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The relationship between innovation orientation and organisational performance

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  • C. Brooke Dobni

Abstract

Organisation performance is related to several factors including the organisation's mission, vision, strategy, and its innovation orientation. An innovation orientation describes an organisation's degree of innovativeness. This exploratory study examines the relationships between innovation and organisational performance in a sample of Canadian organisations. The results suggest that an innovation orientation is related to overall organisational performance. The high innovating firms had a positive relationship with the top line growth, and customer satisfaction, and bottom line growth, and profitability. There was a positive relationship between return on investment and innovation orientation. Those organisations possessing low innovation orientations had lower firm performance and enterprise value. Significant negative correlations were identified with return on investment, overall firm performance and the overall enterprise value.

Suggested Citation

  • C. Brooke Dobni, 2011. "The relationship between innovation orientation and organisational performance," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 10(3), pages 226-240.
    • Handle: RePEc:ids:ijilea:v:10:y:2011:i:3:p:226-240
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    Cited by:

    1. Wilson, Grant Alexander & Case, Tyler & Dobni, C. Brooke, 2023. "A global study of innovation-oriented firms: Dimensions, practices, and performance," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    2. Andonova, Veneta & Losada-Otálora, Mauricio, 2020. "Understanding the interplay between brand and innovation orientation: Evidence from emerging multinationals," Journal of Business Research, Elsevier, vol. 119(C), pages 540-552.

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