Explore the Effect of Strategy Contents on Firm's Innovation Performance: Modeling Using PLS-SEM Approach

Abstract

This study explores the impact of strategic performance measures on the connection between organizational content types and innovation performance. Utilizing survey responses from 216 Saudi Arabian companies, structural equation modeling was applied. Findings reveal that a proactive strategy negatively affects process innovation but positively influences product innovation, while a defensive strategy shows a similar pattern. Conversely, a reactive strategy positively impacts both process and product innovation. Embracing proactive, defensive, or reactive approaches positively influences efficiency and effectiveness. However, efficiency negatively impacts innovation, while effectiveness has a positive effect. The study suggests that adopting diverse strategy content types provides a competitive edge, reflected in strategic performance measures. It acknowledges potential benefits and challenges, contributing empirical evidence to the understanding of the relationships between strategy content, performance metrics, and innovation in Saudi Arabian companies.