Innovation capabilities are a set of abilities that set up the main drivers of innovation in business. To enhance the innovation capability, companies are required to identify the condition of these drivers or enablers and the relationship between them. Having identified the areas in need of improvement, one may gradually make improvements. This study offers a dynamic framework to investigate the causal relationships between the enablers of innovation capability and its expected results which have been studied in a manufacturing company. The framework has been developed based on the specific enabler criteria from the Organizational Excellence Model adapted to the innovation area. The main components of the model included five main enablers (leadership, innovation strategy, people, partnerships and resources, and innovation process) and a set of innovation results. This study utilized DEMATEL method to identify the relationships and strength of the influence between the elements of the model. The relations obtained with the assumption of growing impact of enablers on results, created the dynamic model of innovation capability in the system dynamics environment. Simulation model allowed the company to come up with a more effective plan to achieve innovation results in a shorter time.

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