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Author: | Cho, H-J. Pucik, V. |
Title: | Relationship between innovativeness, quality, growth, profitability, and market value |
Journal: | Strategic Management Journal
2005 : JUN, VOL 26:6, p. 555-575 |
Index terms: | Resource management Organizational learning Innovation Markets Profitability Quality Control Models |
Language: | eng |
Abstract: | This study aims to examine the relationship (hereafter as: r-ship.) btw. innovativeness (here as: inns.), quality, growth, profitability (here as: prof-ty.), and market value (here as: m-v.) at the firm level. Building on concepts from a resource-based view (RBV) of a firm and organizational learning, innovation and quality literature, the innovativeness-quality-performance model is proposed. The model describes how a firm's capability to balance inns. with quality drives growth and prof-ty., and in turn drives superiour m-v. Results of structural equation models indicate that 1. inns. mediates the r-ship btw. quality and growth, 2. quality mediates the r-ship btw. inns. and prof-ty., 3. both inns. and quality have mediation effects on m-v., and 4. both growth and prof-ty. have mediation effects on m-v. |
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