Organisational innovation: A Proposal for measurement

In spite of the prominence assigned to innovation in the strategic marketing literature particularly in the area of competitive strategy there have been several inadequacies in the conceptualization and measurement of the innovation construct. Responding to the need for a comprehensive measure, this paper attempts to develop and validate a measure for organisational innovation. Addressing the need to capture both the degree and type of innovation, as well as the synergistic influence of innovation types on performance outcomes, this paper proposes operationalising organisational innovation as a multidimensional construct. The proposed measure has a complex higher order structure that captures the variance in its dimensions that are different forms manifested by the construct. The measure also captures the synergistic impact of different innovation types on competitive advantage. The implications for theory, limitations and directions for future research are presented.