Determinants of Organizational Innovation and Their Impact on Firm Performance: A Systematic Literature Review
Keywords:
Firm Performance, Innovation, Organizationa, Systematic Literature ReviewAbstract
Organizational innovation is widely recognized as a key determinant of firm competitiveness and long-term performance, particularly in increasingly dynamic and uncertain business environments. However, existing studies present fragmented and sometimes inconsistent findings regarding the determinants of innovation and their relationship with firm performance. This study aims to systematically review the literature to identify the main determinants of organizational innovation and analyze their impact on firm performance. A Systematic Literature Review (SLR) approach was employed by analyzing 30 selected articles published between 2021 and 2025 from reputable academic databases. The findings indicate that organizational innovation is influenced by three main categories of determinants: internal factors (e.g., leadership, R&D investment, knowledge management, and data analytics capability), external factors (e.g., institutional environment, market dynamics, and technological change), and relational factors (e.g., innovation ecosystems and inter-organizational collaboration). The results further confirm that organizational innovation has a positive impact on firm performance, both directly and indirectly through mediating mechanisms such as organizational resilience, digital transformation, and knowledge management. This study contributes to the literature by integrating fragmented findings into a comprehensive conceptual framework linking innovation determinants and firm performance. Practical implications are also provided for managers and policymakers in strengthening innovation capabilities to enhance organizational performance
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