Innovation and business performance in retailing

In recent years, innovation increasingly has been considered a key element of superior business performance in many industries. Retailing is no exception. Innovations and applications have always played an important role in retailing. On one hand, innovations enables retailers to reduce their cost, to improve their business processes and to improve their services to customers as well. On the other hand, innovations in retailing have become a fundamental success drivers to gain the competitive advantage over their rivals and denotes a transformative change for the retail industry. The main purpose of this study is to explore the effects of the product, process, marketing, organizational and technological innovations on the business performance based on an empirical study covering 91 organized grocery retailers in Turkey. A theoretical framework is empirically tested identifying the relationships amid innovations and business performance in retailing. The results reveal the positive effects of all five types of innovations on business performance in retail industry.