Innovation orientation and firms’ financial performance: The moderating role of new product development

Figures & data

Figure 1. Conceptual model.

Table 1. Sample characteristics

Sample Features	Frequency	Percentage
Did your company develop new products over the last three years?
Yes	230	92.0
No	20	08.0
Total	250	100
What is the total number of employees in your firm?
1-50 employees	57	24.78
51-100 employees	68	29.57
101-150 employees	48	20.87
151- 200 employees	36	15.65
200 and above employees	21	9.13
Total	230	100
How many years you have been working in your industry?
1-2 years	56	24.35
3-5 years	69	30.0
6-8 years	43	18.70
9-10 years	38	16.52
Above 10 years	24	10.43
Total	230	100
Managers’ academic qualifications
SHS and below	11	4.78
Diploma	19	8.26
Degree	98	42.61
Postgraduate	85	36.96
Others	17	7.39
Total	230	100
How long have you been working on new products?
1-2 years	25	10.87
3-5 years	83	36.09
6-8 years	69	30.0
9 years and above	53	23.04
Total	230	100

Table 2. Measurement properties of constructs

Constructs	Indicators	Mean	Std. Dev.	Factor Loading	Alpha Cronbach	Composite Reliability	AVE
NDPC					0.907	0.903	0.654
	NPDC1	4.40	1.383	.710
	NPDC2	4.37	1.588	.655
	NPDC3	4.16	1.637	.790
	NPDC4	4.22	1.516	.813
	NPDC5	3.96	1.687	726
INNOV					0.909	0.907	0.661
	INNOV1	4.47	1.410	.687
	INNOV2	4.15	1.636	.777
	INNOV3	3.96	1.846	.759
	INNOV4	3.90	1.823	.819
	INNOV5	4.67	1.493	.659
PERF					0.906	0.830	0.620
	PERF1	4.72	1.363	774
	PERF2	4.77	1.330	.881
	PERF3	4.80	1.359	.818
	PERF4	4.68	1.386	.659

Sampling adequacy (Kaiser-Meyer-Olkin measure greater than 0.5): 0.870

Total variance explained: 0.60

Model goodness-offit χ2 P ≥0.05 NFI≥0.90 CFI≥ 0.90 GFI≥0.90 AGFI≥0.90 RMSEA<0.06 CMIN-df≤3.84 PCFI≥0.50 PClose >0.05

indices: desired level

Model indices results: 117 P=0.000 0.947 0.972 0.941 0.905 0.064 1.992 0.736 0.088

Table 3. Descriptive statistics and correlations matrix

Variables	Mean	S.D	Min	Max	1	2	3	4	5	6	7	8
1.INNOV	4.230	1.6416	1	7	(0.813)
2.NPDC	4.222	1.5622	1	7	0.645	(0.809)
3.PERF	4.743	1.3595	1	7	0.626	0.753	(0.788)
4.INDUT	.58	.495	0	1	0.149	0.236	0.220	−
5.Experie	24.73	13.564	2	50	0.193	0.296	0.287	0.027	−
6.FUNC	.48	.501	0	1	0.164	0.171	0.074	0.093	0.156	−
7.SIZE	142.37	384.908	2	4000	0.048	0.064	0.054	0.093	0.156	0.156	−
8.DYNA	4.09	1.506	1	7	0.325	0.237	0.209	0.000	−0.029	0.506	0.506	−

The square roots of the AVE are presented on the diagonal in bold in brackets. The numbers below the AVE values are the correlation between the relevant construct with another construct in the model.

Table 4. Path model evaluation and hierarchical moderated regression anaylsis model summary

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.087^a	.008	−.013	1.20894	.008	.363	5	239	.873
2	.522^b	.272	.254	1.03745	.265	86.546	1	238	.000
3	.554^c	.307	.287	1.01422	.035	12.026	1	237	.001
4	.554^d	.307	.284	1.01636	.000	.004	1	236	.952

a. Predictors: (Constant), Environment dynamism, Industry Type, Business experience (Number of Years), Number of Full-time Staff, Dedicated R&D Function

b. Predictors: (Constant), Environment dynamism, Industry Type, Business experience (Number of Years), Number of Full-time Staff, Dedicated R&D Function, Innovation

c. Predictors: (Constant), Environment dynamism, Industry Type, Business experience (Number of Years), Number of Full-time Staff, Dedicated R&D Function, Innovation, NPD Capacity

d. Predictors: (Constant), Environment dynamism, Industry Type, Business experience (Number of Years), Number of Full-time Staff, Dedicated R&D Function, Innovation, NPD Capacity, Intereaction1

Table 5. Results of regression analysis for financial performance

	PERF
Predictors	β	R^2	∆R^2	t-values	p-values
Step 1
Control Variables*		0.008
Step 2
INNOV	0.454	0.272	0.265	4.303	0.000
Step 3
NDPC -Moderator	0.181	0.307	0.035	3.468	0.001
Step 4
Interaction Variable	−0.002	0.307	0.000	−0.060	0.925

Control Variables - Environment dynamism, Industry Type, Business experience (Number of Years), Number of Full-time Staff and Dedicated R&D Function