| This research, through structural equation modeling (SEM), sought to discover the relationships between the chosen strategic dimensions of an organization and its functional components that lead to innovative performance. Firms selected for this research were ones that compete in industries that create innovative new products. The functional units, as described here, refer to the market orientation, supply management orientation, and the manufacturing orientation. A slight modification of market orientation and supply management orientation were performed for the purpose of this research. Manufacturing orientation was developed using items developed by Boyer and McDermott (1999) concerning strategy in operations. These three orientations than lead to how innovations' are managed which created another new construct called 'Innovation Management'. Innovation management contained two elements, the level of innovation or innovative drive, and customer alliance. The final part of the model looks at business performance both internally and in relation to the competition.;Another new concept, strategic alignment, was developed in this study as a latent construct. Strategic alignment measured how the orientations followed the desired strategic dimensions of the organization. In addition, strategic alignments effect on both innovation management and business performance were captured. The new scales for all three, manufacturing orientation, innovation management and strategic alignment, were found to be significant and valid. A total sample of 182 respondents made for a response rate of just over 12%. Preliminary research, a pilot study, and large sample study were performed. Overall, this research adds to the present literature, aids in future research, and supports findings of recent studies. |
