The Reflection of Quality of Innovation in Competitive Advantages Sustainability in Iraqi Manufacturing Industry
American Journal of Economics and Business Management,
Vol. 8 No. 5 (2025): May
Abstract
This study investigates the role of innovation quality in sustaining competitive advantages within the Iraqi manufacturing industry. In an increasingly dynamic and uncertain business environment, firms face a range of competing priorities—cost, quality, delivery, flexibility, and innovation—that collectively determine their competitive positioning. Among these, innovation has emerged as a critical strategic element in manufacturing strategy, especially in contexts characterized by rapid technological change and shortened product life cycles. Drawing from global insights and adapted to the Iraqi industrial context, this research explores how manufacturing firms define their competitive strategies, prioritize innovation among other performance criteria, and implement innovation-driven initiatives to enhance market competitiveness. The study examines whether firms possess clearly articulated manufacturing strategies, what criteria they use to measure competitiveness, and how innovation integrates with other strategic dimensions such as cost efficiency and product quality. It also investigates the capability-building mechanisms adopted by firms to reinforce their competitive standing. Findings highlight that innovation quality plays a vital role not only in developing new products and services but also in improving existing offerings, thus enabling firms to respond to market demands more effectively. The research underscores that in environments where product lifecycles are rapidly shrinking, innovation must be embedded in manufacturing strategies to ensure long-term sustainability and customer retention. The study provides insights into how Iraqi manufacturing firms can leverage innovation as a sustainable competitive advantage and offers strategic recommendations for aligning innovation capabilities with overall business objectives.
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- 1. Abrunhosa, A. & Moura e Sá, P. (2008). Are TQM principles supporting innovation in the Portuguese footwear industry?. [PDF]
- 2. Ahmed Khan, Z. & Nawaz Irfanullah Khan, A. (2016). The Leadership and Innovation: Prospects and Challenges. [PDF]
- 3. Alam, S. S., & Islam, K. Z. (2021). Examining the role of environmental corporate social responsibility in building green corporate image and green competitive advantage. International Journal of Corporate Social Responsibility, 6(1), 8. springer.com
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- 5. Arogyaswamy, B. (2019). Business Strategies for Sustainability-Motivated Innovation: A Conceptual Framework. [PDF]
- 6. ARSAWAN, I. W. E., Koval, V., Suhartanto, D., Harbar, Z., & Maslennikov, Y. (2022). Employee-driven innovation capability: The role of knowledge, creativity, and time sufficiency. Intellectual Economics, 16(2). mruni.eu
- 7. Ayoko, O. B. (2021). SMEs, innovation and human resource management. Journal of Management & Organization. archive.org
- 8. Barchielli, C., Marullo, C., Bonciani, M., & Vainieri, M. (2021). Nurses and the acceptance of innovations in technology-intensive contexts: the need for tailored management strategies. BMC health services research, 21, 1-11. springer.com
- 9. Barge-Gil, A. & López, A. (2011). R versus D: Estimating the differentiated effect of research and development on innovation results. [PDF]
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- 11. Camisón Zornoza, C., Puig Denia, A., Forés Julián, B., & José (Coordinador) Cossío Silva, F. (2009). Efectos de la gestión de la calidad sobre el desempeño innovador: el papel mediador de las capacidades dinámicas de aprendizaje e innovación. [PDF]
- 12. Čater, T. (2005). THE INFLUENCE OF A FIRMu27S BASIC CHARACTERISTICS ON THE RELEVANCE OF THE SOURCES AND FORMS OF COMPETITIVE ADVANTAGE IN SLOVENIAN FIRMS. [PDF]
- 13. Cenamor, J. (2021). Complementor competitive advantage: A framework for strategic decisions. Journal of Business Research. [HTML]
- 14. Cuthbertson, R. W. & Furseth, P. I. (2022). Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation. Journal of Business Research. ox.ac.uk
- 15. de Oliveira Lima, L. A., Ferreira dos Santos, A., Nunes, M. M., Batista da Silva, I., Medeiros da Silva Gomes, V. M., de Oliveira Busto, M., ... & do Nascimento João, B. (2024). SUSTAINABLE MANAGEMENT PRACTICES: GREEN MARKETING AS A SOURCE FOR ORGANIZATIONAL COMPETITIVE ADVANTAGE. Environmental & Social Management Journal/Revista de Gestão Social e Ambiental, 18(4). [HTML]
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- 17. Di?evska, S., Nikolovski, P., Karadjova, V., Zdravkoski, I., & Menkinoski, G. (2016). Strategic Alliances and Innovations in the International Business. [PDF]
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- 23. Kim, W. H., Chen, B., & Hwang, J. S. (2021). Imitation, technology, and firm performance: The Korean firms case in China. Journal of Korea Trade. koreascience.kr
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- 30. McLaughlin, P., Bessant, J., & Smart, P. (2005). Developing an organizational culture that facilitates radical innovation in a mature small to medium sized company: emergent findings. [PDF]
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- 32. Nayak, B., Bhattacharyya, S. S., & Krishnamoorthy, B. (2023). Integrating the dialectic perspectives of resource-based view and industrial organization theory for competitive advantage–a review and research agenda. Journal of Business & Industrial Marketing, 38(3), 656-679. researchgate.net
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- 34. Ogbeibu, S., Jabbour, C. J. C., Gaskin, J., Senadjki, A., & Hughes, M. (2021). Leveraging STARA competencies and green creativity to boost green organisational innovative evidence: A praxis for sustainable development. Business Strategy and the Environment, 30(5), 2421-2440. wiley.com
- 35. Schniederjans, D. & Schniederjans, M. (2015). Quality management and innovation: new insights on a structural contingency framework. [PDF]
- 36. Segovia López, C. & Sánchez Pérez, M. (2014). Effects of Learning from Distributors on Manufacturers’ Exploitation and Exploration Innovation Strategies in Food and Beverages Industry. [PDF]
- 37. Suprihono, S., Prasetya, A., & Abdillah, Y. (2024). Improving firm performance through Competitive Advantage, differentiation strategy and cost leadership: A Literature Review. International Journal of Artificial Intelligence Research, 6(1.1). [HTML]
- 38. Tu, Y. & Wu, W. (2021). How does green innovation improve enterprises' competitive advantage? The role of organizational learning. Sustainable Production and Consumption. [HTML]
- 39. van Burg, J. C., Podoynitsyna, K. S., Beck, L., & Lommelen, T. (2012). Directive deficiencies: How resource constraints direct opportunity identification in SMEs. [PDF]
- 40. Verina Halim Secapramana, L. (2012). Business Innovation as a Competitive Strategy in Global Markets. [PDF]
- 41. Xu, A., Zhu, Y., & Wang, W. (2023). Micro green technology innovation effects of green finance pilot policy—from the perspectives of action points and green value. Journal of Business Research. [HTML]
- 42. Yingfei, Y., Mengze, Z., Zeyu, L., Ki-Hyung, B., Avotra, A. A. R. N., & Nawaz, A. (2022). Green logistics performance and infrastructure on service trade and environment-measuring firm’s performance and service quality. Journal of King Saud University-Science, 34(1), 101683. sciencedirect.com
References
1. Abrunhosa, A. & Moura e Sá, P. (2008). Are TQM principles supporting innovation in the Portuguese footwear industry?. [PDF]
2. Ahmed Khan, Z. & Nawaz Irfanullah Khan, A. (2016). The Leadership and Innovation: Prospects and Challenges. [PDF]
3. Alam, S. S., & Islam, K. Z. (2021). Examining the role of environmental corporate social responsibility in building green corporate image and green competitive advantage. International Journal of Corporate Social Responsibility, 6(1), 8. springer.com
4. Andersén, J. (2021). … -based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation. sciencedirect.com
5. Arogyaswamy, B. (2019). Business Strategies for Sustainability-Motivated Innovation: A Conceptual Framework. [PDF]
6. ARSAWAN, I. W. E., Koval, V., Suhartanto, D., Harbar, Z., & Maslennikov, Y. (2022). Employee-driven innovation capability: The role of knowledge, creativity, and time sufficiency. Intellectual Economics, 16(2). mruni.eu
7. Ayoko, O. B. (2021). SMEs, innovation and human resource management. Journal of Management & Organization. archive.org
8. Barchielli, C., Marullo, C., Bonciani, M., & Vainieri, M. (2021). Nurses and the acceptance of innovations in technology-intensive contexts: the need for tailored management strategies. BMC health services research, 21, 1-11. springer.com
9. Barge-Gil, A. & López, A. (2011). R versus D: Estimating the differentiated effect of research and development on innovation results. [PDF]
10. Butt, S. & Yazdani, N. (2023). Relationship Between Execution of Quality Management Practices and Firm's Innovation Performance: A Review of Literature. Journal of Asian Development Studies. poverty.com.pk
11. Camisón Zornoza, C., Puig Denia, A., Forés Julián, B., & José (Coordinador) Cossío Silva, F. (2009). Efectos de la gestión de la calidad sobre el desempeño innovador: el papel mediador de las capacidades dinámicas de aprendizaje e innovación. [PDF]
12. Čater, T. (2005). THE INFLUENCE OF A FIRMu27S BASIC CHARACTERISTICS ON THE RELEVANCE OF THE SOURCES AND FORMS OF COMPETITIVE ADVANTAGE IN SLOVENIAN FIRMS. [PDF]
13. Cenamor, J. (2021). Complementor competitive advantage: A framework for strategic decisions. Journal of Business Research. [HTML]
14. Cuthbertson, R. W. & Furseth, P. I. (2022). Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation. Journal of Business Research. ox.ac.uk
15. de Oliveira Lima, L. A., Ferreira dos Santos, A., Nunes, M. M., Batista da Silva, I., Medeiros da Silva Gomes, V. M., de Oliveira Busto, M., ... & do Nascimento João, B. (2024). SUSTAINABLE MANAGEMENT PRACTICES: GREEN MARKETING AS A SOURCE FOR ORGANIZATIONAL COMPETITIVE ADVANTAGE. Environmental & Social Management Journal/Revista de Gestão Social e Ambiental, 18(4). [HTML]
16. Demir, F. (2017). Innovation Strategies and Challenges in Emerging Economies: The Case of Research and Technology Organizations in Turkey. [PDF]
17. Di?evska, S., Nikolovski, P., Karadjova, V., Zdravkoski, I., & Menkinoski, G. (2016). Strategic Alliances and Innovations in the International Business. [PDF]
18. Fonseca, L., Amaral, A., & Oliveira, J. (2021). Quality 4.0: the EFQM 2020 model and industry 4.0 relationships and implications. Sustainability. mdpi.com
19. Gerguri, S. & Ramadani, V. (2010). The Impact of Innovation into the Economic Growth. [PDF]
20. Goel, R. K., Yadav, C. S., Vishnoi, S., & Rastogi, R. (2021). Smart agriculture–Urgent need of the day in developing countries. Sustainable Computing: Informatics and Systems, 30, 100512. [HTML]
21. Hongyun, T., Sohu, J. M., Khan, A. U., Junejo, I., Shaikh, S. N., Akhtar, S., & Bilal, M. (2025). Navigating the digital landscape: examining the interdependencies of digital transformation and big data in driving SMEs' innovation performance. Kybernetes, 54(3), 1797-1825. [HTML]
22. Khan, S. A. R., Godil, D. I., Quddoos, M. U., Yu, Z., Akhtar, M. H., & Liang, Z. (2021). Investigating the nexus between energy, economic growth, and environmental quality: A road map for the sustainable development. Sustainable Development, 29(5), 835-846. wiley.com
23. Kim, W. H., Chen, B., & Hwang, J. S. (2021). Imitation, technology, and firm performance: The Korean firms case in China. Journal of Korea Trade. koreascience.kr
24. Krakowski, S., Luger, J., & Raisch, S. (2023). Artificial intelligence and the changing sources of competitive advantage. Strategic Management Journal, 44(6), 1425-1452. wiley.com
25. Krupskaya, A. (2025). Driving forces behind service innovation in knowledge-intensive services with different knowledge bases. foresight. emerald.com
26. Kryscynski, D., Coff, R., & Campbell, B. (2021). Charting a path between firm‐specific incentives and human capital‐based competitive advantage. Strategic management journal, 42(2), 386-412. [HTML]
27. Kumar Pundir, A., Mishra, R., & Ganapathy, L. (2013). An exploration of firm level competitiveness through choices in Manufacturing Strategy: The case of Indian four wheeler passenger vehicle companies. [PDF]
28. Kuo, F. I., Fang, W. T., & LePage, B. A. (2022). Proactive environmental strategies in the hotel industry: Eco-innovation, green competitive advantage, and green core competence. Journal of Sustainable Tourism. [HTML]
29. Lin, X., Zhao, Y., Ahmad, M., Ahmed, Z., Rjoub, H., & Adebayo, T. S. (2021). Linking innovative human capital, economic growth, and CO2 emissions: an empirical study based on Chinese provincial panel data. International journal of environmental research and public health, 18(16), 8503. mdpi.com
30. McLaughlin, P., Bessant, J., & Smart, P. (2005). Developing an organizational culture that facilitates radical innovation in a mature small to medium sized company: emergent findings. [PDF]
31. Migdadi, M. M. (2022). Knowledge management processes, innovation capability and organizational performance. International journal of productivity and performance management, 71(1), 182-210. [HTML]
32. Nayak, B., Bhattacharyya, S. S., & Krishnamoorthy, B. (2023). Integrating the dialectic perspectives of resource-based view and industrial organization theory for competitive advantage–a review and research agenda. Journal of Business & Industrial Marketing, 38(3), 656-679. researchgate.net
33. Nimfa, D. T., Uzir, M. U. H., Maimako, L. N., Eneizan, B., Latiff, A. S. A., & Wahab, S. A. (2021). The impact of innovation competitive advantage on product quality for sustainable growth among SMES: An empirical analysis. International Journal of Business Science & Applied Management (IJBSAM), 16(3), 39-62. econstor.eu
34. Ogbeibu, S., Jabbour, C. J. C., Gaskin, J., Senadjki, A., & Hughes, M. (2021). Leveraging STARA competencies and green creativity to boost green organisational innovative evidence: A praxis for sustainable development. Business Strategy and the Environment, 30(5), 2421-2440. wiley.com
35. Schniederjans, D. & Schniederjans, M. (2015). Quality management and innovation: new insights on a structural contingency framework. [PDF]
36. Segovia López, C. & Sánchez Pérez, M. (2014). Effects of Learning from Distributors on Manufacturers’ Exploitation and Exploration Innovation Strategies in Food and Beverages Industry. [PDF]
37. Suprihono, S., Prasetya, A., & Abdillah, Y. (2024). Improving firm performance through Competitive Advantage, differentiation strategy and cost leadership: A Literature Review. International Journal of Artificial Intelligence Research, 6(1.1). [HTML]
38. Tu, Y. & Wu, W. (2021). How does green innovation improve enterprises' competitive advantage? The role of organizational learning. Sustainable Production and Consumption. [HTML]
39. van Burg, J. C., Podoynitsyna, K. S., Beck, L., & Lommelen, T. (2012). Directive deficiencies: How resource constraints direct opportunity identification in SMEs. [PDF]
40. Verina Halim Secapramana, L. (2012). Business Innovation as a Competitive Strategy in Global Markets. [PDF]
41. Xu, A., Zhu, Y., & Wang, W. (2023). Micro green technology innovation effects of green finance pilot policy—from the perspectives of action points and green value. Journal of Business Research. [HTML]
42. Yingfei, Y., Mengze, Z., Zeyu, L., Ki-Hyung, B., Avotra, A. A. R. N., & Nawaz, A. (2022). Green logistics performance and infrastructure on service trade and environment-measuring firm’s performance and service quality. Journal of King Saud University-Science, 34(1), 101683. sciencedirect.com