Product Innovation a Tool for Sustaining a Firm’s Competitiveness Globally through Customer Satisfaction.
DOI:
https://doi.org/10.47941/jbsm.2397Keywords:
Customer satisfaction, competitive advantage, consumer, product innovation, sustainability.Abstract
Purpose: Innovation has become an element of strategic importance for sustaining products because the cost of R&D including marketing activities is reduced but levels of consumption and the company’s sales and profits increase. Rapid shifts in consumer tastes and preferences present a challenge for businesses looking to gain a competitive edge in satisfying their clientele and winning their loyalty through innovative product development. The objective of the study was to find out whether innovation (continuous) is efficient in achieving customer satisfaction that results in increasing a firm’s competitive advantage in the market globally. In this paper the researcher examined the factors that sustains customer satisfaction due to innovation and make it a necessity for achieving competitive advantage.
Methodology: A population of 300 samples were drawn from both industry and customers. Questionnaires were administered on the respondents and interviews held for the staff and management for the selected companies. Purposive and convenient sampling techniques were used. The regression method of analysing data was employed.
Findings: The findings of the study reveal that innovation particularly (continuous innovation) is relevant to companies because it is tailored towards the changing tastes, preferences and culture of the market. It also can capture the non-inclusive customers, stimulate immediate trial and restore previously purchased patterns. Customer satisfaction boosts revenue, fosters customer loyalty, ensures business continuity, and establishes the company's competitive advantage.
Unique Contribution: Innovation (continuous) occasioned by customer satisfaction is most often successful because it rides on the publicity and the market advantages the earlier version of the brand enjoyed and reduces the cost of R&D than totally new-to-the-world products (discontinuous innovation). Product innovation of this nature has a shorter period between conception and introduction.
Downloads
References
Agyemang F G, Boateng H, Dzandu M D. (2017). Examining intellectual stimulation, idealized influence and individualized consideration as an antecedent to knowledge sharing: Evidence from Ghana [J]. Knowledge Management and E-Learning, 9(484-98.
Anderson & Sullivan1993.The Antecedents and Consequences of Customer Satisfaction
for Firms. Management sciences journal 12(2):125-143.
Antonelli, C., F. Crespi, and G. Scellato. 2010. Inside innovation persistence: New evidence from Italian micro-data, Working paper No. 10/2010, Universitá di Torino, Department of Economics.
Atalay M, Anafarta N, Sarvan F. (2013). The relationship between innovation and firm performance: Empirical evidence from Turkish automotive supplier industry [J]. Procedia-social and behavioral sciences, 2013, 75(226-35.
Ayyub S, Xuhui W, Asif M, et al. (2020). Determinants of intention to use Islamic banking: A comparative analysis of users and non-users of Islamic banking: evidence from Pakistan [J]. International Journal of Islamic and Middle Eastern Finance and Management, 13(1): 147-63.
Bentz, F. (1997). Managing Technological Innovation: Competitive Advantage from Change. New York: Wiley.
Benitez J, Castillo A, Llorens J, et al. (2018). IT-enabled knowledge ambidexterity and innovation performance in small US firms: The moderator role of social media capability [J]. Information & Management, 55(1): 131-43.
Beise-Zee, R. (2022). Brand equity retention after rebranding: a resource-based perspective. Journal Brand Management 29, 208–224.
Breitling K, Scholl W. (2022). Success of process innovations through active works council participation [J]. Frontiers in Psychology, 13(79-91).
Chen C-F, Wang J-P. (2016). Customer participation, value co-creation, and customer loyalty–A case of airline online check-in system [J]. Computers in Human Behavior, 62(346-52.
Chen T, Kenneth Cheng H, Jin Y, et al.(2021). Impact of competition on innovations of it industry: An empirical investigation [J]. Journal of Management Information Systems, 38(3): 647-66.
Chiesa V, Frattini F. (2011). Commercializing technological innovation: Learning from failures in high‐tech markets [J]. Journal of Product Innovation Management, 28(4): 437-54.
Christensen CM., (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press.
Clausen,T.H., .Pohjola,M.Sapprasert, and B.Verspagen. (2012). Innovation strategies as a source of persistent innovation. Industrial and Corporate Change 21: 553–85.
Clausen TM & Pohjola M. (2013) Persistence of product innovation: comparing breakthrough and incremental product innovation, Technology Analysis & Strategic Management, 25:4, 369-385, DOI: 10.1080/09537325.2013.774344
Damanpour, F. and Schneider, M. (2009) Characteristics of Innovation and Innovation Adoption in Public Organisations: Assessing the Role of Managers. Journal of Public Resources and Theory, 19, 495-522. https://doi.org/10.1093/jopart/mun021.
Dauvergne P, Lister J. (2013). Eco-business: A big-brand takeover of sustainability [M]. MIT Press.
Eisingerich A B, Rubera G.(2010). Drivers of brand commitment: A cross-national investigation [J]. Journal of International Marketing, 18(2): 64-79.
Elkington J. (1997). The triple bottom line [J]. Environmental management: Readings and cases, 2(49-66).
Forsman H. (2011). Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors [J]. Research Policy,40(5): 739-50.
Geng L, Shi X, Zu L, et al. (2021). Importance calculation of customer requirements for incremental product innovation [J]. Frontiers in Psychology, 12(633-47).
Goode, Davies, Moutinho & Jamal. (2005). Determining Customer Satisfaction from Mobile Phones. Journal of Marketing Management 21: 755-778.
Gunday G, Ulusoy G, Kilic K, et al. (2011). Effects of innovation types on firm performance [J]. International Journal of Production Economics, 133(2): 662-76.
Hoonsopon D, Ruenrom G. (2012). The impact of organizational capabilities on the development of radical and incremental product innovation and product innovation performance [J]. Journal of Managerial Issues, 250-76.
Hossain M. (2020). Frugal innovation: Conception, development, diffusion, and outcome [J]. Journal of Cleaner Production, 262(121-45.
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429-438.
Hubert M, Florack A, Gattringer R, et al. (2017). Flag up!–Flagship products as important drivers of perceived brand innovativeness [J]. Journal of Business Research, 71(154- 63.
Freeman C, Soete L. (1997). The economics of industrial innovation [M]. Psychology Press.
Jiménez-Jiménez D, Sanz-Valle R. (2011). Innovation, organizational learning, and performance [J]. Journal of Business Research, 64(4): 408-17.
Johne A. (1999). Successful market innovation [J]. Innovations management, 163-70.
Jung H S, Kim K H, Lee C H. (2014). Influences of perceived product innovation upon usage behavior for MMORPG: Product capability, technology capability, and user-centered design [J]. Journal of Business Research, 67(10): 2171-8.
Kanagal N B. (2015). Innovation and product innovation in marketing strategy [J]. Journal of Management and Marketing Research, 18(1): 1-25.
Kim N, Im S, Slater S F., (2013). Impact of knowledge type and strategic orientation on new product creativity and advantage in high‐technology firms [J]. Journal of Product Innovation Management, 30(1): 136-53.
Kotler P., Armstrong G., (2014). Principles of Marketing, European Edition. Prentice Hall, London.
Kotler P., & Keller G. (2016). Marketing Management, 12th Edition, Pearson Education, U.K.
Lee K., & Yoo J. (2019). How does open Innovation lead to Competitive Advantage? A dynamic Capability View Perspective.
Lin, C. (2006). A study on the organizational innovations in Taiwan’s logistics industry. The Business Review, Cambridge, 5(1), 270.
Loučanová E, Šupín M, Čorejová T, et al. (2021). Sustainability and branding: An integrated perspective of eco-innovation and brand [J]. Sustainability, 13(2): 732-42.
Lowe et al, (2002), International Marketing, 2nd Edition. BPP Publishing, UK.
Lowe B, Alpert F. (2015). Forecasting consumer perception of innovativeness [J]. Technovation, 45(1-14).
Lin, C. Y. (2007). Factors affecting innovation in logistics technologies for logistics service providers in China. Journal of Technology Management in China, 2(1), 22-37.
Lin B, Ma R.,(2022). Green technology innovations, urban innovation environment and CO2 emission reduction in China: Fresh evidence from a partially linear functional- coefficient panel model [J]. Technological Forecasting and Social Change, 176(121434.
Majid U. (2018). Research fundamentals: Study design, population, and sample size [J]. Undergraduate research in natural and clinical science and technology journal, 2018, 2(1-7).
Michael PE. (1985).Competitive advantage: creating and sustaining superior performance. New York: Free-Press.
Oliver, RL (1989), ‘Processing of the satisfaction response in consumption: A suggested framework & research propositions’, Journal of Consumer Satisfaction, Dissatisfaction & Complaining Behaviour, vol. 2, pp. 1-16.
Peters, B. (2009). Persistence of innovation: Stylized facts and panel data evidence. Journal of Technology Transfer 34: 226–43.
Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, 68, 73-93.http://dx.doi.org/10.1007/978-1-349-11336-1
Purchase S, Volery T. Marketing innovation: a systematic review [J]. Journal of Marketing Management, 2020, 36(9-10): 763-93.
Raymond, W., P. Mohnen, F. Palm, and S. van der Loeff. (2010). Persistence of innovation in Dutch manufacturing: Is it spurious? The Review of Economics and Statistics 92: 495–504.
Samiee S, Shimp T A, Sharma S. (2005). Brand origin recognition accuracy: its antecedents and consumers’ cognitive limitations [J]. Journal of International Business Studies, 36(379-97.
Sajjad A, Eweje G. (2014). Corporate social responsibility in Pakistan: Current trends and future directions [M]. Corporate social responsibility and sustainability: Emerging trends in developing economies. Emerald Group Publishing Limited. 163-87.
Saqib N, Satar M S. (2021). Exploring business model innovation for competitive advantage: a lesson from an emerging market [J]. International Journal of Innovation Science, 13(4): 477-91.
Sjöberg A, Wallgren C. (2013). Product innovation and the effects of CRM usage: A quantitative study [M].
Tatikonda, Weiss Kenan (2001). Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance. Journal of Management Sciences 47(1):151-172.
Tsai T-I, Lee H-Y, Chang S-H, et al. (2013). Effective sugar nucleotide regeneration for the large-scale enzymatic synthesis of Globo H and SSEA4 [J]. Journal of the American Chemical Society, 135(39): 14831-9.
Yi L, Félix Gómez B, Ramalingam B, et al., (2022). Self-reconfigurable robot vision pipeline for safer adaptation to varying pavement width and surface conditions [J]. Scientific Reports, 12(1): 145-57.
Yu and Hong (2002). Antecedents and consequences of consumer satisfaction/dissatisfaction with the performance of apparel products at purchase and after consumption: a comparison of male and female South Korean consumers. International Journal of Consumer Studies.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Richard Amoasi, Professor Xiaodan Wu, Stanley Kafui Anyomi
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
