Exploring the link between Innovativeness and Organizational Performance

Received: 15th June 2021 | Review: 20th Sept. 2021 | Accepted: 5th Dec. 2021

https://doi.org/10.53908/NMMR.300104

Volume 30, Issue-1, January 2022

Abstract
Purpose: The present paper is an attempt to examine the impact of innovativeness on organizational performance. The investigation was carried out in Information Technology (IT) industry of Northern region of India.

Methodology:A sample of 420 employees working in the Northern region was analyzed by applying Partial Least Square Structural Equation Modeling 3.0 (PLSSEM) and Statistical Package for Social Sciences (SPSS).

Findings: The key objective of the present research is to identify the dimensions of organizational innovativeness that has an effect on organizational performance. The findings revealed that product, process and marketing innovativeness have a significant and positive impact on organizational performance, whereas, the impact of behavioral innovativeness on performance is not significant.

Practical Implications: The outcomes of the study provide important insights to the policy makers and strategists to redesign the innovation practices and strategies that will further help in improving organizational performance.

Originality: Limited studies have been conducted in IT sector of Northern region in order to determine the role of innovativness in predicting organizational performance. Therefore, the results of this study contributes to the existing literature and also presents the perception of employees regarding the role of innovation to improve organizational performance.

Keywords: Information Technology, Organizational innovativeness, organizational performance, Structural Equation Modeling, India Download View

References :

Acar, A. Z., & Özşahin, M. (2018). The relationship among strategic orientations, organizational innovativeness, and business performance. International Journal of Innovation Management, 22(01), 1850009.

Alegre, J., Sengupta, K., & Lapiedra, R. (2013). Knowledge management and innovation performance in a high-tech SMEs industry. International Small Business Journal, 31(4), 454–470.

Alosani, M. S., Yusoff, R., & Al-Dhaafri, H. (2019). The effect of innovation and strategic planning on enhancing organizational performance of Dubai Police.Innovation & Management Review, 17(1), 2-24.

Alpay, G., Bodur, M., Yilmaz, C., & Büyükbalci, P. (2012). How does innovativeness yield superior firm performance? The role of marketing effectiveness. Innovation, 14(1), 107-128. Atuahene-Gima, K. (1996). Market orientation and innovation. Journal of business research, 35(2), 93-103.

Avlonitis, G. J., Kouremenos, A., & Tzokas, N. (1994). Assessing the innovativeness of organizations and its antecedents: Project Innovstrat. European Journal of Marketing, 28(11), 5-28.

Bagorogoza, J., & de Waal, A. (2010). The role of knowledge management in creating and sustaining high performance organizations: The case of financial institutions in Uganda. World Journal of Entrepreneurship, Management and Sustainable Development, 6(4), 307-324.

Bakar, L. J. A., & Ahmad, H. (2010). Assessing the relationship between firm resources and product innovation performance. Business Process Management Journal, 16(3), 420-435.

Baker, W. E., & Sinkula, J. M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the academy of marketing science, 27(4), 411-427.

Barney, J. B. (1986). Organizational culture: can it be a source of sustained competitive advantage?. Academy of management review, 11(3), 656-665.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.

Bature, S. W., Sallehuddin, R. M., Rosli, N. A., & Saad, S. (2018). Proactiveness, innovativeness and firm performance: the mediating role of organizational capability. Academy of Strategic Management Journal, 17(5), 1-14.

Battisti, G., & Stoneman, P. (2010). How innovative are UK firms? Evidence from the fourth UK community innovation survey on synergies between technological and organizational innovations. British Journal of Management, 21(1), 187-206.

Baumol, W. J. (2002). Entrepreneurship, innovation and growth: The David-Goliath symbiosis. Journal of Entrepreneurial Finance, 7(2), 1-10.

Brockman, B. K., & Morgan, R. M. (2003). The role of existing knowledge in new product innovativeness and performance. Decision sciences, 34(2), 385-419.

Brown, J. B., & McDonnell, B. (1995). The balanced score‐card: short‐term guest or long‐ term resident?. International Journal of Contemporary Hospitality Management, 7(2–3), 7–11.

Bunyasi, G. N. W., Bwisa, H., & Namusonge, G. (2014). Effect of access to business information on the growth of small and medium enterprises in Kenya. International Journal of Business and Social Science, 5(10), 121–128.

Cai, W., & Li, G. (2018). The drivers of eco-innovation and its impact on performance: Evidence from China. Journal of Cleaner Production, 176, 110-118.

Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial marketing management, 31(6), 515-524.

Centobelli, P., Cerchione, R., & Singh, R. (2019). The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs. International Journal of Production Economics, 212, 111-124.

Cepeda‐Carrion, G., Cegarra‐Navarro, J. G., & Jimenez‐Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110-129.

Chatman, J. A., & Cha, S. E. (2003). Leading by leveraging culture. California management review, 45(4), 20-34.

Chen, Q., Wang, C.H., & Huang, S.Z. (2020). Effects of organizational innovation and technological innovation capabilities on firm performance: evidence from firms in China’s Pearl River Delta. Asia Pacific Business Review, 26(1), 72-96.

COCHRAN, W. G. (1963). Sampling Techniques, 2nd edition, New York: John Wiley and Sons.

Damanpour, F., & Gopalakrishnan, S. (2001). The dynamics of the adoption of product and process innovations in organizations. Journal of management studies, 38(1), 45-65.