Effect of Competitive Strategies on Firm Performance and Mediating Role of Product Innovation

Abstract

The aim of the study is to investigate the effect of competition strategies and product innovation on firm performance and to examine the mediating role of product innovation in relation between competitive strategies and firm performance. One of quantitative methods questionnaire technique was used to test the proposed theoretical model. The research sample 225 enterprises which was listed in Istanbul Chamber of Industry (ISO) The data collection process was completed in June-July-August 2021. In this study, data were collected by questionnaire method. The obtained data were analyzed using regression analysis. The hypothesis that the idea of competitive strategies affects firm performance level was tested with simple linear regression and it was found that the hypothesis was significantly supported. According to the regression results are examined, in simple regression models in which competitive strategies and product innovation are the independent variables and firm performance is the dependent variable, it is seen that competitive strategies (β=0.654; t=16.543) and product innovation (β=0.632; t=8.043) have been seen that it has a positive and statistically significant effect on performance. Thus, in the multiple regression model product innovation variable has mediating role, between competitive strategies and firm performance. In addition, as for relationship of firm performance with the sub factors of competitive strategies, the correlation is found to be the highest between focus strategy and firm performance.