This research study examines the relationships between innovativencss of firms, their organizational
characteristics, and organizational performance. Previous studies that have examined these relationships have yielded conflicting results. A fundamental assumption of this research is that these
conflicting results may be due to a narrow definition of the construct of innovativeness. This research demonstrates that by using a multidimensional measure of innovativeness, the reasons for the
conflicting findings of past research becomes evident. The results of this study show that substantive relationships do exist between organizational factors, organizational innovativeness, and
organizational performance. These relationships, however, are complex, and can only be detected if innovativeness is measured as a multidimensional construct. Each of the organizational factors
examined in this study showed significantly different effects on each dimension of two types of organizational innovativeness -- technical and administrative innovativeness. Further, the results show
that innovativeness does improve organizational performance. However, each dimension of the two types of innovativeness affects different aspects of organizational performance.