What is the relationship between innovation and performance in a company? We argue that the effect of the extent of innovation engaged in by a company on the performance of that company is contingent upon the internal and external elements of the organization, namely, the company’s strategy orientation, power structure, top management team commitment, and social network. Drawing on marketing, organizational theory, and strategy management perspective, we develop a conceptual model that shows how these key contingent factors moderate the relationship between innovation and performance, and formulate some research propositions for future study.
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