The Influence of Organizational Governance and Corporate Policies on Innovation in Startups

Abstract

Innovation is the cornerstone of growth and competitiveness for startups amid the dynamics of the global market. This study aims to explore the influence of organizational governance and corporate policy on innovation levels within startups. Using a systematic literature review approach based on 15 selected international journal articles, the findings reveal that transparent and accountable governance structures, along with flexible and risk-based policies, significantly impact the creation and sustainability of innovation. Furthermore, the role of strategic management and stakeholder involvement in decision-making processes emerges as a critical supporting factor. The study also highlights the importance of synergy between internal regulations and market orientation in optimizing an innovation driven organizational culture. These findings provide practical implications for startup leaders in designing governance systems and internal policies that promote long-term innovation. The research contributes to the academic understanding of innovation mechanisms in entrepreneurial organizations and offers actionable insights for practitioners navigating the challenges of early stage business development.