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

Previous studies on the relationship between innovation orientation and firms' financial performance have churned out conflicting results. These contradictions motivated this study. Specifically, this study sought to examine the relationship between innovation orientation and firms' financial performance. The study also assessed the moderating effect of new product development on the relationship between innovation orientation and firms' financial performance. Data from 200 manufacturing firms in Ghana were quantitatively analysed using SPSS. Moderated hierarchical regression test was carried out to examine the relationships between the constructs. While a positive relationship between innovation orientation and the financial performance of firms was established, the study findings revealed that new product development capabilities have no moderating effect on the relationship between innovation and firms' financial performance. The study contributes to the innovation orientation and financial performance literature. It extends our knowledge of how new product development influences the innovation orientation-financial performance relationship of firms.