This research has the following objectives: (1) to study the influencing factors on product innovation (2) to study the relation of the influencing factors on the product innovation (3) to study the relation of the product innovation that impacted the performance of the processed food industry in Thailand. The data for this study was followings: interviews with 5 senior executives, questionnaires from 9 senior executives, 169 middle executives, 182 operational executives, and 47 practitioners. The influencing factors comprised of: (1) the external factors including demand uncertainty, market orientation, technology turbulence, and government agency support; and (2) the internal factors including organizational culture, operational efficiency of personals, and product quantity. The analysis statistics included percentage, mean, and standard deviation, Chi-square plus confirmatory factor and linear structural analysis. The study result showed as follows.1) The external factors including demand uncertainty, market orientation, and government agency support influenced on the product innovation. The demand uncertainty had a directly positive influence and the market orientation and government agency support had an indirectly positive influence with a statistical significance while the technology turbulence had no influence on the product innovation with a statistical significance while the technology turbulence had no influence on the product innovation with a statistical significance 2) The internal factors including the organizational culture and the operational efficiency of personals had a directly positive influence on the product innovation but the product quality had an indirectly positive influence with a statistical significance. 3) The demand uncertainty had a directly positive influence on the market orientation, the organizational culture, and the operational efficiency of personals. 4)The market orientation had an indirectly positive influence on the technology turbulence. And 5) The product innovation had the directly positive relation and influence on the operational efficiency of personals in terms of income increase and new market with a statistical significance.