Radical innovation, incremental innovation, and competitive advantage, the moderating role of technological intensity: evidence from the manufacturing sector in Jordan

Abstract

Purpose The purpose of this paper is to identify the effect of radical innovation and incremental innovation on the competitive advantage of Jordanian industrial companies and identify the moderating role of technological intensity. Design/methodology/approach For this study’s purposes, 303 questionnaires from employees of 30 manufacturing firms were analysed. Convergent validity and discriminant validity tests were performed through structural equation modelling in the Smart-PLS programme. Data reliability was confirmed. A bootstrapping technique was used to analyse the data. Multi-group analysis was performed to investigate the moderating role of technological intensity. Findings Empirical results showed that both radical innovation and incremental innovation explain 60.2% of the variance in competitive advantage and that both constructs have a statistically significant effect on competitive advantage. The results also revealed that the relationship between radical innovation and competitive advantage is modified through the high-tech industries. Meanwhile, the relationship between incremental innovation and competitive advantage is modified through the low-tech industries. Research limitations/implications This cross-sectional study provides a snapshot at a given moment in time, a methodological limitation that affects the generalization of its results and the results are limited to one country, Jordan. Practical implications This study promotes the idea of focusing on radical and incremental innovation to enhance competitive advantage in the Jordanian manufacturing sector and knowing the effect of technological intensity in this relationship. Originality/value This study has important implications for leaders in the Jordanian manufacturing sector in general, as the study highlights the importance of radical innovation and incremental innovation to enhance the competitive advantage, especially in light of the technological intensity in this sector, and thus, increase the innovative capabilities of this firms, which leads to an increase in the level of competitive advantage.

Can big data analytics capabilities promote a competitive advantage? Green radical innovation, green incremental innovation and data-driven culture in a moderated mediation model

“…Several studies in the literature, such as the studies of Anderson et al. (2014), Al-Khatib and Al-ghanem (2022) and Lin et al. (2013), confirmed that innovation is one of the main resources and determinants in creating CA.…”

“…A firm's ability to exploit resources and provide new products and services helps them establish innovation as a mainstay in their organizational and production activities (Lennerts et al, 2020). Several studies in the literature, such as the studies of Anderson et al (2014), Al-Khatib and Al-ghanem (2022) and Lin et al (2013), confirmed that innovation is one of the main resources and determinants in creating CA.…”

“…The industrial sector is considered one of the most vital sectors in the Jordanian economy (Al-Khatib and Al-ghanem, 2022). This sector has grown in recent years, particularly in firms characterized by a high knowledge density, such as pharmaceutical firms (Barghouth et al, 2021).…”

“…(2020a, b), agreed that GI can be divided into two main parts in terms of novelty: green radical innovation (GRI) and green incremental innovation (GII). According to Al-Khatib and Al-ghanem (2022), radical innovation is generally associated with major changes to products and services that require significant investments and risks, while incremental innovation is linked to the company's level of improvements and minor additions to products and services that make them innovative. According to Chen (2008), GI plays an important and vital role in achieving sustainable performance, thus creating long-term CAs (Qiu et al.…”

Intellectual capital and innovation performance: the moderating role of big data analytics: evidence from the banking sector in Jordan

“…Mikalef et al (2020) emphasised that big data analytics can improve the radical and incremental innovation capabilities within companies. For instance, big data analytics can be used to assess new consumer patterns and latent preferences in customers, which can create innovative opportunities and new markets and may lead to competitive advantages (Al-Khatib and Al-ghanem, 2021).…”