Organizational Innovation and Firm Performance: Evidence from an Integrated Food and Beverage Supply Chain
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Abstract
In an increasingly dynamic business environment, firms must continuously innovate to remain competitive and sustain performance, particularly in the food and beverage industry, where consumer preferences and supply chain complexities evolve rapidly. This study examines how organizational innovation contributes to the firm performance of PT.X. A qualitative approach was employed using semi-structured interviews with middle-level managers directly involved in innovation and supply chain activities. Data were analyzed using NVivo through systematic coding procedures, including open, axial, and selective coding, to identify key themes and relationships. The findings reveal that organizational innovation at PT.X is implemented as an integrated system encompassing product innovation, production process innovation, supply chain management, and sustainability practices. Product innovation is driven by changing consumer preferences, while process innovation enhances operational efficiency and product quality through advanced technologies. Integrated upstream–downstream supply chain management ensures raw material availability and production stability, while sustainability-oriented innovation reduces waste and improves resource efficiency. The study also identifies key challenges, including rapidly changing consumer behavior, market segmentation, and competitive pressure, that require continuous, adaptive innovation strategies. This study contributes to the literature by providing a contextual and managerial perspective on how innovation is operationalized in practice within the food and beverage sector.
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