Antecedents and Consequences of Indigenous Innovation: Evidence from Mobile Phone Producers in Turkey

Knowledge intensive processes are being deployed as the conditions of the market evolve according to the needs of the customers. Firms need to adopt their production systems to catch up the latest technology and this challenge involves intensive use of innovation. However, innovation is accepted to be a risky and costly process as it includes the use of venture capital not for being more profitable in the short term. Thus, the economic outcomes of innovation is more important for firms as the position of the firm mostly depends on it. In mobile device production, the situation discussed above is more prominent as everyone can remember the case of Nokia. Once a company can be the leader of the market, but it can lose its position in a short time. Therefore, continuous effort is vital for the firms in this sector. Moving fromhere, we conducted the present research on the Turkish mobile device producers. We investigated the antecedents and consequences of indigenous innovation as these firms are deploying many efforts in this context. A sample of 272 practitioners are asked to fill in questionnaire forms the items of which are adopted froma previous study. Succinctly, we have found that business performance is being affected by indigenous innovation. In addition, we found empirical evidence that supports the idea that intellectual capital and university knowledge are the antecedents of indigenous innovation. Lastly, we found that environmental uncertainty and dysfunctional competition is affective on the antecedents of indigenous innovation. In conclusion, we provide some research implications and policy directions for the practitioners.