Factors influencing Customer-Focused Strategies on Boosting Innovation Performance in Enterprises
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Enterprise innovation is a critical factor determining the success of businesses. Customer focused strategies such as customer orientation are critical in driving innovation. This research investigates the intricate relationship between customer orientation and enterprise innovation performance, emphasizing the dynamic capabilities required for successful adaptation in the digital economy. Acknowledging the limited understanding of how external knowledge impacts innovation within enterprises, the study introduces a novel conceptual model incorporating dynamic capability theory and innovation theory. The research adopted quantitative design using primary data. Empirical data from a comprehensive survey of managers in 20 provinces and 3 municipalities in China substantiates the proposed model. A sample of 328 was used. The data was analysed using correlation analysis and SEM techniques.
Findings indicate that enterprises exhibiting strong customer orientation enhance both digital capability and organizational creativity, subsequently contributing to innovation output. Innovation performance was found to be influenced by digital capabilities, organizational creativity, and customer direct orientation. The study establishes a sequential mediation structure, with digital capability promoting organizational creativity, collectively mediating the positive relationship between customer orientation and innovation performance. Theoretical contributions are twofold: firstly, the study introduces a nuanced understanding of the mechanisms through which customer orientation influences innovation by incorporating orderly chain mediating variables. Secondly, the research enriches the understanding of how dynamic capabilities, specifically digital capability, and organizational creativity, mediate the transformation of customer orientation into innovation capability. Management practice implications suggest that fostering a customer-oriented business philosophy is integral for enterprises seeking higher innovation performance. Additionally, embracing the digital economy entails improving digital capabilities, thereby facilitating digital transformation and innovation actions to enhance organizational creativity and overall innovation performance.
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