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Organizations should maintain their innovation trajectories by developing products, processes, marketing, and organizational methods to achieve and sustain competitive advantage. However, by itself, creating value through innovation is not enough for companies: transforming these innovations into firm performance is also crucial. This study aims to validate the relationships among innovation and firm performance components and to explore the effect of innovation culture on innovation components and personnel performance. In our model, the innovation construct is comprised of innovation input, innovation process, and innovation output components, while firm performance construct includes four performance components such as financial, customer, market, and personnel performance. Moreover, this comprehensive model was proposed based on the literature, and structural equation modeling (SEM) was performed by employing data gained from 353 companies in Turkey to validate the model. According to the results, there is a sequential relationship within innovation components and firm performance components, while the relationships among innovation components and firm performance components are observed holistically. This paper contributes to the innovation literature by introducing a validated model to clarify these relationships. This model can be evaluated by company leaders to identify not only their firm's innovation path but also short and long-term innovation results. Furthermore, the findings indicate that companies should manage the system from innovation input to financial gains without delicately compromising the whole sequential and holistic relationship. Managers should also be aware of the power of innovation culture on innovation path and personnel performance directly to create a convenient atmosphere. [ABSTRACT FROM AUTHOR]

This paper studies the relationships between competitive strategies, innovation, and firm performance within the context of Turkish manufacturing companies. The data were collected from top management of the firms via Computer Assistant Telephone Interviewing method. One hundred and forty manufacturing firms operating in various sectors including textile, automotive supply, computer and electronics provide the basis for this empirical research. In order to test our model, we employ structural equation modelling using partial least squares. The results show that competitive strategies such as cost-leadership and differentiation can lead to innovation, which, in turn, increase firm performance. Managers implement cost-leadership and differentiation strategies to take part in competitive market conditions; however, they should put additional importance on innovation that plays a significant role as a bridge between competitive strategies and firm performance. [ABSTRACT FROM AUTHOR]