Explaining the impact of cost and differentiation strategies on innovation and performance

Competition in international markets requires the organization to conduct a competition that improves the atmosphere. These improvements do not only benefit the company, but also have a direct impact on the competitiveness of an industry as a whole. Organizations pursue new strategic advantages non-stop, so in this way they surpass their competitors. Innovation is an important and vital factor for organizations in order to create value and sustainable competitive advantages in today's complex and changing environment. In this regard, the purpose of this research is to investigate onto the impact of competitive strategies such as cost and differentiation on innovation and performance of small and medium industries.

The current research method is in terms of applied purpose and descriptive. The statistical population of the current research included managers and experts of small and medium industries, to determine the required sample size, Cochran's formula was used for the limited population, and the minimum required sample size in this research is 228 people, and people were asked to the Bayraktar questionnaire (2016). The validity of this questionnaire was confirmed by the critical factor analysis test with the help of Cronbach's alpha test.

SPSS and LISREL version software was used for calculations.

Examining the results of the research with the help of structural tests showed that cost, leadership, and strategy have no positive effect on performance; differentiation strategy has a positive effect on company performance with a coefficient of 2.71, leadership cost strategy with a coefficient of 5.22 and differentiation strategy with a coefficient of 3.85 on innovation. It has a positive effect and also the innovation strategy has a positive effect on the company's performance with a coefficient of 3.11.