The Effect of Business Strategy on Innovation and Firm Performance in the Small Industrial Sector
نویسنده
چکیده
---------------------------------------------------------ABSTRACT------------------------------------------------The purpose of this study was to examine and analyzed the effect of business strategy on innovation and firm performance in the small industrial sector. Especially, to analyzed partially the effect of business strategy on innovation, the effect business strategy on firm performance, and the effect innovation on firm performance. The sample using purposive sampling of 55 business units. Primary data collection instrument is done by giving a questionnaire to the owner-managers of the wooden furniture manufacturing. Analysis of the data used to test the hypotheses of partial least squares (PLS).The results showed that partially, business strategy have a positive effect on innovation, business strategy have a positive effect on firm performance, and innovation have a positive effect on firm performance. Overall, the study provides a basis modeling alternative business strategyinnovation configurations to optimize firm performance in the small industrial sector. Therefore, in future studies need to confirm the moderating effect of innovation on the relationship between business strategy and firm performance to provide a clear understanding of the concepts of innovation capabilities can improve the competitive position of the firm and superior performance.
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