From innovation performance to business performance: Conceptualising a framework and research agenda

Purpose: The purpose of this paper is to conceptualize the process leading from innovation performance to business performance and, from this basis, facilitate the identification of relevant performance measures. The paper takes its point of departure from a synthesis of the literature around innovation, intellectual capital (IC), knowledge management and business models. Design/methodology/approach: The research streams of innovation performance and business performance are combined to provide insights bridging these two traditions. This paper provides empirical evidence from two case studies of business development projects that involved both intervention- and non-intervention-based data collection methods. Findings: The research traditions of both innovation performance and business performance identify knowledge, learning and IC as the basis for all value creation activities in organisations. This paper provides a synthesis of the literature in these fields and relates them to each other in accordance with the “process of creating”. This structure allows the discussion of innovation performance and business performance separately and in conjunction with one another, as well providing opportunities for identifying relevant key performance indicators. Research limitations/implications: Caution should be taken in the nature of the developed conceptual framework which rests upon the perspective of the author’s subjective interpretation of the current literature. Originality/value: These insights are relevant for the development of a performance management structure capable of straddling the common exploration–exploitation paradox, which, in this context, often becomes a compromise between performance optimization and a developmental focus. The discussion reveals three overall constructs, and, from this a future research agenda is developed.