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Organizational Culture and Innovation: Exploring the Link

 

Presenters:  Lindsey M. Kotrba, Denison Consulting and Daniel R. Denison, IMD,
International Institute for Management Development (not present for session)
 
 
Organizational culture has often been cited as a critical factor affecting innovation, yet there has been surprisingly little empirical research that explores the relationship between these two constructs. The purpose of the current investigation was to not only theoretically link organizational culture to creativity and innovation but to also utilize multiple samples and different indicators of innovation to further explore this relationship. More specifically, this study used two different samples to link the Denison model of organizational culture (Denison, 1990) to a relatively subjective measure of new product development and to a relatively objective measure of organizational growth potential. In brief, the externally focused aspects of organizational culture were shown to be particularly important predictors of outcome-oriented indicators of innovation. Results are discussed in terms of their practical and theoretical implications.
 
Learning Objectives:
 
  1. Explain organizational culture and how it can be operationalized
  2. Explain the theoretical link between organizational culture and creativity and innovation
  3. Recite empirical evidence on the link between organizational culture and indicators of innovation
  4. Describe what organizations can do to improve the areas of culture that drive creativity and innovation