Innovation Impact On Organizational Performances

In business and economics, innovation is the catalyst to growth. In the organizational context, innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness and market share. Innovation can be described as the transformation of ideas into value, the energy for continuous improvement, the opportunity to create market differentiation and competitive advantage. From a business perspective, innovation can manifest as developing and launching new products and services or reorganizing internal processes that reduce costs, accessing new markets. Measuring performance in terms of innovation is a new area and many companies have little experience in determining appropriate performance indicators. Many of innovation indicators can be considered to be subjective, which implies a difficulty in assessing the impact of innovation on the organization’s performance. This paper seeks to identify a quantifiable connection between the average stock price, which is an indicator of interest for investors and several metrics that reflect an innovation degree. The final objective of this study is to describe the link between the performance and novelty elements of organizations though a multiple linear regression model.