Competitive Performance Impacts of IT-Enabled Product and Process Innovations: The Role of Dysfunctional Competition in Transition Economies

Innovation has been documented as an engine for growth and obtaining competitive advantage. In most countries, about 30 to 50 percent of firms introduce a product or process innovation in a three-year period and on average, more than one-third of a firm’s revenue comes from products or processes that did not exist five years earlier. Indeed, according to the Organization for Economic Co-operation and Development (OECD) reported in 2010, innovation is defined as the introduction of a new or significantly improved product, process, or method and innovation is holding the key to boosting productivity in a highly competitive and connected global economy.