Blog 8 - The importance of organizational culture for Innovation in the company


Many research (Lewis, 2002; Koutroumanis and Alexakis, 2009; Naqshbandiet al., 2014) show that organizational culture is crucial in deciding whether a company succeeds or fails. According to Hosseini (2014), culture reflects an organization's identity and functions as a personality in human interaction. Organizational culture, according to Sulkowski (2012), is formed through social norms, communication techniques, conventions, subcultures, organizational stereotypes, organizational heroes, and so on.

Organizational culture is significant in organizations because it regulates the behavior of participants and, in extreme circumstances, the entire organization. If an organization works in a same and stable way for a long period, attaining goals and accomplishments, its members (or at least well-understood management staff) acquire particular patterns of behavior and adopt norms that continually support future successes. 

As a result, corporate culture emerges as a "idealization of shared experience." It primarily serves as a social stabilizing force, integration, and coordination mechanism, ensuring social balance (mostly internal) and, to a lesser extent, external – the organization's material balance.

The influence of organizational culture on innovation 


An innovation-oriented culture, which consists of

  • innovation-oriented motivation
  • innovative competence
  • behavior in innovative situations
  • style and quality of management creating the atmosphere for innovation
are the elements of the company's organizational culture. 

The need for a large number of innovative ideas to appear in a short period of time can be defined as an innovation-oriented culture. 

Innovative culture is a way of thinking and acting that creates, develops, and establishes values and attitudes within a company, which can then raise, accept, and support ideas and changes that improve the company's functioning and efficiency, even if they conflict with conventional and traditional behavior.

Certain requirements, involving six types of attitudes, must be met in order to build an innovative culture:

  1. The ability of managers to take risks
  2. Encouraging creativity
  3. Participation of all employees in building an innovative culture
  4. Responsibility of both managers and employees for their actions
  5. Allowing employees to develop their interests and use their unique talents
  6. Developing the company's mission, which the employees will identify with

The level of education and general management, economic and social knowledge, efficient systems of communication in the organization, ambition and the atmosphere of competition, incentive schemes, free exchange of innovative ideas proposals (ideas), a lack of arrogance and egoistic attitudes, announcing authors of success and those who assisted in this process are all characteristics of an organizational culture that supports innovation (Perenc, Holub-Ivan, 2011)

Conclusion

Organizational culture may be an element favourable to the development of innovative activity. Because innovation is frequently the factor that determines a company's competitive position in the market, it is critical to develop a pro-innovation organizational culture that is suited for each company's competitiveness.

References

Szczepańska-Woszczyna, K., 2014, September. The importance of organizational culture for innovation in the company. In Forum scientiae oeconomia (Vol. 2, No. 3, pp. 27-39).

Brouwer, M.T. (2002), Weber, Schumpeter, and Knight on entrepreneurship and economic development, Journal of Evolutionary Economics, Vol. 12, No. 1-2, pp. 83-105.



Comments

  1. Dilini MBAMay 4, 2022 at 7:09 PM

    As discussed, organisational culture is very important in shaping employees and their attitudes. In the present context, innovation is very important for organizations and the culture will support to promote innovation. Aligning all employees to the culture will help in achieving organisational success. Good article.

    ReplyDelete
  2. Anuradha WickramasiriMay 5, 2022 at 10:23 AM

    Organizational culture is an important aspect in terms of employee performance as well as employee retention.It is significant in organizations because it regulates the behavior of the employees as well as the entire organization.You have clearly described the six types of attitudes which are required in order to build an innovative culture.
    Good job Chathura

    ReplyDelete
  3. Jaliya RajaguruMay 6, 2022 at 2:21 AM

    Org culture is very important for the growth of an organisation. It'll impact immensely on the employees. CEO's / Company heads may changed time to time but it is the responsibility of the HRM to maintain its Org culture without out doing any drastic changes. Good Article.

    ReplyDelete
  4. Achala BandaraMay 6, 2022 at 6:03 AM

    Organizational culture is critical to the success of any business. It'll impact immensely on the employees. Although CEOs and company leaders may change from time to time, it is the HRM's role to maintain the organization's culture without making any major changes. Excellent article.

    ReplyDelete
  5. Achala BandaraMay 6, 2022 at 6:04 AM

    The development of an organization's culture is critical. Employees will be affected significantly. Although CEOs and company leaders may change from time to time, it is the HRM's role to maintain the organization's culture without making major changes. Excellent work.

    ReplyDelete
  6. Nishantha RathnayakeMay 6, 2022 at 8:53 AM

    As discussed in this article, Companies can progress through the innovation cycle more quickly if they have a culture of invention. When a large number of people, teams, and departments collaborate to develop innovative solutions. It will be easier to achieve organizational success if all personnel are aligned with the culture. Well written blog.

    ReplyDelete
  7. Amila KarunarathnaMay 6, 2022 at 8:07 PM

    Organizational culture affects all aspects business, from punctuality and tone to contract terms and employee benefits. An innovative cluture will give competitive advantage to the company. Good blog

    ReplyDelete
  8. Venushka BandaranayakeMay 7, 2022 at 12:07 AM

    The industry, employees' average age (or generation), employees' skill level, and the stage of life most employees are in, to name a few factors, all influence organizational culture. However, the organization, particularly the HR team, can affect organizational culture in both indirect and direct ways. Good Luck.

    ReplyDelete
  9. Suranga Senarathne - MBA May 7, 2022 at 4:55 AM

    Employee performance and retention are both influenced by organizational culture.
    It is important in companies since it governs employee conduct as well as the overall organization.
    You've outlined the six sorts of attitudes needed to create an inventive culture in detail.

    ReplyDelete
  10. Suresh HerathMay 7, 2022 at 7:24 AM

    From timeliness and tone to contract terms and employee benefits, organizational culture has an impact on every area of business. A corporation with an innovative culture will have a competitive advantage. Good article

    ReplyDelete
  11. Amila PereraMay 7, 2022 at 11:59 AM

    One of the most significant aspects of a successful business is its solid organizational culture which contributes for the employee engagement and employee retention. In an organization with a solid culture, its employees have a clear idea regarding how they should act and they know that it is expected response in the organization
    The organization's culture has a direct impact on the performance of its employees by a way of employee engagement , employee retention etc. As you explained organizational culture may be an element favorable to the development of innovative activity also. It will depends of the nature of the culture developed within the organization. Nicely written article. Well done.

    ReplyDelete
  12. Asela ThennakoonMay 8, 2022 at 4:41 AM

    The culture of an organization has a direct influence on its own performance. This basic essay has elaborated on the relationship between organizational culture and performance. The essay has been summarized, and an essential issue has been added to the conversation.

    ReplyDelete

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