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An Exploration of the Influence of Innovations on Organizational Performance: A Dynamic Capabilities Perspective

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New Perspectives in Operations Research and Management Science

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Abstract

This research explores the impact of dynamic innovation capabilities on firm performance, investigating how alliances and networks improve the focal firm’s capabilities. We examine four innovation capabilities and their effect on profitability, performance, and growth of companies in the food industry. Drawing on the extant literature on innovation and dynamic capabilities theory, we develop six hypotheses to explain the relationship between different innovation capabilities and firm performance. We test the proposed research model and hypotheses using partial least squares structural equation modeling (PLS-SEM) with primary data from the food industry in Greece. Results indicate that dynamic innovation capabilities play a crucial role in improving profitability, growth, and overall firm performance through ordinary innovation capabilities. This study provides critical insights into innovation capabilities in the food industry. These insights are significant because prior studies have not investigated the relative effects of different innovation capabilities on profitability, growth, and overall firm performance, particularly the interrelationships between dynamic and ordinary innovation capabilities. The generalization of the study results may be limited due to the sample size.

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Acknowledgments

The authors wish to thank Jiyao Chen for his thorough and helpful feedback on an earlier version of this manuscript.

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Correspondence to Aristides Matopoulos .

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Appendix A Data Collection Tool and Indicator Loadings

Appendix A Data Collection Tool and Indicator Loadings

Table 6 Constructs and corresponding indicators with their loadings

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Matopoulos, A., Aktas, E. (2022). An Exploration of the Influence of Innovations on Organizational Performance: A Dynamic Capabilities Perspective. In: Topcu, Y.I., Önsel Ekici, Ş., Kabak, Ö., Aktas, E., Özaydın, Ö. (eds) New Perspectives in Operations Research and Management Science. International Series in Operations Research & Management Science, vol 326. Springer, Cham. https://doi.org/10.1007/978-3-030-91851-4_9

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