The importance of product innovation in
maintaining a competitive advantage
Sarkar Ahmed Saeed*, Hazhar Omer Mohammed **,
Rawa Amjad Muhamed***, Rezhwan Fayaq Othman****

Abstract: Product innovation is crucial in creating and sustaining a
*Department of International
Trade, College of Law and
Administration, University of
Halabja, Iraq
sarkar.saeed@uoh.edu.iq

**Department of Business
Administration, College of
Administration and Economics,
Lebanese French University,
Erbil Kurdistan Region, Iraq
hazharbus@gmail.com

***Department of International
Trade, College of Law and
Administration, University of
Halabja, Iraq
Rawa.int15@uoh.edu.iq

****Department of International
Trade, College of Law and
Administration, University of
Halabja, Iraq
Rezhwan.int14@uoh.edu.iq

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DOI 10.32015/JIBM.2024.16.2.4
Mednarodno inovativno
poslovanje =
Journal of Innovative Business
and Management
ISSN 1855-6175

competitive advantage for companies. Companies can differentiate
themselves from competitors by constantly improving, introducing new
products, and appealing to customers. The success of product
innovation depends not only on how new the product is but also on its
quality and price. Therefore, the relationship between product
innovation, price, and quality is vital for creating and maintaining a
competitive advantage. This study analyzes the relationship between
product innovation and (price, quality) with a sustainable competitive
advantage, the data shows that there is an effective and positive
relationship between product innovation and price, quality.
Additionally, we collected data through forum questionnaires and
analyzed it using the multiple regression method, and We used SPSS
version 25 for assistance in data analysis. So, the study can analyze the
influence of the independent variables (product innovation) on the
dependent variable (sustained competitive advantage). After analyzing
the data, it was found that process innovation, product innovation,
price and quality positively impact sustained competitive advantage.

Keywords: product innovation, innovation, price, quality, sustained
competitive advantage
JEL: O31

Pomen inovacij izdelkov pri ohranjanju
konkurenčne prednosti
Povzetek: Inovacije izdelkov so ključnega pomena za ustvarjanje in
ohranjanje konkurenčne prednosti podjetij. Podjetja se lahko
razlikujejo od konkurentov z nenehnim izboljševanjem, uvajanjem
novih izdelkov in privabljanjem kupcev. Uspeh inovacij izdelkov ni
odvisen zgolj od njihovih novitet, temveč tudi od kakovosti in cene.
Zato je razmerje med inovacijami izdelkov, ceno in kakovostjo ključno
za ustvarjanje in vzdrževanje konkurenčne prednosti.
V tej študiji analiziramo povezavo med inovacijami izdelkov ter (ceno,
kakovostjo) in trajnostno konkurenčno prednostjo. Podatki kažejo, da
obstaja učinkovita in pozitivna povezava med inovacijami izdelkov ter
ceno in kakovostjo. Podatke smo zbrali prek vprašalnikov na forumih in
jih analizirali z metodo večkratne regresije, pri čemer smo uporabili
programsko opremo SPSS različice 25. S študijo smo tako lahko
analizirali vpliv neodvisnih spremenljivk (inovacij izdelkov) na odvisno
spremenljivko (trajnostna konkurenčna prednost).
Po analizi podatkov je bilo ugotovljeno, da imajo procesne inovacije,
inovacije izdelkov, cena in kakovost, pozitiven vpliv na trajnostno
konkurenčno prednost.

Ključne besede: inovativnost izdelkov, inovacije, cena, kakovost,
trajna konkurenčna prednost

1

Introduction
In the business world, competition is inevitable. To stay ahead, it is essential to stay upto-date on industry trends and customer demands and adapt to changes in the business
environment. By effectively managing resources and creating a competitive advantage,
success can be achieved during competition. One approach to winning a competition
through product innovation is to develop new products, even when facing competition from
rivals. This process involves observing customers to understand their needs and creating
new products that satisfy them. It also requires developing innovative solutions to maintain
a strong market position and defend against competitors to meet customer demand.
Successfully implementing these tactics can give a firm a competitive advantage. As a
result, businesses must offer fresh perspectives, original ideas, and cutting-edge products
(Kuncoro & Suriani, 2018). The financial company's environment is influenced by volatility,
ongoing dynamism, and rapid development. Effective economic institutions can perform
tasks that distinguish them from their competitors during challenging times. These
institutions facilitate the introduction of new goods and services, the removal of outdated
ones, the creation of new markets, and the decline of existing ones. As a result, companies
are increasingly interested in investing in innovation as a critical competitive factor for
expanding market share or maintaining customer loyalty (Alsadiq Shahib et al., 2017). The
modern economic system seeks to survive and then expand in a highly competitive
environment in which it works with the organization to gain the superiority of the rival and
acquire a new client, and this forces all organizations to work to do something either unique
or similar to others, but in a different way.
In today's highly competitive market, innovation is essential for any organization's success
and sustainability. Scholars have been studying innovation extensively over the past 20
years, working to define, categorize, and measure its impact on organizational
performance. Balancing environmental, social, and economic considerations is essential to
success. Product innovation in an organization involves developing new or improved
products with better technical-functional features, components, materials, and ease of
use. (Maier et al., 2019). When it comes to business, product innovation can take on
different forms. This can include introducing new products, extending product lines,
improving existing products, or changing their design. In order to stay competitive in the
market, managers must have a thorough understanding of the different types of product
innovation. (Cooper & Wahab, 2005). Product innovation is essential for corporate success
and innovation. Innovative products offering unique consumer benefits, cost savings, or the
potential to create new companies are called radical product innovations. These
innovations should improve organizational performance more than other types of
innovation. Businesses can keep up with changing demands by creating innovative products.
This is known as radical product innovation. The antecedents to an incremental or general
product innovation capability have been the subject of many studies, and meta-analyses
have been carried out to combine the findings from numerous studies. However, it is also
crucial to understand whether and how a radical product innovation capability differs from
an incremental one. This effort aims to provide a testable model of the factors that lead
to successful radical product innovation (Slater et al., 2013). We live in turbulent times.
Technological advancement is constantly increasing, while customer and market needs
constantly evolve. Organizations need a product innovation and technology strategy to
navigate competition and globalization. Attempting innovation without a plan is like going
to war without one. The business disseminates improvement assets across various drives
that could be decisively significant or, more terribly, end up in irrelevant or undesirable
markets, products, and advances (Cooper, 2005). The quality of a product plays a
significant role in its success. Customers are willing to pay more for products that meet
their needs and are of high quality. To achieve a sustainable competitive advantage,
companies should prioritize producing high-quality products. Additionally, price plays a
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crucial role in determining a product's success. Companies offering their products at a lower
price than their competitors can attract price-sensitive customers and gain a competitive
advantage. However, companies must also ensure that the price of their products is
reasonable and that it does not compromise the quality of the product.
In this study, we aim to distinguish the impact of product quality and pricing in the past
compared to the influence of product innovation on a company's ranking. Additionally, we
will examine the advantages of our current competitors. The goal is to provide insight into
the change’s businesses should understand to compete with their rivals and succeed in the
market effectively. Businesses must also know what the market is doing and what customers
want.

1 Literature review
Innovation refers to a company's willingness to explore new ideas and engage in creative
processes to create new products. To stay ahead in today's business world, it is crucial to
continuously innovate and maintain a competitive edge. This is important for generating
immediate revenue and ensuring the long-term growth of a family business. To gain a
competitive edge, providing excellent value to customers is crucial. A company's success
relies on its ability to stay competitive in the market and keep up with the rapidly
expanding and advancing technologies brought on by globalization. As long as the company's
products reflect its image and meet the desires and needs of consumers, it will continue to
thrive. Developing new products is key to maintaining this success (Yusof et al., 2015).
Product innovation is one of the main drivers of a firm's competitive advantage. According
to Crossan & Apaydin (2010, firms that can succeed in continually coming up with new
products or improving existing ones gain a better position to meet the changing needs of
customers, hence differentiating themselves from their competitors to retain their market
standing. According to the resource-based view, firms with valuable, rare, inimitable, and
non-substitutable resources and capabilities have the potential for long-term competitive
advantage. In that case, innovation capability would be one such resource or capability.
Empirical studies have established a positive relationship between the product innovation
performance of the firm and its competitive advantage and financial performance. The
relationship, however, is not that easy: how product innovation pans out into competitive
advantage will depend on several contingencies, including the nature of innovation,
innovation management capabilities of the firm, and competitive dynamics in the industry,
among others (Hervas-Oliver et al., 2021). Firms must also carefully balance product
innovation against other strategic imperatives, for example, cost efficiency and quality, to
attain the best net outcome (Prajogo, 2016). Product innovation is important in enhancing
a firm's competitive advantage and is sustained over time. Firms that can come up with
newly improved products now and then, regularly, are in a better position every time to
meet the needs of changing customers, hence the adoption of markets and driving out stiff
competition from rivals, notable competitive strategies. A resource-based view articulates
those valuable, rare, inimitable, and non-substitutable resources and capabilities, for
instance, firm innovation capabilities, have the potential to create sustained competitive
advantage (Barney, 1991). Empirical research found a positive relationship between a firm's
product innovation performance, competitive advantage, and financial performance
(Rubera & Kirca, 2012). However, the relationship between product innovation and
competitive advantage is more complicated since the innovative attributes and innovation
management capabilities, as well as the competitiveness of the industry, may influence the
extent the extent to which the advantages are realized (Hervas-Oliver et al., 2021). Firms
have to balance product innovation with both strategic priorities, such as cost efficiency
and quality, to realize optimum performance (Prajogo, 2016). In addition, competitive
advantage based on product innovation may be severely constrained in terms of
sustainability. Quite often, in the case of new products, imitations or even substitutability’s
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may arrive promptly enough to denude the innovating firm of its competitive advantage
(Jansen et al., 2006). Continual innovation is, thus, held to be the gizmo of survival, staying
ahead of competition, and keeping the advantage (Makkonen & Villanen, 2015). This calls
for considerable investments in R&D, effective innovation management practices, and
organizational capabilities (Cao & Zhao, 2013).
1.1 Product Innovation
Transferring knowledge into new processes, goods, and services is essential to staying
competitive. Innovation can also mean applying new concepts to a business's goods,
procedures, or other aspects. The main focus of innovation is to turn an idea into something
tangible that can be implemented and considered. Innovation is classified into five
categories: new products, new production methods, new sources of supply, new entrants,
and new markets (Yusof et al., 2015). Different definitions of innovation focus primarily on
advancing technology or product development. Businesses can improve performance
through innovation, including incremental improvements. Innovation must employ
manufacturing and marketing technologies to create new goods, services for customers,
and qualities for new items (Yeşil et al., 2013). Product innovations refer to implementing
innovative practices throughout a business operation to develop and promote new products,
including all associated processes. These practices are crucial for businesses to maintain
their sustainability, as they must continuously adapt to changes in customer demands,
technological advancements, and the short life cycle of products, as well as local and
international competition. Asserting that product innovation is crucial and should be
included in strategies to sustain market share in the face of intense competition has made
this prop informative (Panigrahy & Pradhan, 2015).
Innovation is doing things differently, and creativity is thinking about novelty. It is the
quality of constantly coming up with original ideas and inventive solutions and having four
distinguishing characteristics or innovations: (1) Special meaning or innovation having a
strange meaning idea, the program's sequence and system, and potential outcomes. (2) The
component or ingredient must have qualities of a work or fruit conceived of at various
degrees of ordinality and novelty. (3) The innovation program was carried out according to
a pre-planned schedule in the sense that Keino Asian prepared meticulously with a defined
schedule and planned ahead of time. (4) Innovation, a program with a goal, requires
direction and strategy to achieve a purpose (Zaridis & Mousiolis, 2014). According to Porter,
"Marketing is applying an innovative technique, and the innovation process cannot be
divorced from corporate strategy and the competitive environment. In order to combine
technology, organizational change, and market change and maintain current development,
an organization employs innovation (Drazin, 1985). Different factors, such as administrative
and technological innovation, product and process innovation, and radical and expanding
innovation, can differentiate one invention from another (Afuah, 2020). Unique importance
is attached to the categorization of management and technical innovation. Furthermore,
Sattayaraksa and Boon (2016). believe that the business must pursue both technological
and non-technological innovation at the same time. When classifying innovative
capabilities, consider product, process, management, and marketing innovation. Product
innovation involves enhancing existing products with new features and functions to
differentiate them in the market, creating new products, modifying existing product
designs, and utilizing new technologies and media in production. Please note that I am not
capable of product innovation. Product innovation may be viewed from two perspectives:
from the inner side, which is influenced by the company's knowledge, capabilities,
resources, and technologies, and from the exterior, which focuses on customer
requirements and owner expectations (Weerawardena, 2003).

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The commercialization of research and development outcomes by creative enterprises
generates new and unused value, which the growth of nations' economies heavily depends
on. Additionally, these same businesses receive a large portion of the value generated.
They are primarily generating money in this way for themselves, their nation, and the entire
planet. Innovations in processes as well as goods and services are included. Products viewed
as innovative by consumers, who might be distributors and end users, are produced. Process
innovation describes novel procedures that either lower manufacturing costs or make it
possible to produce new goods (Harris et al., 2000). It must be evaluated on several criteria
to determine an innovative product's added value to the company, the consumer, and the
market. The return on marketing investment in innovation is the first dimension.
Innovations are judged based on their potential to enhance market capitalization
concerning their cost-per-innovation spending, revenue, profits that flow to the company,
and equity (brand, firm, and social). 'Percent of income from new goods' is one frequent
metric. In addition, an average annual revenue for the industry standard needs to be
developed (or a time frame, such as half the product life cycle, must be adopted). The firm
must also understand what constitutes "newness or novelty" and what does not (Mohr &
Sarin, 2009). A more comprehensive measurement of the "percent of revenue" from new
platforms is needed to overcome the measure's restriction of checking only items (Shapiro,
2006).
In order to make the most of their innovations, innovators may need access to additional
assets such as competitive manufacturing, strong distribution, vital services, and
complementary technologies. Suppose these resources are not available to the innovator
but are available to imitators or followers. In that case, the benefits of innovation may go
to the imitator or follower instead of the inventor. If this occurs, the imitator or follower
may modify the invention or find a way to bypass it, resulting in limited returns for the
inventor. Innovations that are commercial successes should result in dominant designs and
standards (Gambardella et al., 2021). To evaluate an innovation system's competitiveness,
one can consider the time it takes for ideas to turn into practical innovations. This
necessitates companies concentrating on their procedures or systems for developing new
products, also known as the development period. This factor also influences the entry date
for strategic marketing decisions. As is well known, entry timing can determine an
innovation's success or failure in the market. When an innovation significantly impacts a
market segment, the first business to implement it will have an edge over competitors and
will enter the market first, affecting its market share (Teece, 2003). Product innovation is
essential to creating and maintaining a sustainable competitive advantage. Companies that
persistently innovate can foster better products than their rivals, empowering them to offer
their products at a lower price point while keeping up with or, in any event, further
developing their overall revenues. In any case, more than innovation is needed to create a
sustainable competitive advantage. Companies should likewise market their innovations
effectively to receive the rewards of their innovation efforts.
1.2 Sustained competitive advantage
In 1984, the idea of a sustainable competitive advantage was introduced by Day, who
suggested different tactics to achieve it. Later, Porter explained two main competitive
strategies—low cost and distinctiveness—that businesses can use to attain sustainable
competitive advantage, popularizing the term "sustainable competitive advantages."
Interestingly, Porter's speech had yet to reach a formal, conceptual formulation. The
closest formal definition is provided by (1991), who writes: According to the original text,
a company has a lasting competitive edge if it has a strategy that creates value and is not
being used by any current or potential competitors, and if other companies are not able to
replicate the benefits of this strategy. The following formal, conceptual description is
supplied, based on Barney's work as well as the dictionary meanings for each term: A
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sustainable competitive advantage is the sustained advantage of putting in place a
particular value-creating strategy that is not being used concurrently by any existing or
future rivals and the inability to replicate the advantages of this strategy (Nicole et al.,
2000). A company is said to have a lasting competitive advantage when its products or
services are hard to replicate or expensive for rivals to copy. A strategic resource-based
approach requires efficiently utilizing a company's resources to maximize opportunities or
tackle challenges. They must also be limited, imperfectly imitable, and free from prejudice
to have equal chances for sustainable human resources. (Dirisu et al., 2013)
Competitiveness and innovation can influence competitive advantage. It is important to
remember that a company's capacity to innovate gives it a competitive advantage. Since
innovation may demand resources to transform a company into a competitive one,
corporate resources are crucial to creating innovation. Other crucial elements include
customer behavior, which may influence other people's behavior and ultimately influence
how inventive people behave and how innovative a corporation is (Filová, 2015). Consumers
are looking for businesses to be more innovative in their product creation processes. The
success of a product is dependent on consumer purchasing decisions, which determine its
market performance. Every business in a specific sector must have a noticeable or hidden
competitive strategy. Competitive strategy is based on making assumptions about how a
company will approach competition, what will help them achieve their goals, and what
policies are needed to get there. Competitive strategy is a mix of the result and the means
(policy) an organization can afford to achieve (Zaini et al., 2014). The presence of new
rivals, the danger of product replacement, buyer and supplier bidding influence, and rivalry
among competitors are examples of different forms of competitive advantage. A
corporation with a competitive advantage influences a market competition environment
because of advantages that are difficult to duplicate, allowing it to seize and sustain market
leadership positions. Product quality, product distinctiveness, and competitive pricing are
metrics used to assess competitive advantage. The first criterion focuses on a company's
ability to create distinctive products by fusing art and consumer needs. Product quality is
the level of design of the firm. The fourth indication, competitive price, measures a
company's capacity to adapt the price of its products to those of similar goods and services
on the market (Dirisu et al., 2013).
In order to gain a long-term competitive advantage, businesses must be able to create a
core set of competencies that will enable them to outperform their rivals in providing
services to their target clients. The term "main competence" refers to a collection of unique
skills that an organization develops in its core competencies, such as quality, customer
service, team coaching, innovation, adaptability, and responsiveness, to outperform its
rivals (Nasef et al., 2022). Our services focus on innovation and new product development
to meet the market's demands. This means that businesses can leverage innovative products
to their advantage. Product innovation is a means to increase value as a business strategy
that may help businesses gain a competitive edge and become market leaders. According
to Kuncoro Suriani (2018), an organization's sustainable competitive advantage increases
when new product innovation levels rise. This indicates that new product innovation affects
an organization's sustainable competitive advantage. This is a competitive strategy to
support a vendor’s success for a long time since it is not readily replicated (Kuntjoroadi &
Safitri, 2011). Many experts agree that having superior abilities and resources are critical
factors in gaining a competitive advantage. However, not all company resources can sustain
that advantage. Resources must meet four criteria for sustainable competitive advantage:
rarity, value, imitability, and substitutability. Other writers have delved into the types of
abilities and assets that can support such an advantage. In order to effectively utilize
resources, businesses should categorize them into financial, physical, legal, human,
organizational, informational, and relational resources. Companies should focus on their
core competencies, where they outperform their competitors by leveraging resources and
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expertise. To achieve sustainable competitive advantage, businesses should combine their
resources and abilities uniquely and enduringly. By pooling resources in this way, businesses
may concentrate on learning how to effectively coordinate the activities of all employees
in order to promote the development of specific core skills (Nicole et al., 2000).
1.3 Price
Price is all a customer provides to gain the edge offered by the company's marketing. In
this way, price is how much monetary unit money or other measures (counting products)
are exchanged for possession or use privileges charged for a product. Prices are estimated
through price moderateness, appropriateness, quality, level of price competition, and
limits. A few examinations notice that price plays a part in buying choices (Khayru et al.,
2021).
In marketing, price is the most critical factor in generating revenue. Other factors involve
using up resources. Price changes have a quicker and more direct impact, and potential
customers are easier to persuade based on price. Competitors can respond more efficiently
to inquiries about price rather than product features and branding. The price choice is
likely the most critical among the marketing mix choices (strategy) for a marked product.
The customary way of thinking proposes that the price choice should be consonant with
those of different components of marketing technique. Despite the great significance of
price, scholastic exploration of valuing issues in marketing has been an unassuming, bestcase scenario. This has been valid because of multiple factors: specialists have underlined
monetary and cost investigations used to arrive at price choices inside a partnership, and
there has been more prominent help for and development of publicizing and product
research (Khayru et al., 2021).
1.4 Quality
The role of product quality is inspected to determine its materiality to acquire a
comparative advantage. The creators contend that simply by (1) taking into account the
chance of feedback among quality and other vital elements and (2) controlling for firmexplicit effects, the role of quality and critical speculations at any point can be assessed.
The discoveries propose the significance of product quality and that the fruitful execution
of a quality technique can work with expanded benefit in both a concentration and a piece
of the pie set (Jacobson & Aaker, 1987). In order to increase customer satisfaction and gain
a competitive edge, quality management is a widely used management strategy. It involves
improving goods, services, and operational procedures (Kim et al., 2020).
Consumers' assessment of a service’s excellence defines quality (Anuwichanont, 2011).
Products promoted stand out enough to be noticed if they have good quality. Then again,
inferior-quality products will get a bad evaluation from shoppers. Subsequently, the
following products should always be of good quality: A product will be viewed as quality on
the off chance that it can meet purchaser assumptions, and it likewise determines shopper
fulfillment and repurchase interest. However, long makers and advertisers offer good
quality products and sensible estimating upheld by a good brand picture as indicated by
customers, and it will be more straightforward to legitimize higher costs by empowering
buyers to relate and legitimize prices with product advantages to address customer needs.
(Djaelani & Darmawan, 2021). The literature on quality administration does not explore
how improving product or service quality is related to competitive strategy. In strategy
literature, it is important to clearly understand the importance of quality in competitive
strategy. A recent study analyzed Doorman's recommendations for "conventional strategy"
and found that their measure for "product quality control" was strongly associated with
both "low cost" and "diverse" approaches. Two studies on strategy execution found that one
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identified high product quality as the key variable in a 'product separation' strategy, while
the other viewed product quality control as the primary variable in a 'proficiency' strategy.
Despite the abundance of quality management and business strategy literature and the
widely held belief among managers that product or service quality is crucial to competitive
success, there needs to be more strategic insight or clear, precise evidence linking quality
improvement to competitive advantage. (Morgan & Piercy, 1996).

2 Research methodology
The researchers conducted a survey to measure both dependent and independent variables.
The methodology involved identifying the independent variables (innovation, including
product innovation, price, and quality) and dependent variables (sustained competitive
advantage) through design research. This study highlights the effects of the product
innovation process in (Diwan) from Kurdistan to Iraq. In order to obtain accurate research
findings and test the thesis hypotheses, the researcher used two methods for data
collection in the study. The first involved observing academic articles and research related
to the same topic, including health books. The second method involved utilizing a forum
questionnaire, deemed the most suitable instrument to achieve the objectives of this study.
The data was then analyzed using SPSS.
2. 1 Hypothesis
H1. Innovation is positively related to sustained competitive advantage.
H2. Product innovation is positively related to sustained competitive advantage.
H3. Price and quality are positively related to sustained competitive advantage.
2.2. Research model

2.3 Questionnaire Design
The researcher crated a questionnaire that the staff answered to achieve the study's goals
and collect data. The questionnaire consisted of 20 statements divided into five categories:
product innovation (innovation, price, and quality) and sustained competitive advantage.
The respondents also provided their demographics, such as gender, age, academic
qualifications, current job title, and years of experience, as shown in the table.

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An organized questionnaire was used to gather fundamental data from the members. We
utilized random sampling. The measure is moored on a 5-point Likert rating scale from
strongly agree (5) to disagree (1) strongly. Higher scores reflect constructive outcomes for
subordinates, while lower scores address adverse consequences.
The researcher used a scale of (Likert Quintet) to answer the questionnaire, stating
statements as:

Table 1: Descriptive Statistics for Demographic Questionnaire

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Table 1 provides descriptive statistics of the participants in this research. The data is sorted
into categories based on demographic factors such as gender, age, education level,
organization status, and province. The table contains information on the frequency and
proportion of each category. According to gender, this table shows that most participants
were male (52.2%), and the most frequent age group was 20–35 years (46.0%). Most of the
participants held a bachelor's degree. (49.1%), with the highest number being government
employees and other occupations (49.7%), respectively. Residence of the persons who
completed this form (62 persons) (38.5%).
2.4 Correlation and Regression
We used correlation analysis to establish the link between independent and dependent
variables. Regression analysis was employed to model the relationship between response
and predictor variables. We then utilized simple linear regression analysis and forward
multiple linear regression to identify explanatory variables such as innovation, product
innovation, and competitive advantage that can predict response variables. Admin. (2023,
Mar. 12)
Table 2: Correlation matrix between independent variables and dependent variable

**. There is a significant correlation at the 0.01 level (2-tailed).

Table 2 displays a noteworthy and affirmative correlation between the independent
variables related to competitive advantage (0.606), price and quality (0.536), sustained
competitive advantage (0.557), and the dependent variable of product innovation.
Table 3: Performing a simple linear regression analysis between process innovation as the independent
variable and sustained competitive advantage as the dependent variable.

In Table 3, it was found that there is a positive correlation between process innovation and
sustained competitive advantage. Pearson's correlation analysis showed a correlation
coefficient of 0.540. Based on this finding, it is important to determine the predictive and
influential rate of process innovation for sustained competitive advantage. Also, the same
table shows the ANOVA table for checking the goodness of fit for the explanatory variable
(process innovation) on the response variable (sustained competitive advantage), so the
model is appropriate based on (F = 65.340 and P-value = 0.001).
The table above contains the constant, slope, t-value, and coefficient of determination (R
square) results. The regression coefficient (B) for process innovation is . 0.574, which means
increasing one unit for process innovation will increase the sustained competitive advantage
by 0.574. The determination of coefficient (R2) reflects that 38.9% of the variation in
competitive advantage is determined by process innovation, and the remaining variation
turns to other factors that affect competitive advantage.

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Table 4: Simple linear regression analysis between the independent variable (product innovation) and
dependent variable (sustained competitive advantage).

In Table 4, it is shown that there is a positive correlation between the independent variable
of product innovation and the dependent variable of sustained competitive advantage. After
conducting a Pearson's correlation analysis, which revealed a weak positive relationship
(0.557) between these variables, it is important to understand the prediction and influence
rate of product innovation on competitive advantage. Also, the same table shows the ANOVA
table for checking the goodness of fit for the explanatory variable (product innovation) on
the response variable (sustained competitive advantage), so the model is appropriate based
on (F = 71.666 and P-value = 0.001).
The table above contains the constant, slope, t-value, and coefficient of determination (R
square) results. The regression The coefficient (B) for product innovation is . 0.570, which
means increasing one unit for product innovation will increase the sustained competitive
advantage by 0.570. The determination of Coefficient (R2) reflects that 38.9% of the
variation in sustained competitive advantage is determined by product innovation, and the
remaining variation turns to other factors that affect sustained competitive advantage.
Table 5: Simple linear regression analysis between the independent variable (Price and quality) and
dependent variable (sustained competitive advantage).

The information presented in Table 5 shows a direct connection between the price and
quality of a product and its ability to maintain a competitive advantage in the market.
Pearson's correlation analysis data indicates a slight positive correlation (0.468) between
these independent variables and the dependent variable of sustained competitive
advantage. It is important to consider how price and quality impact competitive advantage
and to determine their predictive power and level of influence. Also, the same table shows
the ANOVA table for checking the goodness of fit for the explanatory variable (price and
quality) on the response variable (sustained competitive advantage), so the model is
appropriate based on (F = 44.704 and P-value = 0.001).
The table above contains the constant, slope, t-value, and coefficient of determination (R
square) results. The regression coefficient (B) for product innovation is 0.530, which means
increasing one unit for product innovation will increase the sustained competitive advantage
by 0.530. The determination of coefficient (R2) reflects that 38.9% of the variation of
competitive advantage is determined by price and quality n, and the remaining variation
turns to other factors that affect sustained competitive advantage.

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Table 6: Forward multiple liner regression analysis between the independent variable (process
innovation, product innovation, price, and quality) and dependent variable (sustained competitive
advantage).

Table 6 shows the strong positive correlation between the independent and dependent
variables (0.709) from Pearson's correlation analysis; it is essential to know product
innovation's prediction and influence rate on competitive advantage. Also, the same table
shows the ANOVA table for checking the goodness of fit for all the two explanatory variables
(process innovation and product innovation) on the response variable (sustained competitive
advantage), so the model is appropriate based on (F = 79.824 and P = 0.001).
The above table shows the constant, slope, t-value, and coefficient of determination (R
square) results. The regression coefficient (B) for process innovation is 0.388. This means
that increasing process innovation by one unit will result in a competitive advantage increase
of 0.388 compared to existing product innovation. The coefficient (B) for product innovation
is 0.404, which means that increasing one unit for product innovation will increase the
competitive advantage by 0.404. This means , that increasing one unit for product innovation
will increase the competitive advantage by 0.274 over existing process innovation. The
determination of Coefficient (R2) reflects that 44.4% of the variation in competitive
advantage is determined by these two independent variables, including process innovation
and product innovation, and the remaining variation is turned to other factors that affect
sustained competitive advantage.

3 Conclusion
Innovation is an essential factor in creating a sustainable competitive advantage for
companies. The role of product innovation in creating and maintaining a sustainable
competitive advantage has been widely concentrated by researchers. This paper aims to give
a thorough conclusion on the role of product innovation in supporting sustained competitive
advantage. Creating new products or improving existing ones to meet evolving customer
needs is the essence of product innovation. Product innovation can assist companies in
separating themselves from their rivals by offering novel elements or benefits that are not
accessible elsewhere on the market. This can assist with building brand loyalty and
increasing customer retention. Otherwise, this study analyzes the relationship between
product innovation and price and quality with a sustainable competitive advantage. The data
shows that there is an effective and positive relationship between product innovation and
price and quality. The effect of product innovation on sustainable competitive advantage is
enormous. Companies that constantly innovate can create a sustainable competitive
advantage by developing better products than their rivals. This can empower them to offer
their products at a lower price point while keeping up with or, in any event, further
developing their net revenues. Besides product innovation, prices and quality are significant
factors in gaining sustained competitive advantage; companies must be careful of these two
components in the business environment.
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