Abstract
This study examines the influence of innovation factors (process innovativeness, behavioural innovations, strategic innovativeness) and organisational factors (organisational rewards, top management support) on organisation innovation. The present study extends the organisation innovation model and outlined moderating effect of innovation orientation between organisation innovation and organisation performance. For data analysis, structural equation modelling (SEM) was used. Findings showed that altogether behavioural innovativeness, process innovativeness, strategic innovativeness, top management support, organisational rewards, enjoyment and knowledge self-efficacy explained R2 79.3% variance in organisational innovation. The predictive relevance Q2 of the model was checked. Results of the blindfolding procedure revealed that organisation innovation had Q2 0.579 which is substantial. Effect size analysis (f2) revealed that enjoyment in helping others and organisation innovation were the most important factors to determine organisation performance. Practically, this study suggested that managers need to focus on organisation innovation and strategic innovativeness factors in order to enhance the organisation performance.
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