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What Makes Companies to be More Innovative and Profitable?
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Author(s): Ana Pérez-Luño (Pablo de Olavide University, Spain), Ramón Valle-Cabrera (Pablo de Olavide University, Spain)and Johan Wiklund (Syracuse University, USA)
Copyright: 2010
Pages: 12
Source title:
Innovation in Business and Enterprise: Technologies and Frameworks
Source Author(s)/Editor(s): Latif Al-Hakim (University of Southern Queensland, Australia)and Chen Jin (Zhejiang University, China)
DOI: 10.4018/978-1-61520-643-8.ch005
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Abstract
The aims of this chapter are the following. First, we delimitate the innovation and imitation concepts. Secondly, using Structural equation modeling method, we empirically test the impact of two dimensions of market and entrepreneurial orientations, respectively, on the decision to be more or less innovative. Thirdly, we relate this decision with the company’s performance. Based on a survey of 304 companies, our empirical results support, on one hand, the view that proactivity is the most important determinant of the decision of weather to innovate or imitate. On the other hand, we find that the company’s performance is not conditioned by the decision of innovating or imitating, but is rather determined by the company’s proactivity and focus on customers.
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