Reinventing “Newness”: A Theoretical Approach of Innovation as an Incentive to Increase Firm Performance

Abstract

The world in which we live is affected by continuous and accelerated change, and this has led in time to real industrial revolutions or even financial crisis. The new technological development is characterized by the emergence of new dominant industrial branches and a change of targeted management activities more and more towards a better, improved management of technological resources and innovation activity. In the context of an increasingly obvious trend of innovative business development, companies are forced to find solutions that allow them to adjust to the changes that characterize the current economic and social environment. This is also the issue addressed in the paper, which aims to present theoretical approaches to innovation and to highlight the importance of innovation activity for improving firm performance.

Keywords

• firm performance
• competitive advantage
• innovation