Inderscience Publishers

Innovation index and its implications on organisational performance: a study of Australian manufacturing companies

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The aim of this paper is to examine the relationships between organisational innovation and organisational performance in Australian Best Practice Companies. The data analysed in this paper were obtained from 237 Australian manufacturers involved in the 1991 and 1992 Best Practice programs conducted by the Australian Manufacturing Council and the Department of Industrial Relations. Organisational innovation consists of administrative, technical and product innovation. Organisational performance has been measured using 27 items based on existing research and includes return on investment, return on assets, market share and performance ratios. Although organisational innovations have an impact on organisational performance, our findings suggest that companies need not be high innovators in order to be good performers.

Keywords: organisational innovation, organisational performance, marketing effectiveness

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