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Linking Hierarchy Culture, Market Culture and Innovation Orientation: Moderating Roles of Causation and Effectuation

Author

Listed:
  • Khairia Ghuloum Al Maazmi

    (College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates)

  • Yazid Abdullahi Abubakar

    (College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates)

  • Muhammad Mustafa Raziq

    (College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates)

Abstract

This paper aims to examine the influence of hierarchy and market cultures on firm’s innovation orientation. Also, it explores the moderating roles of the two decision-making logics, which are causation and effectuation on the relationship between hierarchy and market organizational cultures and innovation orientation. The current study extends past research on organizational culture and innovation, by being most likely the first study to examine the extent to which the relationship between hierarchical culture and SME innovation orientation is moderated by causal logic; and the extent to which effectual reasoning moderates the relationship between market culture and the innovation orientation of SMEs. The study utilizes survey data from 206 small and medium sized enterprises (SMEs) in the manufacturing and services sectors of the United Arab Emirates (UAE), that is analyzed using SmartPLS. The results of this study suggest that causation moderates the relationship between hierarchical culture and SME innovation orientation. Furthermore, market culture is only positively related to SME’s innovation orientation when effectuation moderates the relationship.

Suggested Citation

  • Khairia Ghuloum Al Maazmi & Yazid Abdullahi Abubakar & Muhammad Mustafa Raziq, 2024. "Linking Hierarchy Culture, Market Culture and Innovation Orientation: Moderating Roles of Causation and Effectuation," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 378-388, October.
    • Handle: RePEc:eco:journ3:2024-06-39
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    More about this item

    Keywords

    Hierarchy Culture; Market Culture; Innovation Orientation; Causation; Effectuation;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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