The Role of Innovation in Achieving Competitive Advantage: A Review of Automobile Industry Trends

Abstract

Innovation has become a pivotal driver of competitive advantage in the automobile industry. This review paper investigates the role of various forms of innovation—including technological, process-oriented, business model, and sustainability-focused innovations—in enhancing organizational competitiveness. By analyzing recent trends and developments, the study underscores the strategic importance of innovation in addressing shifting consumer expectations, evolving regulatory frameworks, and dynamic market conditions. Furthermore, the paper identifies critical gaps in the current literature, offering valuable directions for future research and practical applications that aim to sustain long-term competitive advantage through continuous innovation.