What organizational culture types enable and retard open innovation?

Research suggests that cultural issues can make or mar the open innovation process. In this paper, we thus aim at identifying organizational culture types that enable and retard the two types of open innovation activities: in-bound and out-bound. Data were collected using the questionnaire survey method from 339 middle and top managers working in the Malaysian high-tech sector. Organizational culture emerged as a huge predictor of open innovation. We found that highly integrative culture enables in-bound open innovation, but does not significantly affect out-bound open innovation. Besides, hierarchy culture is found to retard both in-bound and out-bound open innovation. This paper is probably the first to empirically investigate the role of culture in open innovation. The findings fill an important gap in open innovation theory while practical implications extend to managers interested in open innovation adoption in their organizations.

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