6. ConclusionsThe study contributes

6. Conclusions
The study contributes to the literature of innovation capability by presenting an overall
definition of innovation capability that consists of seven aspects: participatory
leadership culture, ideation and organising structures, work climate and well-being,
know-how development, regeneration, external knowledge, and individual activity.
The study diminishes the gap between theory and practice, when a majority of the
studies that aim to capture the aspects of innovation capability as a whole, are
theoretical. This study has shown that organisations can affect their innovation
capability by measurement. According to the results, performance measurement has a
positive impact on all seven aspects related to innovation capability described in this
study. Therefore, innovation capability can be improved by measuring it. Despite this
finding, the managerial aspect of performance measurement and the complexity of
performance measurement cannot be ignored. The study suggests that both academics
and practitioners should focus on the development of new methods and practices for
measuring issues related to innovation capability. In addition, this study caters to
various aspects of innovation capability, departing from the majority of existing studies
that focus on one or two aspects of innovation capability. Therefore, the study
contributes to the current understanding by presenting aspects of innovation capability
that can be supported by performance measurement. The relationship between
innovation capability and measurement is challenging, but the results of the study
provide a good starting point for in-depth studies of the subject.
This study has some limitations which should be acknowledged. Finnish SMEs
employing 11-249 persons and having a revenue of 2-50 Meuro were the target of the
study. On the basis of the response rate, it can be assumed that the results reflect the
whole sample well and therefore the results can be generalised to SMEs at least in
Finland. However, micro companies were excluded from the sample, and more research
is needed to investigate whether the results are supported in the context of micro
companies as well. Second, this study has shown a positive relationship between
innovation capability and performance measurement, but it has not dealt with the type
of measurement needed to enhance innovation capability. As revealed in the study of
Pavlov and Bourne (2011), the impacts of performance measurement depend on the way
it is used. The current study has not paid attention to the way measurement is used to
achieve higher innovation capability. Therefore, more research is needed to capture the
linkage between innovation capability and performance measurement in detail. Third,
the measurement of aspects related to innovation capability seems to be rare in SMEs.
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However, the measurement has an effect on the state of innovation capability, and
more attention should be paid to the measurement actions to develop innovation
capability.