Product Innovation Performance Research Articles

How does a firm’s digital business strategy affect its innovation performance? An investigation based on knowledge-based dynamic capability

Purpose While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance. Design/methodology/approach Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling. Findings The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance. Originality/value This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Locus of control, environment, and small-medium business performance in pilgrimage tourism: The mediating role of product innovation

Small and medium businesses in pilgrimage tourism are one of the most vulnerable sectors in the post-pandemic due to product innovation and business activities. This study aims to investigate the impact of locus of control and environment on business performance, as well as to examine the role of product innovation. The data of this research were retrieved using a self-administered survey from small and medium businesses on Islamic pilgrimage in East Java of Indonesia. Using structural equation modeling, the findings indicate that locus of control and environment can support product innovation and small-medium business performance. Furthermore, this present research shows that there is a robust link between product innovation and performance. This research also reveals that product innovation partially mediates the link between locus of control and business performance, as well as the environment and small-medium business performance in pilgrimage tourism. These findings raise the need for small and medium enterprises to take the initiative for product innovations to escalate business performance.

PRODUCT INNOVATION, MARKETING INNOVATION AND BUSINESS PERFORMANCE RELATIONSHIP OF MALAYSIAN PRODUCT INDUSTRIES: MEDIATING EFFECT OF DESIGN MANAGEMENT

Due to the increasing significance of design management and innovation to business performance, it is critical for the product sectors to stay up with the world's rapid changes in economic model and technology. As a result, industrialized countries regard design management as a competency that falls under the umbrella of innovation management. The objectives of this study are to identify the relationship between product innovation and marketing innovation on the business performance of Malaysian product industries, to analyze the effect of product innovation and marketing innovation on design management of Malaysian product industries, to examine the effect of design management on the business performance of Malaysian product industries and to test the mediating effect of design management between innovation and marketing innovation. This study uses a mixed method of qualitative and quantitative research design to collect data from 386 respondents from Malaysia's product industries. Simple random sampling was utilized to acquire the required data using a verified questionnaire. Furthermore, the qualitative survey data was analyzed using the Partial Least Square Structural Equation Model (SmartPLS3-SEM) in early phase as back data for qualitative method and for qualitative concerns, the researcher is using Likert scale form for subject matter expert to validate the gathered data with the hypothesis based on the findings of this study to check on the validity of the data gathered. In accordance to this research, the researcher defines “Malaysian Product Industries” as a group of small and medium enterprises in the services, primary agriculture and Information & Communication Technology (ICT) sectors that are enterprises and private company with full-time employees not exceeding 50 or with annual sales turnover not exceeding RM5 million. This study presents empirical evidence that the effect of design management on the relationship between innovation types and business success in Malaysia's product industries could lead to increased company performance. This research could assist the product industries better their businesses by identifying critical factors that contribute to greater business performance.

The mediating role of marketing management in the relationship between online presence and product innovation among SMEs

PurposeThis study explores the mediating role of marketing management in the relationship between online presence and product innovation among Small and Medium Enterprises (SMEs).Design/methodology/approachThe sample comprises 205 Costa Rican SMEs collected by the Global Competitiveness Project during the first half of 2019. The data were analyzed using a two-stage modeling strategy for ordinary regression models to analyze mediation effects.FindingsMarketing management as a strategic resource or capability accounts for the relationship between online presence and product innovation performance in SMEs, meaning that online presence resources require complementary organizational capabilities in marketing management to enhance product innovation.Originality/valueThis study, grounded in the resource-based view theory, contributes to the innovation field by identifying marketing management capabilities as an intermediate strategic interaction between online presence and product innovation performance in SMEs. Thus, managers should recognize the advantages of integrating marketing management principles and tactics into online presence tools to realize the value of their products by tailoring them to their client’s needs.

Enhancing SME Success: Exploring the Nexus of Marketing Capability, Product Innovation, and Financial Performance

Abstract: This study investigates the relationships between marketing capability, product innovation, and financial performance in small and medium-sized enterprises (SMEs). Data were collected from a diverse sample of 50 SMEs operating across various industry sectors in Mataram City, West Nusa Tenggara. Participants were selected using stratified sampling to ensure representation across different demographic groups. The measurement scales for marketing capability, product innovation, and financial performance were adapted from established instruments in the literature and further validated through a pilot test. The results reveal significant positive relationships between marketing capability and both product innovation and financial performance. However, the hypothesized relationship between product innovation and financial performance was not supported. These findings underscore the importance of investing in and enhancing marketing capabilities as a strategic imperative for SMEs seeking to drive innovation and achieve sustainable financial success.

THE IMPACT OF PRODUCT AND PROCESS INNOVATIONS ON FINANCIAL RESULTS: АN EMPIRICAL STUDY OF RUSSIAN COMPANIES

The relationship between product and process innovation and financial performance remains largely unexplored, especially for Russian firms. An analysis of publications on this topic shows both a positive and a negative relationship. At the same time, there are no empirical studies based on Russian companies. This study was conducted on the basis of empirical data from 137 Russian companies. The study shows that investment in R&D has a positive effect on the financial results of the company; and the financial results of the companies depend on the type of innovation (product or process) that the companies carry out.Conducting R&D and scientific research related to product and process innovations can increase the profitability of sales, which characterises the financial results of Russian companies.  In addition, it was concluded that the relationship between process innovations and financial results is stronger than the relationship between product innovations and financial results, which means that it is more profitable to develop and implement process innovations.

THE EFFECTS OF WORK-LIFE BALANCE, ORGANISATIONAL LEARNING CAPABILITY, AND TRANSFORMATIONAL LEADERSHIP ON PRODUCT INNOVATION PERFORMANCE

This study significantly advances innovation management literature by analysing the impact of work-life balance (WLB), organisational learning capability (OLC), and transformational leadership (TL) on product innovation performance (PIP). By employing Partial Least Squares Structural Equation Modelling (PLS-SEM) combined with Necessary Condition Analysis (NCA), it clarifies the roles of these variables in Brazil’s manufacturing sector. Data from 332 organisations revealed that OLC and TL are vital for enhancing PIP, while WLB, though not directly influential, is crucial for innovation. This finding offers a new understanding of WLB’s role in innovation management and highlights the complexity of factors driving product innovation. Integrating NCA with PLS-SEM, this research enriches theoretical debates and provides practical insights for optimising innovation strategies. It fills a gap in the literature by analysing how these key factors interact to impact PIP, contributing to both academic research and practical innovation management.

Unlocking the potential of digital transformation: a dual-chain mediation model for product innovation performance in manufacturing

ABSTRACT This study investigates how digital transformation enables product innovation performance. Drawing on the two factors of collaboration, specifically interaction and integration, this research introduces variables encompassing both intra- and inter-organisational communication as well as resource integration. A dual-chain mediation model is constructed to examine the underlying mechanism by which digital transformation enhances product innovation performance in manufacturing firms. Results from 268 questionnaires indicate: (1) Digital transformation alone is not enough to drive product innovation performance. Instead, firms need to enhance both intra- and inter-organisational communication to promote resource integration. (2) The chain mediation effect of intra-organisational communication and resource integration is stronger than that of inter-organisational communication and resource integration. This suggests that merely improving intra-organisational communication through digital transformation is insufficient and that increased resource integration is necessary to effectively promote product innovation performance. Conversely, when digital transformation enhances inter-organisational communication, it increases product innovation performance. (3) A fit effect is observed between intra- and inter-organisational communication, significantly influencing resource integration. This research contributes to the existing literature by elucidating the two-stage logic of collaboration and highlighting the complementary effect of intra- and inter-organisational communication on resource integration between digital transformation and product innovation performance.

HOW DIGITAL TRANSFORMATION CAN AFFECT PRODUCT INNOVATION PERFORMANCE MSMES: EVIDENCE FROM WEST JAVA

This study aims to examine the relationship of foresight capability to the innovation performance of SMEs by using digital transformation as a mediating variable. This study uses a quantitative research method. Data collection was carried out through a structured offline questionnaire. The technique of determining the sampling is done by using purposive sampling. The population in this study were SMEs originating from the West Java region, with a total of 187 questionnaires collected. This research uses structural equation modeling (SEM) to test the hypothesis. This study proposes ten hypotheses, of which seven direct effect hypotheses and three hypotheses test the mediating effect. The study's results found that foresight capability can affect product innovation performance. The effect of foresight capability (network and analysis) can affect digital transformation, but the time horizon cannot affect digital transformation. Digital transformation can affect the performance of MSMEs product innovation. This study found that digital transformation can partially mediate network relationships and analysis on product innovation performance and cannot mediate time horizon relationships on product innovation performance. The findings of this study enrich the foresight literature, digital transformation, and innovation performance of MSMEs products.

Transformation of SMEs: Strengthening Entrepreneurship and Product Innovation as Key Drivers of Business Evolution

The important role of Small and Medium Enterprises (SMEs) in driving economic growth requires a deep understanding of the factors that influence their performance. The number of samples in this study was 175 respondents, processed using the Structural Equation Modeling (SEM) method through the AMOS (Analysis of Moment Structure) program. This research explores the dynamics of entrepreneurial competence and product innovation as the main determinants of SME success. In the context of SMEs that have survived for two years in Gowa Regency, South Sulawesi, this research reveals that increasing entrepreneurial competence has a positive impact on business performance. Simultaneously, effective product innovation is proven to make a significant contribution to superior business outcomes. This study also highlights the mediating role of the market environment, demonstrating its influence on the relationship between entrepreneurial competence, product innovation, and business performance. These findings provide valuable insights for policy makers, educators and business actors who aim to increase the competitiveness and adaptability of SMEs amidst rapid business change.

Management and marketing innovations: the role of management practices, international learning, and impacts on innovation performance

This paper investigates the role of management practices and international learning in management and marketing innovations. Additionally, it examines whether these innovations have impact on innovation performance. Based on data drawn from the World Bank Enterprise Survey for Turkish firms, the results of the empirical analyses indicate that while management practices and international learning from exporting and technology licensing contribute to management innovation, only management practices favor marketing innovation. Furthermore, the findings show that both types of innovation foster product innovation performance. This study aims to advance research on management and marketing innovations by considering management practices and international learning as antecedents, and by exploring innovation performance consequences of non‐technological innovations in an emerging economy.

Green process innovation, green product innovation, leverage, and corporate financial performance; evidence from system GMM

Natural resource usage has produced various environmental challenges. Green process innovation has been considered a viable option that can help both industry and society. This study investigates the impact of green process innovation and green product innovation on corporate financial performance. We based our findings on a sample of 280 listed non-financial firms operating in South Asia. Information was gathered from firms' annual and CSR reports from 2012 to 2022. This study's data was analyzed using a two-step dynamic panel system GMM, correlation analysis, multicollinearity diagnostic tests, and descriptive statistics. Corporate financial performance is measured with ROA, ROE and Tobin's Q. Overall findings of the study show that green innovation has a significant positive impact on all measures of financial performance. Investing in the innovation of green products and green process can assist businesses in avoiding environmental concerns and regulatory penalties, while also assisting them in establishing new market prospects and achieving new levels of success with their green products. In addition, developing products that are friendly to the environment is tightly connected to expanding green competencies, promoting a company's green image, and improving the company's financial performance. Particularly useful for policymakers in developing countries, the study's findings can be used to introduce paradigm-shifting legislation and penalties that speed up business adoption of green process innovation.

Determinants of Market Performance: The Role of Proactive and Reactive Innovation on Product and Organizational Innovation

This study is to investigate the inconclusiveness of product innovation on market performance in the context of Indonesian furniture company association’s members (HIMKI). We refer to Resource Advantage Theory of Competition to develop an integrated model using proactive and reactive innovations as independent variables while product and organizational innovations as mediating variables. The population of this research is 227 furniture companies with the minimum revenue of over IDR 5 billion per year and remains in business for the last of five consecutive years. We use simple random sampling techniques and 143 companies were selected as respondent then analyzed using Structural Equation Modeling. The result finds that product innovations directly and indirectly effect significantly by proactive and reactive innovations on market performance. Surprisingly, organizational innovation does not effect significantly on market performance neither as its mediating variable of proactive innovation. The originality of this study is that, this integrated model proves the direct and indirect effect of proactive and reactive innovation on product innovation and market performance significantly positive. This study has successfully identified adoption level of innovation that makes organizational innovation has no effect on market performance.

THE NEXUS OF BIG DATA ANALYTICS, KNOWLEDGE SHARING, AND PRODUCT INNOVATION IN MANUFACTURING

In today‘s highly competitive business environments, manufacturers face stiff competition. As digital technologies have become more pervasive, many businesses in the manufacturing sector have begun to tap into the potential of big data analytics to gain an edge in their markets. Companies in the manufacturing sector can gain a significant competitive advantage by strategically utilizing big data analytics to uncover profound insights that have the potential to significantly enhance their capabilities in product innovation. This research delves into communication’s role as a go-between for big data analytics and product innovations’ success at manufacturing firms. The validity and reliability of the measurement scales were first thoroughly examined in this study. The research model was then tested using structural equation modeling and process macro analysis. The analytical findings unveil those big data analytics exert a pronounced, positive, and statistically significant impact on product innovation performance and information-sharing dynamics. Furthermore, it is discerned that information-sharing exerts a substantial and affirmative influence on the capacity for product innovation. Additionally, it is established that the impact of big data analytics on product innovation performance undergoes moderation by the information-sharing mechanism.

Fueling SMEs’ product innovation through entrepreneurial passion during COVID-19: The role of dynamic capability and environmental opportunities

Abstract COVID-19 may not only pose threats but also provided opportunities for innovation and growth for many high-tech small- and medium-sized enterprises (SMEs). This study investigates the relationship between entrepreneurial passion (EP), dynamic capability (DC) for innovation and product innovation performance in SMEs during COVID-19. Hierarchical regression and bootstrapping methods were employed per the survey data of 195 Chinese SMEs. The results reveal that EP is an imperative antecedent of DC and product innovation. DC also positively mediates the relationship between SMEs’ product innovation performance and top managers’ EP. In addition, this mediation effect of DC becomes more pronounced when firms are facing more opportunities. These findings advance the existing literature by specifying the process top managers use to cultivate product innovation within SMEs in times of crisis.

Linking Green Innovation to Firm Success: Cost Leadership’s Mediating Role in Vietnam

ABSTRACT Purpose Although most previous studies proposed a positive relationship between green innovation and firm performance, the mechanisms of different types of competitive advantages in the above relationship have not been examined. The aim of the study is to examine the relationship between green innovation and firm performance with the participation of cost leadership competitive advantage as the role of a mediator. Methodology/Approach The study used structural equation model employing partial least squares method (PLS-SEM) to examine the hypotheses. Data was collected using a questionnaire via a survey. Results based on information provided by 121 middle and senior managers of firms that engage in manufacturing in Vietnam were analyzed using SmartPLS 3 software. Findings The results indicate that both dimensions of green innovation including green product innovation and green process innovation improve performance of manufacturers in Vietnam. Further, cost leadership competitive advantage fully mediates the relationship between green process innovation and firm performance but does not act as a mediator in the relationship between green product innovation and firm performance. Research Implications The study’s findings confirm the positive influence of green innovation on firm performance. Moreover, the study emphasizes the diversity of competitive advantages in the role of mediating the relationship between green innovation and firm performance. Practical Implications The study supports the importance of green innovation in enhancing performance. Also, the findings help manufacturers in selecting which type of green innovation suits best with low-cost strategies and serves as value-creating tools. Specifically, manufacturers can prevent costly pollution and improve productivity, achieve economies of scale, thus attaining increased cost efficiency through green process innovation. Originality/Value/Contribution of the paper The study first distinguished types of competitive advantages, then focused on and attempted to address the value-capturing mechanism in which green innovation serves as a means of value creation via cost leadership competitive advantage. The study provides a plausible explanation for the contradictory findings of previous studies on the relationship between green innovation and firm performance. Moreover, in an effort to examine the relationships between environmental activities and their consequences in emerging markets where related researches are scarce, this research was operated in Vietnam, an emerging country that is a manufacturing hub.

Antecedents to Firm Performance and the Moderating Role of Environment Turbulence

Innovation is necessary for all industries' growth and sustainability, including the pharmaceutical sector. The study has focused on the pharmaceutical sector of Karachi to examine the impact of product, process, marketing, and organizational innovations on firm performance. It also examined the moderating role of environmental turbulence. The study collected a sample of 423 employees from the target firms. We found: "product innovation, process innovation, marketing innovation, and organizational innovation positively affect firm performance." We also found that (i) environmental turbulence moderates product innovation and firm performance, and (ii) environmental turbulence insignificantly moderates process innovation and firm performance. Past studies exhibit that innovation impacts business performance differently due to intensive competitive markets and environmental influence.  Thus, to achieve high business performance, firms must focus on all the dimensions of innovation (i.e., product, process, marketing, and organization). Environmental turbulence, directly and indirectly, affects firm performance. Therefore, firms must deal with it adequately.     

Improving The Tofu Industry's Direction and Marketing Performance Through The Mediation of Product Innovation

This research aims to understand how product innovation influences the relationship between entrepreneurial orientation and marketing success in the context of Johor Bahru's tofu and milk industries. The data for this study were collected in a random manner from a sample of 70 participants who were small company owners. Research tools in the form of questionnaires were utilized to gather the data. Partial Least Square (PLS) was used for technical analysis of the gathered data. In the context of tofu milk manufacturing in Johor Bahru, Malaysia, the results show that an entrepreneurial mindset is positively correlated with product innovation and marketing performance. Moreover, this phenomenon serves as a catalyst for small enterprises to consistently innovate their product offerings, mitigate potential risks, broaden their market reach, enhance operational efficiency, and engage in fierce competition within the food industry's manufacturing sector.

THE IMPACT OF EXTERNAL SUPPLY CHAIN AND SUSTAINABLE COMPETITIVE ADVANTAGE ON THE PRODUCT INNOVATION PERFORMANCE: THE MODERATING ROLES OF INNOVATION TYPE

This study delves into the intricate interplay between external supply chain dynamics, sustainable competitive advantage, innovation types, and product innovation performance. Through a comprehensive exploration, this research seeks to shed light on the relationships and their implications for organizations.
 The conceptual framework was constructed by introducing demographic variables such as position, company type, capitalization, etc. The minimum acceptable sample size for this study was calculated to be 384 and 520 valid questionnaires were distributed and returned to the companies in different industries through stratified sampling method, and hypotheses were formulated. Through related research, it was concluded that there is a strong positive relationship between the effectiveness of the external supply chain and the product innovation performance of an organization, there is a significant positive relationship between sustainable competitive advantage and product innovation performance, and innovation type does not have a significant moderating effect on the relationship between the external supply chain and product innovation performance. This study lays the groundwork for future research to explore deeper nuances in external supply chains, sustainable competitive advantage, and innovation types to enrich the collective knowledge of innovation and supply chain management.

Entrepreneurial Orientation and Product Innovation Performance of MSMEs in West Java: Foresight Capabilities as a Mediating Variable

MSMEs have become the foundation for growth in various countries, including Indonesia. Especially in West Java, MSMEs play an essential role in absorbing labour. However, MSMEs in West Java face an uncertain business environment and difficulties in creating products that suit market needs. This research will use the Resource Based View (RBV) and Dynamic Capability View (DCV) theories. This research examines the influence of entrepreneurial orientation on the innovation performance of MSMEs by using foresight capabilities as a mediating variable. 245 MSMEs were collected as respondents to fill out the survey questionnaire. The MSMEs used in this research are from West Java, with the main characteristics of operating for more than one year and developing new products for at least two years. Structural equation modeling (SEM) was used to test the research framework. It was found that entrepreneurial orientation can influence the innovation performance of MSMEs positively and significantly. The influence of foresight capabilities on MSME product innovation performance has a positive effect. The mediating effect of foresight capabilities on the relationship between entrepreneurial orientation and product innovation performance was partially mediated. MSMEs that behave more entrepreneurially benefit from being more proactive, innovative, and risk-taking in an uncertain market environment. Product innovation can be achieved through a good understanding of entrepreneurial orientation mediated by an understanding of Foresight to process information for future decisions. Finally, managerial and theoretical implications and future research are presented.