The relationship between innovation capability and performance

Abstract

Purpose -The purpose of this paper is to discuss whether performance measurement moderates the relationship between innovation capability and firm performance. Design/methodology/approach -The study was conducted through a web-based survey in small-and medium-sized enterprises (SMEs). A total of 311 responses were received from a sample of 2,400 randomly selected SMEs. Findings -Consistent with predictions, the link between innovation capability and firm performance is significant in the presence of performance measurement. Performance measurement can thus be used as a tool for improving the performance of SMEs through innovation capability. Practical implications -Using the results of this study, practitioners can improve their innovation capability through performance measurement by taking better account of various aspects. Originality/value -Previous research has studied the effects of performance measurement, but not in the area of innovation management. Previous research has also showed that measurement has positive effects on innovation capability. The present study goes one step further by investigating the impacts of measurement on the relationship of multiple aspects of innovation capability and firm performance.

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“…Generally, organizational results are also proposed from a supporting definition for innovation capability. Examples of organizational results related to innovation capability can be found in Hervas -Oliver, Sempere-Ripoll, and Arribas (2015), Laforet (2011), Simpson, Siguaw, andEnz (2006) and Saunila, Pekkola, and Ukko (2014).…”

“…The framework offers an expansion of the theory about fundamental characteristics of "innovation capability" as a construct. It has particular adherence to the perspective proposed by Saunila & Ukko (2014) regarding the idea that innovation capability represents a potential for innovation. At the same time, it is also aligned with the propositions of Corsi and Neau (2015) and Essmann (2009), stating that, based on the structure of available literature on this construct, the theoretical knowledge about innovation capability emulates the structure of a maturity model.…”

“…As a consequence, a second implication is suggested: that innovation capability, being the innovation potential, process, and results (Saunila & Ukko (2014) must be analyzed from a maturity point of view. This is fundamentally due to the fact that a 'potentiality' represents a plausible, but not necessarily concretized, situation.…”

Capacidades de innovación, desempeño innovador y desempeño organizacional en empresas del sector servicios

“…Sumado a esto, se integran tres constructos (CI, DI, DO) con lo cual se busca evidenciar cómo se relacionan y cómo influyen uno sobre el otro, planteamiento que no se ha establecido de manera clara en la literatura científica y que puede ser de gran importancia para la gestión de la innovación. Final-mente en el planteamiento de la influencia del DI en el DO, se aborda este último desde dos constructos independientes: Desempeño Financiero (DF) que emplea indicadores financieros y Desempeño no Financiero (DnF) que emplea variables no financieras, lo cual presenta también un grado de novedad dado que la mayoría de estudios evalúan el desempeño con indicadores financieros o con la mezcla de estos con no financieros; y son pocos los que lo evalúan con dos constructos independientes (Lee et al, 2011;Saunila et al, 2014).…”

The Effect of Entrepreneurial Competency on Product Innovation and Business Performance: Empirical Cases of Fashion Business in Central Java, Indonesia

“…Kallio et al (2012) explains that success in innovation willmake the business a success. Other researchers also argue that while SMEs have the resources that are able to innovate, then the SMEs business performance, increase (Saunila, 2016;Saunila et al, 2014). In the fashion industry, innovation is an important factor in consumer purchasing decisions.…”