This research focuses on the comparative performance of software companies in developing countries concerning product radicalness, new product advantages, customer unfamiliarity, and industry differences. It is based on SEM-PLS and ANN methodologies and therefore adopts a sophisticated approach to the study of these variables and their relationships. As a result of the outcome SEM-PLS, it was established that product radicalness relates positively to firm performance through new product advantages, while customer unfamiliarity has a negative impact. To further enhance predictive accuracy, we applied the ANN model, which accommodates non-linear relationships and non-normal data distribution. Based on the results, the ANN model revealed an 86.2% prediction accuracy and ranked product radicalness as the first key contributor to firm performance. In addition, industry differences were also represented when the different trends were discovered; for example, there was a higher sensitivity to customer unfamiliarity in the manufacturing industry than in the service industry. The dual role of radical innovation is demonstrated by the findings, wherein product uniqueness can lead to better performance of the firm but at the same time pose a risk due to the firm entering uncharted markets. These results indicate that for software firms to enhance their performance, they should focus on innovation while at the same time using means that will reduce their potential customers’ unfamiliarity. Further, the study notes that innovation and its influence on the performance of firms in different economies should also call for a comparative perspective and more predictors in future studies for better comprehension.