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The purpose of this paper is to clarify the concept of innovation capability and to show how the linkage between innovation capability and performance measurement can be formed.

The study is based on current literature of innovation capability and performance measurement and matching these two to find out how the measurement of innovation capability should be organized.

The paper describes the concept of innovation capability and presents a performance measurement framework for the measurement of innovation capability and its effects. As a result, a conceptual framework with five perspectives for measuring the relationship between innovation capability and business performance is presented. Also, the link between innovation capability and an organization's business performance is disclosed.

The paper shows a way forward of how to define measures of business performance in such a way that they are led from the development of innovation capability.

This paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.

Structural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.

The research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.

The findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.

The paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

Given the decisive role of knowledge-oriented leadership (KOL) in boosting organizational innovation capacities, the research intends to investigate the effect of KOL on ambidextrous innovation with the mediating effect of knowledge management capability (KMC). Furthermore, technological turbulence (TT) is regarded as a moderator in the relationship between KMC and ambidextrous innovation.

The data obtained from 122 Pakistani manufacturing firms were used to evaluate the proposed relationships using the partial least square structural equation modeling approach.

The empirical findings demonstrate that KOL positively affects both aspects of ambidextrous innovation, namely exploitative innovation (EII) and exploratory innovation (ERI), with a higher effect on EII. Additionally, knowledge management process capability (KMPC) partially mediates the association between KOL and both dimensions of ambidextrous innovation (EII and ERI). Similarly, knowledge management infrastructure capability (KMIC) mediates the link between KOL and ERI but does not mediate the relationship between KOL and EII. The impacts of the KMPC and KMIC on EII are also significantly moderated by TT, although the link between the two components of the KMC (KMPC and KMIC) and ERI is unaffected.

The research provides useful knowledge and a novel strategy for policymakers to foster KOL and invest in KMC to improve the capabilities of Pakistani manufacturing firms in terms of innovation.

The research has contributed significantly to the resources-based view and knowledge-based view (KBV) literature by examining the various mediation moderation mechanisms and offering greater insights into the relationship between KOL and firms, KMC, and ambidextrous innovations.

The relationship between overall innovation and innovation capability, and performance has been a topic of several earlier studies. However, the effects of the aspects of innovation capability on performance of a firm have stayed unfamiliar. The purpose of this paper is to study the relationship between organizational innovation capability and firm performance. The study contributes to the current understanding by presenting the important aspects of organizational innovation capability that affect firm performance. The effects are studied to both financial and operational performance.

The approach of this study is quantitative. The data used to test the hypotheses were gathered from Finnish small- and medium-sized enterprises (SMEs) with a web-based questionnaire. The sample covered 2,400 SMEs employing 11-249 persons and having a revenue of two to 50 Meuro. The sample was randomly selected.

The findings showed that three aspects of innovation capability, namely ideation and organizing structures, participatory leadership culture, and know-how development, has some effect on different aspects of firm performance. Surprisingly, the aspects of innovation capability were found to be more influential to the financial performance than operational performance.

The paper contains suggestions for improving performance through developing innovation capability. The paper aims to support practice in two ways. First, organizations can identify aspects of innovation capability that affect operational and financial performance. In that way, organizations can benefit the results by applying these aspects in their everyday operations. Second, the results of the paper may help professionals to begin to understand that leveraging innovation capability may improve an organization's performance.

Previous research has often either concentrated on innovation capability as a one dimension without studying the relationship aspect by aspect or studying only the effects of one aspect of innovation capability. The results of the study take one step further by investigating the relationship of multiple aspects of innovation capability and firm performance.

COVID-19 and its economic consequences have provoked critical views on worldwide sustainable management, especially in the Arab world. Post-COVID-19, sustainability becomes important because the pandemic taught humanity to set aside differences and work together to support the global sustainability agenda. On the organizational level, sustaining an organization's competitive advantage is a key to surviving a crisis. Therefore, this study explores the impact of environmental scanning on sustaining Egyptian manufacturing SMEs' competitive advantage through organizational innovation.

The study adopts a cross-sectional design to collect data. A self-administered questionnaire was used to collect data from a sample of 249 Egyptian SMEs. The smart partial least square structural equation modeling technique (PLS-SEM) was employed to test hypotheses.

Organizational innovation has an effect on competitive advantage. There is no direct effect of environmental scanning on competitive advantage. However, organizational innovation fully mediates the relationship between environmental scanning and competitive advantage.

The sample size was small, covering only Egyptian manufacturing SMEs. The results may differ in the service sector and in other countries. The study was cross-sectional and could not trace long-term effects of environmental scanning and organizational innovation on competitive advantage.

In the face of crises, Egyptian SMEs' managers should regularly scan their environments to build organizational innovation and in turn sustain their competitive position.

This study is amongst the first to investigate the role played by environmental scanning in sustaining Egyptian SMEs competitive advantage through the mediation of organizational innovation amidst the COVID-19 epidemic.

The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance.

The authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study.

The model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit.

This study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions.

Managers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments.

This study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.

The purpose of this paper is to present a framework for improving innovation capability through performance measurement in small- and medium-sized enterprises (SMEs). The development of an organisation’s innovation capability is considered increasingly important in the current literature. Developing such capability is essential, as innovation plays a key role in the survival and growth of organisations. A review of current literature highlights the need for a framework on the development of innovation capability, especially in SMEs.

A literature review was used to form an understanding of previous work in the research area. Previous literature was used to define the key concepts and further to build the conceptual framework.

As a result of the study, a framework for improving innovation capability through performance measurement in SMEs is presented. Key issues that must be addressed are highlighted and discussed.

The paper contains suggestions for improving innovation capability through performance measurement. Using the results of this study, practitioners can enhance their innovation capability by measurement and by taking better account of different situations regarding the development of innovation capability. The framework clarifies the issue of how innovation capability and its determinants can be managed through measurement, and therefore it assists especially SMEs in their attempts to cope with the increasing need for innovation as an asset of their business performance.

There are very few examples in the current literature of frameworks for the issue, especially for SMEs. The role of performance measurement in developing innovation capability is also ignored in the current literature. The paper is relevant for academics, as it clarifies the existing body of knowledge and provides a platform for future research.

The purpose of this article is to integrate organizational capabilities into the place branding process to showcase how a lead destination marketing organization (DMO) can influence a customer-based brand equity outcome. Doing so highlights the strategic, relational nature of place branding. The authors focus specifically on first- and zero-order capabilities, integrating absorptive capacity (first-order) and an innovation capability (zero-order) into a place branding framework. We define an innovation capability within a place branding context and offer absorptive capacity as a mechanism through which DMO leaders can exploit external knowledge acquisition.

The paper presents a theoretical framework of the place branding process that integrates firm capabilities. A framework based on analyzing existing place branding models and integrating organizational capabilities, which find root in strategic management literature, was developed.

Findings indicate that existing frameworks address operational and customer capabilities in some manner yet largely ignore innovation capabilities. A definition of an innovation capability for place brand managers and scholars is offered, and offer absorptive capacity as means to integrate external knowledge into the DMO. Utilizing multiple levels of capabilities allows a firm to influence customer-based brand equity. Testable propositions based on the authors' framework are offered.

Managerial implications of integrating stakeholder capabilities into place branding include appreciating a culture of innovation within DMOs, learning from external stakeholders meaningfully and regularly and encouraging creative thinking that can produce new processes, policies or services.

By integrating organizational capabilities, attention is drawn to internal aspects of the place branding process the place can control directly. Capabilities dictate how an organization sees itself; learns from its stakeholders; and then integrates that knowledge into organizational, stakeholder and innovation capabilities. Therefore, capabilities are inherently internal mechanisms through which a DMO can influence place brand outcomes, which are understood here as brand equity elements.

Drawing on the knowledge-based view (KBV), the research examines the impact of knowledge sources (internal and external knowledge sources) on two aspects of innovation radical and incremental innovation. Additionally, the research seeks to provide deeper insight into the link between the variables by studying how information technology (IT) resources mediate the relationship between knowledge sources and innovation capability.

The study assessed the relationship between latent variables using a quantitative research approach and variance-based structural equation modelling on a sample of 380 individuals from 83 Pakistani manufacturing and service firms.

The study's results revealed a significant impact of knowledge sources (internal and external knowledge sources) on radical and incremental innovation. Further, the study examines the mediating role of IT resources in connecting knowledge sources and a firm's innovation capability.

Future studies should investigate the association among the constructs under the moderating roles of environmental turbulence to provide insight into the relationship between knowledge sources, IT resources, and innovation capability.

The paper provides evidence that knowledge sources and IT resources are the key driving factors of innovation capability. Managers and directors of firms in developing and emerging countries should establish firms' knowledge sources and IT resources to improve innovation capability.

There is a scarcity of studies that has explored the relationship between sources of knowledge, IT resources, and specific types of innovation, namely radical and incremental innovation. The paper helps fill research gaps in the literature and advances understanding of how knowledge sources, directly and indirectly, stimulate firms' innovation capabilities via the mediating role of IT resources.

The study aims to explore the differences in transformational leadership’s (TL’s) influences on each aspect of innovation capability, namely, product innovation and process innovation. It also deepens understanding of the pathways and conditions to improve specific aspects of innovation capability by assessing the mediating role of knowledge sharing (KS) and moderating mechanism of perceived organizational support (POS).

The paper utilized structural equation modeling and cross-sectional design to test hypotheses in the proposed research model based on using data collected from 394 participants at 88 Chinese firms.

The findings indicate that KS mediates TL’s effects on innovation capabilities. In addition, the influences of TL and KS on specific aspects of innovation capability are different and depend on the extent of employees’ POS.

Future studies should test mediating roles of knowledge management’s constituents and/or investigate the moderating roles of firm ownership form to increase the understanding of potential factors or key conditions that may have significant influences on a firm’s innovation capability.

The paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of stimulating KS and enhancing POS.

The paper provides useful information and valuable initiatives to increase leadership outcomes and firm’s capability for innovation.