Abstract
We investigate the influence of innovations, creative organisational climate and culture on competitiveness and performance of firms. Data came from a survey of 135 Saudi Arabian executives. Findings indicate that incremental innovations directly influence the performance of Saudi Arabian firms. We found significant influence of firms' working environment on their competitiveness, which in turn directly influences their performance. The overall results of this study point to the need of firms in Saudi Arabia to improve their innovativeness, competitiveness, and performance in the light of the recent drop in oil prices that has resulted in drastic reduction in the country's revenues.