A determinants of innovativeness model for manufacturing firms

Abstract

This paper offers a comprehensive model of determinants of innovativeness based on empirical data gathered from 184 manufacturing firms located in the Northern Marmara region in Turkey. As opposed to studies that establish a relationship between a limited set of antecedents and innovativeness, this study allows us to investigate the significance of an antecedent when compared to others. Such invaluable knowledge not only enables decision-makers to manage their innovation strategies but also provides a guideline for effective allocation of their limited resources to increase innovation. The analysis reveals that among all possible determinants considered, the highest impact on innovativeness is intellectual capital. This determinant is followed by organisational milieu that consists of the organisational structure and culture components. Path analyses for both of these major innovation determinants are investigated in detail. Some managerial implications are suggested.