The effects of innovation on firm performance of supporting industries in Hanoi, Vietnam

Abstract

Abstract:Purpose: Innovation, including product, process, marketing, and organizational innovation within a firm, is considered as one of essential component for surviving and growing. These innovation activities create value and competitive advantages for successful organizations; therefore, understanding the organization's overall innovation is the first and foremost to understand the role of innovation on firm performance. The objective of this research is to explore two parts: the impacts of innovation on the different aspect of innovation performance, then their effects to firm performance (production, market, and financial performance). Findings: The result demonstrated there are positive effects of process, marketing, and organizational innovations on firm performance in supporting firms. More specifically, the higher the level of innovation activities is, the greater the innovative performance is, which means the larger level of Process, organization and marketing innovation activities are, the higher level of innovative performance are likely to be. Secondly, the higher level of Process, organization and marketing innovative performance, the better level of firm performances is likely to be. To sum up, in order to improve the innovative and firm performance, those firms in supporting industry should highly concentrate on process, marketing, and organizational innovation activities, rather than product innovation activities.Originality/value: Initially, this study applies successfully the model which supposing innovation is a process, then clarifying innovation definition through the impact of innovation activities on innovative performances. Secondly, this research confirmed the positive impact of innovative performances on firm performances. It provided one more empirical evidence of the relationship between innovation and firm performance. For practitioners, organizational innovation and process innovation are more important factors affecting innovative performance and firm performance than product and marketing innovation. Therefore, enterprises should focus and mobilize resources to create improvement in organizational structure and manufacturing processes.

The Impact of Innovation, Competitive Advantage, and Market Orientation on Firm's Marketing Performance in the Garment Industry in Indonesia

“…Firms that innovate will restore their weakened performance in the midst of very tight competition (Tuan et al, 2016). An innovation strategy can increase marketing performance and become the main weapon for firms when facing industrial competition.…”

Análisis de las relaciones entre los tipos de innovaciones y el desempeño empresarial en parques tecnológicos

“…La implementación de innovación de marketing aplicada aparentemente no logró aumentar el desempeño (Astuti et al, 2018). Si desea mejorar el rendimiento innovador, las empresas deben centrarse en las actividades de innovación de procesos, marketing y organización, en lugar de las actividades de innovación de productos (Tuan, Nhan, Giang, & Ngoc, 2016). De esta forma son presentadas las Hipótesis 4, 5 y 6.…”

“…Los resultados de los análisis estadísticos, permiten afirmar que existen interacción entre los tipos de innovación (Azar & Ciabuschi, 2017;Gunday et al, 2011;Karabulut, 2015;Medrano & Olate-Pascual, 2016;Pino et al, 2016;Ulusoy et al, 2008)various papers investigate the effects of the technological (product and process y de estas innovaciones con el desempeño de las empresas (Gunday et al, 2011;Madrid-Guijarro et al, 2013;Pino et al, 2016). Incluso en las empresas que residen en un ecosistema de innovación, se encontraron resultados rechazados diferentemente de estudios hechos en otros ambientes como el de las empresas de manufactura en Turquía (Gunday et al, 2011), pequeñas y medianas empresas en España (Medrano & Olate-Pascual, 2016), empresas exportadoras de las economías emergentes de América del Sur (Pino et al, 2016), en empresas de apoyo a la industria de mecánica, electrónica y automóvil en Hanoi, Vietnam (Tuan et al, 2016).…”

The Impact of the Internet on Experience Services and the Cost of Information: An Updated Conceptual Model of Innovation vs. Imitation and Firm Performance in Services.

“…Innovation is used to invigorate and renew organizations. Innovation can also redefine markets, industries, and lead organizations to increased competitiveness and performance (Tuan, Nhan, & Ngoc, 2016;Dotzel & Shankar, 2019). The advantages associated with innovation and first-movers, often revolve around the benefits of building competitive barriers, which include usurping market share (Kerin, Varadarjan, & Peterson, 1992); building brand and customer loyalty (Pappu & Quester,2016); achieving economies of scale (Yang, Sang-Gun & Lee, 2013); and causal ambiguity (Reed &DeFillippi, 1990).…”