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Market success of innovations in the retail sector

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  • Stojcic, Nebojsa
  • Vojvodic, Katija

Abstract

It is widely acknowledged that innovations hold the key to the better performance and the competitiveness of firms. Yet, evidence across countries reveals that only a small proportion of firms engage in innovation activities. To some extent, this can be attributed to the high rate of failure to commercialize innovation efforts. Bearing the above said in mind, this paper explores which factors and forces determine decision of firms to innovate and the market success of their innovations. A generalised tobit model is applied to the sample of firms from the retail sector of 26 transition economies collected between 2007 and 2009. The results of investigation identify foreign ownership as the most important determinant of innovation success in transition economies but also offer some interesting findings about multichannel retailing practice.

Suggested Citation

  • Stojcic, Nebojsa & Vojvodic, Katija, 2012. "Market success of innovations in the retail sector," MPRA Paper 109131, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:109131
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    innovation; retail; market success; transition; generalised tobit; firm behaviour;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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