Organizational Innovation and Business Performance: Exploring Innovation as a Driver of Sustainable Competitive Advantage
DOI:
https://doi.org/10.54518/eir.2.2.2024.1277Keywords:
Organizational Innovation, Innovation Capability, Innovation Management, Organizational Learning, Business Performance, Competitive AdvantageAbstract
Organizational innovation has become an essential capability for organizations seeking to enhance competitiveness, adaptability, and long-term business performance. This study examines the relationship between organizational innovation and business performance through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. Relevant studies published between 2019 and 2023 were collected from major academic databases and analyzed using thematic synthesis. The findings indicate that organizational innovation functions as a strategic capability that strengthens organizational effectiveness, supports organizational learning, and enhances competitive advantage. The review further reveals that knowledge sharing, leadership support, organizational culture, and innovation capability are important drivers of innovation. Additionally, organizational innovation contributes positively to business performance by improving adaptability, productivity, and value creation. The study concludes that organizational innovation is a critical driver of sustainable competitive advantage and long-term organizational success in dynamic business environments.
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