Organizational Culture: Which Aspects Are Most Effective in Increasing Innovativeness and Readiness for Change?

Abstract

Organizational culture is an important factor in increasing innovativeness. My objective is to assess whether all or only certain cultural dimensions influence organizational innovativeness positively and, if so, which aspects are most influential. Implementing innovative ideas means change. I argue that companies can only successfully implement innovations if their employees are open to change as demonstrated by a certain readiness. Therefore, I hypothesize that readiness for change mediates the relationship between organizational culture and innovativeness. For this purpose, I analyzed a dataset from 2021 with approximately 33,000 participants from six industries in Germany. The results of a structural equation model show that three of the five cultural dimensions, namely team cohesion, leadership behavior, and an employer’s caring attitude, significantly and positively influence a company’s innovativeness (as assessed by HR managers). Moreover, the model indicates that change readiness (fully or partially) mediates the relationship between these cultural dimensions and innovativeness. The limitations of this study mainly relate to the sample and the methodological procedures used. In addition, I discuss the reasons for the insignificant relationship between the other two cultural dimensions, fairness and compensation, and innovativeness. This study confirms previous research on culture and innovativeness and shows that an employer’s caring attitude, a team atmosphere, and leadership behavior are particularly important in this context. Future research could verify these findings in other countries and with other measurement tools.

Presenters

Susann Dunger
Research Associate and PhD Candidate, Research Group Knowledge Management, Human Resources and Leadership, University of Marburg, Germany

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

The Value of Culture and the Demand of Change

KEYWORDS

Organizational Culture, Readiness for Change, Innovativeness

Digital Media

Videos

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