Organizational culture as determinant of product innovation

Organizational culture as determinant of product innovation Purpose – The purpose of this paper is to study empirically the relationships among organizational culture and product innovation. Design/methodology/approach – The paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equations modelling with data collected from 420 firms. Findings – Organizational culture is considered to be one of the key elements in both enhancing and inhibiting innovation. The findings provide evidence about this proposition. While ad hocratic cultures could enhance the development of new products or services, hierarchical cultures inhibit product innovation. Research limitations/implications – First, the data in the study were collected from one source. A second limitation is the cross‐sectional design of this research. Finally, only four of the six features of the competing value model have been evaluated. Apart from overcoming these limitations, suggestions for future research are: use longitudinal studies and multiple informants; study the moderator effect of some variables on the culture‐innovation relation, such as the type of innovation; and include other cultural types, that is, clan culture and market culture. Practical implications – The paper provides evidence that, first, in order to increase product innovation, companies should foster cultures with external and flexibility orientations. Moreover, the paper suggests that values, beliefs and assumptions that are coherent with ad hocratic culture are key drivers for developing new products or services. Originality/value – The paper jointly examines in the same model the little‐researched links between organizational culture and product innovation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Innovation Management Emerald Publishing

Organizational culture as determinant of product innovation

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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1460-1060
D.O.I.
10.1108/14601061011086294
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to study empirically the relationships among organizational culture and product innovation. Design/methodology/approach – The paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equations modelling with data collected from 420 firms. Findings – Organizational culture is considered to be one of the key elements in both enhancing and inhibiting innovation. The findings provide evidence about this proposition. While ad hocratic cultures could enhance the development of new products or services, hierarchical cultures inhibit product innovation. Research limitations/implications – First, the data in the study were collected from one source. A second limitation is the cross‐sectional design of this research. Finally, only four of the six features of the competing value model have been evaluated. Apart from overcoming these limitations, suggestions for future research are: use longitudinal studies and multiple informants; study the moderator effect of some variables on the culture‐innovation relation, such as the type of innovation; and include other cultural types, that is, clan culture and market culture. Practical implications – The paper provides evidence that, first, in order to increase product innovation, companies should foster cultures with external and flexibility orientations. Moreover, the paper suggests that values, beliefs and assumptions that are coherent with ad hocratic culture are key drivers for developing new products or services. Originality/value – The paper jointly examines in the same model the little‐researched links between organizational culture and product innovation.

Journal

European Journal of Innovation ManagementEmerald Publishing

Published: Oct 5, 2010

Keywords: Organizational culture; Product innovation; Flexible organizations; Spain

References

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