(The Impact of Innovation Capabilities on Firm Performance in the Public Sector)

Abstract

Purpose – This study aims to explore the impact of innovation capabilities on innovation performance and organizational performance, and to analyze the mediating role of innovation performance in the relationship between innovation capabilities and organizational performance in public sector organizations in Turkey. Design/methodology/approach – 98 questionnaires from 37 public sector organizations have been collected to provide data for testing the relational research model. Findings – Results indicate statistically significant relationships between various innovation capabilities (i.e. marketing capability, strategic planning capability, learning capability, production capability and research and development capability) and organizational performance. Additionally, a positive relationship between innovation performance and organizational performance has been detected. Results showed no significance with regard to the mediating role of innovation performance. Discussion – Results of the study have confirmed findings of previous literature. It can be concluded that dynamics of innovation in the public sector depict similar characteristics with innovation dynamics in the private sector.