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The aim of this paper is to establish the differences between the food and beverages (F&B) and technology-based industries with regards to the relation between previously identified success factors and innovation project performance.

These differences are established on the basis of logistic regression analysis, using 38 innovation projects (18 F&B and 20 technology-based).

Newness of the innovation project to the company, communication capabilities and market potential have a more negative impact on innovation project performance in the F&B than the tech-based industry. Especially functional upstream capabilities increase the likelihood of success in F&B, when compared to tech-based innovation projects.

While functional upstream capabilities are important for success of F&B innovation projects, there is still room for improvement in order to deal effectively with newness of the innovation project to the company. Internalization of resources from the network and a balanced radical/incremental innovation project portfolio contribute to additional enhancement of functional capabilities of the F&B companies, improving their capacity to deal with newness. Through a larger focus on co-innovation with retail, F&B companies can improve their intra- and inter-firm communication capabilities to attain more consumer-oriented integration of R&D and marketing activities, improving the market potential of their innovations.

This paper demonstrates that the previously identified critical success factors for innovation projects differ in impact and importance for F&B innovation project performance when compared to innovation projects in the technology-based industry.

The purpose of this paper is to provide an integrated framework of complex relations among innovation characteristics, organizational capabilities, innovation potential and innovation performance.

The model is tested using partial least squares (PLS) modeling and 22 high- (96 respondents) and 16 (93 respondents) low-performing innovation projects from nine companies from the European industry.

The results show that the level of innovativeness of the project is an important determinant of product potential, whereas the complexity entailed in innovativeness entices integrative communication among innovation project team members. As expected, projects which are new to the company are related negatively to adequateness of the existing functional capabilities of the firm. The negative effects can be mitigated through integrative communication capabilities. Management can foster communication and knowledge integration through adequate databases and communication structures as well as social relations. Also, higher project potential and successful project performance can be attained through focus on product superiority and quality but also on speed of product introduction into the market.

An integrated framework which includes innovation characteristics, organizational capabilities which bring together project execution proficiency and synergy of firm capabilities with the innovation project, as well as innovation potential and performance is absent in the existing literature. The absence of an integrated framework may be the reason why still a large number of innovation projects result in failure. The emphasis on management of complexities in innovation in the paper requires the focus on the under-explored effect of innovativeness and newness of innovation projects on the functional and integrative communication capabilities of firms. While studies which focus on the synergy between firm capabilities and the innovation project regard mainly the functional capabilities, the inclusion of also the integrative communication capabilities allows the present paper to integrate the synergy view with the view that proficiency of project execution is decisive for innovation project performance (Harmancioglu et al., 2009).