The impact of technological innovation on product quality: the moderating role of firm size

Innovation and quality are essential for sustainable competitiveness in today’s business world. Despite extensive theoretical discussions about the relationship between innovation and quality, few studies explore the observable effects of technological innovation practices (TIPs) on product quality. This paper aims to empirically investigate the impact of TIP on product quality, considering the moderating effect of firm size. A conceptual model linking product innovation practice, process innovation practice, normal quality (NQ), attractive quality (AQ) and product market performance is proposed. The model is tested using survey data from 201 innovative Chinese manufacturing companies. The results reveal that TIP does indeed positively influence both AQ and NQ. Firm size moderates the relationship between TIP and AQ. The study contributes to a better understanding of how different-sized Chinese firms can utilise innovation practice to improve product quality and market performance.

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