Unlocking Business Success: How Networking and Branding Capabilities Drive Performance Through Product Innovativeness

ABSTRACT In today's fast‐paced market, developing innovative products with significant advantages over existing alternatives is essential for a strong market presence. This study, based on the resource‐based and dynamic capability view, examines how market and technological innovativeness contribute to differentiation advantage and improved business performance. It also investigates the roles of complementary capabilities in enhancing these relationships. Primary data were collected through an on‐site questionnaire survey of Iranian research and development‐intensive manufacturing firms. Using 125 valid responses from senior managers, partial least squares structural equation modeling tested the proposed model. Findings indicate that networking and branding capabilities enhance technological and market innovativeness, respectively, thereby strengthening differentiation advantage. Moreover, differentiation advantage is a crucial mechanism for translating innovativeness into improved business performance. These results provide theoretical insights and practical guidance for developing effective product innovativeness strategies to augment international competitiveness and performance.