Customer Perceived Innovation: Considerations for Financial Performance and Methodological Approaches
Peer reviewed, Journal article
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Date
2024Metadata
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- Scientific articles [2205]
Abstract
As firms increasingly uncover their activities to key stakeholders through various media, the perception of these activities is becoming more important for firm performance. Traditionally, access to industry-wide databases provides important metrics on customer perceptions of performance, such as customer satisfaction and brand equity. In addition, numerous studies have highlighted firms’ innovation-related actions (e.g., R&D spending and patent counts) as critical metrics linked to their financial performance. Perceived Firm Innovation (PFI) emerges as a relatively new and under-studied metric with the potential to impact a firm’s financial success. Keiningham et al. are among the pioneers in this area. This commentary views their article as a vital initial step in understanding PFI’s impact. Considering that the service sector accounts for over 70 percent of the GDP in any developed country, service innovation is a broad phenomenon. Given the breadth of the area, we point to the challenge of capturing this phenomenon with a single metric like PFI. We also discuss crucial methodological considerations for future research, including estimation methods, sample size, and financial metrics.