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The Influence of Strategic Innovation Management (SIM) Practices on the Industrial Sector Financial Performance

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  • Muna Gharibeh

    (Master of Business Administration, Yarmouk University, Jordan Author-Orchid id: http://orcid.org/0000-0003-3497-8130)

Abstract

The present study sought to examine the impact of the strategic innovation management (SIM) practices on the organizational financial performance among the industrial sector in Jordan. However, the study sample is (92) respondent from management of four Jordanian industrial firms, which is listed in Amman stock Exchange. The determinants of SIM practices are HR innovation, product innovation, firm structure innovation and research and development innovation. However, the financial performance includes net assets, return on assets (ROA), leverage and profits. The statistical package for social sciences (SPSS) is used for data analysis. The study found that SIM practices have positive impact on enhancing the firm's financial performance; increasing the return on assets (ROA) and the profits, and decrease the leverage. This result presented by coefficient of correlation (0.78) which refers to a positive relationship between SIM and financial performance. The research recommends further research on products innovation; due its effectiveness in generating new products and enhances the firm's competitive advantage and performance.

Suggested Citation

  • Muna Gharibeh, 2019. "The Influence of Strategic Innovation Management (SIM) Practices on the Industrial Sector Financial Performance," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(4), pages 641-655, October.
    • Handle: RePEc:jso:coejss:v:8:y:2019:i:4:p:641-655
    DOI: 10.25255/jss.2019.8.4.641.655
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    References listed on IDEAS

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    1. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    2. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    3. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
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