Determinants and Effects of Innovation on the Firm Level

An Empirical Investigation


  • Muzaffer Erturk



Innovation, Competitiveness, Competitive Advantage


In highly competitive market conditions, it is vital to innovate for the firms in order to survive. The profitability, market share, consumer satisfaction and global competitiveness of the firms mainly depend on their competency of the production of the successful innovations providing for the firm competitive advantage. In this context, main aim of the study is to investigate the effects and determinants of the innovations in the firm level by considering a firm operating in white goods sector in Turkey. Main result of the study is that innovations have important effects on performance indicator of the firm. For this reason, firms have to focus on the production of the innovations providing sustainable competitiveness and profitability by implementing appropriate policies.


Acs Z.J., Audretsch D.B., (1988). Innovation In Large And Small Firms: An Empirical Analysis. American Economic Review, 78: 678–690

Amara N., Landry R., (2005). Sources Of Innovation As Determinants Of Novelty Of Innovation In Manufacturing Firms: Evidence From The 1999 Statistics Canada Innovation Survey. Technovation, 25: 245–259

Bhattacharya M., Bloch H., (2004). Determinants Of Innovation. Small Business Economics, 22: 155–162

Cohen W.M.,. Levinthal D.A,(1989). Innovation And Learning: The Two Faces Of R&D. The Economic Journal, 99: 569–596

Cooper R.G.,(1990) New Products: What Distinguishes The Winners? Research And Technology Management, 33: 27–31

Damanpour, F., Bierly, Paul E. and Santoro, Michael D. (2009) The Application of External Knowledge: Organizational Conditions for Exploration and Exploitation. Journal of Management Studies 46:3 May

Dosi G.,(1988) "Sources, Procedures And Microeconomic Effects Of Innovation.Journal Of Economic Literature. 26: 1120–1171

Ertürk M., (2009)The Role Of Tecnological Innovation On The Firm, Journal Of Global Strategic Management , V.3, I.2: 209-226.

Freel M.,(2003) Sectoral Patterns Of Small Firm Innovation, Networking And Proximity. Research Policy, 32: 751–770

Galende Jesús, Manuel de la Fuente Juan (2003). Internal factors determining a firm’s innovative behaviour. Research Policy, V 32, I5: 715-736,

Hannay, N. Bruce., (1980), Technological Innovation: Its Nature and Significance. Bulletin of the American Academy of Arts and Sciences, Vol. 33, No. 6,. 34-48

Liu, Ju, Baskaran, A. Li, S. (2009) Building Technological-Innovation-Based Strategic Capabilities at Firm Level in China: A Dynamic Resource-Based-View Case Study. Source: Industry & Innovation; Vol. 16 Issue 4/5: 411-434

Marinova Dora and Phillimore John (2003) Models of Innovation" The International Handbook on Innovation Edited by Larisa V. Shavinina, Elsevier Science Pub.

Narayanan, V.K. (2001) Management Technology and Innovation for Competitive Advantage, Prentice Hal, USA

OECD and EUROSTAT (2005), Oslo Manual Guidelines For Collecting And Interpreting Innovation Data, Third Edition, OECD and EUROSTAT Publication

Schilling, M. A., (2008) Strategic Management of Technological Innovation, Mcgraw-Hill, Irvin, USA

Souitaris Vangelis (2002). Technological Trajectories as Moderators of Firm-Level Determinants Of Innovation, Research Policy, V 31, I 6: 877-898

Utterback, James M. (1971), The Process of Technological Innovation within the Firm The Academy of Management Journal, Vol. 14, No. 1 75-88

Vega-Jurado Jaider, Antonio Gutiérrez-Gracia, Ignacio Fernández-De-Lucio, Liney Manjarrés-Henríquez, (2008) .The Effect Of External And Internal Factors On Firms’ Product Innovation. Research Policy, V. 37, I. 4: 616-632




How to Cite

Erturk, M. (2014). Determinants and Effects of Innovation on the Firm Level: An Empirical Investigation. International Journal of Research in Business and Social Science (2147- 4478), 3(1), 118–129.