THE CHALLENGES OF STRATEGIC INNOVATION: ACHIEVING OPERATIONAL EFFECTIVENESS IN DEVELOPING COUNTRIES

Abstract

Organisations are spending substantial resources on implementing product and process innovations. It is, therefore, important to evaluate if the implementation of those innovations substantially improves the effectiveness of business operations, meets the organisation’s expectations, and gains a sustainable competitive advantage. Quantitative data from 250 questionnaires were analysed using structural equation modelling. Respondents were selected from several industries in Colombia. Initial findings suggest that strategies have an indirect impact on operational effectiveness through the success of the organisational learning process. However, the organisations investigated lack the appropriate application of linkages and process innovation to achieve operational effectiveness and, therefore, sustainable competitiveness. The paper offers useful insights for organisations when implementing innovation initiatives. It also provides information for Colombian Government institutions on developing mechanisms, economic policy strategies, and business support services for enhancing the economic and commercial viability of Colombian companies in the manufacturing and service sectors. The studied organisations need to redefine the role of linkages and process innovation to complement organisational learning, as all the three dimensions together are required to foster operational effectiveness.