Effect Of Innovation Drivers And Capabilities On Organizational Performance

Innovation is an important driver of improvements in any productivity.Organizations which follow the innovation strategy tend to be more sensitive to the quality of their business environment;there are various factors that influence incentives and ability to innovate in industries.This study is conducted in Dubai because the United Arab Emirates is one of the most advanced markets in the Middle East and the world.Despite this fact but still,the United Arab Emirates' telecom market is highly restricted from competition because both major players are Government-owned.Therefore,the purpose of the study is to investigate the internal and external drivers of innovation on innovation capability and its consequences on organizational performance.This study adopts a comprehensive and multi-dimensional approach to innovation capability drivers and tries to develop and test a new framework to improve innovation initiatives.This research uses two approaches which are organizational survey using questionnaire and testing of hypothesis.The first step is primary examination through an intensive literature review and the second step is the collection of secondary sources through the organizational survey.The total number of respondents is 272.In data analysis two statistical techniques are adopted which are the Statistical Package for the Social Sciences(SPSS)version 22 and Structural Equation Modeling(SEM using Smart-PLS).Organization survey is divided into five main areas which are:ID(Organizational Innovation Drivers),IC(Intellectual Capital),OC(Organizational culture),OIC(Organizational Innovation Capability)and Organizational performance questions.Hypotheses are divided into direct and indirect effects.This research concludes that innovation drivers are in the following:Globalization,Technology advances,Shortening product life cycle,Demanding Customers,Structural Capital,Human capital,Relational capital,Organizational glue,Management of employees,Criteria of success,Strategic emphasis,Organizational leadership,Dominant characteristics,Know-how development,Individual activity,Regeneration,Participatory Leadership culture,Ideation and organizing structures,External knowledge,Financial Performance Non-Financial Performance,and Work climate and wellbeing.Important research findings show that the research hypothesis results can be divided into two direct effects and indirect effects.Direct effects for factors in the model can be shown at a significance level of 5%.Direct effect means that there is no mediate variable between factors in the model.There is a positive relationship between intellectual capital and organizational innovation capability.There is a positive relationship between organizational innovation drivers and organizational innovation capability.There is a positive relationship between organizational innovation capability and organizational performance.There is a positive relationship between intellectual capital and organizational performance.There is a positive relationship between organizational innovation drivers and organizational performance.There is a positive relationship between organizational culture and organizational innovation capability.There is a positive relationship between organizational culture and organizational performance.Indirect Effects for factors in the model can be shown at a significance level of 5%.Indirect effect means that there is a mediate variable between factors in the model.It is the relationship between organizational innovation drivers and OP mediated by organizational innovation capability.The relationship between intellectual capital and organizational performance is mediated by organizational innovation capability.The relationship between organizational culture and organizational performance is mediated by organizational innovation capability.And finally,the research recommends that further research should involve some additional variables into the research and newer data.One important variable should be the financial performance of the telecommunication market.Data should include variables about some UAE countries and situation on their telecommunication market.There is a broad range of issues to be tackled in future work.This research is aiming at providing some practical and theoretical conceptual knowledge to strengthen academic development in this field.