The Interplay of Product Innovation, Technological Adaptation, and Customer Perception in Driving Competitive Advantage: Insights from the Creative Industry
DOI:
https://doi.org/10.61536/escalate.v2i02.175Keywords:
Product Innovation, Competitive Advantage, Technological Adaptation, Customer Perception, Market ResponsivenessAbstract
Abstract: This study examines the impact of Product Innovation on Competitive Advantage in the creative industry, with a focus on the mediating roles of Technological Adaptation, Customer Perception of Innovation, and Market Responsiveness. Employing a quantitative research design, data were collected from 100 chatbot users in content creator communities on TikTok, Instagram, and Facebook. The analysis, conducted using Smart PLS, reveals that product innovation significantly enhances competitive advantage, both directly and indirectly through technological adaptation and customer perception of innovation. Notably, technological adaptation demonstrates the strongest mediation effect, emphasizing the importance of technological integration in leveraging innovation for competitive outcomes. Conversely, market responsiveness shows a moderate mediating effect, suggesting its context-dependent role in driving competitiveness. A negative relationship between technological adaptation and competitive advantage underscores the risks associated with misaligned technology strategies. These findings contribute to the literature on innovation management by providing empirical insights into the interplay of innovation, technology, and customer engagement in achieving sustainable competitive advantage. The study recommends that organizations adopt a holistic approach to innovation, balancing technological advancements and customer-centric strategies. Future research should investigate longitudinal effects, industry-specific variations, and the influence of organizational culture on these dynamics.
Downloads
References
Barney, J. B. (2021). Gaining and sustaining competitive advantage (5th ed.). Pearson.
Biedenbach, G., & Marell, A. (2020). The impact of customer experience on brand equity in business relationships. Industrial Marketing Management, 51(1), 23–32. https://doi.org/10.1016/j.indmarman.2020.04.002
Brynjolfsson, E., & McAfee, A. (2018). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W.W. Norton & Company.
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2019). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515–524. https://doi.org/10.1016/S0019-8501(01)00203-6
Cao, Q., Gedajlovic, E., & Zhang, H. (2021). Unpacking organizational ambidexterity: A meta-analysis. Academy of Management Journal, 52(4), 811–828. https://doi.org/10.5465/amj.2009.0524
Chandy, R. K., & Tellis, G. J. (2018). The incumbent’s curse? Incumbency, size, and radical product innovation. Journal of Marketing, 64(3), 1–17. https://doi.org/10.1509/jmkg.64.3.1.18134
Chesbrough, H. (2020). Open innovation results: Going beyond the hype and getting down to business. Oxford University Press.
Chesbrough, H., & Bogers, M. (2019). Explicating open innovation: Clarifying an emerging paradigm for understanding innovation. In New Frontiers in Open Innovation (pp. 3–28). Oxford University Press.
Christensen, C. M., Raynor, M. E., & McDonald, R. (2021). What is disruptive innovation? Harvard Business Review, 93(12), 44–53.
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). Sage Publications.
Damanpour, F., Walker, R. M., & Avellaneda, C. N. (2021). Combinative effects of innovation types and organizational performance: A longitudinal study. Journal of Management Studies, 46(4), 650–675. https://doi.org/10.1111/joms.12002
Day, G. S. (2021). Market-driven strategy: Processes for creating value (3rd ed.). The Free Press.
Dodgson, M., Gann, D., & Phillips, N. (2020). The Oxford handbook of innovation management. Oxford University Press.
Drucker, P. F. (2016). Innovation and entrepreneurship: Practice and principles. Routledge.
Fornell, C., Rust, R. T., & Dekimpe, M. G. (2016). The effect of customer satisfaction on consumer spending growth. Journal of Marketing Research, 47(1), 28–35. https://doi.org/10.1509/jmkr.47.1.28
Grant, R. M. (2020). Contemporary strategy analysis: Text and cases edition (11th ed.). Wiley.
Grewal, R., Chandrashekaran, M., & Citrin, A. V. (2020). Customer satisfaction heterogeneity and shareholder value. Journal of Marketing Research, 47(4), 612–630. https://doi.org/10.1509/jmkr.47.4.612
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2022). Strategic management: Competitiveness and globalization (14th ed.). Cengage.
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2018). Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48(6), 999–1015. https://doi.org/10.5465/amj.2018.0287
Jaworski, B. J., & Kohli, A. K. (2020). Market orientation: Antecedents and consequences. Journal of Marketing, 57(3), 53–70. https://doi.org/10.1177/002224299305700304
Kim, J., Song, H., & Lee, H. (2022). Customer-centric innovation in dynamic markets. Journal of Business Research, 140, 210–222. https://doi.org/10.1016/j.jbusres.2021.10.010
Kotler, P., Keller, K. L., & Chernev, A. (2020). Marketing management (16th ed.). Pearson.
Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2019). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), 271–289. https://doi.org/10.1007/s11747-011-0284-x
Oliver, R. L. (2021). Satisfaction: A behavioral perspective on the consumer (3rd ed.). Routledge.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (2021). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50. https://doi.org/10.2307/1251430
Porter, M. E. (2019). Competitive advantage: Creating and sustaining superior performance. Simon & Schuster.
Prahalad, C. K., & Krishnan, M. S. (2020). The new age of innovation: Driving co-created value through global networks. McGraw-Hill.
Rogers, E. M. (2020). Diffusion of innovations (5th ed.). Free Press.
Rothaermel, F. T. (2021). Strategic management (5th ed.). McGraw-Hill Education.
Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2022). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68(1), 109–127. https://doi.org/10.1509/jmkg.68.1.109.24030
Schilling, M. A. (2022). Strategic management of technological innovation (7th ed.). McGraw-Hill.
Sorescu, A., Chandy, R., & Prabhu, J. (2019). Sources and financial consequences of radical innovation: Insights from pharmaceuticals. Journal of Marketing, 67(4), 82–102. https://doi.org/10.1509/jmkg.67.4.82.18657
Statista. (2021). Social media platforms most used by content creators worldwide. Retrieved from https://www.statista.com/
Taherdoost, H. (2016). Sampling methods in research methodology; How to choose a sampling technique for research. International Journal of Academic Research in Management (IJARM), 5(2), 18–27. https://doi.org/10.2139/ssrn.3205035
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management Studies, 55(1), 63–75. https://doi.org/10.1111/joms.12359
Teece, D. J., Pisano, G., & Shuen, A. (2021). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/smj.425
Truong, Y., Klink, R. R., Simmons, G., Grinstein, A., & Palmer, M. (2020). Branding strategies for high-technology products. Journal of Business Research, 63(12), 1361–1367. https://doi.org/10.1016/j.jbusres.2020.03.014
Urban, G. L., & Hauser, J. R. (2019). Design and marketing of new products (3rd ed.). Pearson.
Westerman, G., Bonnet, D., & McAfee, A. (2019). Leading digital: Turning technology into business transformation. Harvard Business Review Press.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Masruchan Masruchan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
