Purpose: The study primarily aims to examine the effect of internal innovation in determining the firm performance for the textile industry of Pakistan by testing the research framework of innovation diffusion theory. Additionally, the study also explores the moderating role of collaborative innovation in explaining the relationship between internal innovation and a firm’s performance in the target population. Methodology: The study used a self-administrative questionnaire-based survey technique to collect data from the participants. Due to the prevailing Covid-19 pandemic situation globally, the data was collected online using the Convenience sampling approach. The outcome variable of the study was firm performance, while the explanatory variable is internal innovation, which is measured by product and process innovation. Additionally, collaborative innovation was used as the moderating variable of the study. The population of the study was the textile sector of Pakistan. The unit of analysis was managerial employees (at all levels) working in the textile industry of Pakistan. The online questionnaire was shared with approximately, 100 target people successfully and completely provided their unbiased responses using online means. The researchers analyzed the collected data using SPSS software. The analysis techniques include descriptive statistics, correlation, reliability analysis (using Cronbach alpha), convergent reliability & validity (using outer loadings, composite reliability, and average variance extracted), VIF, and regression for testing the hypotheses. Findings: The study found that product innovation and process innovation both serve as critical drivers for the firm performance in the textile industry of Pakistan. Moreover, collaborative innovation plays a complementary role as the significant moderator between the internal innovation process and the firm’s performance in the target population. The results concluded the acceptance and support of the required hypothesis of the study, including the acceptance of innovation diffusion theory for the textile industry of Pakistan, and finally the consistency of results with existing literature. Implications:  Contribution of Study: Existing literature lacks to provide the mechanism and understanding that how internal innovation (product innovation and process innovation) collaborative innovation shapes the effective and efficient performance of the firms in the textile industry of Pakistan. Therefore, the lack of research work and clarity in the existing literature makes this study meaningful. Moreover, the contributions of the study are multifaceted as the first time this study is being conducted in an emerging economy Pakistan. Novelty: The findings of the study add the literature for the domain of innovation and performance, especially, in the case of the textile sector of Pakistan with the partially moderating impact of collaborative innovation. The study also contributes towards the acceptance of innovation diffusion theory in the textile industry of Pakistan. Limitations & Recommendations: The findings of the study apply to the Textile sector only due to the specific nature of their operations. The prospective researchers in this domain can consider further dimensions of innovations to examine their impact on a firm’s performance. Additionally, innovation performance can also be considered for future studies. Furthermore, cross-sector analysis can be performed for understanding how innovation works in different sectors.

Submitted by Aelson Maciera (aelsoncm@terra.com.br) on 2017-08-07T19:09:22Z No. of bitstreams: 1 DissCLG.pdf: 1961386 bytes, checksum: 4f4c104b8de66d6468ef02dfd76b6148 (MD5) / Approved for entry into archive by Ronildo Prado (ronisp@ufscar.br) on 2017-08-09T13:23:40Z (GMT) No. of bitstreams: 1 DissCLG.pdf: 1961386 bytes, checksum: 4f4c104b8de66d6468ef02dfd76b6148 (MD5) / Approved for entry into archive by Ronildo Prado (ronisp@ufscar.br) on 2017-08-09T13:23:47Z (GMT) No. of bitstreams: 1 DissCLG.pdf: 1961386 bytes, checksum: 4f4c104b8de66d6468ef02dfd76b6148 (MD5) / Made available in DSpace on 2017-08-09T13:29:14Z (GMT). No. of bitstreams: 1 DissCLG.pdf: 1961386 bytes, checksum: 4f4c104b8de66d6468ef02dfd76b6148 (MD5) Previous issue date: 2017-04-07 / Não recebi financiamento / The practices of Continuous Improvement (CI) and the Innovation of products and processes get competitive advantage for organizations, in relation to competitors, whether in positioning by low cost or differentiation strategy. These practices need to be managed and integrated in order to ensure, in the long run, the desired results. Although seen as significant for the strategic goals of the organization, often are managed independently and with different goals. There is little consensus in the literature if the use of Continuous Improvement Practices has positive or negative impact on the processes and outcomes of Innovation in firm. However, are observed recurring statements about the necessity of coexistence and integration of CI programs and Practices and Innovation. There is interest in examining what existing relations in the context of organizations that make it possible to identify whether a greater intensity of use of CI practices influences the perceived performance in innovation of products and processes. In order to analyze the possible relations, the study was conducted by survey on a sample of 102 companies of Auto parts, Pharmaceuticals, Electric-Electronics appliances the State of São Paulo in Brazil. The sample data were analyzed by descriptive and multivariate statistical methods (cluster analysis). The descriptive analysis showed significant evidence on integration relations between CI and Product and process innovation, as well as, the IC contribution in creating a fertile environment for Innovation. Multivariate analyzes revealed existence of associations between the intensity of use of IC practices and perceived performance in Innovation, mainly in processes. The findings contribute to a better understanding of the topic and management application in organizations, besides indicating opportunities for further studies. / As práticas de Melhoria Contínua (MC) e de Inovação de produtos e processos geram vantagem competitiva para as organizações, seja em posicionamento por baixo custo ou em estratégia de diferenciação. Essas práticas precisam ser gerenciadas e integradas de forma a assegurar, no longo prazo, os resultados desejados. Apesar de vistas como significativas para os resultados estratégicos da organização, muitas vezes são gerenciadas de forma independente e com objetivos distintos. Há pouco consenso na literatura sobre se o uso de práticas de Melhoria Contínua tem impacto positivo ou negativo nos processos e resultados de Inovação nas empresas. Entretanto, são observadas afirmações recorrentes sobre a necessidade de coexistência e integração das práticas e programas de MC e da Inovação. Há interesse em analisar quais as relações, existentes no âmbito das organizações, que possibilitam identificar se uma maior intensidade de uso das práticas de MC influencia o desempenho percebido em Inovação de produtos e processos. Com o intuito de analisar as possíveis relações, foi conduzida uma pesquisa survey em uma amostra de 102 empresas industriais dos setores de Autopeças, Farmacêutico e Eletro-Eletrônico do Estado de São Paulo. Os dados obtidos foram analisados por métodos estatísticos descritivos e multivariados (análise de cluster). As análises descritivas de dados mostraram evidências significativas sobre as relações de integração entre a MC e a Inovação de produtos e processos, bem como, a contribuição da MC na criação de um ambiente propício a Inovação. As análises multivariadas revelaram a existência de associações entre a intensidade de uso de práticas de MC e o desempenho percebido em Inovação, principalmente em processos. Os resultados contribuem para uma melhor compreensão sobre o tema e aplicação gerencial nas organizações, além de indicar oportunidades de desdobramentos para pesquisas futuras.