An organization must be flexible enough to adapt to the unpredictable external environment, must be creative enough to innovate, and must have enough responsiveness to learn [1]. Enterprise organizations must continuously improve their organizational innovation competence through organizational innovation, in order to obtain sustained competitive advantages and high innovation rents on the edge of chaos.
This study believes that organizational innovation not only has a direct impact on organizational performance, but they also have an indirect impact on organizational performance. The sum of the two is the total impact of organizational innovation elements on organizational performance. On the whole, companies continue to improve their organizational innovation competence through information technology innovation, organizational culture innovation, process innovation, and organizational structure innovation. At the same time, the accumulated organizational innovation competence promote the improvement of organizational performance.
According to the literature and theoretical research reviews, this paper proposed that the enterprise’s organization system consists of six interacting and interdependent dimensions: (1) corporate strategy; (2) organizational culture; (3) technology; (4) processes; (5) organizational structure; (6) Human resources. And the whole organizational system is an open system that interacts with the external environment. The role of people is reflected in the other five dimensions. At the same time, organizational culture, information technology, processes, and organizational structure reflect the overall company strategy. Therefore, organizational cultural innovation, information technology innovation, organizational process innovation, and organizational structure innovation are the essential elements of an organization’s innovation system.
Many scholars have verified that organizational innovation has a positive impact on organizational performance. For example, Deming (2010) conducted an empirical test on the relationship between organizational innovation, organizational learning, and organizational performance by taking 125 manufacturing enterprises in China as the survey object. The research results show that organizational learning does not directly affect organizational performance in manufacturing enterprises, but has a positive impact on organizational performance indirectly through the mediating effect of organizational innovation [2].