Innovation Practices and Firm Performances: An Empirical Investigation in Turkey

Abstract

In this empirical research, how marketing managers evaluate their firms’ performances and use this evaluation to decide to make innovation in Turkey is examined. They use some standards which are past performance of the firm, target performance of the firm, competitor performance, and average performance of the industry to compare and evaluate the firms’ performances. It is hypothesized that marketing managers and owners of the firm compare the firms’ current performance with these four standards at the same time to decide when to make innovation relating to any aspects of the firm, either management style or products. Relationship between the comparison of the firm’s performance with these standards and innovation are searched in the same regression model. The results reveal that apart from other antecedents of making innovation, managers’ evaluation of performance results play a significant role in making innovation.