Effects of Organizational Innovations on Firm's Production Performance

Abstract

In the literature, various papers investigate the effects of the technological (product and process) innovations on firms performance. However, research on the effects of organizational innovations is rare. Furthermore, the performance of the firms is usually measured in terms of financial criteria such as the return on assets or equity., and the research on the effects of innovations on production performance is limited. The objective of this paper is to explore the role of different innovation types as well as the organizational innovations on the firm's production performance based on an empirical study covering 184 manufacturing firms in the Northern Marmara region within Turkey. A significant positive relationship between organizational innovations and the firm's production performance is determined.