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Abstract With the competition in industry is getting more and more intense,the importance of format innovation is becoming more distinct in retaining competitive advantages.Apparently,different influences on management that result from different forms of format innovation make it difficult for enterprises in decision-makings.However,the existing research fails in clarifying the relationships between innovation formats in industry and enterprises' performance or competitive advantages.Therefore,the paper investigated how format innovation in enterprises influences enterprises' performance,based on a survey study conducted with 296 enterprises in eastern and middle eastern China.The results indicate that both incremental and radical format innovation have notable influences on enterprises' financial performance and competitive advantages.Moreover,incremental format innovation has greater influences compared with radical format innovation.Furthermore,both balance effects and multiplier effects of format innovation in enterprises have notably positive influences on enterprise performance.
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