A Comprehensive Review of Business Insight and Innovation: Impacts on Firm Performance Across Industries

Abstract

This paper is a review of the linkage between business insight, innovation and firm performance in different industries that summarizes the existing literature in a number of theoretical perspectives including dynamic capabilities theory, resource-based view and contingency theory. It explores the role of business intelligence, data analytics, and innovation practices to enhance the best organizational performance in manufacturing, service, technology, and emerging industries. The review concludes that there are positive effects of innovation on firm performance consistently, but they are moderated by organizational capabilities, market conditions, and strategic alignment. Moreover, business wisdom and advanced analytics and artificial intelligence increase decision-making, creating competitive advantage in dynamic markets. The paper identifies key success variables, such as the contribution of organizational learning, agility, and leadership to the innovation efforts. It uncovers new research needs and emphasizes the necessity of new studies on the impact of environmental factors and industry conditions on the results of innovation. The results underline the idea that the organizations should create integrated competencies to leverage the business insights and introduce innovations to maintain the long-term performance. The future research directions are to investigate the nexus of business insight and digital transformation and how sustainability-focused innovation affects firm resilience and the value creation to the stakeholders. The current review will add to the better understanding of how innovation and business insight are converted into the real performance improvements within industries.

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