2.1. Innovation Capability
Firms should fulfill the demands for innovation to meet market needs, creating new needs for the market and anticipate developments in technology. Cooper (2011) explained that firms should be able to extend the life cycle of its products or to create something new with innovation. Firms need to innovate in order to survive and grow and also excel as well as significantly influencing industry direction (Davila et al, 2006; Trott 2008; Crossan and Apaydin,2010).