Empirical studies on innovation performance in the manufacturing and service sectors since 1995

This paper reviews the literature on firm innovation performance from 1995 until 2016. The empirical literature on this topic has been growing continuously over the last few decades. Previous research has investigated the explanatory variables and their impact on firm innovativeness separately.The present systematic review brings together all explanatory variables explored in the literature, classified according to their direction of causality and impact on innovation. These are represented in a comprehensive framework that includes three major research streams: internal, external and con-textual indicators, and examines how they influence the innovative capabilities of firms. In addition to this re-examination, the study shows that the majority of these variables are inter-linked with other variables in explaining the relationship with innovation, which is represented in a comprehensive theoretical model. The aim of this review is to draw a general picture of the standing of the research on innovation performance, specifically in areas where unanimous results have already been achieved, and to highlight the opportunities for future research.