The Relationship Between an Innovation Orientation and Competitive Strategy

Abstract

The strategy chosen in organizations is related to several factors including the organization's mission, objectives, resources, and its innovation orientation. Using a sample of Canadian organizations, this study examines the relationships between an organization's innovation orientation and the types of competitive strategies they pursue.An innovation orientation describes how innovative an organization is and the results suggest that such an orientation provides a context for the implementation of proactive growth-based strategies. Organizations that possess high innovation orientations engage in value creation strategies such as market segmentation, developing new products/services for new markets, and product or service customisation. Those organizations possessing low innovation orientations generally practice less aggressive and internally focused strategies, de-emphasising such things as customer service, brand reputation, and co-operation based strategies such as joint ventures and alliances.

Management innovation, pro-innovation organisational culture and enterprise performance: testing the mediation effect

“…Innovations in the area of management may be one of the key factors affecting the performance and development of modern organisations, operating in the turbulent environment. In the new era of innovation, when, characteristically, firms co-create new solutions with consumers and acquire resources from the outside (Prahalad and Krishnan 2008), innovation management will become one of the necessary conditions for the survival of firms or an improvement in their market position, as it shapes a firm's innovation orientation (Wood 2007;Dobni 2010) and, consequently, allows for its implementation by developing new structural solutions and designing organizational processes and human resource management systems (Ahn-Sook 2004), as well as looking for resources outside an organisation. We are convinced that the role of management innovation will gain in importance in the knowledge-based economy, in the increasingly difficult conditions of globalised economies, which require that firms seek entirely new sources of competitive advantage.…”

Innovativeness in the Face of Decline: Performance Implications

“…Multiple sources provide evidence that more innovative firms experience greater financial success (Rubera and Kirca, 2012;Dobni, 2010;Gibb and Haar, 2010;Han et al, 1998) and it is claimed that innovativeness is one of the most important mechanisms available to keep pace with the competition (Uzkurt et al, 2012). The positive connection between innovativeness and performance holds for forest sector firms (Nybakk, 2012;Knowles et al, 2008a;Crespell and Hansen, 2008;Välimäki et al, 2004).…”

Optimizing Small Enterprises Through OD, Values, And Innovation

“…The study of Dobni [3] concluded that firms which possess high innovation orientations engage in value creation strategies. Innovation itself can be regarded as an organizational capability because it is an act that deploys resources with a new ability to create value [22].…”

“…Organizations operate in very challenging environments, which makes developing innovation capability is vital. The study of Dobni [3] showed that firms who possess high innovation orientations engage in value creation strategies. Innovation plays a critical role in the survival and growth of organizations [4].…”