The main determinants and effects of product innovation: An exploratory study on the pastry companies of the region of Sfax (in Tunisia)

Abstract

The handicraft sector is an important field that has suffered from a certain degradation in recent times (compared to the high-tech sector). To shed some light on one of its branches, i. e. the pastry, the present study proposes to explore and draw the attention on the main determinants of product innovation within Tunisian pastry enterprises, in order to highlight its challenges and effects on financial performance.More particularly, based on an exploratory qualitative study conducted on ten Tunisian pastry companies from the region of Sfax, the current research examines the nature of the effects of innovation capabilities, management control systems, and product quality on the nexus between product innovation and financial performance of those companies.The findings demonstrate that the extent of those effects varies according to the size of the pastry enterprises (small companies or big international firms), taking into account the quality approach and the degree of management control systems' deployment. This study can help researchers and pastry entrepreneurs/managers to pinpoint the main factors that may assist them to improve their financial performance.