We live in the Schumpeterian economy in which innovation is regarded as the engine of success and growth. Global knowledge dissemination, market openness and fast technological changes have given rise to a turbulent climate within which innovation is the only survival strategy (Drucker, 1999; and Ortt and Van der duin, 2008). So, innovativeness matters more than ever before (Barney, 1986; and Holm, 2009) and has become a top priority for firms in different industries (Drejer, 2002). In this sense, executives adopt different approaches to convert their organization into an innovative entity.
A review of literature shows that innovation takes different forms (Tidd et al., 2005, p. 10; and Hitt et al., 2006, p. 399) and industry leaders develop a wide range of innovative activities which can be called the organization innovation portfolio (Xu et al., 2003 and 2007). However, these initiatives must be carefully planned and administrated in a coherent framework to address a wide range of preferences and varying demand because in the current hypercompetitive landscape, the key competitive success is the ability to constantly develop new products, services, and processes. Customers demand increased functionality, quality, novelty and performance (D’Aveni, 1994; and Drejer, 2002), so constant and consistent added value or benefit is the quintessential factor in creating and maintaining lasting success.
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