IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v2y2024i2p26-37.html
   My bibliography  Save this article

The Impact Of Innovation On Firm Sustainable Competitive Advantage In Sme From The West Region Of Romania

Author

Listed:
  • Cristian-Dan BIRIȘ

    (Faculty of Economics and Business Administration, West University of Timișoara - Timișoara, România)

Abstract

This study investigates the influence of product, service and process innovation on a company's competitive advantage. The study was conducted at small and medium-sized enterprises level from the Western Region of Romania. This research is structured in 5 parts: 1) an introduction illustrating the general context of the business environment in the Western Region of Romania and the opportunity to conduct this type of research; 2) a literature review illustrating the state of knowledge and other similar research conducted on this topic; 3) description of the methodological process of conducting empirical research by using the questionnaire as a method of collecting data from the regional business environment; 4) analysis and discussion based on empirical research following the aspects identified by applying the partial least squares structural equation modeling (PLS-SEM) method; 5) conclusions. This study comes to complement a series of previous studies both at national and international level, which aimed to research the impact of innovation on the competitiveness of SMEs. The results of the current research have highlighted the importance of process innovations, respectively product or service innovations, on obtaining sustainable competitive advantage by small and medium-sized enterprises in the Western Region of Romania, more precisely in Timiș, Arad, Hunedoara and Caraș-Severin counties. Moreover, the results of this study can be used both by general managers of companies, by entrepreneurs and last but not least by public policy makers with a direct role in stimulating the regional competitiveness of the business environment.

Suggested Citation

  • Cristian-Dan BIRIȘ, 2024. "The Impact Of Innovation On Firm Sustainable Competitive Advantage In Sme From The West Region Of Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 33(2), pages 26-37, December.
    • Handle: RePEc:ora:journl:v:2:y:2024:i:2:p:26-37
    as

    Download full text from publisher

    File URL: https://anale.steconomiceuoradea.ro/en/wp-content/uploads/2025/01/AUOES.December.2024.2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adriana Burlea-Schiopoiu & Laurentiu Stelian Mihai, 2019. "An Integrated Framework on the Sustainability of SMEs," Sustainability, MDPI, vol. 11(21), pages 1-22, October.
    2. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    3. Nilssen, Maja, 2019. "To the smart city and beyond? Developing a typology of smart urban innovation," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 98-104.
    4. Rosa Dangelico & Devashish Pujari, 2010. "Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability," Journal of Business Ethics, Springer, vol. 95(3), pages 471-486, September.
    5. Chuanpeng Yu & Zhengang Zhang & Chunpei Lin & Yenchun Jim Wu, 2017. "Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    6. Gupta, Suraksha & Gallear, David & Rudd, John & Foroudi, Pantea, 2020. "The impact of brand value on brand competitiveness," Journal of Business Research, Elsevier, vol. 112(C), pages 210-222.
    7. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    8. Fang Huang & John Rice, 2012. "Openness In Product And Process Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-24.
    9. Zsuzsanna K.SZABO, 2011. "The impact of the crisis on the SME sector in Romania-The back-up of innovation and entrepreneurship development," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 90-108, December.
    10. Ionica Oncioiu & Sorinel Căpuşneanu & Mirela Cătălina Türkeș & Dan Ioan Topor & Dana-Maria Oprea Constantin & Andreea Marin-Pantelescu & Mihaela Ștefan Hint, 2018. "The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    11. Wu, Qihan & Yan, Dong & Umair, Muhammad, 2023. "Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1103-1114.
    12. Daron Acemoglu & Ufuk Akcigit & Murat Alp Celik, 2022. "Radical and Incremental Innovation: The Roles of Firms, Managers, and Innovators," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(3), pages 199-249, July.
    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. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    2. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    3. Liang’an Huo & Qianqian Wang & Tingting Lin & Hongguang He, 2021. "Maximizing the Influence of Innovative Green Product Propagation," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    4. Xiaodan Zhang, 2024. "RETRACTED ARTICLE: Long-term goal: the role of economic transformation and reorganization in the energy transition," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-19, April.
    5. Fan, Qingzhu & Gao, Wang, 2024. "Climate risk and financial stability: The mediating effect of green credit," Finance Research Letters, Elsevier, vol. 65(C).
    6. Kara, Karahan & Yalçın, Galip Cihan & Akagün Ergin, Elif & Simic, Vladimir & Pamucar, Dragan, 2024. "A neutrosophic WENSLO-ARLON model for measuring sustainable brand equity performance," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    7. Tatiana Dănescu & Ioan-Ovidiu Spătăcean & Maria-Alexandra Popa & Carmen-Gabriela Sîrbu, 2021. "The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania," Sustainability, MDPI, vol. 13(19), pages 1-14, September.
    8. Yu, Miaozhi & Wang, Yifan & Umair, Muhammad, 2024. "Minor mining, major influence: Economic implications and policy challenges of artisanal gold mining," Resources Policy, Elsevier, vol. 91(C).
    9. Li, Wenjuan & Liu, Xinghua & Zhou, Lei, 2025. "The role of digital finance in enhancing export competitiveness: insights from China's listed companies," Finance Research Letters, Elsevier, vol. 71(C).
    10. Rutger Schilpzand & Jeroen Smits, 2025. "The Domestic Transition: Progress Towards Decent Living of Households in Low and Middle‐Income Countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(2), pages 420-442, March.
    11. Francesca Gennari, 2023. "The transition towards a circular economy. A framework for SMEs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1423-1457, December.
    12. Zhang, Yibin & Hafezi, Maryam & Zhao, Xuan & Shi, Victor, 2017. "Reprint of “The impact of development cost on product line design and its environmental performance”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 126-134.
    13. Ki‐Hoon Lee & Ji‐Whan Kim, 2011. "Integrating Suppliers into Green Product Innovation Development: an Empirical Case Study in the Semiconductor Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 20(8), pages 527-538, December.
    14. Chinyerem Grace Adeniji & Odunayo Paul Salau & Opeyemi Olunike Joel & Oluwakemi Oluwafunmilayo Onayemi & Oluwakemi Rebecca Alake, 2024. "Personality-Traits Taxonomy and Operational and Environmental Performance: A Cross-Sectional Analysis of Small and Medium Scale Manufacturing Enterprises," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    15. Surajit Bag & Shivam Gupta, 2017. "Antecedents of Sustainable Innovation in Supplier Networks: A South African Experience," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(3), pages 231-250, September.
    16. Liangdong Lu & Mengyao Wang & Jia Xu, 2023. "How to Keep Investors’ Confidence after Being Labeled as Polluting Firms: The Role of External Political Ties and Internal Green Innovation Capabilities," Sustainability, MDPI, vol. 15(17), pages 1-19, September.
    17. Annette Brunsmeier & Markus Groth, 2015. "Hidden climate change related risks for the private sector," Working Paper Series in Economics 333, University of Lüneburg, Institute of Economics.
    18. Constanza Fosco, 2012. "Spatial Difusion and Commuting Flows," Documentos de Trabajo en Economia y Ciencia Regional 30, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2012.
    19. Giuseppe Berlingieri & Maarten De Ridder & Danial Lashkari & Davide Rigo, 2025. "Creative destruction through innovation bursts," CEP Discussion Papers dp2095, Centre for Economic Performance, LSE.
    20. Lina Mao & Guangfan Sun & Yining He & Huixia Chen & Changwei Guo, 2024. "Culture and Sustainability: Evidence from Tea Culture and Corporate Social Responsibility in China," Sustainability, MDPI, vol. 16(10), pages 1-17, May.

    More about this item

    Keywords

    product innovation; process innovation; service innovation; business competitiveness; sustainable competitive advantage;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    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:ora:journl:v:2:y:2024:i:2:p:26-37. 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: Catalin ZMOLE The email address of this maintainer does not seem to be valid anymore. Please ask Catalin ZMOLE to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.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.