Strategic Fit Between Innovation Strategies and the Performance of Knowledge-Based Businesses
Subject Areas : Innovation and Invention
Farshad Ghaderi
1
,
Fariborz Rahimnia
2
1 - Ferdosi University
2 - Ferdosi University
Abstract :
Paying attention to the position and role of knowledge-based companies in advancing the country's economic and social goals is very important. On the other hand, the issue of dynamism and market turbulence in today's markets makes it even more important to pay attention to these businesses. The knowledge-based companies are based on innovation in business. However, the turmoil in markets and competition makes it important to pay attention to the dimensions of innovation strategies in different environmental conditions, and the business of students who do not consider innovation in line with environmental conditions may fail in innovation and will not perform well. The aim of this study is to investigate the strategic relationship between innovation strategies and business performance with the role of moderating market turbulence and environmental dynamics. The statistical population of this study includes 115 knowledge-based companies in East Azerbaijan province. In order to analyze the data, structural equation modeling method was used and the hypotheses were analyzed using AMOS software. The results showed that product innovation and process strategy have a positive relationship with business performance. However, the modification test results showed that process innovation performs better in high environment dynamics and product innovation in high market turbulence.
1- Zhou, J., Li, J., Jiao, H., Qiu, H., & Liu, Z. "The more funding the better? The moderating role of knowledge stock on the effects of different government-funded research projects on firm innovation in Chinese cultural and creative industries". Technovation, 92, 102059. 2020.
2- Miles, S. J., & Van Clieaf, M. "Strategic fit: Key to growing enterprise value through organizational capital: Business Horizons, 60(1), 55-65. 2017.
3- Aragón-Correa, J. A., García-Morales, V. J., & Cordón-Pozo, E. "Leadership and organizational learning's role on innovation and performance": Lessons from Spain. Industrial marketing management, 36(3), 349-359. 2007.
4- Chen, Z., Wanke, P., & Tsionas, M. G. "Assessing the strategic fit of potential M&As in Chinese banking: A novel Bayesian stochastic frontier approach". Economic Modelling, 73, 254-263. 2018.
5- Dai, R., & Zhang, J. "Green process innovation and differentiated pricing strategies with environmental concerns of South-North markets". Transportation Research Part E: Logistics and Transportation Review, 98, 132-150. 2017.
6- White III, G.O., Fainshmidt, S. and Rajwani, T. "Antecedents and outcomes of political tie intensity: Institutional and strategic fit perspectives". Journal of International Management, 24(1), pp.1-15.2018.
7- Shakeri, R., & Radfar, R. "Antecedents of strategic alliances performance in biopharmaceutical industry: A comprehensive model". Technological Forecasting and Social Change, 122, 289-302. 2017.
8- Zahra, S., George, G. "Absorptive capacity: a review, reconceptualization, and extension". Academy of Management Review 27 (2), 185–203. 2002.
9- Naeiji, M., Alem Najafi, S., Nourani, S. "The Impact of Strategic Orientation on SMEs Growth, the Mediator Role of Brand Performance and Market Performance". Journal of Strategic Management Studies, 9(33), 45-74. 2018.
10- Prajogo, Daniel I. "The strategic fit between innovation strategies and business environment in delivering business performance." International Journal of Production Economics 171 (): 241-249. 2016.
11- Damanpour, F., & Schneider, M. "Phases of the adoption of innovation in organizations: effects of environment, organization and top managers". British journal of Management, 17(3), 215-236. 2006.
12- Damanpour, F., & Wischnevsky, J. D. "Research on innovation in organizations: Distinguishing innovation-generating from innovation-adopting organizations". Journal of engineering and technology management, 23(4), 269-291.2006.
13- Aarikka-Stenroos, L., Jaakkola, E., Harrison, D., & Mäkitalo-Keinonen, T. "How to manage innovation processes in extensive networks: A longitudinal study". Industrial Marketing Management, 67, 88-105. 2017.
14- de Oliveira, J. A. S., Basso, L. F. C., Kimura, H., & Sobreiro, V. A. "Innovation and financial performance of companies doing business in Brazil". International Journal of Innovation Studies, 2(4), 153-164. 2018.
15- Schumpeter, J. A. "The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (Vol. 55)": Transaction publishers. 1934.
16- Feranita, F., Kotlar, J., & De Massis, A. "Collaborative innovation in family firms: Past research, current debates and agenda for future research". Journal of Family Business Strategy, 8(3), 137-156. 2017.
17- Goedhuys, M., & Veugelers, R. "Innovation strategies, process and product innovations and growth: Firm-level evidence from Brazil". Structural change and economic dynamics, 23(4), 516-529. 2012.
18- Grant, R. M. "Contemporary strategy analysis: Text and cases edition". John Wiley & Sons. 2016.
19- Kakatkar, C., Bilgram, V., & Füller, J. "Innovation analytics: Leveraging artificial intelligence in the innovation process". Business Horizons. 2017.
20- Klingenberg, B., Timberlake, R., Geurts, T. G., & Brown, R. J. "The relationship of operational innovation and financial performance—A critical perspective". International journal of production economics, 142(2), 317-323. 2013.
21- Allen S, R. Helms M.M. "Linking strategic practices and organizational performance to porter’s generic strategies", Business process Management Journal, vol. 12, No. 4, pp. 433-454. 2006.
22- Tidd, J. "Innovation management in context: environment, organization and performance". International Journal of Management Reviews, 3(3), 169-183. 2001.
23- Reimann, M., Xiong, Y., & Zhou, Y. "Managing a closed-loop supply chain with process innovation for remanufacturing". European Journal of Operational Research, 276(2), 510-518. 2019.
24- Linder, C., & Sperber, S. "Towards a deeper understanding of the emergence of process innovations: Which role do inter-organisational learning and internal knowledge exploitation play"?. Journal of Engineering and Technology Management, 53, 33-48. 2016.
25- Tsai, K. H., & Yang, S. Y. "Firm innovativeness and business performance: The joint moderating effects of market turbulence and competition". Industrial Marketing Management, 42(8), 1279-1294. 2013.
26- Zahra, S.A., Sapienza, H.J., Davidsson, P. "Entrepreneurship and dynamic capabilities: a review, model and research agenda". Journal of Management Studies43 (4), 917–955. 2006.
27- Porter, M. E. "Competitive strategy: Techniques for analyzing industries and competitors". Simon and Schuster. 2008.
28- Adams, R., Bessant, J., & Phelps, R." Innovation management measurement: A review". International Journal of Management Reviews, 8(1), 21-47. 2006.
29- Kraus, S., Rigtering, J. C., Hughes, M., & Hosman, V. "Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands". Review of Managerial Science, 6(2), 161-182. 2012.
30- Ballot, G., Fakhfakh, F., Galia, F., & Salter, A. "The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK". Research Policy, 44(1), 217-232. 2015.
31- Oeij, P. R., van der Torre, W., Vaas, F., & Dhondt, S. "Understanding social innovation as an innovation process: Applying the innovation journey model". Journal of Business Research, 101, 243-254. 2019.
32- Olson, E. M., Slater, S. F., & Hult, G. T. M. "The performance implications of fit among business strategy, marketing organization structure, and strategic behavior". Journal of marketing, 69(3), 49-65. 2005.
33- Tidd, J. "A review of innovation models". Imperial College London, 16. 2006
34- Maine, E., Lubik, S., & Garnsey, E. "Process-based vs. product-based innovation: Value creation by nanotech ventures". Technovation, 32(3), 179-192. 2012.
35- Tidd, J. Gaining momentum: "Managing the diffusion of innovations" (Vol. 15). World Scientific. 2010.
