Inﬂuential Factors of Software Firms’ Performance in the Industry of

Developing Countries

Mohitul Shaﬁr

1 a

, Partho Protim Saha

1 b

, Ahnaf Tazwar Araf

1 c

, Shadat Irtisamul Haque

1 d

Mahady Hasan

1 e

, Farzana Sadia

1 f

and M. Rokonuzzaman

Independent University, Bangladesh, Dhaka, Bangladesh

North South University, Dhaka, Bangladesh

Keywords:

Radical Innovation, New Product Advantage, Customer Unfamiliarity, Hypothesis Model, Marketing

Performance.

Abstract:

This research focuses on the factors that inﬂuence the manner in which profoundly innovative businesses de-

velop new products. A sample size of 96 individuals, including managers, software developers, marketing

ofﬁcers, and proprietors, was chosen to respond to a questionnaire containing twenty inquiries regarding the

organization’s marketing strategy, the beneﬁts of the new product, and the level of consumer awareness regard-

ing the product. Using a structured questionnaire, the authors gathered data for this study from a sample of 27

companies engaged in the development of software marketing products and services. The result illustrates the

beneﬁts of novel products, which are associated with the product’s radical nature and business performance.

Personal interviews, phone interviews, and Google Forms surveys collected data on organizations’ new prod-

uct marketing tactics and consumer reactions. Drawing upon previous research on product innovations, this

study presents a theoretical framework that establishes a connection between the radicalness of product inno-

vation, market performance, and internal and external relations characteristics of organizations.

1 INTRODUCTION

Radical marketing is a strategic strategy that distin-

guishes a ﬁrm from its competitors by defying tra-

ditional marketing rules and using fresh, imagina-

tive tactics. Radical marketing entails risk-taking,

creativity, and the implementation of an unusual ap-

proach. Unlike standard marketing tactics, qualities,

or strategies, radical marketing develops its own pro-

tocols.(Etim et al., 2021).

One of the most difﬁcult challenges in radical mar-

keting is establishing a strong and long-term con-

nection with customers in Dhaka, Bangladesh. This

necessitates a focus on communication, trustworthi-

ness, and the capacity to recognise and serve customer

needs. In situations when resources are limited, busi-

https://orcid.org/0000-0003-1082-8795

https://orcid.org/0000-0001-6889-1100

https://orcid.org/0009-0003-4443-9138

https://orcid.org/0009-0005-4570-695X

https://orcid.org/0000-0002-9037-0181

https://orcid.org/0009-0008-4757-1106

nesses must be willing to stray from traditional mar-

keting and advertising practices in order to differen-

tiate themselves from competitors. Unlike traditional

advertising, which tries to reach a broad audience and

charges a ﬂat cost regardless of results, radical mar-

keting provides more precise audience segmentation

and performance measurement based on goals. This

enables businesses to direct a part of their market-

ing budget towards channels that provide concrete re-

sults. To assess whether or not to use an innovation

process while launching a new product to the market,

weigh the advantages against the adoption costs. Cus-

tomer unfamiliarity has a negative mediation impact,

while the advantage of a new product positively me-

diates the association between product radicality and

ﬁrm performance. Businesses must carefully analyze

what their product is made of, how it might beneﬁt

customers, and which consumer criteria it targets and

serves(Almasarweh et al., 2019).

Software ﬁrms in Bangladesh have signiﬁcant

marketing performance gaps, and bringing a new

product to the market is a crucial but often over-

looked business activity. Firms may develop and de-

Shaﬁr, M., Saha, P., Araf, A., Haque, S., Hasan, M., Sadia, F. and Rokonuzzaman, M.

Inﬂuential Factors of Software Firms’ Performance in the Industry of Developing Countries.

DOI: 10.5220/0012691100003687

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 19th International Conference on Evaluation of Novel Approaches to Software Engineering (ENASE 2024), pages 547-554

ISBN: 978-989-758-696-5; ISSN: 2184-4895

547

ploy unique goods that differentiate them from com-

petitors and result in long-term proﬁtability by scruti-

nizing empirical facts and providing an original per-

spective on the issue. Thus, radical marketing may be

characterized as a strategic strategy that deviates from

traditional marketing conventions while using fresh

approaches. It requires a steadfast commitment to es-

tablishing long-term consumer relationships as well

as a willingness to diverge from conventional market-

ing and advertising practices. Companies may design

and execute successful marketing strategies that result

in long-term success by carefully examining the ben-

eﬁts of innovative products and understanding cus-

tomer desires.

2 LITERATURE REVIEW

Marketing performance measurement is an essential

domain for organizations to ascertain the efﬁcacy of

their marketing strategies and the correspondingly

high return on investment. In this scholarly arti-

cle, which examines a book and inﬂuential articles

pertaining to marketing performance measurement,

the principal ﬁndings and recommendations are high-

lighted. The limitations of their ﬁndings and the data

acquisition methodologies utilized in the studies are

also addressed by the authors(Jain, ). There was a

study that looked at how action direction and mar-

ket perception affect the effectiveness of advertising

for service-oriented businesses in Ghana. The results

of the study show that improving marketing perfor-

mance depends on how action direction and market-

place sensing work together(Riswanto et al., 2020).

Another study looked at how market-oriented In-

dian software companies are and whether companies

that are new also do better at what they do. The study

says that for businesses to be proﬁtable and last, they

need to focus on marketing and be able to come up

with new ideas(Noh and Fitzsimmons, 1999). The

third study looked at the link between market mindset

and marketing success in the food service business of

West Java Province, Indonesia. It did this by using

innovation as a bridge. The study’s results show that

smart marketing needs both knowledge of the market

and new ideas(Etim et al., 2021).

An additional study looked at how information

technology affected marketing in the Korean service

sector. It found that marketing activity, efﬁciency, and

competitiveness were all improved in three areas by

using IT(Hacioglu and G

ok, 2013). According to a

survey of 187 businesses, the export process is inﬂu-

enced by industry-speciﬁc factors, domestic and for-

eign client loyalty, and niche market targeting, as op-

posed to the psychological or geographical proximity

of export markets(Bell, 1995).

A research investigation explored the inﬂuence of

interaction orientation and marketplace sensing ca-

pabilities on the marketing performance of service-

oriented organizations operating in Ghana. The

re- search discovered that interaction orientation

and market sensing interact in a critical manner to

enhance marketing performance(Kankam-Kwarteng

et al., 2021). Additionally, another study looked

into how marketing knowledge might improve the

marketing skills of selling companies from emerg-

ing economies that work in developed markets. The

study found that market response was one of the most

important factors that led to better marketing success

in developed markets(Khan and Khan, 2021).Experts

believe that business intelligence has a positive impact

on knowledge, experience, decision-making criteria,

and export performance based on a study that looked

at the connection between business intelligence and

ﬁrms’ international activities and software exports

to Paraguay(Neubert and Van der Krogt, 2018).Five

Bangladeshi businesses’ marketing performance was

ultimately evaluated in a study that examined the im-

pact of big data. According to the study, big data con-

cepts are unpopular among marketers in Bangladesh,

despite the fact that their adoption would improve

marketing performance(Jobaid and Jabin, ).

The ride-sharing softwares affects social, eco-

nomic, sustainability and environmental concerns

with speciﬁc emphasis on elements that determine

company performance. These businesses adjusted

their software marketing during the COVID-19 epi-

demic to attract the retain clients using a combination

of qualitative and quantitative methodologies. Safety

became top priority during that time with special mar-

keting being key factors in attracting and satisfy-

ing customers(Islam et al., 2023).The studies high-

light the importance of several factors in achieving

marketing success, such as innovation, market ori-

entation, information technology, marketplace sens-

ing, interaction orientation, and big data. However,

the study has limitations such as the use of cross-

sectional data, small sample numbers, and difﬁcul-

ties in proving causal links. Further study is required

to fully comprehend marketing performance measure-

ment(Bag et al., 2021).

Last but not least, a study looked into how big

data affected the marketing results of ﬁve Bangladeshi

companies. The study found that marketers in

Bangladesh don’t use big data ideas very often, even

though doing so could help their campaigns do bet-

ter(Hajela and Akbar, 2013). In a different study, a

model was made that shows how entrepreneurial mar-

ENASE 2024 - 19th International Conference on Evaluation of Novel Approaches to Software Engineering

548

keting, economic edge, and marketing success are all

connected. The study found that entrepreneurial mar-

keting and economic edge have an effect on how well

marketing works(Hidayatullah et al., 2019).

3 HYPOTHESIS DEVELOPMENT

A. Competitive Mediation

In recent times, the integration of innovation into

business strategies has grown in signiﬁcance, owing

to its pivotal role in fostering competitive advantage

and sustained expansion. By introducing new prod-

ucts or services, developing new technologies, or

employing new business models, organisations are

perpetually searching for effective methods of inno-

vation and maintaining a competitive advantage(Yasa

et al., 2020). Such items are more likely to succeed,

gain market share and be lucrative. Achieving an

early-mover or ﬁrst-mover advantage is a fundamen-

tal incentive for businesses to engage in innovative

practices. Organisations can attain market leadership

and acquisition of market share by being the pioneers

in the introduction of novel products or services. This

is particularly accurate regarding radical innovations,

which entail the launch of novel products, environ-

ments, or technologies. By providing substantial

price and performance enhancements in comparison

to established products, radical innovations have the

potential to confer a competitive advantage(Hacioglu

and G

ok, 2013). Nonetheless, the implementation

of a revolutionary advancement is not without its

own array of obstacles. Unfamiliarity on the part of

customers with the novel product or technology may

impede its adoption. Speciﬁcally, inadequate product

information may impede customers’ comprehension

of the product’s attributes and advantages, thereby

introducing elevated degrees of uncertainty and

risk. Notwithstanding these challenges, the relative

advantage of a product over its competitors positively

impacts the adoption of novel products. This advan-

tage may be derived from the product’s superiority,

unique beneﬁts for the consumer, high quality, or

a reasonable price. Products that attain success,

marketability, and ﬁnancial proﬁtability are those that

surpass the expectations of consumers through the

fulﬁlment or resolution of their requirements. Exist-

ing research has established a correlation between the

success of innovation and the ﬁrm’s or organization’s

performance, with the former beneﬁting the latter.

Early adoption of the product can contribute to the es-

tablishment of the organization’s objectives, thereby

enhancing this performance. Furthermore, the beneﬁt

of the novel product positively inﬂuences the sense of

brand value and brand loyalty among consumers in

the business-to-business sector, potentially enhancing

the performance of the organisation.

Therefore, we have predicted the following hypothe-

sis:

H1: Product radicality and ﬁrm performance are

positively mediated by the advantage of the new

product.

H1(a): Product radicality and advantage of the new

product are strongly correlated.

H1(b): Firm success is strongly correlated with new

product advantage.

The term ”product radicalization” denotes the extent

to which an innovative technology is integrated into

a novel product. Because the revolutionary element

of the innovation is either new-to-market or new-to-

the-world, it is possible that consumers are not yet

acquainted with the product. Particularly in the B2B

sector, this unfamiliarity may generate greater lev-

els of risk and uncertainty, impeding the adoption

of new products(Hacioglu and G

ok, 2013). Thus,

the research has demonstrated that unfamiliarity with

the client is associated with increased risk and uncer-

tainty, which impedes the adoption of new products,

especially in the B2B context.

Figure 1: Theoretical Model.

Consequently, business consumers exhibit a greater

aversion to risk, thereby diminishing the likelihood

of their acquiring revolutionary new products. The

aforementioned has an adverse impact on the seller’s

enterprise. Furthermore, customer unfamiliarity

necessitates that organisations introducing revolu-

tionary products allocate resources towards customer

education and training with the aim of altering

customer perceptions(Carmona-Lavado et al., 2020).

In conclusion, the success of radical innovations may

be signiﬁcantly impacted by the timing of product

introduction. Before the market is prepared or the

technology has been completely developed, introduc-

ing a revolutionary new product too early can result

in high costs and low adoption rates. On the contrary,

the introduction of a revolutionary product belatedly,

Inﬂuential Factors of Software Firms’ Performance in the Industry of Developing Countries

549

subsequent to the establishment of competitors in

the market, may lead to overlooked prospects and

diminished market presence. Given these factors into

account, we put forth the subsequent hypothesis:

H2: Unfamiliar Customers and the Impact on the

Relationship among Product Radicalness and Firm

Performance.

H2(a): Positive correlation between the radical-

ness of a product and the level of unfamiliarity

experienced by customers.

H2(b): The performance of the ﬁrm is negatively

affected by customer unfamiliarity.

B. Moderated Mediation: Manufacturing Indus-

try vs. Service

There are substantial disparities between the man-

ufacturing and service sectors regarding innovation

strategies, which have an impact on their respective

market performance and levels of success. The inno-

vation process is rendered more intricate due to the in-

tangible, heterogeneous, inseparable, and perishable

nature of service industry offerings. As an alternative,

the manufacturing sector consists of patentable tangi-

ble goods, and innovation is frequently predicated on

groundbreaking developments that demand substan-

tial investments in research and development. This

is because ongoing developments generate a greater

quantity of user interactions, which facilitates a more

efﬁcient and expeditious product market ﬁt. Addition-

ally, the adoption of agile methodologies, including

spiral developments, is more probable in the services

sector as opposed to the manufacturing sector. This

accelerates the process of transforming the new offer-

ing into a competitive edge and ultimately contributes

to the success of the organisation.

H3: The impact of product radicalness and novel

product advantage on ﬁrm performance is contin-

gent upon the industry in which the company oper-

ates, with service enterprises generally experiencing

a more pronounced positive inﬂuence. To alleviate

the adverse effects of consumer unfamiliarity, service-

dominant organisations allocate a signiﬁcantly greater

proportion of their research and development budget

towards incremental advancements as opposed to rad-

ical ones(Yasa et al., 2020).

In service industries, where inseparability connotes

the concurrent provision and utilisation of services

and necessitates a greater degree of collaboration in

a business-to-business context, the impact of prod-

uct radicalness on customer unfamiliarity is compar-

atively diminished.

Having a signiﬁcant degree of client interaction dur-

ing the commercialization phase enables adaptability

by customising the service to meet the speciﬁc needs

of each client, which ultimately leads to increased

levels of customer satisfaction and loyalty. In con-

clusion, consistent human involvement throughout

the implementation stage facilitates innovation accep-

tance by promoting comprehension of novel concepts,

raising awareness of their advantages, and reducing

the need for extensive training. Innovation improves

customer relationships in a business-to-business con-

text, but in the case of services, it is more pronounced

by virtue of their inseparability, which compensates

for clients’ unfamiliarity.

H4: Service ﬁrms are less signiﬁcantly impacted by

product radicalness and customer unfamiliarity than

manufacturing enterprises. Furthermore, the relation-

ship between product radicalness and ﬁrm perfor-

mance is mediated by the industry category. This

disparity arises from the fact that the service sector

places a higher value on ongoing innovation and grad-

ual modiﬁcations, which customers readily embrace,

in contrast to the manufacturing sector which is more

prone to investing in revolutionary advancements that

customers might not be acquainted with, thereby en-

gendering resistance to adoption.

Thus, the manufacturing and service sectors adopt

distinct innovation strategies: the former places a

premium on incremental advancements and ongo-

ing innovation, whereas the latter allocates resources

towards potentially patentable technological revolu-

tions. With a shorter time-to-market, service innova-

tions are simpler to develop and implement than prod-

uct innovations; service-dominant organisations have

a shorter B2B development cycle time than product-

dominant enterprises. Additionally, inseparability in-

tensiﬁes service innovation, which helps to compen-

sate for clients’ unfamiliarity.

4 RESEARCH METHODOLOGY

A. Sample and Data Collection

Information was gathered from modest software com-

panies in Bangladesh that develop software applica-

tions and digital marketing services for the purpose

of this investigation. These sectors have been ac-

knowledged as a rapidly growing economic domain

in Bangladesh, which incorporates cutting-edge com-

ponents into its operational framework. This study

consulted twenty-seven software companies based in

Bangladesh, including those that were recently estab-

lished in the industry. Information was collected from

a heterogeneous cohort of staff members, compris-

ENASE 2024 - 19th International Conference on Evaluation of Novel Approaches to Software Engineering

550

ing project managers, developers, marketing execu-

tives, and sales directors, all of whom were involved

in the launch of innovative products or the redesign of

existing ones pertaining to software, web, and other

technical applications. The information gathered for

this study comprised personal interviews, phone in-

terviews, and Google Forms surveys. The surveys in-

quired about the approaches employed by the com-

panies to inform consumers about their new products

and elicited corresponding responses. The ﬁndings

of this research may provide minor software compa-

nies in Bangladesh with insights into how they can in-

crease their competitiveness through product innova-

tion and marketing strategies. The data was gathered

via telephone interviews and in-person consultations.

Our primary emphasis was on utilizing Google Forms

as a data collection instrument for the generated ques-

tionnaires. This study examines the manner in which

companies communicate new products to consumers

and the corresponding reactions they elicit.

Table 1: Participants Samples.

Number of Companies Proportion

Number of Employees (size)

0 - 10 7 25.93%

11 - 20 8 29.63%

21 - 30 3 11.11%

31 - 40 5 18.52%

Above 40 4 14.81%

Age (In Years)

0 - 5 15 55.55%

6 - 10 6 22.22%

Above 10 6 22.22%

Industry

Manufacturing 20 74.07%

Services 7 25.93%

Total 27 100%

Table 1 further on the details of sample characteristics

and dispersion. The sample and the population of

workers in the participating software businesses did

not signiﬁcantly vary from one another.

B. Measurements

The items of the scale, along with their standard

factor loadings and reliability indices, are detailed in

Table 2. The median values for the initial measure-

ments of each variable, as estimated for a sub-sample

of 27 companies: product radicalness (26), customer

unfamiliarity (20), new product advantage (27), and

ﬁrm performance (25). Consequently, singular scores

were computed for each construct and company

through the process of averaging the scale elements

provided by multiple respondents. Like previous

research, this study examined innovation practices

that have occurred within the past ﬁve years. The

evaluation of every independent factor and mediator

was conducted utilizing a Likert scale ranging from 1

to 7.

Product Radicalness: The degree of radicalness of

respondents’ new or considerably upgraded prod-

ucts/services were in the past ﬁve years.

Customer Unfamiliarity: The grade for Avlonitis

and Salavou’s newness to customers was changed.

New Product Advantage: We modiﬁed the new

product uniqueness scale developed by Avlonitis

and Salavou(Yasa et al., 2020). This measure’s

items correctly capture the concept of a new product

advantage.

Firm Performance: Utilising the six-item subjective

measure that Zahra devised, business performance

was assessed. On a scale of one to seven, the

respondent’s level of satisfaction with the ﬁrm’s

achievement of a speciﬁc goal was assessed for each

inquiry. The weighting of the questions was deter-

mined by the perceived signiﬁcance of the objectives.

Because both importance and satisfaction were

evaluated using a seven-point scale, the aggregate

index ranges from 1 to 49(Yasa et al., 2020). By

conducting discussions with the companies involved,

we were able to ascertain the industry type and the

age of the ﬁrm, which facilitated the generation of

this information. By conducting discussions with

the companies involved, we were able to ascertain

the industry type and the age of the ﬁrm, which

facilitated the generation of this information.

C. Measurement Analysis

As the evaluation instruments were formulated sub-

sequent to an extensive literature review pertaining

to the research constructs, their content validity can

now be afﬁrmed. The variables being examined are

represented in Table 2 with Cronbach’s alpha, com-

posite reliability (CR), and average extracted variance

(AVE).

5 RESULT ANALYSIS

Instead of using more traditional methods, process

analysis was chosen as the best way to test hypotheses

when the independent and dependent variables have

conﬂicting impacts. (Yasa et al., 2020).

Product Radicalness (PR), Customer Unfamiliar-

ity (CU), New Product Advantage (NPA), and Firm

Performance (FP) were the variables under investiga-

tion. SFL is Factor loading.

SFL = Factor Loading, AVE = Average Variance Ex-

tracted, CR = Composite Reliability, α = Cronbach’s

Inﬂuential Factors of Software Firms’ Performance in the Industry of Developing Countries

551

Table 2: Scale item, factor loading, and convergent validity.

Construct Scale Item SFL Alpha CR AVE

Product

Radical-

ness

Regarding the new or signiﬁcantly improved

products/services launched by the company in the previous

ﬁve years, it can be say that:

0.827 0.16 0.43

PR 1: They were based on a revolutionary change in

technology

0.786

PR 2: They were a breakthrough innovation 0.735

PR 3: They led to products that were difﬁcult to replace with

substitutes using older technology

0.808

PR 4: They represented a major technological advance in the

subsystems

0.686

PR 5: They represented a minor improvement over the

previous technology

0.540

New

Product

Advan-

tage

NPA 1: They offer more possibilities to customers 0.770 0.841 0.56 0.86

NPA 2: They cover more customer needs 0.775

NPA 3: They have more uses 0.791

NPA 4: They offer unique, innovative features to customers 0.793

NPA 5: They are of higher quality 0.580

Customer

Unfamil-

iarity

CU 1: They required a major learning effort by customers 0.792 0.792 0.011 0.015

CU 2: It took a long time before customers could understand

their full Advantages

0.820

CU 3: The product/service concept was difﬁcult for

customers to Understand

0.637

CU 4: They were not known and tried in the market 0.663

Firm Per-

formance

FP 1: Return on investment 0.805 0.819 0.014 0.063

FP 2: Return on equity 0.814

FP 3: Sales growth 0.822

FP 4: Net proﬁt margin 0.796

FP 5: Market share 0.816

FP 6: Return on assets 0.801

Industry 0 = Manufacturing 1 = Service N/A

Firm Size Number of employees N/A

Firm Age Number of years since the ﬁrm was founded N/A

Alpha

Here, we decided that 1 = Totally disagree, 7 = To-

tally agree for every part of the questionnaires. Note:

All factor loadings exhibit signiﬁcant statistical sig-

niﬁcance label: 0.01.

Because process analysis works well in situations

where the independent and dependent variables are

subject to conﬂicting effects, it was chosen for this

inquiry over more traditional alternatives for hypothe-

sis testing. This study investigated the following vari-

ables: PR, CU, NPA, and FP & SFL (Factor Loading).

The assessment of the measurement instruments’

reliability was conducted utilising Cronbach’s Alpha

(alpha) and Composite Reliability (CR). Convergent

validity was evaluated using the Average Variance Ex-

tracted (AVE)(Yasa et al., 2020). On a scale of one

to seven, respondents indicated their degree of agree-

ment with each statement. Signiﬁcant factor loadings

were observed for all variables at the 0.01 level.

PR = Product Radicalness

CU = Customer Unfamiliarity

NPA = New Product Advantage

FP = Firm Performance.

The ﬁndings of this study suggest that a product’s

radicalness affects performance in two ways: favor-

ably, via the mediation of unique product beneﬁts,

and adversely, through customer unfamiliarity. Pro-

cess analysis was selected as the best approach for

investigating these two opposed routes.

As hypothesised in H1 and H2, we examined

the effect of two competitive intervening factors on

the relationship between radical product innovation

and ﬁrm success in this study. The results of our

Table 3: Exploratory Factor Analysis.

Factor 1 Factor 2 Factor 3 Factor 4

PR 1 0.786

PR 2 0.735

PR 3 0.808

PR 4 0.686

PR 5 0.540

NPA 1 0.776

NPA 2 0.775

NPA 3 0.791

NPA 4 0.793

NPA 5 0.580

CU 1 0.792

CU 2 0.820

CU 3 0.637

CU 4 0.663

FP 1 0.805

FP 2 0.814

FP 3 0.822

FP 4 0.796

FP 5 0.816

FP 6 0.801

Table 4: Standard Deviation.

Standard Deviation

Product Radicalness 4.380

Customer Unfamiliarity 3.920

New Product Advantage 4.099

Firm Performance 4.710

Industry 2.074

Firm Size 5.196

Firm Age 9.192

study offer evidence in favour of both Hypotheses

1a and 1b, suggesting that the relationship between

ﬁrm performance and product radicalness is inﬂu-

enced by the beneﬁt of new product and client un-

familiarity. Additionally, we have noted a negative

correlation between client unfamiliarity and product

innovation, which subsequently affects business per-

formance negatively(Noh and Fitzsimmons, 1999).

Table 5: Correlation Matrix.

1 2 3 4 5 6 7

Product Radicalness 1

Customer Unfamiliarity 0.510 1

New Product Advantage 0.385 0.212 1

Firm Performance 0.287 0.342 0.318 1

Industry -0.09 -0.171 0.564 0.636 1

Firm Size 0.995 0.979 -0.189 0.961 0.327 1

Firm Age 1 1 -1 1 -1 1 1

Additionally, it can be stated that the client’s igno-

rance and the commerce of assiduity concerning the

radical sound of the product were both substantial. In

a manner similar to the preliminary direct effect, a

ENASE 2024 - 19th International Conference on Evaluation of Novel Approaches to Software Engineering

552

basic pitch analysis was performed on H4. The pre-

cision of the product reduced the client’s ignorance

during production, but the effect was negligible when

it was served.

We can afﬁrm that both H2a and H2b are sup-

ported, as per our analysis. In addition, the results

of the bootstrapping analysis reveal that the circu-

lar effect is statistically signiﬁcant at 0.03, which

provides additional support for H2(Noh and Fitzsim-

mons, 1999). Subsequently, we employed the process

analysis methodology, more precisely the average-

centric function in PROCESS, to examine the mediat-

ing effect while considering the industry-speciﬁc cir-

cumstances. Hypotheses H3 and H4 posit that the in-

ﬂuence of product radicalness on ﬁrm performance is

moderated by the category of industry via the two in-

tervening variables.

A signiﬁcant correlation was identiﬁed between

the category of industry and the combined effect of

customer unfamiliarity and product radicalness. A

straightforward slope analysis was performed for H4,

following a methodology similar to that of the indi-

rect impact. Based on the results, it was observed that

product radicalness positively impacted consumer un-

familiarity, albeit with a relatively weaker effect in the

service sector.

6 CONCLUSIONS

Through an examination of the effects of radical in-

novation in products on the performance of software

enterprises based in Bangladesh, this research con-

tributes to the existing literature on marketing perfor-

mance. The research demonstrates that radical prod-

uct innovation has two contradictory effects on ﬁrm

performance: a positive impact mediated by the inno-

vative product’s beneﬁt, and an adverse effect medi-

ated by consumer unfamiliarity. Additionally, the re-

search reveals that product radicality has a more nega-

tive effect on consumer unfamiliarity in the industrial

sector than in the service sector.

It is essential to note, however, that the ﬁndings

of this study may not be applicable to other nations,

as the research was limited to Bangladeshi software

companies. Consequently, it is imperative that forth-

coming investigations delve into distinct categories

and impediments to innovation, alongside sales and

marketing tactics employed by software ﬁrms based

in Bangladesh. Moreover, conducting research on

these variables in different nations may yield a more

holistic comprehension of the ramiﬁcations of radical

innovation in products on the performance of busi-

nesses.

In general, the ﬁndings of this study carry sig-

niﬁcant implications for enhancing the marketing ef-

ﬁcacy of software companies based in Bangladesh.

Through gaining an understanding of the impact that

radical innovation in products has on the performance

of businesses, organisations can formulate tactics to

minimise the adverse consequences of consumer un-

familiarity while capitalising on the favourable out-

comes of the new product’s advantage.

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