Abstract & Overview
This paper explores the use of dynamic innovation capabilities, understanding turbulences in the market, and enhancing customer satisfaction to achieve product innovation and market performance in increasingly dynamic business environments. Following the dynamic capabilities theory framework, this paper develops the following conceptual model to explore the interaction among dynamic innovation capabilities, market turbulences, and customer satisfaction as antecedents to product innovation and the impact on market performance. Data were collected from 287 manufacturing and technology managers. Results of the Structural Equation Model (SEM) provide evidence that dynamic innovation capabilities, market turbulences, and customer satisfaction positively impact product innovation, which influences market performance. This paper also provides evidence for the mediating role played by product innovation in the interrelationship among the three antecedents and market performance. Consequences and implications for theory and management are offered to support organizations in the formulation of appropriate strategies to counter uncertainties in the market.