Innovation appears to be one of the most effective bulwarks for companies in the face of competition and rapidly changing markets. However, while technological innovation is clearly identified in its practices and objectives, organizational or managerial innovation is still the subject of controversy and divergence as regards its scope for action and research. Standardization and instrumental action have been generalized to see in the organizations only of the management of innovation at the expense of innovation in management.
Competitive advantage and performance
Competitive advantage is linked to the ability to create a sustainably advantageous and defensible position. For Porter, competitive advantage is determined by the structure of the industry and its value chain. The advantage is then based on the best product/market positioning and is essentially based on the basic activities of the value chain. This concept differs from that of resource theory, which equates advantage with a competitive position generated by a combination of resources. A comparative advantage from an original combination of resources gives the firm a competitive advantage and therefore superior performance
This video can explain it more:
Performance generally reflects the degree to which the company’s objectives have been met. It can be quantified by indicating a state or degree of achievement of objectives, standards or action plans chosen by the organization. According to Bourguignon, performance is both the action, its result and the success of the organization. It is a process and a result that refer to subjective representations of success both variants and dependent on the actors. Some searches opt for an objective measurement. While others prefer a subjective measure and associate customer satisfaction and loyalty with performance. In the spirit of integration, we choose both objective and subjective measures of customer satisfaction and loyalty performance, market share, comparative sales volume and profitability.
Our empirical results confirm all our hypotheses. Market orientation and organisational learning are real sources of managerial innovation while remaining more competitive sources in a direct way. This finding supports theoretical and empirical resource-based analyses, including those that highlight the strategic importance of intangible resources and the linkages that can be maintained between some of these resources, especially those based on information and knowledge. The main aim of the strategic orientation linked to the knowledge economy is to develop and enrich the company’s knowledge bases and to promote the application of new knowledge in order to improve the managerial innovation process. Managerial innovation is therefore necessary to achieve and maintain market success, and to gain competitive advantage and superior performance, thus extending the work of Hunt