Marketing Innovation: Firm's Competitive Advantage Strategy
Marketing Innovation: Firm’s Competitive Advantage Strategy
A brief literature Review
Innovation is widely regarded as a vital source of competitive advantage in an increasingly changing environment. In today’s vibrant and ever changing competitive environment which is characterized by high degree of technological progress innovation capability is the most important determinant of firm performance. Although, technological innovations are important for developing new products and to maintain survival strength, yet they are not sufficient for turning any firm into dominant economic player in the market. According to a paper prepared from the Danish Centre for Studies in Research and Research Policy (2005), innovation has become more market driven and less R&D driven following the market orientation of the firms nowadays. Innovation policy has taken on a broader scope, increasing emphasis on “non-technical” forms of innovation, market driven innovation, knowledge transfer and firm’s capacity to capture and utilize knowledge.
The broad premise of this literature suggests that the ability to innovate is a “key mechanism for organizational growth and renewal”. In times of environmental turbulences such as during an economic crisis, the need for innovation has been recognized as imperative to survive, be it a technological or marketing. The ability to innovate in marketing has recently gained in prominence as one such dynamic competence that distinguishes firms which outperform their competitors.Most studies examining market orientation have investigated a direct relationship with performance. However, a few others have inferred innovation as a moderating variable between market orientation and performance. This paper extends this debate by suggesting that the link between marketing innovation and firm’s performance is mediated by the ability of the firm to develop and sustain a competitive advantage. Competitive advantage, for the purpose of
A brief literature Review
Innovation is widely regarded as a vital source of competitive advantage in an increasingly changing environment. In today’s vibrant and ever changing competitive environment which is characterized by high degree of technological progress innovation capability is the most important determinant of firm performance. Although, technological innovations are important for developing new products and to maintain survival strength, yet they are not sufficient for turning any firm into dominant economic player in the market. According to a paper prepared from the Danish Centre for Studies in Research and Research Policy (2005), innovation has become more market driven and less R&D driven following the market orientation of the firms nowadays. Innovation policy has taken on a broader scope, increasing emphasis on “non-technical” forms of innovation, market driven innovation, knowledge transfer and firm’s capacity to capture and utilize knowledge.
The broad premise of this literature suggests that the ability to innovate is a “key mechanism for organizational growth and renewal”. In times of environmental turbulences such as during an economic crisis, the need for innovation has been recognized as imperative to survive, be it a technological or marketing. The ability to innovate in marketing has recently gained in prominence as one such dynamic competence that distinguishes firms which outperform their competitors.Most studies examining market orientation have investigated a direct relationship with performance. However, a few others have inferred innovation as a moderating variable between market orientation and performance. This paper extends this debate by suggesting that the link between marketing innovation and firm’s performance is mediated by the ability of the firm to develop and sustain a competitive advantage. Competitive advantage, for the purpose of