Influencing factors of innovation for Turkish companies

Abstract

PurposeIn this study, some of the internal and external determinants of innovation for Turkish companies are examined. The purpose of this paper is to determine which factors significantly influence innovativeness of Turkish companies.Design/methodology/approachThe study begins with literature research. The knowledge gained from literature is used to develop a research model, which displays internal and external determinants of innovation and innovation types as product and process innovations. In order to test the model, the data of “Business Environment and Enterprise Performance Survey”, provided by the World Bank, are used. The data are collected from 1,152 Turkish companies in 2008. Some statistical tests are conducted to determine significant relations between the determinants of innovation and innovation types. Finally, results are discussed in the light of previous literature.FindingsThe authors' results provide clues that the companies involved in product innovation activities mostly perform process innovations. There is also a group of companies which invest in capabilities, but are not involved in any of the innovative activities. R&D activities, licensed technology usage, formal training programs, and experience of managers are significant internal factors, although the investments accomplished are not significant. International relations are an outstanding external factor for Turkish companies.Research limitations/implicationsThe data used in this study come from secondary source data, and it is not aimed at exploring innovation‐related issues. Also, this study does not aim to rank influencing factors for Turkish companies. Thus, it is not possible to reach a conclusion that compares internal and external factors.Originality/valueThis is a pioneer study that deals with internal and external influencing factors of both product and process innovations for Turkish companies.