Measuring and Evaluating Organizational Innovation Capacity and Performance from Systemic and Sustainability-Oriented Perspective

Abstract

In the last decades, several multidimensional models for measuring and evaluating the innovation capacity and performance of organisations have been designed by researchers and consulting firms and adopted by established innovative organisations worldwide. However, the topic of measurement and evaluation models that are designed for sustainability-oriented innovation management has remained underexplored by researchers and practitioners. From this perspective, this work proposes a conceptual model for measuring and evaluating the sustainability-oriented innovation capacity (SOIC) and performance (SOIP) of established organisations, guided by the following principles: a multidimensional structure, stakeholder goal orientation, interdependence and feedback loop analyses, innovation process orientation and ease of implementation and use. In line with these principles, the proposed model combines the balanced scorecard (BSC) framework with a hybrid multicriteria methodological approach. Furthermore, it considers the interdependencies between the key innovation indicators (KIIs), which are classified according to four perspectives of an adapted BSC framework. The proposed conceptual model, and the empirical results that demonstrate its applicability in an organisational context, may contribute to improving the current practices for measuring and evaluating the SOIC and SOIP, which could help organisations to adjust their strategies to create sustainable value for the new era of business.