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Innovation as a factor infl uencing the competitiveness of the food industry

management and innovative activities on the competitiveness increase in enterprises

4.2. Innovation as a factor infl uencing the competitiveness of the food industry

Research carried out on a representative group of food industry compa-nies were also directed to determine the impact of innovation on improving the competitiveness of enterprises of the food industry. The study attempted to determine what are the effects of the implementation of innovation in

en-terprises surveyed in sections of different types of innovation (product, or-ganizational, marketing, process). It was also examined whether the imple-mented innovations have helped to improve profi ts and increase the value of the surveyed enterprises. Values reported as the average for all compa-nies was calculated on the basis of the responses of compacompa-nies that showed the impact of implemented innovations on the tested features.

Table 25 presents the responses concerning the effects of product in-novations, organizational, marketing and process innovations that occurred in 2007-2011.

Table 25. Effects of innovation seen in 2007-2011 in the food industry en-terprises

Implementation effects Percentage of answers

0 1 2 3 4 5 6

Cost reduction 8.2 12.1 11.7 18.2 21.2 21.7 6.9

Increase in innovativeness

of products and services 9.5 8.2 6.9 20.3 23.4 23.4 8.3 Increase in products portfolio 9.1 8.2 11.2 11.6 18.5 29.3 12.1 New sales markets entry 9.9 12.1 9.1 11.1 25.0 19.0 13.8 Increase in effi ciency 9.1 5.6 7.4 9.5 27.3 25.5 15.6 Increase in clients’ satisfaction 7.3 5.6 6.5 10.3 23.7 29.8 16.8 Human capital development 7.8 11.6 13.8 26.3 22.4 15.5 2.6 Internal processes rationalization 9.5 8.6 9.9 22.0 27.1 16.4 6.5 Faster adaptation to environmental

changes 8.6 10.3 9.5 34.1 20.7 12.1 4.7

Source: own study.

In assessing the changes that occurred in the company as a result of the implementation of the innovation, respondents used a grading scale from 0 to 6, where 0 meant the answer “defi nitely not”, 1 – no, 2 – probably not, 3 – I have no opinion, 4 – rather yes, 5 – yes, 6 – defi nitely yes. From the answers received, the vast majority of companies that have implemented innovations note their positive effects. Taking into account the assessment of 4, 5 and 6, which are indications of a positive effect in relation to the im-plementation of innovations, it should be noted that most of the enterprises, as many as 70.3%, indicated that the most positive effect of the implemen-tation of innovation in their company have: raising the level of customer satisfaction, then productivity growth (68.4%), increased range of products (59.9%), entry into new markets (57.8%) and an increase in the level of in-novation of products and services (55%). Half of the respondents said that implemented innovations contributed to streamlined internal processes, and 49.8% indicated cost reduction. Least of respondents believed that

innova-tion has contributed to faster adaptainnova-tion to changes in the business envi-ronment (37.5%) and the development of human capital (40.5%). A pooled analysis of response 0, 1 and 2 indicated that in the opinion of many respond-ents innovations did not affect the development of human capital (33.2%), cost reduction (32%) and the entry into new markets (31.1%).

The study also aimed to determine whether the innovations imple-mented by the food business have helped to improve their profi ts. Of all the surveyed companies more than half of them answered positively, stating, how much in so far as a result of these actions their profi t changed in percent (Fig. 40).

Fig. 40. The average increase in corporate profi ts of the food industry in 2007-2011 as a result of the implemented innovation

Source: own study.

In the subsequent years of the analysed period, the average increase in profi t a result of the innovations increased. During the whole period, the average increase of profi ts for all surveyed companies due to innovations implemented by the company showed a rising trend. In 2007 compared to the previous year the profi ts of the surveyed companies increased on aver-age by 4.8%, and in 2011 already by 9.4% compared to the previous year.

In the last years of the period, the companies declared the greatest increases in average profi t.

Studies have also shown that the innovations implemented by the food business contributed to the growth of their values. As for the impact of in-novation on profi ts of enterprises, of all companies surveyed, more than half answered to this question in the positive way, stating, how much in so

far as a result of these actions changed the value of their company in terms of percentage. From the answers we can see that introduced product innovations, organizational, marketing and process innovations contributed signifi -cantly to the increase in the value of the companies investigated (Fig. 41).

On the average, for all companies tested, the percentage of the increase in the value of the surveyed companies was increasingly higher in subse-quent years of the analysed period (Fig. 41). On average, the largest percent-age increase in value was recorded in 2009-2011.

5,71% 6,25%

8,05%

9,55%

10,88%

0 2 4 6 8 10 12

2007 2008 2009 2010 2011

[%]

Fig. 41. The average increase in the value of the food industry enterprises in 2007-2011 as a result of the implemented innovation

Source: own study.

To determine whether there is a relationship between the amount of funds allocated by the surveyed enterprises of the food industry for all types of innovative activities and the percent of increase in their income or the percentage in the increase in the value of the surveyed companies, a Spearman’s rank correlation coeffi cient was calculated.

Therefore the correlation between the total sum of expenditures on innovation in the period 2006-2011 and the average percentage increase in profi ts or value of companies as a result of the implementation of these innovations in 2007-2011 was counted (Tab. 26).

Table 26. The correlation between the total expenditure on innovation (product, organizational, marketing, process) in the period 2006-2011 and the average percentage increase in profi ts and the average percentage in-crease in goodwill as a result of their implementation in 2007-2011

The correlation between the total

spending on knowledge management and: Rank correlation coeffi cient rs Increase in profi t

(average in the years 2007-2011) 0.1558

Increase in goodwill

(average in the years 2007-2011) 0.2493*

* coeffi cient statistically signifi cant at the level of α = 0.05.

Source: own study.

The conducted calculations show that the Spearman rank correlation coeffi cient is statistically signifi cant, and therefore there is a statistically signifi cant relationship between the sum of expenditures on innovation in the years 2006-2011 and the average rate of growth of the company.

The surveyed enterprises calculations showed no statistically signifi cant correlation between the total expenditure on innovation in the period 2006-2011 and the average percentage increase in profi ts of these companies as a result of their implementation.

The study also included an attempt to determine whether there is a lationship between the number of workers involved in work related to re-search and development in the food industry enterprises and:

• the number of completed projects in the fi eld of product innova-tion, organizational, marketing and process innovations,

• the sum of expenditures on product innovations, organizational, marketing, process innovations,

• the total value of R & D projects in the enterprise.

The conducted calculations show that the Spearman rank correlation coeffi cient is statistically signifi cant, so there is a relationship between the number of employees involved in R & D activities in the surveyed enter-prises in 2006-2011 and the sum of expenditures on marketing innovations in the period 2006-2011. Calculations showed no statistically signifi cant relationship between the number of employees dealing with the R & D dur-ing the analysed period and the sum of expenditures on product innova-tions, organizational and procedural innovations incurred in the reporting period (Tab. 27). There is also no statistically signifi cant relationship be-tween the number of employees involved in R & D activities in the surveyed enterprises and the number of completed in the years 2006-2011 projects in the fi eld of product innovation, organizational, marketing and process innovations. The calculation results also showed no correlation between

the number of employees involved in R & D activities and the total value of R & D projects implemented in the surveyed companies in the years 2006-2011.

Table 27. The correlation between the number of employees involved in the surveyed enterprises R&D work and the number of completed pro-jects in the fi eld of innovation (product, organizational, marketing, process), the sum of expenditures on these innovations and the total value of R&D projects in these companies

The correlation between the number of employees and: Rank correlation coeffi cient rs the number of completed projects in the fi eld of product

innovation (sum for the years 2006-2011) -0.0682

the number of completed projects in the fi eld of organizational

innovation (sum for the years 2006-2011) -0.0976

the number of completed projects in the fi eld of marketing

innovation (sum for the years 2006-2011) -0.01162 the number of completed projects in the fi eld of process

innovation (sum for the years 2006-2011) -0.0682

the sum of expenditures on product innovations

(sum for the years 2006-2011) 0.0895

the sum of expenditures on organizational innovations

(sum for the years 2006-2011) 0.0385

the sum of expenditures on marketing innovations

(sum for the years 2006-2011) 0.3692*

the sum of expenditures on process innovations

(sum for the years 2006-2011) 0.1319

the total value of R&D expenditures in the company (sum for

the years 2006-2011) 0.1939

* coeffi cient statistically signifi cant at the level of α = 0.05.

Source: own study.

4.3. Financial resources for knowledge management or