which is designed in compliance with this understanding, is to examine the effect of innovation strategies on business performance in enterprises using high technology. Innovation strategies consist of 6 dimensions: proactive strategy, risk-oriented strategy, defensive strategy, future-oriented strategy, offensive strategy, and analytical strategy. Business performance was measured as product performance, employee-based performance, customer-based performance, financial performance, and process performance. The study involved the innovation strategies and business performance scale developed by Morgan and Strong (1998), Chandy and Tellis (1998), and Eskici (2020). The current study conducted a survey on 346 managers of companies operating in Turkey and using high technology. The obtained data were analyzed with the help of JAMOVI and SPSS 26.0 programs. Exploratory factor analysis, confirmatory factor analysis, Pearson correlation, and regression analysis methods were used in empirical analysis. The result determined that innovation strategies are effective on business performance. In other words, future-oriented strategy is effective on the product, customer-based, employee-based, financial, and process performances of enterprises. On the other hand, it was determined that future-oriented strategy and risk-oriented strategy are not effective on enterprises' product, customer-based, employee-based, financial, and process performances. In addition, offensive, analytical, defensive, proactive, and risk-oriented strategies are ineffective in process performance. Analytical, defensive, future-oriented, and proactive strategies are effective on product performance, customer-based performance, and financial performance of businesses. As a result, it was determined that innovation strategies affect customer-based performance (R2=0.687) and financial performance (R2=0.701) of companies more.
Highlights
Marketing products and processes by integrating them with scientific evolutions and the desire to provide commercial returns by taking serious risks have made innovation indispensable in increasing business performance
It has led to very strong ties between innovation and performance, which is accepted by the recent business understanding
The current study considers the paper by Venkatraman (1989) as the basis for creating hypotheses and innovation strategies discussed in their 6 dimensions
Summary
Marketing products and processes by integrating them with scientific evolutions and the desire to provide commercial returns by taking serious risks have made innovation indispensable in increasing business performance. Businesses that have to keep up with the change to survive in the globalizing commercial life should care about innovation. It has become a must for businesses (Steele and Murray, 2004) since globalization has made innovation an effective weapon for businesses to expand their market penetration with new products (Liao and Rice, 2010). Innovation, which is considered to be an activity that fosters business performance (Kaplan and Norton, 1996), is a critical factor that has a significant impact on both the success and sustainability of the firm and industry (Cozzarin, 2006; Brown and Maylor, 2005)
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