Abstract
The research aimed to assess the influence of multiple dimensions of innovation on performance. The research is motivated from the possible impact of the internal organizational factors on the firm performance. We investigate the effect of dynamic capabilities such as product innovation, process innovation, and innovation culture on the firm performance. We collect a sample of 115 respondents and unique primary data from the executives of Indian firms. Established scales were used to design the survey instrument. A measurement model was developed in AMOS to conduct the confirmatory factor analysis and validate the scale again. A path model was developed to test the hypotheses. We find support for process innovation but not for product innovation and innovation culture. We extend the analysis further to understand whether the size of the firms has differences in the results. We find further support for innovation culture in large-size firms. We discuss the results in the Indian context to substantiate our hypotheses.
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This revision has helped us to improve our research articulation, our understanding of our research areas, and it was an opportunity for an immense amount of learning. We like to thank the editor in chief and the esteemed reviewers for their valuable comments, which had helped us to bring this manuscript to the stage where it is now.
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Appendix: Items of the questionnaire
Appendix: Items of the questionnaire
Constructs | Manifest | Code |
|---|---|---|
Product innovation | New product and service introduction, company is often first-to-market | PDI1 |
Products and services are often perceived as very novel by customers | PDI2 | |
Products and services often take you up against competitors | PDI3 | |
Company has introduced more innovative products and services during past 5 years. | PDI4 | |
Constantly emphasizes development of particular and patent products | PDI5 | |
Manages to cope with market demands and develop new products quickly | PDI6 | |
Continuously modifies design of your products and rapidly enters new emerging markets | PDI7 | |
Firm manages to deliver special products flexibly according to customers’ order | PDI8 | |
Firm continuously improves old products and raises quality of new products | PDI9 | |
Process innovation | Development of new channels for products and services offered by your organization is an ongoing process | PRI1 |
Firm deals with customers’ suggestions or complaints urgently and with utmost care | PRI2 | |
Organization does R&D process improvements where they are required | PRI3 | |
In comparison with competitors, your company has introduced more innovative products and services during past 5 years | PRI4 | |
Entering new markets, new pricing methods, new distribution methods, etc., company is better than competitors | PRI5 | |
Organization does R&D process improvements where they are needed | PRI6 | |
Innovative culture | Innovation proposals are welcomed by management | IC1 |
Management actively seeks innovative ideas | IC2 | |
Your management perceives innovation as too risky and is resisted | IC3 | |
People are not penalized for new ideas that do not work | IC4 | |
Program/project managers promote and support innovative ideas, experimentation and creative processes | IC5 | |
Innovation is very much reflected in organization’s vision statement | IC6 | |
Firm performance | Market share | FP1 |
Sales revenue of new products | FP2 | |
Profitability | FP3 | |
Productivity | FP4 | |
ROI | FP5 | |
Inventory turnover | FP6 |
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Gupta, A.K., Gupta, N. Innovation and Culture as a Dynamic Capability for Firm Performance: A Study from Emerging Markets. Glob J Flex Syst Manag 20, 323–336 (2019). https://doi.org/10.1007/s40171-019-00218-5
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DOI: https://doi.org/10.1007/s40171-019-00218-5