Organizational Innovation, Firm Resources and Organizational Performance: A Critical Review of Literature

Abstract

The main purpose of this paper was to look into organizational innovation, firm resources and organizational performance. Most of the studies have been undertaken in both local and international contexts with inconsistent results. The paper was guided bycontingency theory,complexity theory, andorganizational learning theory. As indicated by these theories, different resources and innovations have positive and implications on organizational performance. The organizations which contain superior and adequate resources including machinery, plant and equipment are in a position to perform better than those without resources. Organizational resources stress ideas that entail knowledge and behavior which are transformative in nature. Therefore, organization innovation captures how the new ideas and depicted behaviors in the organization can be used to positively influence performance. Therefore, the essence of organizational innovation aids in understanding why some organizations perform differently compared to others, and howthey direct and control performance.Firm resourcesimprove innovation, create positive corporate reputation, result in competitive advantage and improved corporate performance.