The Influence of Innovation on the Enterprise Competitiveness

Research subject of this paper is the establishment of innovations as a factor of competitiveness and the realization of company’s market share, bearing in mind that the size of market share cannot be defined once and for all, as well as that competition is going through constant changes. Research objective of this paper is to define innovations as the crucial factor for increasing company’s market share and its competitiveness in the long run. Research was carried out in 2016 based on a specially designed questionnaire on a sample of 100 organizations in the territory of Serbia. There were 96 returned and validly filled out questionnaires that were taken into consideration during data processing. Methods used in this research are hypothetic-deductive, analytic-deductive and comparative methods, historical and statistical-descriptive methods and finally methods of comparative statistics (χ2 test, ANOVA). In key results of the research it is confirmed that the innovation of the organisation and innovative activities of its employees influence the increase of its market share and competitiveness, with significant differences of the values depending on the organisation size, years of operating, level and different kind of industry the organisation operates in. Paper contribution can be seen in support of organization’s innovativeness and competitiveness as the function of business success, the linkages between innovative capacity, innovativeness and business. Positive results support also the greater investments into new and innovative projects of business subjects, from innovations of products, technology and material, organization and methods of management, to market innovations