Investigating the impact of process and product innovation strategies on business performance due to the mediating role of environmental dynamism using structural equations modeling

Abstract

Goal: the main purpose of the present study was to investigate the impact of process and product innovation strategies on business performance due to the dynamic environmental mediator role. Design / Methodology / Approach: The research method was based on purpose of applied research and in terms of data collection and analysis method was survey-correlation. The statistical population of this study consisted of 36 managers of Iranian banking industry. Questionnaires were used for data collection. Structural equation modeling was used to analyze the data. Results: the results showed that process and product innovation strategies have a positive and significant effect on business performance. Also, Sobel test results indicated that at 95% confidence level, process and product innovation strategies through dynamic mediator variable. Environment has a positive and significant impact on business performance. Limitations of the investigation: Since the present study is an exploratory study, the findings of the study are limited to the sample size and the results may change if the sample size is changed, Also the existence of different views on the topic of research among members of the statistical community can influence the results of the research to some extent. Practical implications: The research findings can be used to improve the business performance of companies active in the banking industry through the implementation of innovation strategies. Originality / Value: The product innovation strategies are more visible than process innovation strategies so that the customers can easily feel their presence and this kind of innovation creates a situation where the organization can create a new market for its business.