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; s...

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