The role of organizational innovation in achieving and maintaining company’s business excellence

The dynamics of the contemporary environment with all its characteristics has greatly encouraged further research of the impact of innovation on the company’s performance due to the paradigm that defines an innovation as means to enhance the competitiveness of enterprise. Thanks to the efforts of scientists, corporate managers and owners of capital can now choose from a variety of management tools to measure the innovation and success of the enterprise. In this paper, the methodology of Croatian Innovation Score (in Croatian: Hvatski Kvocijent Inovativnosti - HKI) is applied to assess the condition and the activities undertaken in order to build innovation capacity, and an assessment of the perception of innovation at the enterprise level, whereas the methodology of BEX index (Business Excellence Index) was used to measure business excellence of an enterprise. Applying the methodology on a sample of large manufacturing companies from Bosnia and Herzegovina, the composite innovation indices and business excellence indices were first calculated. The standard multiple regression has been applied to explain the relationship between innovation and business excellence of an enterprise. The results obtained in this research are encouraging and stimulating for the managers of the studied companies to strengthen the innovation capacity in order to advance on the business excellence ranking scale