Effect of technological innovation on firm’s performance
mediating effect of competitive advantage: a study on manufacturing firms operating in Ethiopian industrial parks
DOI:
https://doi.org/10.14488/BJOPM.2146.2024Keywords:
Technological Innovations, Product innovations, Process innovations, Competitive advantage, Firm PerformanceAbstract
Goal: This study aims to examine the relationship between technological innovation and the performance of manufacturing firms operating in Ethiopian industrial parks through the mediating effect of competitive advantage.
Design/Methodology/Approach: A mixed research-methods approach and an explanatory research design were applied to explore the relationship between the variables of the study. By using the non-probability sampling technique, the researchers collected data from 382 top and middle managers and purified it through Confirmatory Factor Analysis. To examine the effect of technological innovation and test the hypothesis, this study employed Structural Equation Modeling (SEM).
Result: The findings supported that technological innovation positively and significantly influences firms’ performance (b = 0.483, p<0.001) and competitive advantage (b = 0.583, p<0.001). Moreover, it is exposed that competitive advantage influences firm performance (b = 0.379; p<0.001). Thus, the result demonstrated that the proposed partial mediation model was accepted because the relationship between the constructs was statistically significant. The result confirms that improving technological innovation enables increased product quality and process efficiency, which leads to minimizing operational costs and offering quality products that improve firms’ success.
Limitations: The proposed model may not be generalized due to one-time data collection. Thus, it should be implemented in other business environments. The study is also limited to publicly owned industrial parks. Hence, future studies can incorporate privately owned industrial parks.
Practical Implication: This study reveals that firm managers must give attention to technological innovation and develop differentiated competitive advantages to improve firm performance. Further, policymakers are suggested to establish systematic monitoring and evaluation for effective technology transfer and knowledge spillover between local employees and foreign employees.
Originality/value: This study adds value to the current body of knowledge by addressing the mediating effect of competitive advantage in the relationship between technological innovation and firm performance.
Downloads
References
Ahmad, N., Lazim, H.M., Shamsuddin, A., Wahab, E., and Abu, N.A. (2019), “The Relationship between Technological Capability and Manufacturing Performance”, International Journal of Supply Chain Management, Vol. 8, No. 2, pp. 930-938. http://excelingtech.co.uk/.
Abdulrab, M., Al-Mamary, Y.H.S., and Alwaheeb, M.A. (2021), “Mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of Saudi SMEs”, Brazilian Journal of Operations & Production Management, Vol. 18, No. 04, e20211113. https://doi.org/10.14488/BJOPM.2021.029.
Akpoviroro, K.S., Amos, A.O., and Olalekan, A. (2021), “The Impact of Process Innovation on Organizational Performance”, Acta Universitatis Danubius. Œconomica, Vol. 15, No. 2, pp. 115-132. https://www.researchgate.net/publication/355204014.
Ali, S., Degan, M., Omar, A. B., and Mohammad, A. (2023), “Just go green: The effect of green innovation on competitive advantage with the moderating role of ‘access to finance”, Brazilian Journal of Operations and Production Management, Vol. 21, No. 2, e20241815. https://doi.org/10.14488/BJOPM.1815.2024.
Almulhim, A. F. (2020), “Linking knowledge sharing to innovative work behavior: The role of psychological empowerment”, The Journal of Asian Finance, Economics and Business (JAFEB), Vol. 7, No. 9, pp.549-560. http://doi/10.13106/jafeb.2020.vol7.no9.549.
Asghar, N., Khattak, A., Danish, M.H., Bokhari, I.J., and Waris, M. (2023), “Managerial skills, technology adaptation and firm performance: Mediating role of process innovation and product innovation”, Cogent Business & Management, 10: 2281485. https://doi.org/10.1080/23311975.2023.2281485.
Ayinaddis, S.G. (2023), “The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia”, Journal of Innovation and Entrepreneurship, Vol.12, No. 6, pp. 1-19. https://doi.org/10.1186/s13731-023-00290-3.
Bagozzi, R. P., and Yi, Y. (2012), “Specification, evaluation, and interpretation of structural equation models”, Journal of the academy of marketing science, 40, pp. 8-34. https://doi.org/10.1007/s11747-011-0278-x.
Baran, A., and Zhumabaeva, A. (2018), “Intellectual property management in start-ups—Problematic issues”, Engineering Management in Production and Services, Vo. 10, No. 2, pp. 66–74. http://doi/10.2478/emj-2018-0012.
Baron, R. M., and Kenny, D. A. (1986), “The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations”, Journal of personality and social psychology, Vol. 51, No. 6, pp. 1173. https://psycnet.apa.org/doi/10.1037/0022-3514.51.6.1173.
Ben Khalifa, A. (2023), “Impact of research and development (R&D) and information and communication technology (ICT) on innovation and productivity evidence from Tunisian manufacturing firms” Economics of Transition & Institutional Change, Vol. 31, No.2, pp. 341–361. https://doi.org/10.1111/ecot.12340.
Bezawit, A. and Kenenisa, L. (2019), “Determinants of Industrial Parks Performance in Ethiopia Emphasis on Bole Lemi Industrial Park”, Global Journal of Economics and Business, Vol. 7, No. 3, pp. 348-358.
Bocquet, R., Le Bas, C., Mothe, C., and Poussing, N. (2017), “CSR, innovation, and firm performance in sluggish growth contexts: A firm-level empirical analysis”, Journal of Business Ethics, 146, pp. 241-254. https://doi.org/10.1007/s10551-015-2959-8.
Bodlaj, M., Kadic-Maglajlic, S., and Vida, I. (2018), “Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs' export growth” Journal of Business Research, Vol. l. No.108, pp. 466-475. https://doi.org/10.1016/j.jbusres.2018.10.043
Chebo, A. K., and Y. F. Wubatie. (2020), “Commercialization of Technology through Technology Entrepreneurship: The Role of Strategic Flexibility and Strategic Alliance” Technology Analysis and Strategic Management, Vol. 33, No. 4, pp. 1– 12. http://doi/10.1080/09537325.2020.1817367.
Chen, M., Mao, S., and Liu, Y. (2014), “Big data: A survey”, Mobile networks and applications”, 19, pp. 171-209. https://doi.org/10.1007/s11036-013-0489-0.
Cimini, R. (2020), “Manufacturing and Economic Development. In The Palgrave Encyclopedia of Strategic Management”, Palgrave Macmillan.
Coad, A., Grassano, N., Hall, B. H., Moncada-Paternò-Castello, P. and Vezzani, A. (2019), “Innovation and industrial dynamics”, Structural Change and Economic Dynamics, 50, pp. 126–131. https://doi.org/10.1016/j.strueco.2019.06.008.
Correia, R. J., Dias, J. G., and Teixeira, M. S. (2020), “Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance”, Journal of Strategy and Management, Vol. 14, No.2, pp. 187-206. http://doi/10.1108/JSMA-12-2019-0223.
Dachs, B., Kinkel, S., and Jager, A. (2019), “Bringing it all back home? Back shoring of manufacturing activities and the adoption of Industry 4.0 technologies”, Journal of World Business, Vol. 54, No. 6, 101017. https://doi.org/10.1016/j.pursup.2019.02.003
Del-Carpio Gallegos, J. F. and Miralles, F. (2021), “Interrelated effects of technological and non-technological innovation on firm performance in EM – A mediation analysis of Peruvian manufacturing firms”, International Journal of Emerging Market, Vol.18, No. 8, pp.1788-1807. http://doi/10.1108/IJOEM-11-2019-0891.
Dodgson, M., Gann, D. M., and Salter, A. (2008), “The management of technological innovation: strategy and practice”, Oxford university press.
Do, H. N., Do, L. C., Tran, M. D., Dao, A. T. A., and Tran, T. T. D. (2023), “The Impact of Technological Innovation on the Performance of Vietnamese Firms”, Iranian Journal of Management Studies, Vol.16, No. 1, pp. 299-321.
Endashaw, A., Worku, M., and Mengistu, B. (2020), “Effect of Strategic Orientations On Organizational Performance: Evidence from top management of a private bank in Ethiopia”, International Journal on Leadership, Vo. 8, No.1, pp. 13-28. http://publishingindia.com/ijl/.
Falahat, M., Ramayah, T., Soto-Acosta, P. and Lee, Y. Y. (2020), “SMEs internationalization: the role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance”, Technological Forecasting and Social Change, 152, pp. 1–7. https://doi.org/10.1016/j.techfore.2020.119908.
Ferreira, J., Cardim, S., and Coelho, A. (2020), “Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: The moderating role of organizational learning capability”, Journal of the Knowledge Economy, 12, pp. 620–644. https://doi.org/10.1007/s13132-020 00655-z.
Fesseha, M.G and Bizuayehu, D.F. (2019), “Assessing the Performance of Industrial Parks (IPs) in Ethiopia: The case of Bole Lemi 1, Eastern Industry Zone and Hawassa Industrial Parks”, Social Sciences and Education Research Review (SSERR), Vol. 6, No. 1, pp. 72-111. www.sserr.ro
Fornell, C., and Larcker, D. F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of marketing research, Vol.18, No.1, pp. 39-50. http://www.jstor.org/stable/3151312.
Garcia, R. (2002), “A critical look at technological innovation typology and innovativeness terminology: A literature review”, Journal of Product Innovation Management, Vo. 19, No. 2, pp. 110–132.
Gunday, G., Ulusoy, G., Kilic, K. and Alpkan, L.(2011)”, Effects of Innovation Types on Firm Performance”. International Journal of Production Economics, 133, pp. 662-676. https://doi.org/10.1016/j.ijpe.2011.05.014.
Gurlek, M., and Tuna, M. (2017), “Reinforcing competitive advantage through green organizational culture and green innovation”, Service Industries Journal, Vol. 133 No. 2, pp. 662-676. https://doi.org/10.1080/02642069.2017.1402889.
FDRE (2015), “Industrial Park Proclamation No. 886/20 I5” The Federal Negarit Gazette, Addis Ababa.
Hajar, I. (2015), “The Effect of Business Strategy on Innovation and Firm Performance in Small Industrial Sector”, International Journal of Engineering and Science (IJES), Vol. 4, No. 2, pp 1-09.
Hendayana, Y., Ahman, E., and Mulyadi, H. (2019), “The effect of innovation on business competitiveness of small and medium enterprise in Indonesia”, International Conference on Organizational Innovation (ICOI) (pp. 116-120). Atlantis Press. https://doi.org/10.2991/icoi-19.2019.21.
Herman, H., Hady, H., and Arafah, W. (2018), “The influence of market orientation and product innovation on the competitive advantage and its implication toward Small and Medium Enterprises (UKM) performance”, International Journal of Science and Engineering Invention, Vol. 4, No.8, pp. 8-21. http://doi/10.1016/j.technovation.2011.10.003.
Hooley, G., Greenley, G., Cadogana, J. and Fahy, J. (2005), “The performance impact of marketing resources”, Journal of Business Research, 58, pp. 18-27. https://doi.org/10.1016/S0148-2963(03)00109-7.
Hult, G. T. M., Hurley, R. F., and Knight, G. A. (2004), “Innovativeness: Its Antecedents and Impact on Business Performance”, Industrial Marketing Management, Vol. 33, No. 5, pp. 429-38. https://doi.org/10.1016/j.indmarman.2003.08.015.
Huseyin I., Salih, Z.I., and Turkcana, H. (2016), “The Effect of Technological Innovation Capabilities and Absorptive Capacity on Firm Innovativeness: A Conceptual Framework”, Procedia-Social and Behavioral Sciences, 235, pp. 764 – 770. http://doi/10.1016/j.sbspro.2016.11.078.
Iragena, E., and Mulyungi, P. (2020), “Effect of Market Orientation on Organizational Performance - Case Study: Sonarwa General Insurance Company Ltd”, International Journal of Science and Research (IJSR), Vol.9, No. 4, pp. 57 – 62.
Islam, A.M., and Qamari, I. N. (2021), “Effect of Supply Chain Management on Competitive Advantage and Organizational Performance. Studies on the Batik Industry in Yogyakarta City, Advances in Engineering Research, Vol. 201, pp. 334-339. http://dx.doi.org/10.2991/aer.k.210121.047.
Jin, S. H., and Choi, S. O. (2019), “The effect of innovation capability on business performance: A focus on IT and business service companies”, Sustainability, Vol.1, No. 19, pp. 52-43. http://doi/10.3390/su11195246.
Jordao, R. V. D., and Novas, J. C. (2017), “Knowledge management and intellectual capital in networks of small-and medium-sized enterprises”, Journal of intellectual capital, Vol.18, No. 3, pp. 667-692. https://doi.org/10.1108/JIC-11-2016-0120.
Kamboj, S., and Rahman, Z. (2017), “Customer participation in brand communities on social media: A systematic literature review. International Journal of Web Based Communities, Vol. 13, No. 4, pp. 437-467. https://doi.org/10.1504/IJWBC.2017.089349.
Kasongo, A., Sithole, M., and Buchana, Y. (2023), “Empirical analysis of innovation and productivity in services firms: The case of South Africa”, African Journal of Science, Technology, Innovation and Development, Vol. 15, No. 1, pp. 1-13. https://hdl.handle.net/10520/ejc-aa_ajstid_v15_n1_a1.
Kassa, E. T., and Getnet M. T. (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, Vol. 11, No. 1, pp. 1–16. https://doi.org/10.1186/s13731-022-00214-7.
Krejcie, R. V., and Morgan, D. W. (1970), “Determining sample size for research activities”, Educational and psychological measurement, Vol. 30, No. 3, pp. 607-610. https://doi.org/10.1177/001316447003000308.
Kusuma, A., Purwanto, H., and Utama, P. (2021), “The effect of innovation toward working performance with self-efficacy as mediator”, Journal of Business and Economics, Vol. 23, No. 2, pp. 302–309.
Laryea, S. and Ibem E.O. (2014), “Patterns of Technological Innovation in the Use of E-procurement in Construction”, Journal of Information Technology in Construction, 19, pp. 104-125. http://www.itcon.org/2014/6.
Lee, R., Lee, J.H., and Garrett, T.C. (2019), “Synergy effects of innovation on firm performance”, Journal of Business Research, 99, pp. 507-515. https://doi.org/10.1016/j.jbusres.2017.08.032.
Lin, H.E., McDonough III, E.F., Lin, S.J., and Lin, C.Y.Y. (2013), “Managing the exploitation/exploration paradox: the role of a learning capability and innovation ambidexterity”, Journal of Product Innovation Management, Vol. 30, No. 2, Vol. 262-278. http://doi/10.1111/j.1540-5885.2012.00998.x.
Mugo, P., & Macharia, J. (2021), “Product Innovation and the Competitive Advantage of Telecommunication Companies in Kenya”, Kabarak Journal of Research & Innovation, Vol. 11, No. 1, pp. 43-57. http://www.kabarak.ac.ke/.
Maine, E., Lubik, S., and Garnsey, E. (2012), “Process-based vs. product-based innovation: Value creation by nanotech ventures”, Technovation, Vol.32, No.3-4, pp. 179-192. http://doi:10.1016/j.technovation.2011.10.003.
McIver, D., and Lengnick-Hall, C. (2018), “The causal ambiguity paradox: Deliberate actions under causal ambiguity. Strategic Organization, Vol. 16, No. 3, pp. 304–322. https://doi.org/10.1177/1476127017740081
Merono-Cerdan, A. L., and Lopez-Nicolas, C. (2013), “Understanding the drivers of organizational innovations”, The Service Industries Journal, Vol. 33, No. 13-14, pp. 1312-1325. http://dx.doi.org/10.1080/02642069.2013.815736.
Mezid, N. K., and Mesele, A. (2023), “R & D, innovations, and firms’ productivity in Ethiopia”, African Journal of Science, Technology, Innovation and Development, Vol.15, No. 3, pp. 311-324. http://doi/10.1080/20421338.2022.2088046.
Mgendi, G., Shipping, M., and Xiang, C. (2019), “A review of agricultural technology transfer in Africa: Lessons from Japan and China case projects in Tanzania and Kenya”, Sustainability, Vol.11, No. 23, 6598. https://doi.org/10.3390/su11236598.
Miziriri, E. T. (2020), “Green packaging and green advertising as precursors of competitive advantage and business performance among manufacturing small and medium enterprises in South Africa”, Cogent Business and Management, 7:1719586. https://doi.org/10.1080/23311975.2020.1719586.
Moskovich, Y. (2020), “Business sustainability strategy in a cooperative kibbutz industry”, Sustainability, Vol. 12, No.21, 9172. https://doi.org/10.3390/su12219172.
Mothe, C., and Nguyen-Thi, T. U. (2012), “Non-technological and technological innovations: Do services differ from manufacturing? An empirical analysis of Luxembourg firms”, International Journal of Technology Management, Vol. 57, No. 4, pp. 227-244. http://hal-00919216v2.
Mukhsin, M., and Suryanto, T. (2022), “The Effect of Sustainable Supply Chain Management on Company Performance Mediated by Competitive Advantage”, Sustainability, 1-18. https://doi.org/10.3390/su14020818.
Mulyono, A. H. M., Alamsjah, F., and Hamsal, M. (2020), “The effect of corporate governance, E-Business, and innovation on competitive advantage and implication on financial performance”, Pertanika Journal of Social Sciences & Humanities, 28, pp. 1–13. http://www.pertanika.upm.edu.my/.
Munsung, R., and Stephens, A. R. (2020), “Innovation-orientated technology assimilation strategy and Korean SMES’ enhacing innovation capability, competitive advantage and firm performance”, International Journal of Innovation Management, Vol. 24, No. 6, 1-27. https://doi.org/10.1142/S1363919620500814.
Nabila, A., Amira, K., Muhammad, H.D., Ijaz, H. B. and Muhammad, W. (2023), “Managerial skills, technology adaptation and firm performance: Mediating role of process innovation and product innovation”, Cogent Business & Management, 10:3, 2281485, http://10.1080/23311975.2023.2281485
Nanhong, L. (2023), “The Impact of Technological Innovation on Managerial Competency and Business Performance in the Manufacturing Sector: A Study of Chinese Companies”, Journal of Digitainability, Realism & Mastery (DREAM), Vol. 2, No. 03, pp. 43-49. https://doi.org/10.56982/dream.v2i03.92.
Novitasari, M., and Agustia,D. (2023), “Competitive Advantage as A Mediating Effect In The Impact Of Green Innovation And Firm Performance. Business: Theory and Practice, Vol. 24, No. 1, pp. 216-226. https://doi.org/10.3846/btp.2023.1586.
Ntshangase, N. L., Muroyiwa, B., and Sibanda, M. (2018), “Farmers’ perceptions and factors influencing the adoption of notill conservation agriculture by small-scale farmers in Zashuke, KwaZulu-Natal Province”, Sustainability, Vol. 10, No. 2, 555. https://doi.org/10.3390/su10020555.
OECD and EUROSTAT (2018), “Guidelines for Collecting, Reporting and Using Data on Innovation, 4th ed.”, OECD Publishing, Paris/Eurostat, Luxembourg.
OECD (2005), “Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd edition, OECD, Paris, website; www.oecd.org/sti/oslomanual.
Oke, A., Burke, G. and Myers, A. (2007), “Innovation Types and Performance In Growing UK SMEs”, International Journal of Operations and Production Management, Vol. 27, No. 7, pp. 735-753. https://doi.org/10.1108/01443570710756974.
Onufrey, K., and Bergek, A. (2021), “Transformation in a mature industry: The role of business and innovation strategies, Technovation, 105, 102190. https://doi.org/10.1016/j.technovation.2020.102190.
Park, Y., Konge, L., and Artino, A. R. (2020), “The Positivism Paradigm of Research. Academic medicine”, Journal of the Association of American Medical Colleges, Vol. 95, No.5, pp. 690-69. http://doi.org/10.1097/ACM.0000000000003093.
Pino, C., Felzensztein, C., Zwerg-Villegas, A. M., and Arias-Bolzmann, L. (2016), “Non-technological innovations: Market performance of exporting firms in South America”, Journal of Business Research, Vol. 69, No. 10, pp. 4385-4393. http://dx.doi.org/10.1016/j.jbusres.2016.03.06.
Ploenhad, J., Laoprawatchai, P., Thongrawd, C., and Jermsittiparsert, K. (2019), “Mediating role of competitive advantage on the relationship of supply chain management and organizational performance on the food industry of Thailand”, International Journal of Supply Chain Management, Vol. 8, No. 4, pp. 216-226. http://excelingtech.co.uk/.
Pratono, A. H. (2016), “Strategic Orientation and Information Technological Turbulence”, Business Process Management Journal, Vol. 2, No. 2, pp. 368–382. https://doi.org/10.1108/BPMJ-05-2015-0066.
Purnomo, H. R., Disman, F. C., Rosalina, D., and Rustandy, A. (2022), “The Role of Innovation, Value Chain And Competitive Advantages In Indonesian Higher Education Perform”, Journal of Tianjin University Science and Technology, Vol. 55, No. 4, pp. 846-856.
Puspaningrum, A. (2020), “Market Orientation, Competitive Advantage and Marketing Performance of Small Medium Enterprises (SMEs)” Journal of Economics, Business, and Accountancy Ventura, Vol. 23, No.1, pp. 19–27. http://doi:10.14414/jebav.v23i1.1847.
Qiu, Q., and Yu, D. (2020), “The impacts of CEO’s knowledge structure on corporate innovation strategy. Kybernetes, Vol. 50, No. 9, pp. 2597–2618. https://doi.org/10.1108/K-03-2020-0131.
Quynh, D. V. X., and Huy, N. H. (2018), “Supply chain management practices, competitive advantages and firm performance: a case of small and medium enterprises (SMEs) in Vietnam”, Journal of modern accounting and auditing”, Vol. 14, No. 3, pp. 136-146. http://doi:10.17265/1548-6583/2018.03.004/.
Rahman, N.A. A. and Ramli, A.(2014), “Entrepreneurship Management, Competitive Advantage and Firm Performances in the Craft Industry: Concepts and Framework”, Procedia-Soc. Behav. Sci., 145, pp. 129–137. http://doi:10.1016/j.sbspro.2014.06.019.
Rajapathirana, R. P. J., and Hui, Y. (2018), “Relationship between innovation capability, innovation type, and firm performance”, Journal of Innovation and Knowledge, vol. 3, No.1, pp. 44–55. https://doi.org/10.1016/J.Jik.2017.06.002.
Ramadani, V., Hisrich, R. D., Abazi-Alili, H., Dana, L. P., Panthi, L., and Abazi-Bexheti, L. (2019), “Product innovation and firm performance in transition economies: A multi-stage estimation approach”, Technological Forecasting & Social Change”, 140, pp. 271–280. https://doi.org/10.1016/J.Techfore.2018.12.010.
Rambe, P., and Khaola, P. (2023), “Enhancing competitiveness through technology transfer and product quality: the mediation and moderation effects of location and asset value’, Journal of Innovation and Entrepreneurship, Vol. 12, No.19, pp. 1-23. https://doi.org/10.1186/s13731-023-00284-1.
Riswandaria E., Zarkasyib, W., Suharman, H., and Dahlan, M. (2023), “The effects of innovation strategy and good corporate governance on sustainable company performance: The mediating role of value chain”, Uncertain Supply Chain Management, 11, pp. 1477–148. http://doi/10.5267/j.uscm.2023.7.021.
Ryu, H. (2016), “The Relationship between Non-Technological Innovation and Technological Innovation on Firm Performance”, Advanced Science and Technology Letters 135, pp. 27-32. http://dx.doi.org/10.14257/astl.2016.135.08.
Sakchutchawan, S., Hong, P. C., Callaway, S. K., and Kunnathur, A. (2011), “Innovation and competitive advantage: model and implementation for global logistics”, International Business Research, Vol.4, No.3, pp.10-21. http://doi/10.5539/ibr.v4n3p10.
Sarstedt, M., Hair Jr, J. F., Cheah, J. H., Becker, J. M., and Ringle, C. M. (2019), “How to specify, estimate, and validate higher-order constructs in PLS-SEM”, Australasian marketing journal, Vol. 27, No. 3, pp. 197-211. https://doi.org/10.1016/j.ausmj.2019.05.003.
Schumpeter, J. (1934), “The theory of economic development: An inquiry into profits, capital, credit, interest and business cycle”, Harvard University Press.
Setyawati, S. M., Rosiana, M., and Shariff, M. N. M. (2017), “Competitive advantage as mediating variable on the relationship between innovation and business performance on SMES in Purwokerto Province”,. Saudi Journal of Business and Management Studies, Vol. 2, No. 7, 693-699. http://scholarsmepub.com/sjbms/.
Shi, L., Wang, X., Sun, H., and He, Z. (2018), “The impact of technological innovation on product quality: The moderating role of firm size. Total Quality Management and Business Excellence, Vol. 29 No. 7–8, pp. 746–761. https://doi.org/10.1080/14783363.2016.1233810.
Shrout, P. E., and Bolger, N. (2002), “Mediation in experimental and non-experimental studies: New procedures and recommendations”, Psychological Methods, Vol. 7, No. 4, pp. 422–445. https://doi.org/10.1037/1082-989X.7.4.422.
Singh, S. K., Chen, J., Del Giudice, M., and El-Kassar, A.-N. (2019), “Environmental ethics, environmental performance, and competitive advantage: Role of environmental training”, Technological Forecasting and Social Change, 146, pp. 203–211. https://doi.org/10.1016/j.techfore.2019.05.03.
Siriram, R. (2022), “Technological and non-technological innovation effects on firm performance”, Journal of High Technology Management Research, Vol. 3, No.2, 100429. https://doi.org/10.1016/j.hitech.2022.100429.
Snihur, Y., and Wiklund, J. (2019), “Searching for innovation: Product, process, and business model innovations and search behavior in established firms”. Long Range Planning, Vol. 52, No.3, pp. 305–325. https://doi.org/10.1016/J.Lrp.2018.05.003.
Susanti, E., Mulyanti, R. Y., and Wati, L. N. (2023), “MSMEs performance and competitive advantage: Evidence from women’s MSMEs in Indonesia”, Cogent Business & Management, Vol. 10, No. 2, 1-26. https://doi.org/10.1080/23311975.2023.2239423.
Talaja, A., Miocevic, D., Pavicic, J., and Alfirevic, N. (2017), “Market orientation, competitive advantage and business performance: Exploring the indirect effects” Drustvena istrazivanja, Vol. 26, No.4, pp.583-604. https://doi.org/10.5559/di.26.4.07.
Tavassoli, S., and Karlsson, C. (2021), “The role of location on complexity of firms’ innovation outcome”, Technological Forecasting and Social Change, 162, 120404.
Tinoco, F.F.O., Hernandez-Espallardo, M., and Rodriguez-Orejuela, A. (2020). “Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage”, Asia Pacific Journal of Marketing and Logistics, Vol.32, 4, pp. 841-859. https://doi.org/10.1108/APJML-01-2019-0058.
Trinugroho, I., Pamungkas, P., Wiwoho, J., Damayanti, S. M., and Pramono, T. (2022), “Adoption of digital technologies for micro and small business in Indonesia”, Finance Research Letters, 45, 102156. https://doi.org/10.1016/j.frl.2021.102156.
Udriyah, U., Tham, J., and Azam, S. (2019), “The Effects of Market Orientation and Innovation on Competitive Advantage and Business performance of Textile SMEs”, Management Science Letters, Vol. 9, No. 9, pp. 1419-1428. http://doi:10.5267/j.msl.2019.5.009.
Ukpabio M. G., Siyanbola W.O., and Oyebisi T. O. (2017), “Technological Innovation and Performance Of Manufacturing Firms In Nigeria”, International Journal of Innovative Research and Advanced Studies (IJIRAS). Vol. 4, No.11, pp. 10-19. http://www.ijiras.com/.
UNDP (2018), “Ethiopia’s progress towards eradicating poverty. Implementation of the Third United Nations Decade for the Eradication of Poverty (2018–2027)”, Discussion Paper.
UNCTAD (2020), “Science, Technology and Innovation Policy Review”, UN, Geneva, http://creativecommons.org/licenses/by/3.0/igo/.
UNODO (2018), “Industrial Development Report. Demand for Manufacturing: Driving Inclusive and sustainable Industrial Development Overview”, Vienna.
Vafaei, S., Bazrkar, A., and Hajimohammadi, M. (2019), “The Investigation of the Relationship Between Sustainable Supply Chain Management And Sustainable Competitive Advantage According to the Mediating Role of Innovation and Sustainable Process Management”, Brazilian Journal of Operations & Production Management, Vol. 16, No. 4, pp 572-580. http://doi:10.14488/BJOPM.2019.v16.n4.a3.
Vo-Thai, H. C., Hong-Hue, T. H., and Tran, M. L. (2021), Technological-and non-technological innovation during the growth phase of industry life cycle: an evidence from Vietnamese manufacturing enterprises”, Sage Open, 11(3), 21582440211032169. https://doi.org/10.1177/21582440211032169.
Wadho, W., and Chaudhry, A. (2018), “Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers”, Research Policy, Vol.47, No.7, pp. 1283-1294. https://doi.org/10.1016/j.respol.2018.04.007.
Wakeford, J.,Gebreeyesus M., Ginbo T., Yimer, K ., Manzambi, O., Black, M, Mulugetta, Y., and Okereke, C. 2017), “Innovation for Green Industrialization: An Empirical Assessment of Innovation in Ethiopia’s Cement, leather and textile sectors”, No. 02/2017, QGRL Working Paper. https://doi.org/10.1016/j.jclepro.2017.08.067.
Wan, D., Ong, C.H. and Lee, F. (2005), “Determinants of Firm Innovation in Singapore”, Technovation, Vol. 25, No.3, pp. 261-8. https://doi.org/10.1016/S0166-4972(03)00096-8.
Wanaswa, P.S., Awino, Z.B., Ogutu, M., and Owino, J. (2021), “Technological Innovation and Competitive Advantage: Empirical Evidence from Large Telecommunication Firms”, International Journal of Business and Management, Vol. 16, No. 10, pp. 21-28. https://doi.org/10.5539/ijbm.v16n10p21.
Wanjiru, A.I, Muathe, S.M., and Kinyua-Njuguna, J.W. (2019), “The Mediating Effect of Competitive Advantage on the Relationship between Corporate Strategies and Performance of Manufacturing Firms in Nairobi City County, Kenya”, Journal of Business and Management, Vol. 21, No. 4, pp. 7-15. http://doi/10.9790/487X-2104010715.
Wingwon, B. (2012), “Effects of entrepreneurship, organization capability, strategic decision making and innovation toward the competitive advantage of SMEs enterprises”, Journal of Management and Sustainability”, Vol. 2, No. 1, pp. 137-150. http://dx.doi.org/10.5539/jms.v2n1p137.
Worku, G., Zerihun, A. and Tesfaye, E. (2023), “Assessing the Mediating Effect of Competitive Advantage in the Relationship between Marketing Strategy and Firm’s Performance”, Horn of Africa Journal of Business & Economics (HAJBE), Vol. 6, No. 1, pp. 250-269. https://journals.ju.edu.et/index.php/jbeco.
World Bank (2022), “On the Path to Industrialization: A Review of Industrial Parks in Ethiopia”, the World Bank Group, 1818 H Street NW, Washington, DC 20433, USA.
Zhang, A., and Zhang, W. (2022), “Network orientation, organizational improvisation and innovation: An empirical examination”, Systems Research and Behavioral Science, Vol. 39, No. 3, pp. 668-678. https://doi.org/10.1002/sres.2876.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dula Kumera, Chalchissa Amentie, Neeraj Bali
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors must have a written permission from any third-party materials used in the article, such as figures and graphics. The permission must explicitly allow authors to use the materials. The permission should be submitted with the article, as a supplementary file.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) after BJO&PM publishes it (See The Effect of Open Access).
