Investigation of effect of innovation capabilities on corporate performance in public industry

Mentioned frequently recently, Innovation Ability is an important development emerged in both business and management discipline and this concept remains not only in academicians but also business worlds agenda. There are many studies in both local and foreign literature which addresses the relation between innovation abilities and corporate performance. This thesis study aims to investigate the effect of public institutions on technological innovation abilities and corporate performance and the intermediary role of innovation performance on innovation abilities and corporate performance. Innovative capability of public institutions was addressed and evaluated in seven different perspectives (learning, research and development, resource allocation, manufacturing, marketing, organization, strategical planning abilities). With this study, research results for profit-oriented companies in the current literature and research results for public institutions can be compared, and similarities and differences can be identified. As part of the study, analysis were made on 98 questionnaires collected from 37 public institutions in total. 30 of the questionnaires were collected via email while 68 of them were collected by face-to-face meeting. Among the methods to analyze the data, inventional factor analysis was used to determined if data are suitable for analysis and regression analysis was used to test the research method. In light of the analyses, statistically meaningful relations were found between innovation abilities including marketing ability, strategical planning ability, learning ability, production ability, R&D ability and corporate performance. Only resource allocation ability and marketing ability were found to be affecting innovation performance. As a result of the analysis conducted between innovation performance and corporate performance, statistically meaningful relation was found. There is no statistically meaningful finding regarding the intermediary role of innovation performance between innovation abilities and corporate performance. Keywords: Innovation, Innovation in Public Services, Innovation Abilities