The Effects of Social Ties on Innovation Behavior and New Product Performance: The Moderating Role of Market and Institutional Environments

2018 ◽  
Author(s):  
Volkan Yeniaras ◽  
Ilker Kaya ◽  
Nicholas Ashill
2017 ◽  
Vol 31 (1) ◽  
pp. 44-54
Author(s):  
Indrė Brazauskaitė ◽  
Viltė Auruškevičienė

AbstractThe current research depicts the relationship between new product innovativeness and its performance, which was addressed in previous studies; yet the results remain contradictive with little focus on environmental settings. The paper aims to reveal the role of commercial environment towards new product performance, which allows forecasting the performance on the basis of expected settings and exploring the link between new product innovativeness and its performance in a more detailed way. In the study, moderating environmental settings are defined as a set of marketplace characteristics on market level, company commercial characteristics, and a set of sales channel characteristics on retailer’s category level. Research contributes to the following areas: reveals the role of environment towards performance and allows forecasting new product performance on the basis of expected settings.


2020 ◽  
Vol 35 (4) ◽  
pp. 699-719 ◽  
Author(s):  
Volkan Yeniaras ◽  
Ilker Kaya ◽  
Nick Ashill

Purpose The purpose of this paper is to offer a theoretical and empirical understanding of how social ties affect innovation behavior and new product performance in Turkey, which is an emerging economy where high levels of economic and political uncertainties exist.The authors examine whether innovation behavior binds the political and business ties of the firm to new product performance. They also examine if these effects are contingent on variations in the institutional environment and market environment. Design/methodology/approach Structural equation modeling and mediation analyses were used on a sample of 344 small- and medium-sized enterprises in Istanbul. Findings Business ties are positively related to exploratory innovation behavior and political ties hamper such behavior. The authors also show that government support hinders firms’ disruptive innovation while encouraging incremental innovation behavior. The authors further demonstrate that the positive and indirect relation of business ties to new product performance through exploratory and exploitative innovation is largely insensitive to changes in market and institutional environments. Political ties are negatively (positively) and indirectly related to new product performance through exploratory (exploitative) innovation. Practical implications Managers should choose the form of their personal interactions (political and/or business) based on the type of innovation that is being pursued. Additionally, managers should consider both the institutional environment and the market environment as important contingencies in their decision of whether to invest resources in developing social ties to build innovation behavior. Originality/value The authors offer a deeper perspective of how social ties in emerging economies affect new product performance by considering exploratory and exploitative innovation behavior as mediating mechanisms. These mediating effects are conditional on institutional and market environments.


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