Innovation on Firm Performance: A Systematic Literature Review
DOI:
https://doi.org/10.70508/7eqprr40Keywords:
Innovation; Firm; Performance.Abstract
The research reviews three significant studies that investigate the impact of innovation on firm performance and corporate social responsibility (CSR) in different contexts: Vietnamese manufacturing firms, the role of information technology (IT) innovation in Kenya, and the synergy effects of innovation on overall performance. The first study examines how innovative practices within Vietnamese manufacturing firms lead to enhanced operational efficiency and stronger CSR commitments, suggesting that firms can achieve competitive advantages while addressing societal needs. The second study highlights the role of IT innovation in Kenya, showcasing how firms that adopt digital technologies experience substantial improvements in productivity, operational efficiency, and customer engagement, which are crucial for success in a fast-paced market environment. Lastly, the third study explores the synergy effects of innovation, indicating that organizations implementing a comprehensive innovation strategy that integrates product, process, and market innovations tend to achieve superior performance outcomes. This review emphasizes the critical importance of innovation as both a driver of economic success and a facilitator of social responsibility, advocating for a holistic approach to innovation that aligns with sustainable business practices to create shared value for stakeholders.
Downloads
References
Canh, N. T., Liem, N. T., Thu, P. A., & Khuong, N. V. (2019). The impact of innovation on the firm performance and corporate social responsibility of Vietnamese manufacturing firms. Sustainability, 11(13), 3666.
Chege, S. M., Wang, D., & Suntu, S. L. (2019). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316-345.
Chesbrough, H. (2020). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business Review Press.
Cummings, T. G., & Worley, C. G. (2020). Organization Development and Change. Cengage Learning.
De Wit, B., & Meyer, R. (2019). Strategy: Process, Content, Context. Cengage Learning.
Fagerberg, J., Srholec, M., & Verspagen, B. (2019). Innovation and Economic Development: The Role of the State. Technological Forecasting and Social Change, 146, 877-883.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases. Cengage Learning.
Hodgson, G. (2021). Theory of the Firm and Its Economic Role. Cambridge University Press.
Kaplan, R. S., & Norton, D. P. (2021). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
Kotter, J. P. (2021). Change Management: The New Paradigm. Harvard Business Review Press.
Lavoie, M. (2021). Markets and Power: Large Firms and Economic Control. Exploring Economics.
Lee, R., Lee, J. H., & Garrett, T. C. (2019). Synergy effects of innovation on firm performance. Journal of business research, 99, 507-515.
Maschke, J., & Knyphausen-Aufsess, D. (2020). Top Management Teams Characteristics and Firms Performance: Literature Review and Avenues for Future Research. Emerald Insight.
Neely, A., Gregory, M., & Platts, K. (2020). Performance Measurement System Design: A Literature Review and Research Agenda. International Journal of Production Economics, 187, 15-27.
Pulakanam, V., & Luthra, S. (2021). Performance Measurement Systems for Continuous Improvement and Innovation. Journal of Organizational Change Management, 34(1), 136-152.
Robe, J.-P. (2020). The ‘How Firms Work’ Approach to How Firms Work. Exploring Economics.
Schilling, M. A. (2021). Strategic Management of Technological Innovation. 6th Edition. McGraw-Hill.
Sharma, R., & Upadhyay, A. (2019). Measuring Organizational Performance: A Comprehensive Approach. Journal of Business Research, 105, 113-123.
Tidd, J., & Bessant, J. (2020). Managing Innovation: Integrating Technological, Market and Organizational Change. 7th Edition. Wiley.
Von Hippel, E. (2020). Free Innovation. MIT Press, 49(4).
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Jurnal Ilmu Sosial, Manajemen, Akuntansi dan Bisnis
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
