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This paper aims to discuss the relationship between innovation and organizational performance in the construction industry. In Malaysia, the construction industry is known to be one of the industries that contribute significantly towards her economic growth. This contribution, more often than not is associated with the amount of innovation invested by organizations in the industry. The industry's innovation performance currently is reported to be amongst the lowest as compared to the others, which inspired this study to unveil the extent influence of innovation on performance. The instruments in measuring innovation and organizational performance specific to the construction industry were developed by adapting measures introduced by several scholars in these fields. While innovation is represented by innovative design solution, innovative project practices and advanced technology utilization, organizational performance is represented by project and business performance. Contractors and consulting companies were the sampling frame of this study and the samples were selected based on a stratified sampling method to gauge representation of the different groups in the population. The results revealed that principally innovation is significantly positive in influencing organizational performance. Nevertheless, innovative design solution and advanced technology dimensions were insignificant in influencing project performance and business performance respectively.