Harnessing Innovation For Market Competitiveness And Business Performance: A Case Of Logistics SOEs In South Africa

The study investigated the contribution of innovation capabilities to market competitiveness and business performance in a logistics state-owned enterprise (SOE) in South Africa. A quantitative method was employed based on data collected from 278 managers and professional employees drawn from the selected logistics SOE and based in three provinces. Hypothesised relationships between the constructs were tested using structural equation modelling. Innovative strategy, market innovation and technological innovation all significantly predicted market competitiveness. Market competitiveness significantly predicted business performance in three areas, namely environmental, financial, and operational. Innovation emerged as a critical input factor for the improvement of market competitiveness and business performance in the logistics SOE. The study introduced a unique model for managing the contribution of innovation capabilities to market and business performance in the logistics SOE in South Africa.