Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises

Abstract

A firm's strategic orientation determine its business direction and scope of operation. Several researchers have tried to identify how strategic orientations affect business development. However, only a few scholars have explored how strategic orientations shape a firm's organizational capability. In addition, the extent to which radical innovation contributes to a firm's operations has not been well researched. Given these research shortcomings, this study explores the integration of firms' strategic orientations, radical innovation, competitive advantages, and business performance within a conceptual framework. A sample of 86 cultural and creative firms was obtained. The results of the regression analysis and of the PLS SEM model are compared in this study. Our findings suggest that factors from either market orientation or entrepreneurial orientation add to a firm's radical innovation capability and adoption. Lastly, the brand advantage is identified to be the most important factor in firms' performance after a radical innovation capability and product advantage. This paper offers several contributions to the research. First, it advances knowledge of the strategic orientations of cultural and creative firms in a developing market. Second, it demonstrates the usefulness of radical innovation capability in profiling the development of competitive advantages. Lastly, it adds to our understanding of factors that facilitate the business performance of cultural and creative entrepreneurs.

Generating Intangible Resource and International Performance: Insights Into Enterprises Organizational Behavior and Capability at Trade Shows

“…Research on the success of enterprises includes theoretical and empirical studies on the organizational behaviors, strategic planning, and resource competitiveness (Barney, 1991;Grant, 2016;Shih, 2018) of firms across many different commercial markets and industries. When exploring the reasons why firms participate in trade shows, researchers focus on two distinct perspectives: selling and non-selling.…”

“…According to researchers in the resource-based view, strategy theory, and competitive advantages, intangible resources may include: reputation, relationships (Arnett & Madhavaram, 2012), innovation (Antoldi, Cerrato, & Depperu, 2013), or organizational culture (Shih, 2017), all of which are difficult to imitate. The importance of intangible resources for a firm's successful internationalization has been also explored (Lages et al, 2009;Hongchindaket, Kittisarn, & Neck, 2013;Grant, 2016;Shih, 2017Shih, , 2018. The following sections provide detailed discussions.…”

“…Successful innovation can make external imitation more difficult, and allow firms to better sustain competitive advantage (Lages et al, 2009;Chen et al, 2009) and further support long-term business performance (Teece, 2007). The benefits gained from innovation capability contribute to a firm's results (Wang, 2014;Shih, 2018) and global market performance (Ribau, Moreira, & Raposo, 2017). In this study, to identify firms' innovation performance, four aspects are measured: (1)…”

“…Good organizational arrangements and capabilities can establish specific resources for enterprises, obtain positive feedback, build a virtuous cycle of performance. Hence, intangible resources are more important than in the past and are cultivated by enterprises (Shih, 2018). There are many types of intangible resources, including branding, reputation, organizational culture, marketing, relationships, technology, and innovation (Barney, 1991;Haase & Franco, 2016).…”

The Relationship of Causal Factors Affecting the Future Equilibrium Change of Total Final Energy Consumption in Thailand’s Construction Sector under a Sustainable Development Goal: Enriching the SE-VARX Model

“…Throughout their study, they found that perceived usefulness (PU) and perceived ease of use (PEOU) are observed to be the key factors affecting BI. Shih [30] did a study to identify the determinants of different factors: enterprises' strategic orientations, competitive advantages, radical innovation and business performance with a sample of 86 firms via regression analysis using the PLS SEM model. This study concluded that a firm's radical innovation capability and adoption can be enhanced through either market orientation factor or entrepreneurial orientation factor, while brand advantage has a significant impact on firms' performance.…”