The Role of Organizational Resources and Market Competitiveness in Innovativeness

Abstract

The purpose of this study is to empirically test a framework based upon the relationships among organizational resources, market competitiveness, and innovativeness of organizations with special emphasis on enterprises in Turkey. Data used in the study were gathered from Business Environment and Enterprise Performance Survey conducted by World Bank. The research framework was tested using descriptive statistics and regression analysis. The results of logistic regression analysis indicate that both organizational resources and market competitiveness have a direct, positive and significant impact on product innovations. In contrast, neither operational resources nor market competitiveness variables have a significant and direct impact on process innovations but only human resources has. The limitation of this study is its narrow focus on Turkish enterprises. Thus including the other emerging countries might be useful in generalization of findings. By validating a multidimensional construct of innovativeness, the study provides managers with a useful tool for evaluating their current resources and competitiveness in the market. Second, the analysis of the relationship among organizational resources, market competitiveness and innovativeness indicates that human resources directly influence both product and process innovations. This paper adds to the body of knowledge by providing empirical insights into the relationships among organizational resources of companies, market competitiveness and innovativeness of companies operating in Turkey.