Impact of product innovation on firm's performance: moderating effect of loyalty intention and technological innovation and mediating effect of consumer purchase intention

Abstract

Product innovation is simply when the attributes of the product are perceived new by the customer. Many researches have been conducted related to it but mostly in developed countries leaving practitioners with very limited data to s~pport their innovation initiatives. Also coming from the one belt one road perspective it's critical for not only Pakistan but also for the region as innovation and technology are the two defining factors for sustainable development of the countries. Similarly, innovation is also critical as we are living in the era where knowledge based economy is the only way to survive in the world. And top brands of different industries are spending billions on not only innovation but also on marketing their innovative initiatives to the consumers, thereby making it an important topic to be studied. Questionnaire was used to collect the data for the purpose of investigating if product innovation has a positive impact on firm's performance and statistical package for social sciences (SPSS) was used to analyze the gathered data. Questionnaire scale's reliability was determined by finding out Cronbach's Aplha. Regression anal~sis test was used to find out the impact of the product innovation on firm's performance. The model is analyzed by using the survey data from 272 respondents. The model contain independent variable i.e. product innovation and dependent variable i.e. firm's performance, consumer purchasing intention is mediator and two moderators are technological innovation and customer loyalty. The finding of this research is that product innovation leads to increased firm's performance but mediator customer purchase intention doesn't mediate. Technological innovation mitigates the impact of product innovation on firm's performance. Customer loyalty proliferates the effect of product innovation on firm's performance.