Strategic Innovation as an Antecedent of Firm Performance: A Critical Review of Literature

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Date
2023-09
Authors
Chege, Miriam Mukami
Kinyua, Godfrey
Journal Title
Journal ISSN
Volume Title
Publisher
IJERN
Abstract
Amidst a dynamic business environment that is volatile, uncertain, complex and ambiguous, firms must determine ways of achieve their strategic objectives as well as and gain an edge over their competition. This must happen both in the short and the long term for sustainable competitive advantage. The general objective of the study is to review conceptual, theoretical as well as empirical literature on the relationship between strategic innovation and firm performance with the view of highlighting the knowledge gaps suitable to form basis for future research work. Specifically, the study aims to review the existing conceptual and theoretical literature on the construct of the strategic innovation and its connected phenomena, identify emerging conceptual theoretical and empirical gaps from the reviewed literature, review relevant empirical literature on the construct of firm performance and its connected phenomena and propose a suitable theoretical framework in respect to the identified gaps for guiding future research. To achieve these objectives, the study involved a critical review of conceptual, theoretical and empirical literature that provided valuable insights on the dimensions and indicators of the key constructs. This review also aided in identifying the link between key constructs, provided the theoretical underpinning and generated insights into the existing gaps that would require an empirical pursuit. The theoretical paper ultimately identified product innovation, process innovation, organizational innovation and business process innovation as integral dimensions of strategic innovation. In addition, the review proposed revenue growth, brand loyalty, market share and employee engagement as appropriate measures of firm performance. The recommendation deriving from this review is that the developed conceptual framework should be validated in diverse contexts so as to harness its practical, empirical and theoretical value.
Description
Article
Keywords
Strategic Innovation, Firm Performance
Citation
Chege, M. M., & Kinyua, G. Strategic Innovation as an Antecedent of Firm Performance: A Critical Review of Literature.