The Importance Of Innovation On Organizational Performance

This section will review the academic literature and studies on the different types and sources of innovations and their link to organizations performance. Bukhamsin (2015) claims that innovation is classified into technical innovation and organizational innovation. Many of the innovations literature reviews innovation as the process of using new technology to develop new products. Hence, technology innovations and organizational innovations affect organizational performance Bukhamsin, (2015).

This study highlights the key role that both organizational innovation and technological innovation play in enhancing organization's competitive advantage, which reflects on organizations' performance. The core knowledge behind the aim of this study

and in order to renew teamwork, sharing of information, coordination, collaboration, learning, and innovation.

As regarded by a growing body of researchers, Gunday (2011) also explains organizational innovation as a catalyst of growth in business and economy. Luecke & Katz (2003, p.2) refers to innovation as ‘the introduction of a new thing or method. Innovativeness refers to ‘a firm's capacity to engage in new enterprise, that is, the introduction of new processes, products, or ideas in the organization' (2004, p. 429). This capacity to innovate is among the most important factors which influences the business performance and as such, innovativeness is amongst the unique beliefs which is surrounded in the tangible and intangible resources leading a firm towards successful business

Internal Sources

One of the potentially, most valuable channels for new ideas comes from those working in a business and every effort to maximize necessary input into identifying new and better ways of doing things should be made (ref).

However, whilst this may well be an obvious consideration, many businesses go about soliciting ideas from employees in the wrong way and as a result, see little long term benefits in the ideas generated. In light of this, this should be reflected upon at length to ensure similar mistakes are not made.

Many businesses today, especially service firms use ‘suggestion or feedback box' approach to gather ideas from both employees and customers whilst this is undoubtedly a common method applied, it rarely works well, and certainly not over the longer term.

External Sources

Of course, finding new ideas is not confined to what employees can come up with, or from what can be learnt from listening to your customers, there are plenty of good ideas to be found across the hotel and tourism industry and