The Role of Innovation as a mechanism of enhancing Organizational performance

Abstract

Today, in the context of continuously changing business environment, organizations are confronted by new challenges and also new opportunity. Inability to innovate and adapt has turned into a critical factor of survival and success. With this in mind, this article delves into the role of innovation as a vital force to enhance organizational performance and why this aspect is so important through reviewing the key terms, the strategy and the practical examples.With markets becoming more and more competitive and customers’ expectations constantly increasing, companies have to reinvent themselves over and over again. An innovation is a powerful catalyzer for growth — it allows the business to build new products, services, and processes to deliver value and provide for means of differentiation from rivals.This exploration will look at how innovation links with other critical capabilities of the organization, including resilience and agility. And we’ll explore different ways innovation can manifest, ranging from incremental improvements to disruption breakthroughs, as well as which align with better performance.Awareness of the complex character of the process of innovation and its importance to achieving business success enables the business leaders to shape a culture conducive to the creative work, to pay attention to the changing innovative technologies and prepare the companies for sustainable development in this rapidly changing world.