Research subject of this paper is the establishment of innovations as a factor of competitiveness
and the realization of company’s market share, bearing in mind that the size of market share
cannot be defined once and for all, as well as that competition is going through constant
changes. Research objective of this paper is to define innovations as the crucial factor for
increasing company’s market share and its competitiveness in the long run. Research was
carried out in 2016 based on a specially designed questionnaire on a sample of 100
organizations in the territory of Serbia. There were 96 returned and validly filled out
questionnaires that were taken into consideration during data processing. Methods used in this
research are hypothetic-deductive, analytic-deductive and comparative methods, historical and
statistical-descriptive methods and finally methods of comparative statistics (χ2
test, ANOVA).
In key results of the research it is confirmed that the innovation of the organisation and
innovative activities of its employees influence the increase of its market share and
competitiveness, with significant differences of the values depending on the organisation size,
years of operating, level and different kind of industry the organisation operates in. Paper
contribution can be seen in support of organization’s innovativeness and competitiveness as
the function of business success, the linkages between innovative capacity, innovativeness and
business. Positive results support also the greater investments into new and innovative projects
of business subjects, from innovations of products, technology and material, organization and
methods of management, to market innovations