Innovation and Culture as a Dynamic Capability for Firm Performance: A Study from Emerging Markets

The research aimed to assess the influence of multiple dimensions of innovation on performance. The research is motivated from the possible impact of the internal organizational factors on the firm performance. We investigate the effect of dynamic capabilities such as product innovation, process innovation, and innovation culture on the firm performance. We collect a sample of 115 respondents and unique primary data from the executives of Indian firms. Established scales were used to design the survey instrument. A measurement model was developed in AMOS to conduct the confirmatory factor analysis and validate the scale again. A path model was developed to test the hypotheses. We find support for process innovation but not for product innovation and innovation culture. We extend the analysis further to understand whether the size of the firms has differences in the results. We find further support for innovation culture in large-size firms. We discuss the results in the Indian context to substantiate our hypotheses. © 2019, Global Institute of Flexible Systems Management.