With the increasingly competitive market today, factors such as quality management and innovation can help a company to gain a competitive advantage compared to other companies in the same industries. In their recent survey, Boston Consulting Group put innovation as one of the top three strategic priorities for 71 percent of organizations in the world today. The increased importance of innovation is based on the ability of any company to provide unique processes and products thus creating great value for consumers plus increased financial benefits for every organization.
Previous research studies have suggested that quality management is driven by innovation in any company. Innovation is seen to be embedded in the services, products, and structures of the firm. Innovativeness plays a major role in the growth strategies of any firm especially when the firm is aiming at entering a new market, increase the market share or the area of operation in which it covers.
With increased competition in the global market as the main motivation from most companies, most companies in the world today have started to grasp the significance of innovation as the severe global competition and the swiftly changing technologies have been eroding the value added to the existing services and product in the market today.
Thus, it is important for a company in the current operation stage to understand the role played by innovation as the latter constitute the crucial constituent of the corporate strategies for a number of reasons. The latter reasons may include, applying a more productive process of manufacturing, seeking a positive reputation in the perceptions of the customers especially the new customers in the market today who are very critical in what the companies are offering in terms of whether the companies are offering the right goods in accordance with the current market.
A company may also be seeking to perform better in the market in terms of sales and reputation thus making innovation paramount in its ranks. Over the last twenty years, in particular, innovativeness has turned into one of the most attractive areas of study for most researchers as they try to categorize, define and investigate its impacts regarding the performance especially because of its practical relevance. Today, innovation ensures that a firm can overcome the difficulties it may face while it strives to sustain a competitive advantage.