scholarly journals Product innovation, process innovation and advertising-based goodwill: A dynamic analysis in a monopoly

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Genlong Guo ◽  
Shoude Li
Keyword(s):  
Product Quality ◽  
Product Innovation ◽  
Dynamic Control ◽  
Innovation Process ◽  
Process Innovation ◽  
Social Optimum ◽  
Social Planner ◽  
State Variables ◽  
Product Price ◽  
The Social

<p style='text-indent:20px;'>In this paper, we develop a dynamic control model to investigate a monopolist's investment strategies in product innovation, process innovation and advertising-based goodwill. The significant features of our study are: (ⅰ) considering the effect of product quality on goodwill; (ⅱ) considering the instantaneous cost of producing a quality using machinery and/or skilled labour; (ⅲ) the customers' demand function depends on product quality, product price and goodwill in a separable multiplicative way between the state variables and control variables. Our results suggest that (ⅰ) the system admits unique saddle-point steady-state equilibrium under the monopolist optimum and the social optimum; (ⅱ) and the monopolist will have an underinvestment problem as compared with the social planner; and (ⅲ) although the product price is still determined by the monopolist under the social planner optimum, the product price is higher under the monopolist optimum than that under the social planner optimum.</p>

scholarly journals Better Product Quality May Lead to Lower Product Price

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Régis Chenavaz
Keyword(s):  
Optimal Control ◽  
Product Quality ◽  
Dynamic Pricing ◽  
Product Innovation ◽  
Production Cost ◽  
Lower Price ◽  
Product Price ◽  
Control Framework ◽  
Innovation Policies

AbstractThis article analyzes the conditions under which better product quality implies higher or lower product price. In an optimal control framework, I make the following assumptions: The firm sets the dynamic pricing and product innovation policies; product innovation raises quality, which drives production cost, and consumers are sensitive to price and quality. I derive a rule of price-quality relationship that stresses the influence of quality on price through the effects of cost (positive), sales (negative), and markup (positive). This article shows that, while maximizing profit and despite a quality and cost increases, the firm may decrease product prices because of the possibility of generating more sales as a result of combining better quality with lower price. This sales effect solves the puzzle of a negative price-quality relationship. More generally, the sales effect mitigates the ability of price to convey information about quality.

scholarly journals “IMPACT OF PRODUCT INNOVATION ON THE FINANCIAL PERFORMANCE OF THE SELECTED ORGANIZATIONS: A STUDY IN INDIAN CONTEXT”

2021 ◽  
Vol 58 (1) ◽  
pp. 5152-5163
Author(s):  
Dr. Naveen Nandal Et al.
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Product Innovation ◽  
Organizational Innovation ◽  
Innovation Process ◽  
Process Innovation ◽  
Technology Selection ◽  
Marketing Performance ◽  
June July ◽  
The Impact

The purpose of this research is to analyze the determinants of product innovation and its impact on the financial performance of the organizations. Specifically, the study examines the impact of intelligence generation, intelligence dissemination, product-process innovation, marketing support of the product, quality, Dependability/ Delivery, Technology selection, Flexibility on the financial performance of the automobile companies. The models of product innovation provided the theoretical framework for the research. The model of product-process innovation provides the basis for further research. The first concept explains the link between organizations surroundings and its innovation targets (Utterback JM 1974, 1975) (Miller & Friesen, 1982)(Milling, 1996) whereas the second concept explains the connection between firm’s performance level i.e. innovative performance, financial performance, organizational performance and marketing performance and its innovation types i.e. product innovation, process innovation, organizational innovation and marketing innovation (Abernathy & Townseed, 1975) (Abernathy & Utterback, June/July 1978) (Gunday, et al., 2011). From these concepts evolved this study i.e. to evaluate the impact of product innovation on the financial performance of the organizations.

The power of strategic knowledge management in the relationship between innovation and the performance of large manufacturing firms in Malaysia

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nagwan Abdulwahab AlQershi ◽  
Gamal Abdualmajed Ali ◽  
Hussein Abu Al-Rejal ◽  
Amr Al-Ganad ◽  
Ebrahim Farhan Busenan ◽  
...  
Keyword(s):  
Knowledge Management ◽  
Product Innovation ◽  
Empirical Work ◽  
Innovation Process ◽  
Process Innovation ◽  
Manufacturing Firms ◽  
Strategic Knowledge ◽  
Content Type ◽  
Strategic Knowledge Management ◽  
The Way

Purpose This study aims to explore the interaction of strategic knowledge management (SKM) and innovation on the performance of large manufacturing firms (LMFs) in Malaysia. Design/methodology/approach This study used a quantitative approach in investigating this interaction. Smart partial least-squares analysis was performed to test the hypotheses. Findings It was observed that administrative innovation, process innovation and product innovation were effective drivers of LMF performance. It was also ascertained that SKM has no moderating effect on the product innovation relationship with performance, although it does moderate the relationships between LMF performance and administrative innovation and process innovation, respectively. Research limitations/implications The main limitation of this study is its focus on Malaysian LMFs. It nevertheless contributes to the literature by extending understanding of SKM and innovation dimensions from multi-faceted perspectives. As this is largely ignored in the literature, the study paves the way for additional research. Practical implications The findings may be used as guidelines for chief executive officers, particularly on the way SKM and innovation can be developed for enhanced LMF performance, in the context of South Asian countries. Originality/value To the best of the authors’ knowledge, this is the first empirical work to confirm the main drivers of SKM, including in the analysis the effect of administrative innovation, process innovation and product innovation and performance, in the context of the manufacturing sector. In support of an original conceptual model, the insights contribute to the literature on innovation, LMFs, SKM and emerging economies.

scholarly journals Innovation: The Driving Force for Entrepreneurial Performance among Small Informal Businesses

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Simbarashe Muparangi ◽  
Forbes Makudza
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Innovation Process ◽  
Positive Association ◽  
Process Innovation ◽  
Marketing Innovation ◽  
Strong Positive Association ◽  
Medium Enterprises ◽  
Organisational Factors ◽  
The Impact

The purpose of the study was to assess the impact of innovation on business performance of informal small business traders in Zimbabwe. The Open Theory of Innovation informed the study whilst data for the study was gathered using structured questionnaires where 175 informal small to medium enterprises (SME) offered validated responses. A causal, quantitative approach was assumed and data was analyzed using SPSS 22 software to identify the association, strength and direction of innovation and innovation determinants on SME performance. The results revealed that innovation is determined by product, process, marketing and organisational factors. The study thus found out that product innovation, process innovation and marketing innovation have strong positive association with SME performance (P < 0.05). However, the study found an insignificant association between organisational innovation and SMEs performance. The study thus concluded that for informal SMEs to enhance their performance and graduate from being small entities to large corporates, they should embrace product innovation, process innovation and marketing innovation.

scholarly journals Optimal Product Proliferation in Monopoly: A Dynamic Analysis

2009 ◽  
Vol 1 (1) ◽  
pp. 80-97
Author(s):  
Luca Lambertini
Keyword(s):  
Optimal Control ◽  
Dynamic Analysis ◽  
Product Innovation ◽  
Market Price ◽  
Social Planner ◽  
Social Planning ◽  
Monopoly Pricing ◽  
The Social ◽  
Product Proliferation ◽  
The Relationship

The monopolist’s incentives towards product proliferation are evaluated in an optimal control model considering three alternative regimes: profit-seeking; social planning; and a hybrid case with monopoly pricing and a regulator setting product innovation to maximise welfare. In equilibrium, the profit-seeking firm supplies a socially suboptimal number of varieties to reduce cannibalisation while the social planner exploits the same effect to satisfy consumers’ love for variety and decrease the market price of all products. In terms of the Schumpeter vs Arrow debate on the relationship between market structure and innovation incentives, the results obtained in this model have a definite Arrovian flavour

Increasing the competitiveness of Rural Banks through an innovation approach in Bogor District

2020 ◽  
Vol 5 (02) ◽  
pp. 129
Author(s):  
Dimas Ari Darmantyo ◽  
Ratno Ratno ◽  
Yustiana Wardhani
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
Business Performance ◽  
Organizational Innovation ◽  
Innovation Process ◽  
Process Innovation ◽  
Positive Influence ◽  
Community Services ◽  
Small Community ◽  
Marketing Innovation

Competition in the banking world in increasing the value of its assets is getting tighter.The presence of financial technology adds to the tight competition in the banking world. Rural Banks (BPR) which focuses on small community services and MSMEs must innovate in order to survive in the banking industry. This research aims to find out if there is an influence of product innovation, process innovation, marketing innovation and organizational innovation on business performance, with accidental sampling method to obtain 150 samples of BPR Customers Bogor District, this research uses Structural Equation Modelling (SEM) method to analyze the data obtained. The results showed that, there is a positive influence of product innovation, process innovation, marketing innovation and organizational innovation on business performance. Product innovation variables have a stronger impact on business performance than marketing innovation, organizational innovation and process innovation. Keywords : Product Innovation, Process Innovation, Marketing Innovation and Business Performance

scholarly journals Social Welfare and Cost Recovery in Two-Sided Markets

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Wilko Bolt ◽  
Alexander F. Tieman
Keyword(s):  
Social Welfare ◽  
Cost Recovery ◽  
Social Optimum ◽  
Social Planner ◽  
The Social ◽  
Positive Externality ◽  
Antitrust Regulation ◽  
Recovery Problem ◽  
Total Price ◽  
Two Sided Markets

Using a simple model of two-sided markets, we show that, in the social optimum, platform pricing leads to an inherent cost recovery problem. This result is driven by the positive externality of participation that users on either side of the market exert on the opposite side. The contribution of this positive externality to social welfare leads the social planner to increase users' participation by setting prices at both sides of the market such that the total price is below marginal cost. Our result holds for both interior pricing and skewed pricing in two-sided markets. These findings may have interesting consequences for antitrust regulation.

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