Innovation has been discussed in a broad field. Scholars have defined and discussed innovation in various forms and perspectives. Whether empirical or conceptual, the discussions have delineated innovation in various perspectives such as organizational innovation, newness, innovation management, innovation as interactive model and types of innovation. In fact, due to the competitive environment, innovation is crucial and has become a niche for firm\u27s performance. This paper aims to provide a systematic analysis and propose framework that emphasizes on investigating the relationship between innovation and firm performance. Based on literature review, this paper proposes six constructs which can be used to examine the innovation implementation at firm level. The constructs are leadership, managerial levers, business processes, innovation process, innovation outcome and firm performance.
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