THE IMPACT OF INNOVATION STRATEGIES ON BUSINESS PERFORMANCE: EVIDENCE FROM SUPERMARKET CHAINS IN ALBANIA

Abstract

Innovation is a key driver of competitiveness and business performance, particularly in the retail sector. This study examines the impact of innovation strategies on supermarket chains in Albania, focusing on product, organizational, technological, and digital business model innovations. A quantitative methodology is employed through structured questionnaires administered to supermarket managers and consumers, enabling a comparative analysis of perceptions regarding innovation effectiveness and its influence on performance and customer experience. The findings reveal a strong positive relationship between innovation and business performance. Specifically, 95% of consumers reported improved convenience from online ordering and delivery, 90% were attracted by regularly updated product assortments, and 70% of managers confirmed a positive impact of innovation on performance. Technological and customer-oriented innovations have the greatest effect on customer satisfaction and competitive differentiation, while organizational innovations enhance operational efficiency and long-term sustainability. The results provide practical insights for managers and policymakers in transitional economies.