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Abstract
Manufacturing firms employ different strategies to improve the performance of their products. In this study, we investigate the roles of environmental dynamism and competitive intensity as antecedents of product and process innovation strategy implementation. Furthermore, we investigate the effect of these initiatives on product innovation performance and product quality performance in manufacturing firms. Based on an analysis of a sample of 207 firms in Australia, the results reveal that environmental dynamism positively relates to both product and process innovation strategy implementation while competitive intensity positively relates to only process innovation strategy implementation. Moreover, product innovation strategy implementation positively relates to product innovation performance while process innovation strategy implementation positively affects product quality performance. Both product innovation performance and product quality performance are found to positively affect business performance. The theoretical and practical implications of the study in the context of Australian manufacturing are discussed.