The aim of this paper is to examine the relationships between organizational innovation and organizational performance in Australian Best Practice Companies. The data analyzed in this paper were obtained from 237 Australian manufacturers involved in the 1991 and 1992 Best Practice programs conducted by the Australian Manufacturing Council and the Department of Industrial Relations. Organizational innovation consists of administrative, technical and product innovation. Organizational performance has been measured using 27 items based on existing research and includes return on investment, return on assets, market share and performance ratios. Although organizational innovations have an impact on organizational performance, our findings suggest that companies need not be high innovators in order to be good performers.