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Interactions Among Factors Influencing Product Innovation and Innovation Behaviour: Market Orientation, Managerial Ties, and Government Support

Author

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  • Natenapang Thongsri

    (Department of Tropical Agriculture and International Cooperation, National Pingtung University of Science and Technology, Pingtung 9120, Taiwan)

  • Alex Kung-Hsiung Chang

    (Department of Business Administration, National Pingtung University of Science and Technology, Pingtung 91201, Taiwan)

Abstract

Ongoing globalization and changing customer needs make it increasingly difficult for firms to survive in the long term. Innovation is considered an important tool for firms in this environment. In particular, a firm’s ability to cultivate innovative behaviour and implement product innovation for sustainability is important. This study explores resources and capabilities to enhance firm innovation behaviour and implementation of sustainable product innovation. The results provide insights on how firms can manage strategies for future sustainable innovations. We used a sample of 645 small- and medium-sized enterprises and presented the conceptual framework according to a resource-based view and relational capital. We specified three independent factors that enhance sustainable innovation and superior performance: market orientation, managerial ties, and government support. We used a questionnaire survey and structural equation modelling to evaluate the conceptual model. We found that interactions between business ties, customers, and competitor orientation can enhance sustainable product innovation, whereas interactions between government support and political relations can enhance the sustainability of innovation behaviour. Moreover, product innovation and innovation behaviour are mediators that can lead to superior firm performance. The results suggest ways entrepreneurs and public policy makers can promote sustainable innovation.

Suggested Citation

  • Natenapang Thongsri & Alex Kung-Hsiung Chang, 2019. "Interactions Among Factors Influencing Product Innovation and Innovation Behaviour: Market Orientation, Managerial Ties, and Government Support," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2793-:d:231576
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    Cited by:

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    3. Wendy Anzules-Falcones & Sylvia Novillo-Villegas, 2023. "Innovation Capacity, Entrepreneurial Orientation, and Flexibility: An Analysis from Industrial SMEs in Ecuador," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    4. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    5. Sunyoung Park, 2019. "Identification of Overall Innovation Behavior by Using a Decision Tree: The Case of a Korean Manufacturer," Sustainability, MDPI, vol. 11(22), pages 1-54, November.
    6. Erstu Tarko Kassa & Tilahun Getnet Mirete, 2022. "Exploring factors that determine the innovation of micro and small enterprises: the role of entrepreneurial attitude towards innovation in Woldia, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    7. Rasha A. A. ElNaggar & Mayar Farrag ElSayed, 2023. "Drivers of business model innovation in micro and small enterprises: evidence from Egypt as an emerging economy," Future Business Journal, Springer, vol. 9(1), pages 1-17, December.
    8. Jianhong He & Hongmin Chen & Fu-Sheng Tsai, 2020. "Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China," Sustainability, MDPI, vol. 12(1), pages 1-20, January.

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