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Abstract
This research uses the qualitative approach to study the innovative capability of two organizations and the effect of innovation on their E-Commerce initiatives, strategies, and outcomes. The Innovation Strategy Model is used in this research to analyze the innovative capability of two organizations. The case study research methodology was selected and two case studies are presented. The research results show that one organization is more innovative than the other in terms of its innovative capability. A post-study follow-up shows that the organization that was high on innovative capability was very successful in their E-Commerce initiative whereas the other organization was not.