IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/109131.html
   My bibliography  Save this paper

Market success of innovations in the retail sector

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/109131/1/MPRA_paper_109131.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Reinartz, Werner & Dellaert, Benedict & Krafft, Manfred & Kumar, V. & Varadarajan, Rajan, 2011. "Retailing Innovations in a Globalizing Retail Market Environment," Journal of Retailing, Elsevier, vol. 87(S1), pages 53-66.
    2. Jeroen de Jong & Ron Kemp & Mickey Folkeringa & Wubben, 2003. "Innovation and firm performance," Scales Research Reports H200207, EIM Business and Policy Research.
    3. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-951, July.
    4. Pantano, Eleonora & Iazzolino, Gianpaolo & Migliano, Giuseppe, 2013. "Obsolescence risk in advanced technologies for retailing: A management perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 225-233.
    5. Jonathan Reynolds & Latchezar Hristov, 2009. "Are there barriers to innovation in retailing?," Post-Print hal-00952122, HAL.
    6. Hashi, Iraj & Stojčić, Nebojša, 2013. "The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4," Research Policy, Elsevier, vol. 42(2), pages 353-366.
    7. Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
    8. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    9. Shankar, Venkatesh & Inman, J. Jeffrey & Mantrala, Murali & Kelley, Eileen & Rizley, Ross, 2011. "Innovations in Shopper Marketing: Current Insights and Future Research Issues," Journal of Retailing, Elsevier, vol. 87(S1), pages 29-42.
    10. Love, James H. & Roper, Stephen, 2001. "Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants," Research Policy, Elsevier, vol. 30(4), pages 643-661, April.
    11. Truong, Yann, 2013. "A cross-country study of consumer innovativeness and technological service innovation," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 130-137.
    12. Sorescu, Alina & Frambach, Ruud T. & Singh, Jagdip & Rangaswamy, Arvind & Bridges, Cheryl, 2011. "Innovations in Retail Business Models," Journal of Retailing, Elsevier, vol. 87(S1), pages 3-16.
    13. Berry, Leonard L. & Bolton, Ruth N. & Bridges, Cheryl H. & Meyer, Jeffrey & Parasuraman, A. & Seiders, Kathleen, 2010. "Opportunities for Innovation in the Delivery of Interactive Retail Services," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 155-167.
    14. Shankar, Venkatesh & Venkatesh, Alladi & Hofacker, Charles & Naik, Prasad, 2010. "Mobile Marketing in the Retailing Environment: Current Insights and Future Research Avenues," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 111-120.
    15. Gerben van der Panne & Cees van Beers & Alfred Kleinknecht, 2003. "Success and Failure of Innovation: A Literature Review," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 309-338.
    16. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
    2. Hashi, Iraj & Stojčić, Nebojša, 2013. "The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4," Research Policy, Elsevier, vol. 42(2), pages 353-366.
    3. Wadho, Waqar & Chaudhry, Azam, 2018. "Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers," Research Policy, Elsevier, vol. 47(7), pages 1283-1294.
    4. Albors-Garrigos, Jose, 2020. "Barriers and enablers for innovation in the retail sector: Co-innovating with the customer. A case study in grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    5. Tambo, Torben, 2014. "Collaboration on technological innovation in Danish fashion chains: A network perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 827-835.
    6. Willems, Kim & Smolders, Annelien & Brengman, Malaika & Luyten, Kris & Schöning, Johannes, 2017. "The path-to-purchase is paved with digital opportunities: An inventory of shopper-oriented retail technologies," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 228-242.
    7. Kim, Jeeeun & Lee, Sungjoo, 2015. "Patent databases for innovation studies: A comparative analysis of USPTO, EPO, JPO and KIPO," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 332-345.
    8. JUSTIN DORAN & NOIRIN McCARTHY & MARIE O’CONNOR, 2019. "The Importance Of Internal Knowledge Generation And External Knowledge Sourcing For Sme Innovation And Performance: Evidence From Ireland," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-30, October.
    9. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
    10. Fedyunina, Anna & Radosevic, Slavo, 2022. "The relationship between R&D, innovation and productivity in emerging economies: CDM model and alternatives," Economic Systems, Elsevier, vol. 46(3).
    11. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Leibniz Centre for European Economic Research.
    12. Carmen González-Velasco & Marcos González-Fernández & José-Luis Fanjul-Suárez, 2019. "Does innovative effort matter for corporate performance in Spanish companies in a context of financial crisis? A fuzzy-set QCA approach," Empirical Economics, Springer, vol. 56(5), pages 1707-1727, May.
    13. Karbowski, Adam, 2016. "Współpraca badawczo-rozwojowa przedsiębiorstw: przegląd prac empirycznych [R&D Cooperation of Firms: Empirical literature review]," MPRA Paper 77698, University Library of Munich, Germany.
    14. Son Thi Kim Le, 2019. "Innovation efforts in developing countries: The case of Vietnamese small and medium-sized enterprises," WIDER Working Paper Series wp-2019-7, World Institute for Development Economic Research (UNU-WIDER).
    15. Ornella Wanda Maietta & Fernanda Mazzotta, 2018. "Firm Survival and Innovation: Knowledge Context Matters!," CSEF Working Papers 496, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    16. Shankar, Venkatesh & Inman, J. Jeffrey & Mantrala, Murali & Kelley, Eileen & Rizley, Ross, 2011. "Innovations in Shopper Marketing: Current Insights and Future Research Issues," Journal of Retailing, Elsevier, vol. 87(S1), pages 29-42.
    17. Khorshed Alam & Adewuyi A. Adeyinka, 2021. "Does innovation stimulate performance? The case of small and medium enterprises in regional Australia," Australian Economic Papers, Wiley Blackwell, vol. 60(3), pages 496-519, September.
    18. J Doran & G Ryan, 2016. "The effectiveness of R&D and external interaction for innovation: Insights from quantile regression," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 47-65, March.
    19. Kiss, János, 2014. "Az innováció hatása a vállalati teljesítményre és versenyképességre [The impact of innovation activities on firms performance and competitiveness]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 299-314.
    20. Leeflang, Peter S.H. & Verhoef, Peter C. & Dahlström, Peter & Freundt, Tjark, 2014. "Challenges and solutions for marketing in a digital era," European Management Journal, Elsevier, vol. 32(1), pages 1-12.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:109131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.