A Correlation-Based Impact Analysis of Competence Utilization on Innovation Performance

International Journal of Applied Entrepreneurship (ISSN: 1742-5824) Volume 1 Issue 3

Andrew L S Goh
Division of Business and Enterprise
University of South Australia, Australia


This paper introduces the concept of competence utilization in the context of innovation. For some time now, its conceptualization has become a preferred foundation for theory building in other fields, but not in the field of innovation. For this reason, an investigative study is proposed to hypothesize, quantify and validate the role of competence utilization in innovation using a correlation-based impact analysis. In particular, the study assesses the impact of competence utilization on innovation performance by testing three hypotheses. Data was collected, over a three-month period, via a survey questionnaire to extract ex post facto information from firms in Singapore. The firms were selected from three industry sectors by stratified random sampling. Non-parametric statistics were employed to test the three hypotheses.

The results showed that the impact of competence utilization on innovation performance, as indicated by the extent of availability, utility and desirability, was found to be statistically significant. The research findings are: Firstly, the level of utilization in technology competence, product competence and market competence, as manifested in innovation activities, is positively correlated to the level of innovation performance, as quantified by sales profitability, company growth and organizational effectiveness. Secondly, the impact of competence utilization is the strongest on sales profitability followed by company growth and then organizational effectiveness. Thirdly, in terms of relative effectiveness, as ranked by the impact on innovation performance, technology competence is the most effective while product competence is less effective; and market competence is the least effective. In conclusion, three areas of future research are recommended to further deepen the field of study.

Competence Utilization; Innovation Performance; Correlation Analysis; Technology Competence; Product Competence; Market Competence; Sales Profitability; Company Growth and Organizational Effectiveness.

Due to a number of complex formula this article is currently only available in pdf format

IMJ members can download/view the file by logging in the following the icon above.

Subscribe now to view the full article.
Existing members may login to view this article.