The Impact of Innovation Capability and Customer Experience on Reputation and Loyalty

This research employs complexity theory to understand the effect of innovation capability and customer experience on reputation and loyalty. In addition, it aims to investigate the contribution of consumer demographics to such relationships. To this end, this paper recognizes effective and intellectual experiences as key elements of customer experience to propose a conceptual framework with research propositions. To examine the research propositions, this study used confirmatory factor analysis (CFA) and fuzzy set qualitative comparative analysis (fsQCA) using a sample of 606 consumers of international retail brands. The findings contribute to academic literature on innovation, customer and brand management. It also provides guidelines for managers to create customer value by deploying technical innovation capability (new services, service operations and technology) and non-technical innovation capability (management, sales, and marketing) together in a retail environment. Furthermore, it reflects on the linkage between the consumer shopping experience and firm reputation and loyalty