Harmony-oriented retail innovations and financial performance

Purpose Recently, a growing need for harmony has been observed worldwide. Harmony is a universal value in both Western and Asian countries. This paper aims to study how the concept of harmony is reflected in the innovation of European multinational grocery retailers and how harmony-related innovations affect the financial performance of the retailers. Design/methodology/approach The research is based on a multisource database including innovation outcomes and financial performance indicators of 17 European multinational grocery retailers in the period of 2011-2018. In sum, 1,399 innovations were identified by content analysis. The relationship between innovation outcomes and financial performance was measured by panel regression analysis. Findings Results indicate that retailers differ in launching harmony-oriented innovations. Moreover, 40% more innovations are related to harmony with people as those related to harmony with nature. Finally, harmony-with-people innovations have a significantly positive effect on retailers' sales growth. Practical implications Based on the research findings, retailers can improve their sales growth by launching innovations that focus on harmony in human relationships. Originality/value This paper extended the concept of harmony to the field of innovations. First, the research showed how the value of harmony appears in the innovations of multinational retailers. Second, the study differentiated between harmony-with-people and harmony-with-nature innovations. Third, the findings revealed that harmony-oriented innovations contribute to retailers' financial performance.