INNOVATION MANAGEMENT AND BUSINESS PERFORMANCE IN THE DIGITAL ECONOMY

The digital economy has transformed the competitive landscape by reshaping how organizations create value, interact with customers, and manage internal operations. Rapid advances in digital technologies, changing consumer expectations, and globalization have made innovation management a strategic necessity rather than a competitive option. Innovation management enables organizations to systematically generate, implement, and commercialize new ideas that improve products, services, processes, and business models. This review paper examines the relationship between innovation management and business performance in the digital economy. It discusses the foundations of innovation management, digital technologies that support innovation, organizational culture, leadership, knowledge management, and performance outcomes. The paper also identifies barriers to innovation and proposes practical strategies for developing innovation-oriented organizations. The findings suggest that organizations with effective innovation management systems achieve higher productivity, stronger customer satisfaction, improved financial performance, and sustainable competitive advantage. Continuous investment in digital capabilities and organizational learning is essential for long-term success.