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Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises

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  • Tsui-Yii Shih

    (Department of International Business, National Taipei University of Business, Jinan Road, Zhongzheng District, Taipei City 100, Taiwan)

Abstract

A firm’s strategic orientation determine its business direction and scope of operation. Several researchers have tried to identify how strategic orientations affect business development. However, only a few scholars have explored how strategic orientations shape a firm’s organizational capability. In addition, the extent to which radical innovation contributes to a firm’s operations has not been well researched. Given these research shortcomings, this study explores the integration of firms’ strategic orientations, radical innovation, competitive advantages, and business performance within a conceptual framework. A sample of 86 cultural and creative firms was obtained. The results of the regression analysis and of the PLS SEM model are compared in this study. Our findings suggest that factors from either market orientation or entrepreneurial orientation add to a firm’s radical innovation capability and adoption. Lastly, the brand advantage is identified to be the most important factor in firms’ performance after a radical innovation capability and product advantage. This paper offers several contributions to the research. First, it advances knowledge of the strategic orientations of cultural and creative firms in a developing market. Second, it demonstrates the usefulness of radical innovation capability in profiling the development of competitive advantages. Lastly, it adds to our understanding of factors that facilitate the business performance of cultural and creative entrepreneurs.

Suggested Citation

  • Tsui-Yii Shih, 2018. "Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1871-:d:150602
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    References listed on IDEAS

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    2. Ma del Pilar Muñoz Dueñas & Antonio Vaamonde Liste & Maria do Rosário Cabrita, 2020. "The Survival of Cultural Firms: A Study of Multiple Accounting Parameters in Spain," Sustainability, MDPI, vol. 12(3), pages 1-14, February.
    3. Rogério João Lunkes & Fabricia Silva da Rosa & Januário José Monteiro & Daiane Antonini Bortoluzzi, 2020. "Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    4. Qiliang Wang & Qingquan Jiang & Hongxia Yu, 2023. "Analysis of the Influence of Entrepreneurial Apprehension and Entrepreneurial Strategic Orientation on Breakthrough Innovation," Sustainability, MDPI, vol. 15(9), pages 1-14, April.
    5. Yoo Hwan Lee & Young Wook Seo, 2018. "Strategies for Sustainable Business Development: Utilizing Consulting and Innovation Activities," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    6. Rui Wang & Yi-Na Li & Jiuchang Wei, 2022. "Growing in the changing global landscape: the intangible resources and performance of high-tech corporates," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 999-1022, September.
    7. Fazal ur Rehman & Hishamuddin Ismail & Basheer M Al Ghazali & Muhammad Mujtaba Asad & Muhammad Saeed Shahbaz & Ali Zeb, 2021. "Knowledge management process, knowledge based innovation: Does academic researcher’s productivity mediate during the pandemic of covid-19?," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-20, December.
    8. Zhiwen Li & Oswin Aganda Anaba & Zhiqiang Ma & Mingxing Li, 2021. "Ghanaian SMEs Amidst the COVID-19 Pandemic: Evaluating the Influence of Entrepreneurial Orientation," Sustainability, MDPI, vol. 13(3), pages 1-27, January.
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