IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v187y2025ics0148296324005526.html

Linking firm performance with innovation culture: An algorithmic approach towards theory building

Author

Listed:
  • Li, Wanqing
  • Yu, Jiang
  • Chen, Feng

Abstract

To address the growing demand for theory development in computational social science research, this study employs an algorithm-driven approach to formulate a comprehensive six-step theory generation process. By applying this original research method, a new theoretical model—the “Dynamic Resource-Culture Synergy Theory” is proposed which enhances the explanatory power regarding how firms maintain competitiveness in rapidly changing environments by emphasizing the pivotal role of culture in resource integration and innovation processes. Drawing on empirical data from 887 Chinese high-tech manufacturing firms, our analysis identifies key drivers of organizational performance, with a particular focus on the role of organizational culture, especially innovation culture, as a mediating force. Utilizing the GWO-SVM technique, we gain a nuanced understanding of how different cultural traits interact with innovation and leverage, uncovering how the initial enhancement of innovation culture positively impacts performance metrics such as ROA. The findings confirm that innovation, facilitated by organizational culture, significantly enhances performance outcomes. Furthermore, this study considers factors such as leverage and the proportion of technical personnel, investigating their moderating effects on the relationship between innovation culture and firm performance. This study not only deepens the understanding of how innovation and culture interact to influence firm performance but also provides significant theoretical and practical contributions to the study of the dynamics of high-tech manufacturing enterprises.

Suggested Citation

  • Li, Wanqing & Yu, Jiang & Chen, Feng, 2025. "Linking firm performance with innovation culture: An algorithmic approach towards theory building," Journal of Business Research, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:jbrese:v:187:y:2025:i:c:s0148296324005526
    DOI: 10.1016/j.jbusres.2024.115048
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324005526
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2024.115048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kar, Arpan Kumar & Dwivedi, Yogesh K., 2020. "Theory building with big data-driven research – Moving away from the “What” towards the “Why”," International Journal of Information Management, Elsevier, vol. 54(C).
    2. Mariani, Marcello M. & Fosso Wamba, Samuel, 2020. "Exploring how consumer goods companies innovate in the digital age: The role of big data analytics companies," Journal of Business Research, Elsevier, vol. 121(C), pages 338-352.
    3. Liu, Jiali & Zhou, Haibo & Chen, Feng & Yu, Jiang, 2022. "The coevolution of innovation ecosystems and the strategic growth paths of knowledge-intensive enterprises: The case of China’s integrated circuit design industry," Journal of Business Research, Elsevier, vol. 144(C), pages 428-439.
    4. Milan Miric & Nan Jia & Kenneth G. Huang, 2023. "Using supervised machine learning for large‐scale classification in management research: The case for identifying artificial intelligence patents," Strategic Management Journal, Wiley Blackwell, vol. 44(2), pages 491-519, February.
    5. Yu, Jiang & Wen, Yating & Jin, Jing & Zhang, Yue, 2019. "Towards a service-dominant platform for public value co-creation in a smart city: Evidence from two metropolitan cities in China," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 168-182.
    6. Prithwiraj Choudhury & Ryan T. Allen & Michael G. Endres, 2021. "Machine learning for pattern discovery in management research," Strategic Management Journal, Wiley Blackwell, vol. 42(1), pages 30-57, January.
    7. Ozdemir, Sena & Carlos Fernandez de Arroyabe, Juan & Sena, Vania & Gupta, Suraksha, 2023. "Stakeholder diversity and collaborative innovation: Integrating the resource-based view with stakeholder theory," Journal of Business Research, Elsevier, vol. 164(C).
    8. Lu, Qinli & Chesbrough, Henry, 2022. "Measuring open innovation practices through topic modelling: Revisiting their impact on firm financial performance," Technovation, Elsevier, vol. 114(C).
    9. Zhang, Zhongqingyang & Zhu, Huiming & Zhou, Zhongbao & Zou, Kai, 2022. "How does innovation matter for sustainable performance? Evidence from small and medium-sized enterprises," Journal of Business Research, Elsevier, vol. 153(C), pages 251-265.
    10. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    11. Naqshbandi, M. Muzamil & Tabche, Ibrahim, 2018. "The interplay of leadership, absorptive capacity, and organizational learning culture in open innovation: Testing a moderated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 156-167.
    12. Hogan, Suellen J. & Coote, Leonard V., 2014. "Organizational culture, innovation, and performance: A test of Schein's model," Journal of Business Research, Elsevier, vol. 67(8), pages 1609-1621.
    13. Weinzimmer, Laurence & Esken, Candace A. & Michel, Eric J. & McDowell, William C. & Mahto, Raj V., 2023. "The differential impact of strategic aggressiveness on firm performance: The role of firm size," Journal of Business Research, Elsevier, vol. 158(C).
    14. Zina Arabeche & Ahlem Soudani & Mohsen Brahmi & Luigi Aldieri & Concetto Paolo Vinci & Mohammed El Amine Abdelli, 2022. "Entrepreneurial Orientation, Organizational Culture and Business Performance in SMEs: Evidence from Emerging Economy," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    15. E.C. Martins & F. Terblanche, 2003. "Building organisational culture that stimulates creativity and innovation," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 6(1), pages 64-74, March.
    16. Menter, Matthias & Göcke, Lutz & Zeeb, Christopher & Clauss, Thomas, 2023. "Disentangling the complex longitudinal relationships between business model innovation and firm performance," Journal of Business Research, Elsevier, vol. 168(C).
    17. Yash Raj Shrestha & Vivianna Fang He & Phanish Puranam & Georg von Krogh, 2021. "Algorithm Supported Induction for Building Theory: How Can We Use Prediction Models to Theorize?," Organization Science, INFORMS, vol. 32(3), pages 856-880, May.
    18. Oyemomi, Oluwafemi & Liu, Shaofeng & Neaga, Irina & Chen, Huilan & Nakpodia, Franklin, 2019. "How cultural impact on knowledge sharing contributes to organizational performance: Using the fsQCA approach," Journal of Business Research, Elsevier, vol. 94(C), pages 313-319.
    19. Varun Grover, 2020. "Do We Need to Understand the World to Know It? Knowledge in a Big Data World," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 23(1), pages 1-4, January.
    20. Haroon ur Rashid Khan & Murad Ali & Hossein G. T. Olya & Muhamamd Zulqarnain & Zubair Rashid Khan, 2018. "Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1270-1283, November.
    21. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow, 2016. "Question-based innovations in strategy research methods," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 3-9, January.
    22. Subramanian, A. & Nilakanta, S., 1996. "Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance," Omega, Elsevier, vol. 24(6), pages 631-647, December.
    23. Ziyu Jiang & Guojian Ma & Wenyue Zhu, 2022. "Research on the impact of digital finance on the innovation performance of enterprises," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 25(6), pages 804-820, June.
    24. Lepenioti, Katerina & Bousdekis, Alexandros & Apostolou, Dimitris & Mentzas, Gregoris, 2020. "Prescriptive analytics: Literature review and research challenges," International Journal of Information Management, Elsevier, vol. 50(C), pages 57-70.
    25. Salaheddine Bendak & Amir Moued Shikhli & Refaat H. Abdel-Razek, 2020. "How changing organizational culture can enhance innovation: Development of the innovative culture enhancement framework," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1712125-171, January.
    26. Boubakri, Narjess & Chkir, Imed & Saadi, Samir & Zhu, Hui, 2021. "Does national culture affect corporate innovation? International evidence," Journal of Corporate Finance, Elsevier, vol. 66(C).
    27. Steffen Nauhaus & Johannes Luger & Sebastian Raisch, 2021. "Strategic Decision Making in the Digital Age: Expert Sentiment and Corporate Capital Allocation," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1933-1961, November.
    28. Saeed, Asif & Alnori, Faisal & Yaqoob, Gohar, 2023. "Corporate social responsibility, industry concentration, and firm performance: Evidence from emerging Asian economies," Research in International Business and Finance, Elsevier, vol. 64(C).
    29. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    30. Jimmy Huang & Ola Henfridsson & Martin J. Liu, 2022. "Extending Digital Ventures Through Templating," Information Systems Research, INFORMS, vol. 33(1), pages 285-310, March.
    31. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Mikalef, Patrick & Sarpong, David, 2023. "Coopetition in the platform economy from ethical and firm performance perspectives," Journal of Business Research, Elsevier, vol. 157(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charles, Vincent & Emrouznejad, Ali & Kunz, Werner H., 2025. "Advancements in Artificial Intelligence-based prescriptive and cognitive analytics for business performance: a special issue editorial," Journal of Business Research, Elsevier, vol. 200(C).
    2. Zhang, Muyu & Liu, Shan & Gao, Baojun & Cui, Keyu & Si, Guangsen, 2026. "The dual faces of cultural heterogeneity in firm growth: Evidence from large-scale employee reviews," Journal of Business Research, Elsevier, vol. 205(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ylinen, Mika & Ranta, Mikko, 2025. "Predicting corporate innovation using machine learning and social media data," Technovation, Elsevier, vol. 148(C).
    2. Jianhua Zhang & Farrah Nayab Jehangir & Lan Yang & Muhammad Abubakar Tahir & Shanza Tabasum, 2025. "Competitive Advantage and Firm Performance: The Role of Organizational Culture, Organizational Innovation, and Knowledge Sharing," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3081-3107, March.
    3. Xin Yi & Arifa Tanveer & Lee Bin & Yan Xue, 2024. "Unleashing the Influence of Information Sharing, Technological Openness, and Corporate Innovation on Green Corporate Social Responsibility: A Way Toward Environmental Sustainability," Energy & Environment, , vol. 35(1), pages 395-417, February.
    4. Abang Azlan Mohamad & T. Ramayah & May Chiun Lo, 2020. "Sustainable Knowledge Management and Firm Innovativeness: The Contingent Role of Innovative Culture," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    5. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
    6. Islam, Towhidul & Meade, Nigel & Carson, Richard T. & Louviere, Jordan J. & Wang, Juan, 2022. "The usefulness of socio-demographic variables in predicting purchase decisions: Evidence from machine learning procedures," Journal of Business Research, Elsevier, vol. 151(C), pages 324-338.
    7. Cong Cheng & Jian Dai, 2025. "Predicting Cross-border Merger and Acquisition Completion through CEO Characteristics: A Machine Learning Approach," Management International Review, Springer, vol. 65(1), pages 43-84, February.
    8. Wissal Affes & Habib Affes, 2022. "Business Model and Firm Performance in Tunisian Firms: a Mediated Moderation Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2822-2839, December.
    9. Stanley Ibeku, 2018. "Organisational Learning, Innovation And Performance Of Technology Start-Ups In Lagos, Nigeria," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-15, April.
    10. Milan Miric & Nan Jia & Kenneth G. Huang, 2023. "Using supervised machine learning for large‐scale classification in management research: The case for identifying artificial intelligence patents," Strategic Management Journal, Wiley Blackwell, vol. 44(2), pages 491-519, February.
    11. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    12. Zhang, Jianhong & van Witteloostuijn, Arjen & Zhou, Chaohong & Zhou, Shengyang, 2024. "Cross-border acquisition completion by emerging market MNEs revisited: Inductive evidence from a machine learning analysis," Journal of World Business, Elsevier, vol. 59(2).
    13. Daan Kolkman & Gwendolyn K Lee & Arjen van Witteloostuijn, 2024. "Data science and automation in the process of theorizing: Machine learning’s power of induction in the co-duction cycle," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-30, November.
    14. Ranjan, Piyush & Rai, Shivam, 2026. "Coopetition, digital innovation, and sustainable performance in international digital ventures: Moderating role of institutional environment," International Business Review, Elsevier, vol. 35(2).
    15. Omrane, Amina, 2022. "The main determinants and effects of product innovation: An exploratory study on the pastry companies of the region of Sfax (in Tunisia)," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    16. Francisco J. Santos & Carmen Guzmán & Lidia Valiente, 2025. "Entrepreneurship and innovation in worker cooperatives and conventional firms: the role of external cooperation," Small Business Economics, Springer, vol. 64(3), pages 1415-1431, March.
    17. Qiao, Penghua & Chang, Ming & Zeng, Yuping, 2024. "The influence of digitalization on SMEs’ OFDI in emerging countries," Journal of Business Research, Elsevier, vol. 177(C).
    18. Chen, Lusi & Li, Shinan & She, Zhili, 2025. "A study on the impact of artificial intelligence applications on corporate green technological innovation: A mechanism analysis from multiple perspectives," International Review of Economics & Finance, Elsevier, vol. 103(C).
    19. Léonard Boussioux & Jacqueline N. Lane & Miaomiao Zhang & Vladimir Jacimovic & Karim R. Lakhani, 2024. "The Crowdless Future? Generative AI and Creative Problem-Solving," Organization Science, INFORMS, vol. 35(5), pages 1589-1607, September.
    20. Schade, Philipp & Schuhmacher, Monika C., 2023. "Predicting entrepreneurial activity using machine learning," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:187:y:2025:i:c:s0148296324005526. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.