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ABSTRACT
The paper proposes on the basis of literature review and empirical research an original management control system approach to assessment of innovation performance on a micro-level suitable for Czech business environment, called the Innovation Scorecard. Since only few recent studies provide an attempt to develop a balanced framework for innovation, the core of this conceptual framework is based specifically on project management, Balanced Scorecard, input-process-output-outcomes model and Stage Gate approach. First, the impact of innovation on corporate performance is highlighted. Then current situation in the field of innovation performance measurement and management control in the Czech manufacturing industry is presented. Initial research hypotheses are tested based on these results as well. Thereafter the basic structure of the Innovation Scorecard is presented and its phases are discussed. In addition, the Innovation Scorecard framework provides a set of inspiration metrics to choose from or be inspired by.
Keywords: Innovation, Performance Measurement System, Management Control, Innovation Scorecard
INTRODUCTION
Innovation contributes to the winning of competitive advantages. Successfully launching innovation onto the market is one of the basic preconditions for the long-term survival of a company. Substantial evidence exists that the innovation process and resulting innovation outputs are important determinants of company performance, indicating that innovators outperform non-innovating companies (Baldwin and Gellatly, 2003; Calabrese et al., 2013; Mansury and Love, 2008; Prajogo, 2006). The professional literature provides the following impacts of innovation on company performance:
* Positive correlation (dos Santos Ferreira and Cardoso, 2014; Gronum et al., 2012; Markatous and Stournaras, 2013; Rosenbusch et al., 2011; Zizlavsky and Karas, 2014).
* Negative correlation (Danneels and Kleinschmidt, 2001; Min et al., 2006; Vermeulen et al., 2005).
* U-shaped correlation (Avlonitis et al., 2001; Li & Atuahene-Gima, 2001).
* No clear correlation (Henard & Szymanski, 2001).
Nowadays, it is not about whether to innovate or not, but how to innovate successfully (Hauschildt and Salomo, 2010). The old adage says "You cannot manage what you do not measure." Therefore, efficient and complex measurement systems are essential and crucial to the success of innovations. Measuring the performance and contribution to value of innovation has become a fundamental concern for managers and executives in recent decades (Kerssen-van Drongelen and Bilderbeek, 1999). Many studies have been written aimed at discussing the issue...