Authors: Faiza Elloumi
Abstract: This study assesses the impact of innovation on organizational performance using panel data, which allows to follow the same firms over several periods and thus to observe the dynamic effects of innovation while controlling for the specificities of each firm. The sample includes 120 firms from various sectors of activity, which allows to take into account the variability between firms while analyzing temporal trends. This approach is more robust than classic cross-sectional studies, because it allows to follow the evolution of firms over time and to control for fixed effects related to the specific characteristics of each organization, such as size, experience or resources. Three hypotheses are formulated: product innovation would stimulate revenue growth by attracting new customers; process innovation would improve operational efficiency, leading to better performance; and an innovation culture would promote the adoption of new technologies, which would indirectly improve performance. By applying fixed and random effects econometric models and interpreting the coefficients obtained, this analysis confirms that product and process innovations have a direct and positive effect on performance, while the innovation culture acts indirectly, supporting continuous improvement and the adoption of new technologies.
DOI: http://doi.org/10.5281/zenodo.17866694
