The Impact of Innovation on Profitability of Jordanian Services Companies

Abstract

This research paper attempts to reveal the level of innovation types in Jordanian services companies. It also investigates the relationship between the overall innovation and profitability in these services companies. Innovation types have been measured through a questionnaire distributed to the members of Securities Depository Center SDC - Public Shareholding Companies – Service Sector. Profitability has been measured through the mean of net profits after taxes for the two years 2018 and 2019. The research findings indicate that innovation types in these companies is slightly below the average level. The results of research also indicate that there is a statistically significant positive impact of overall innovation on profitability of Jordanian services companies. The research concludes that investment in innovation is a key pillar for profitability of business companies.