Differences in organizations’ innovation capability in transition economy: Internal aspect of the organizations’ strategic orientation

With regard to innovations, Slovenia is as an example of transition economy lagging behind the most developed economies. To have more insight into the reasons for this situation, the purpose of the research was to find out whether strategic orientation of Slovenian companies is supported by important internal capabilities which enable them to achieve innovation success and sustained competitive advantage. Statistical analysis of empirical data from Slovenian companies shows that companies with innovation-strategic-orientation are not significantly more successful in many aspects regarding their innovation capability and sustained competitive advantage compared to companies with quality- and cost-strategic-orientation. Also internal organizational capabilities represented in this research by organizational culture, entrepreneurship and market orientation are only slightly more supportive in companies declaring innovation-strategic-orientation compared to other two strategic groups. Therefore only a small number of companies with innovation strategy could be compared to companies in other developed countries as regards their innovation capability, sustained competitive advantage and their internal organizational capabilities. Based on the findings from this research, both academics and managers in companies are encouraged to find more efficient ways to intensify science–industry cooperation in order to improve the use of concepts and practices that could increase innovation in Slovenian companies.