Managing Innovativeness in International Enterprises

The paper aims at explaining the importance of innovations in modern enterprises. Activities leading to creation of innovative solutions, types of innovations and their meaning for enterprise’s strategic planning have been presented. The meaning of product quality in relation to manufacturing costs has been introduced. The explanation of this relation has been performed with help of Taguchi Loss Function. The author tries also to answer the question how to assess the aptitude of individual innovations for maintaining an optimal cost / income balance, hence the economic rationality of innovative undertakings. The proposed tool for multi – criteria decision making is the Analytic Hierarchy Process method (AHP) by Thomas L. Saaty. Main assumptions of the model, as well as methods of its application have been presented.