Taste of success: a strategic framework for product innovation in the food and beverage industry

Abstract Purpose – This paper aims to identify the combination of innovation Determinants driving the creation of innovative products amongst market leaders and market followers in food and beverage (F&B) firms. Design/methodology/approach – This research is based on the case studymethodology by using two types of data sources: (1) semi-structured interviews with industry experts and (2) in-depth interviews with managers. In addition, a questionnaire adapted from prior research was used to consider market and firm types. Findings – Suggesting an integrated theoretical framework based on firm-based factors and market-based factors, this study identified a combination of determinants significantly impacting innovative products in the market. Specifically, these determinants are competition intensity and innovation capability (a combination of research and development (R&D) investment and marketing capabilities). The study also examined how these determinants vary depending on whether the firms are market leaders or market followers. Practical implications – This research provides practical insights for managers working in the F&B industry by using case studies and exploring the determinants of developing innovative products. In doing so, suitable strategies can be selected according to the market and firm situations. Originality/value – The originality of the study is shown by focussing on how different combinations of market and firm factors could be applied in creating successful innovative products in the food sector. Keywords Competitive strategy, Market leader, Market follower, F&B industry, Competitiveness, Innovation capability Paper type Case study