The issue of innovativeness within organizations has attracted considerable attention in the literature. However, limited knowledge exists about the drivers of and their simultaneous effects on innovativeness and the role of innovativeness in enhancing performance. We adopt the resource-based view (RBV) of the firm and insights from the literature on capabilities to investigate specific capability types serving as antecedents to innovativeness and to examine its performance outcomes. From a sample of 218 Greek manufacturers, the results indicate that managerial, entrepreneurial and technical capabilities facilitate the establishment of innovativeness, which in turn enhances business performance. The study lends support to prior research that highlights the importance of innovativeness in enhancing organizational performance and sharpens understanding of the drivers of innovativeness and the way they collectively operate through innovativeness to boost performance. The study further provides new insights into the role of innovativeness from the perspective of the RBV, while highlighting certain firm capabilities that might both enable and impede competitive advantage and superior performance creation. As such, this study contributes to the effective management of the innovativeness process within organizations.

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