Factors influencing innovation in the manufacturing industry in Pichincha, Ecuador

Abstract

The lack of innovation capacity in the Ecuadorian business environment is a problem that affects the competitiveness and sustainability of these organizations in a globalized economy. This research aims to determine the relevant factors that influence the capacity for innovation and are related to corporate results. To achieve this objective, this research proposes an innovation management model that allows systemically visualizing those factors. The model is made up of three primary constructs or categories that interact with each other, which are: knowledge management (KM), innovation capabilities (IC), and financial performance (FP). The scope of the study is the medium-sized manufacturing companies in the province of Pichincha in Ecuador. This research has a quantitative approach; it is relational and not experimental. To explain the innovation management model and the relationship between the constructs, the authors propose hypotheses, which are tested by correlation using multivariate statistical analysis. As a result, it was shown that there is a significant positive and direct correlation between KM, IC, and FP. Likewise, it was also shown that the increase of innovative capacity in the industry depends on a set of factors, such as the strengthening of capacities and motivations of the personnel, an increase in investment in tangible and intangible resources, an increase in research and development, and optimization of costs throughout the production process.