Impact of Product Development and Innovation on Organisational Performance

Abstract

In today’s global market, businesses are faced with intensive competition and in order to obtain a sustainable competitive advantage, they have to adopt processes and system for development of their new products, as well as the improvement of the existing products through innovation. This study was designed to investigate the relationship between organizational performance and product development by innovation. The data was collected from the marketing managers, operation managers and those managers who have been involving greatly in product development and innovation process. A total of 185 useable questionnaires were completed though research sample of 120 firms in Nigeria. The result of the study were interpreted using Likert model and SPSS package for the analysis of some appropriate statistical methods such as factor analysis, regression, and reliability analysis. The findings show that the impact of product development on organizational performance was higher in Nigeria when consumers perceive product innovation as stronger, more favorable and more unique. Creativity/quality of the innovation process exert a positive influence on product development and organizational performance. To literature, the study has supported previous studies on product development and performance especially in developing economies such as Nigeria, Malaysia, Ghana, and among others. Therefore, it was recommended that creative/quality innovations should be maintained continuously to develop appropriate product continually.