Relationship between innovation and organizational performance in an emergent market

Several writings explore the organizational innovation and relate its effect on the organizational performance. However, few studies, on the one hand, take into account the technical innovation and the management innovation as dimensions of organizational innovation; and on the other hand, they use these dimensions to analyze its effect on the organizational performance. In this paper, the authors analyze the influence of innovation - including the two dimensions mentioned- on organizational performance. Furthermore, the authors examine the behavior of organizational characteristics as a moderator variable of this relationship. The study was applied to service sector companies. The results indicate that innovation and technical innovation have an influence on the organization performance, while management innovation does not. This strengthens the argument that asserts companies need to improve the low perception they have about the importance of management innovation, for better performances.