The effects of innovativeness on effectiveness and efficiency

Kayhan Tajeddini

47 citations0/0 files storedEducation Business and Society Contemporary Middle Eastern Issues

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Service and Product Innovation Innovation and Knowledge Management Employee Performance and Leadership

Abstract

Purpose Whilst researchers have explored the relationship between innovativeness and business performance in different organizations, such studies in services such as restaurants are scarce. The purpose of this paper is to examine potential influences of innovativeness on effectiveness and efficiency and their subsequent effects on restaurant business performance. Design/methodology/approach Data for this study were collected through personal interviews from 211 Iranian restaurants to examine the interrelationships between innovativeness, effectiveness and efficiency as well as service business performance dimensions (i.e. profit goal achievement, sales goal achievement and return on investment achievement). Findings The findings provide a fresh insight by exploring innovativeness, effectiveness and efficiency and how these determinants affect the business performance of restaurants. Research limitations/implications This study is limited to Iranian restaurants in a cross sectional manner, using self-report measures indicating that the results might be idiosyncratic and subject to individual differences. Implications for future research in innovativeness in practice are discussed. This paper contributes to knowledge regarding the impact of innovativeness on effectiveness and efficiency and extends the findings of Chan et al. regarding the influences of effectiveness and efficiency on business performance. Practical implications Managers should consider the important roles that operating effectiveness and cost efficiency play in the innovativeness-performance relationship. Originality/value The paper provides a good example of innovation, effectiveness and efficiency in the service industry.

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References

1951Coefficient Alpha and the Internal Structure of Tests 1988SERVQUAL: A multiple-Item Scale for measuring consumer perceptions of service quality 1979A Paradigm for Developing Better Measures of Marketing Constructs 1990The Effect of a Market Orientation on Business Profitability 2005Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms 1998Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination 1993Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis 1988Assessing Advantage: A Framework for Diagnosing Competitive Superiority

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2014Perceptions of innovativeness among Iranian hotel managers 2015Environment-Strategy and Alignment in a Restricted, Transitional Economy: Empirical Research on its Application to Iranian State-Owned Enterprises 2015Customer’s role in knowledge management and in the innovation process: effects on innovation capacity and marketing results 2016Analyzing the influence of learning orientation and innovativeness on performance of public organizations

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