Market success of innovations in the retail sector

Stojcic, Nebojsa and Vojvodic, Katija (2012): Market success of innovations in the retail sector.

Abstract

It is widely acknowledged that innovations hold the key to the better performance and the competitiveness of firms. Yet, evidence across countries reveals that only a small proportion of firms engage in innovation activities. To some extent, this can be attributed to the high rate of failure to commercialize innovation efforts. Bearing the above said in mind, this paper explores which factors and forces determine decision of firms to innovate and the market success of their innovations. A generalised tobit model is applied to the sample of firms from the retail sector of 26 transition economies collected between 2007 and 2009. The results of investigation identify foreign ownership as the most important determinant of innovation success in transition economies but also offer some interesting findings about multichannel retailing practice.

• Item Type: MPRA Paper
• Language: English
• Keywords: innovation; retail; market success; transition; generalised tobit; firm behaviour
• Subjects: D - Microeconomics > D2 - Production and Organizations > D22 - Firm Behavior: Empirical Analysis; L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D

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