This aspect has driven several studies to evaluate the performance of manufacturing organisations to offer further insights into this sector. Accordingly, this paper aims to examine the impact of innovative performance on production and market performances. This is followed by investigating the effect of production performance on market performance and the mediating role of production performance on the association of innovative performance with market performance in manufacturing organisations.
A set of questionnaires was provided to 384 managers in Palestinian manufacturing organisations through convenience sampling. This was followed by data analysis through structural equation modelling (SEM).
It was found that innovative performance directly and positively impacted production and market performances. Specifically, production performance positively impacted market performance, while production performance partially mediated the association of innovative performance with market performance. Moreover, the interrelationships between the dimensions of organisations’ quality were focused on.
Only three primary areas in Palestine were investigated, namely, Ramallah, Alkhalel and Jenin. Therefore, it is suggested that future research works gain data from more areas in Palestine to improve the external validity of the research. Furthermore, generalisability should be addressed with caution due to the use of convenience sampling in this research. It is noteworthy that Palestine is an occupied nation. Researchers may also validate the findings of this study by investigating additional manufacturing sectors, including pharmaceutical and electronic businesses.
Notably, the major practical implication in this paper emphasises the importance of managers’ awareness of innovative and production performances as the success elements for improving consumer fulfilment, overall profits and market share as important elements of market performance.
Notably, this research is distinguished from past research works that primarily emphasised the investigation into the general association of innovation with performance. It has also contributed to the manufacturing performance literature by further validating the performance scales. The method selected in this study, which is SEM SMART PLS, may also offer additional insights into the existing performance models by examining the interrelationships between innovative performance and dimensions of organisational performance, including the production and market performances of the manufacturing sector in Palestine, which is a developing and occupied nation.
