Communication as a determinant of organizational innovation

Abstract

This study of 32 small and medium‐sized industrial enterprises explored eight distinct aspects of communication, as appraised by the staff (n = 493), and innovative performance, assessed by two indicators: perceived innovation effectiveness and patent statistics obtained from the Patent Register at the National Board of Patents and Registration of Trademarks. The results showed that intra‐organizational aspects of communication, such as encouragement of initiatives and critical evaluation of performance, were associated with both indicators of innovative performance. In addition, a participative climate and interaction between the personnel in R&D, marketing and production were related to perceived innovative effectiveness, whereas interaction with clients and other firms related to the number of patents in the organization. The link between communication and innovation was interdependent with the organizational and staff characteristics including the number of personnel, administrative and R&D intensity, the level of vocational training, and the age distribution of the staff.