The Innovative Path of Emerging Market Firms: The Role of Creative Imitation in Innovation

Abstract

This study seeks to unravel a strategy that combines the elements of creative imitation in innovation, coined as the combination innovation strategy, and its impacts on brand co-creation, brand loyalty, and brand performance. PLS-SEM was used to examine the measurement and structural models. Data was gathered from 306 mobile phone users in Vietnam. The results revealed that both innovation and combination innovation result in high levels of brand co-creation, brand loyalty, and brand performance. Particularly, the effects of combination innovation on brand co-creation and brand loyalty are stronger than those caused by innovation. This study is the first to examine the effects of combination innovation on brand co-creation, brand loyalty, and brand performance. Additionally, this study highlights the role of creative imitation in innovation and underscores the innovative path from pure imitation, creative imitation, combination innovation, and innovation of firms in developing countries. Emerging-market firms are therefore advised to utilize combination innovation as not only a stepping stone towards innovation, but also an independent strategy that could give rise to sustainable competitive advantage.