Innovation Strategy and Product Quality as the Competitive Advantage Key in Saturated Markets
Main Article Content
Abstract
Product innovation and quality are key factors to create a competitive advantage in an increasingly competitive and saturated business environment. This study aims to analyze effective innovation strategies and the role of product quality to maintain company competitiveness and increase customer loyalty. A literature study approach was used in this research to examine various theories and empirical findings that address the relationship between innovation, product quality, and business sustainability amid intense competition. The results of the study show that continuous innovation allows companies to create added value for consumers, product differentiation, and accelerate adaptation to market dynamics. Consistent product quality plays a role in building customer trust, increasing retention, and strengthening brand position in the market. The main challenges companies face in implementing this strategy are the high cost of research and development, the risk of failing to innovate, and rapidly changing consumer preferences. A strategic approach that integrates innovation based on market needs and a strict quality control system is the key for companies to maintain their competitiveness. This research provides insights for business people regarding the importance of innovation and quality as key elements in marketing strategy and product development. The implications of these findings confirm that investments in quality improvement and innovation contribute to the sustainability of companies, and to increased customer loyalty in the long-term.
Article Details
Section
How to Cite
References
Abdul-Kader, W., Ganjavi, O., & Solaiman, A. (2010). An Integrated Model for Optimisation of Production and Quality Costs. International Journal of Production Research, 48(24), 7357-7370.
Abd Aziz, N. N., & Samad, S. (2016). Innovation and Competitive Advantage: Moderating Effects of Firm age in Foods Manufacturing Smes in Malaysia. Procedia Economics and Finance, 35, 256-266.
Alex, D., & Thomas, S. (2011). Impact of Product Quality, Service Quality and Contextual Experience on Customer Perceived Value and Future Buying Intentions. European Journal of Business and Management, 3(3), 307-315.
Amabile, T. M., & Pratt, M. G. (2016). The Dynamic Componential Model of Creativity and Innovation in Organizations: Making Progress, Making Meaning. Research in Organizational Behavior, 36, 157-183.
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Bicen, P., & Johnson, W. H. (2015). Radical Innovation with Limited Resources in High‐Turbulent Markets: The Role of Lean Innovation Capability. Creativity and Innovation Management, 24(2), 278-299.
Carlson, C. R., & Wilmot, W. W. (2006). Innovation: The Five Disciplines for Creating What Customers Want. Currency.
Chesbrough, H. (2020). Open Innovation Results: Going Beyond the Hype and Getting Down to Business. Oxford University Press.
Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2-3), 354-363.
Christensen, C. M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press, Amerika Serikat.
Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is Disruptive Innovation? Harvard Business Review, 93(12), 44-53.
Doz, Y. L. (1987). Technology Partnerships Between Larger and Smaller Firms: Some Critical Issues. International Studies of Management & Organization, 17(4), 31-57.
Drucker, P. F. (1999). Innovation and Entrepreneurship: Practice and Principles. HarperBusiness.
Ford, J. B. (2020). Competitive Advantage. In The Routledge Companion to Strategic Marketing. Routledge.
Garvin, D. A. (1987). Competing on the Eight Dimensions of Quality. Harvard Business Review, 65(6), 101-109.
Grant, R. M. (2016). Contemporary Strategy Analysis: Text and Cases Edition (9th ed.). Wiley.
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
Lopes, S. C. P., Lopes, H. E. G., Coleta, K. G., & Rodrigues, V. C. (2019). Business Models and Competitive Advantage: A Dynamic Approach. Revista Ibero Americana de Estratégia, 18(1), 90-105.
Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63(4), 33-44.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A Conceptual Model of Service Quality and its Implications for Future Research. Journal of Marketing, 49(4), 41-50.
Pine, J., & Gilmore, J. H. (2019). The Experience Economy: Competing for Customer Time, Attention, and Money. Harvard Business Press, Amerika Serikat.
Porter, M. E. (2008). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(1/2), 62-77.
Schilling, M. A. (2020). Strategic Management of Technological Innovation (6th ed.). McGraw-Hill Education.
Song, W., Ma, X., & Yu, H. (2019). Entrepreneurial Orientation, Interaction Orientation, and Innovation Performance: A Model of Moderated Mediation. Sage Open, 9(4), 1-13.
Snyder, H. (2019). Literature Review as a Research Methodology: An Overview and Guidelines. Journal of Business Research, 104, 333-339.
Teece, D. J. (2018). Business Models and Dynamic Capabilities. Long Range Planning, 51(1), 40-49.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a Methodology for Developing Evidence‐Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14(3), 207-222.
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-end Model and Synthesis of Evidence. Journal of Marketing, 52(3), 2-22.