Measuaring the Process Innovation Competency of Casa Pellas Company in Nicaragua

Abstract

Nowadays due to globalization, companies are facing many challenges, one of them is innovation. This is because; innovation involves the adoption of new products and/or processes to increase competitiveness and overall profitability. (Kenny B., Reedy E. 2006) Therefore, this study aims at examining how the theory Framework of Innovation developed by Panne et. Al. (2003) affects the IPOT research model developed by Shih & Tseng (2009), and will help us to determine if this model fits traditional industry. As an example of traditional company, the study of Casa Pellas will be used. To validate the results, a well-known, profitable and innovative company should be analyzed, for which Casa Pellas completely qualifies. By using a multiple regression analysis and backward elimination, we will study the four success factors. In this study, a fifth factor will be added to reflect the importance of the demographic-factor in the success of a company. Although the IPOT is composed of innovation competency, process, organizational and technical innovation, the focus of this study will introduce the benefits of process innovation. The empirical results most of the five independent factors are significant.