wordpress-themes.org wordpress themes wordpress themes

Relationships between Innovation Capabilities, Business Performance, Marketing Performance and Financial Performance: Revenues & Market Share continue

To survive and prosper, a company must be aware of changes in consumer taste to satisfy existing customers and secure new ones, (Ambler et al. 2002). Satisfying consumer requirements, means it is the central focus of an organization’s activities, (Ambler et al. 2002).
Business performance is mainly drives by an important factor which is innovation as per reviewed by Desh-pande and Farley, 2004; Fagerberg, 2005; Davila et al., 2006; Antoncic et al., 2007; Bastic, 2007) and is crucial for competitiveness (e.g. Werawardena, 2003; Bastic, 2004).

There was empirical study which confirms a positive relationship between new-product performance and business performance (Langerak et al., 2004; Ledwith and O’Dwyer, 2008). Customer loyalty, market share and sales volume is positively impacted by the effectiveness by new-product development process and the ability to successfully launch new products. Administrative, product and process innovation are related to business performance in positive way.
At the time market success or market position is achieved, it will resulted in business performance as an outcome (Day & Wensley, 1988) and essentially will change over time (Rust et al., 2004). Both levels of current and future levels of performance measure should retain business performances. As per mentioned by (Varadarajan & Jayachandran, 1999), a broad and well-balanced performance conceptualized financial and non financial methods which will assist marketers to fully reconize the performance consequences of their startegies. Business performance term is used as a general performance construct to detain both market and fiancial aspects of presentation, (Rust et al., 2004).

Conclusions and Recommendation

Based on the literature review on firm innovation capabilities have shown that to get a greater impact on the firm’s overall performance, the organisations have to implement effective innovation culture in the organisation. The organisations which implement such innovative culture, remains ahead of their competitors because this innovations ultimately affects other variables such as business performance, marketing performance and finally overall financial performance. This will help organisations to grow in a bigger scale.

This post was written by , posted on November 15, 2013 Friday at 3:09 pm