The theory of disruptive innovation reiterates the idea of effectuating a positive change in an SME using innovation techniques: Prospectus International Business Dissertation, MU, Ireland

The theory of disruptive innovation reiterates the idea of effectuating a positive change in an SME using innovation techniques. Disruptive innovation refers to converting a pricey or highly sophisticated product, offering, or service into one that is plainer, more reasonably priced, and available to a broader demographic. In addition, my independent variables explain innovation and technology and their effects on markets. Finding solutions for the market, usually with product and process innovation, benefits the business model. Implementing an innovative business model aids the business manager in understanding and implementing effective strategies to remain economically competitive with sustainable increases in financial performance.

Most importantly, it reduces the unit cost of production or delivery, enhances quality, or generates new products. An SME’s financial performance is how a firm delivers value to its stakeholders. My study will be used to predict innovation capabilities’ outcomes on firms’ financial performance since financial performance is defined as quantifying a firm’s activity and action that leads to achieving its goals and objectives. My work will predict if innovation affects the financial fulfillment of the companies being studied.

The nature of the case is to examine if there is a correlation between product innovation, process innovation, and financial performance. Leadership or decision-makers will be the mechanism to deliver these cultural changes to the firm. This theory applies to the variables in the study since the outputs created, whether positive or negative, are generated by inputs. Leadership decides what the input will be at their companies which affects the independent variable on the dependent variable.

A positive correlation can be used to effect positive change in an organization with the correct leadership input toward effectuating innovation. The variable product innovation is connected to disruptive innovation theory since products under disruptive influence enter the market quickly displacing competing products and companies and creating financial gains.  Process innovation is connected to the disruption-innovation theory because innovation starts when people convert problems into ideas.

The construct of the dependent variable financial performance is defined as the percentage increase in sales after instituting innovation. Product and process innovation metrics will define the construct of the independent variable innovation.

Financial performance, innovation, and the disruption-innovation theory overlap because firms use information in different forms, depending on the end user. SMB owners may use certain data types, such as process innovation and product innovation. These data types are more likely to be accessed and utilized by organization members when they prefer innovative working levels. The value and usefulness of data are, therefore, decided by the desire of entities to use it. SME owners can use this information to make better financial decisions.