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Advances in Decision Sciences
Volume 2014 (2014), Article ID 576596, 11 pages
Research Article

Designing and Validating a Model for Measuring Innovation Capacity Construct

1Department of Mechanical and Materials Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
2Department of Marketing, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia

Received 21 May 2014; Accepted 17 September 2014; Published 30 September 2014

Academic Editor: Shelton Peiris

Copyright © 2014 Mahmood Doroodian et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


In today’s rapid changing and highly competitive business environment, innovation is broadly recognized as a powerful competitive weapon. Innovation is a dynamic process that needs continuous, evolving, and mastered management. Thus, companies need to monitor and measure their innovation capacity to manage the innovation process. Yet, there is lack of a psychometrically valid scale for innovation capacity construct in the current innovation literature. The purpose of this paper is to develop a reliable and valid scale of measurement for innovation capacity. To test its unidimensionality, reliability, and several components of validity, we used data collected from 175 small- and medium-sized enterprises (SMEs) in Iran and performed a series of analyses. The reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly support a four-dimensional scale for measuring innovation capacity. The dimensions are knowledge and technology management, idea management, project development, and commercialization capabilities.