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EMAC 2022 Regional Conference

Product innovation management in retail: an examination of product innovativeness towards performance and moderating role of commercial environment

Published: December 1, 2022


Indre Brazauskaite, ISM University of Management and Economics; Vilte Auruskeviciene, ISM University of Management and Economics


The paper explores the link between new product innovativeness and performance, as well as its moderation by commercial environment settings in retail. It analyzes the linkage and context built on marketplace and supplier characteristics as well as category management decisions as an integral commercial environment. The research employs a unique data set - new product introductions with their actual sales results as a performance indicator. The research concludes that the innovativeness – performance link cannot be evaluated unilaterally, confirming the role of the commercial environment as a moderator of the link. The commercial environment is associated with a favorable and non-favorable economic climate that leads to performance-related opportunities or barriers in the marketplace for product innovations.