Exploring the link between Innovativeness and Organizational Performance

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.