Effects of innovation culture, competition strategies and company capabilities on business performance

The economic system changes, globalization, developments in information and communication technologies have led to changes and diversification of the demand structure of consumers. This situation has caused businesses to enter into an intense competition environment with rival businesses in order to meet the demands of their customers and to offer them the best service. The competition went beyond national borders in a short time, therefore, it paved the way for the emergence of a new global economic structure and the development of different strategies for companies within this structure. Businesses produce strategies by acting in search of a competitive power in order to maintain their existence and get ahead of their competitors. Approaches related to competitive strategies have attributed the occurrence of this power to various reasons. The resource-based approach, which is one of these approaches, argues that the strength of the firm stems from the unique and inimitable capabilities of the organization and its innovation culture. Industry-based perspective, which is another perspective, sees the power factor as a necessity for companies to do because of external competition rather than internal dynamics. It states that the way to show superior performance in the struggling market is through differentiation, cost leadership or focusing on a market niche. The aim of this study, which brings together the thoughts of different theories, is to investigate the direct and indirect effects of firms' innovation culture and competitive strategies on their innovation capabilities and firm market performance. In addition to that, the study is trying to examine the effect of innovation capabilities on firm market performance. In this direction, the research was carried out on companies that continue their machine-made carpet production activities in Gaziantep Organized Industrial Zone.