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Profiting from product innovation: The impact of legal, marketing, and technological capabilities in different environmental conditions

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  • Zhongfeng Su
  • En Xie
  • Hong Liu
  • Wei Sun

Abstract

Although product innovation is a key tool for firms competing in the marketplace, innovating firms often fail to obtain economic returns from their product innovations. This study examines the moderating effects of legal, marketing, and technological capabilities on the relationship between product innovation and firm performance in different environmental conditions in order to identify how a firm can leverage these capabilities to profit from product innovation. Based on the data of 223 Chinese firms, this study finds that legal capability positively moderates the relationship between product innovation and firm performance, especially when competitive intensity is high; the moderating effect of marketing capability is positive, although it is weakened by market turbulence; and technological capability has a negative moderating effect, which becomes more significant as technological turbulence increases. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Zhongfeng Su & En Xie & Hong Liu & Wei Sun, 2013. "Profiting from product innovation: The impact of legal, marketing, and technological capabilities in different environmental conditions," Marketing Letters, Springer, vol. 24(3), pages 261-276, September.
    • Handle: RePEc:kap:mktlet:v:24:y:2013:i:3:p:261-276
    DOI: 10.1007/s11002-012-9214-1
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    References listed on IDEAS

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    Cited by:

    1. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
    2. Yuan, Wenlong & Bao, Yongjian & Olson, Bradley J., 2017. "CEOs’ ambivalent interpretations, organizational market capabilities, and corporate entrepreneurship as responses to strategic issues," Journal of World Business, Elsevier, vol. 52(2), pages 312-326.
    3. Chen Weijun, 2022. "The Impact of Government Support and Technological Innovation on Enterprise Performance: A Case Study of Guangdong Hi- tech Enterprises," International Journal of Science and Business, IJSAB International, vol. 14(1), pages 196-231.

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