We examine relationships between organizational innovation, the use of standardized work practices, and effectiveness (measured as both performance and customer satisfaction) among Government-Owned Enterprises. Despite the seemingly contradictory natures of innovation and standardized procedures, we would like to explore that they can be complementary. Specifically, standardization will be used to moderate the relationship between innovation and both organizational performance and customer satisfaction. We will explore how and when Government-Owned Enterprises can effectively employ both work practices.