The determinants of organizational innovations: evidence from the Indian IT industry

Purpose In pursuit of comprehension of innovation as an instrumental mechanism for organizational viability in intensely competitive markets, the present study aims to investigate the key determinants of innovation employed within the organizational contexts. Design/methodology/approach Drawing upon the resource-based view and the componential theory of creativity, this study adopts a quantitative methodology, gathering through a self-administered questionnaire from employees in Indian IT firms. The proposed theoretical framework is tested using structural equation modeling. Findings The study evidences that innovation determinants exhibit direct associations with the innovative performance of organizations. Furthermore, the association between innovation determinants and performance is statistically significant and exhibits reinforcement when the organization actively fosters the employee motivation and creative potential of employees. Research limitations/implications The study offers insights for managers and decision-makers on creating an innovation-friendly environment. Organizational practices such as knowledge exchange, calculated risk-taking, user involvement, teamwork, innovation-focused training, upskilling and fostering an innovation-driven culture collectively drive superior organizational performance. Originality/value This study integrates individual and organizational drivers into a unified framework, providing a comprehensive conceptualization of innovation determinants facilitating organizations to attain innovation goals.