The development and validation of the organisational innovativeness construct using confirmatory factor analysis

Abstract

The role of organisational innovativeness, or innovative capability, in attaining competitive advantage has been widely discussed. Most research examines innovation activities and their associations with organisational characteristics, or investigates certain perspectives of innovative capability, such as product innovation. Much less attention, however, has been paid to develop and validate measurement constructs of organisational innovativeness. Through an extensive literature review, five dimensions of an organisation's overall innovativeness are identified. These five dimensions form the component factors of the organisational innovativeness construct. Following a three‐step approach, a final 20‐item measurement construct is validated. Theoretical and methodological issues in relation to application of the organisational innovativeness construct are discussed in light of these findings.