Each organization is an integral part of the socio-economic environment in which it is located and operates. The environment of an organization can represent an important context for its innovation processes as sources of innovation knowledge and innovativeness are also located outside organizational boundaries, both globally and locally. Each local space is unique and location-specific. Local sources of knowledge, that are located in the local environment, can therefore be an invaluable source of unique advantages that enable organizations to become more competitive on global and local markets. In addition, the organization's involvement in the local environment is one that enables the organization access and the possibilities of identifying, recognizing and exploiting local knowledge resources. The master's thesis deals with the influence of the local embeddedness of the organization on organizational innovativness and explores the ways and possibilities of integrating an organization into local space. By constructing a model of various types of organization’s local embeddedness and model of verifiable hypotheses and subhypotheses, the author explores the question of the connection between the organization's embeddedness in local space and organizational innovativness. With the concept of local embeddedness of the organization the master's thesis puts the local space on the forefront as a relevant and non-negligible environment that can stimulate the innovation capacity of the organization and strengthen its competitiveness.
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