Relationship Between Innovation and Performance in Private Companies: Systematic Literature Review

Abstract

This article conducts a systematic literature review (SLR) on the relationship between innovation and performance in private companies. The research corpus was based on research protocol systematization. Dissemination of knowledge was examined in two stages: the summary of general corpus characteristics, and the content analysis performed according to the categories that emerged via the study's themes. Relationships among authors, co-citations, keywords, and centrality statistics were identified through algorithms for optimizing standard graph layout. This study discusses the results of this relationship for improving the competitiveness of enterprises. The relationships among the authors of the corpus constitute relationships between isolated groups with little connectivity, low density, and a formation of distinct communities. The categories of analysis emerged in the study themes, as well as the techniques adopted to measure the relationships between innovation and private company performance. In the analyzed studies, innovation initiatives converge. Overall, they contribute to improvements in company performance. In the scientific field, initiatives for developing innovations have enhanced the performance of private companies. A key theoretical contribution of this article is in identifying the research corpus on the relationship between innovation and performance in private companies. The practical contribution of this study lies in offering evidence produced by studies that can help decision making regarding the creation of strategies and policies focused on competitiveness. The differences in the evidence found in the literature highlight the importance of the outcome of this study and indicate the need for future research in an effort to better understand the phenomenon.

Performance implications of combining creative and imitative innovation strategies

“…Thus, the results from our overall sample provide support for the viability of those three innovation strategies. The findings are consistent with studies that extol the benefits of creative innovation (Bach et al, 2019;Damanpour and Evan, 1984;Damanpour et al, 2009), imitative innovation (Wang et al, 2019), and the synergistic (Lee et al, 2019) or combinative effects of different types of innovation (Arranz et al, 2019;Ballot et al, 2015;Doran, 2012;Tavassoli and Karlsson, 2016).…”

The impact of entrepreneurship on managerial innovation capacity: The moderating effects of policy finance and management support

“…Managerial innovation enhances firm performance because innovative activities make a firm more competitive and transforms a firm's internal capabilities (Alzuod & Kharabsheh, 2015;Rogers, 1998). Previous research found that managerial innovation in enterprises is closely related to the firm performance dimensions and the quality of services (profitability and market share as important non-financial firm performance indicators), and positively increases customer satisfaction and Return of Investment (ROI) (Daugherty, Chen, & Ferrin, 2011;Liao, Wang, Chuang, Shih, & Liu, 2010;Uzkurt, Kumar, Kimzan, & Eminoglu, 2013). The following hypothesis reflects the prediction that managerial innovation activities will affect management performance.…”

The Impact of Training and Innovation on Organizational Performance in the Hospitality Industry in Malaysia: Job Satisfaction as Mediator

“…This research also verifies that training conducted in the hotels for the employees could enhance the hotel's organisational performance as stated by (Garavan et al, 2021;Kanapathipillai & Azam, 2020;Samwel, 2018;Gobal et al, 2018;Daniel, 2018;David et al, 2005;Jenks et al, 2007) in previous studies. Additionally, a hotel that innovates could also amplify its organisational performance as illuminated by (Koay & Muthuveloo, 2021;Asif et al, 2019;Tatiana et al, 2019;Tajeddini's, 2012) that innovation significantly influences and enhances organisational performance.…”

“…Several scholars have discovered that innovation significantly leads to organisational performance and job satisfaction (Asif et al, 2019;Tatiana et al, 2019).…”