IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i10p3378-d171253.html
   My bibliography  Save this article

Fit between Organizational Culture and Innovation Strategy: Implications for Innovation Performance

Author

Listed:
  • Zhi Chen

    (School of Business Administration, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China)

  • Shenglan Huang

    (School of Business Administration, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China)

  • Chong Liu

    (School of Finance, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Min Min

    (School of Finance, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Liying Zhou

    (Business School, Sichuan University, Chengdu 610065, China)

Abstract

Although prior studies have indicated the interrelationships between specific types of innovation strategy and specific elements of organizational culture, few studies simultaneously evaluate the relationship between the two multi-dimensional constructs in holistic perspective. Based on configuration theory, we conceptualize fit as ‘profile deviation’, and investigate the fit between an organization’s culture and its innovation strategy. Data were collected from 183 Chinese organizations. We examine the hypothesis that greater fit between organizational culture and innovation strategy encourages superior innovation speed and innovation quality. Our results provide evidence that in the group of organizations exhibiting either exploratory or exploitative innovation strategy, the more similar the organizational culture configurations are to those of the top performers, the higher their innovation speed and innovation quality are. In the group of organizations exhibiting ambidextrous innovation strategy, the fit between organizational culture and innovation strategy is insignificantly associated with innovation speed and innovation quality. Implications for applying the culture–strategy fit in innovation management are discussed.

Suggested Citation

  • Zhi Chen & Shenglan Huang & Chong Liu & Min Min & Liying Zhou, 2018. "Fit between Organizational Culture and Innovation Strategy: Implications for Innovation Performance," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3378-:d:171253
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/10/3378/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/10/3378/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Boothby, Daniel & Dufour, Anik & Tang, Jianmin, 2010. "Technology adoption, training and productivity performance," Research Policy, Elsevier, vol. 39(5), pages 650-661, June.
    2. Tom J. M. Mom & Frans A. J. Van Den Bosch & Henk W. Volberda, 2007. "Investigating Managers' Exploration and Exploitation Activities: The Influence of Top‐Down, Bottom‐Up, and Horizontal Knowledge Inflows," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 910-931, September.
    3. Gao, Huasheng & Hsu, Po-Hsuan & Li, Kai, 2018. "Innovation Strategy of Private Firms," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 53(1), pages 1-32, February.
    4. Jens L. Boyd & Rudi K. F. Bresser, 2008. "Performance implications of delayed competitive responses: evidence from the U.S. retail industry," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1077-1096, October.
    5. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    6. Tajeddini, Kayhan & Elg, Ulf & Trueman, Myfanwy, 2013. "Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation," Journal of Retailing and Consumer Services, Elsevier, vol. 20(5), pages 453-462.
    7. Lau, Chung-Ming & Ngo, Hang-Yue, 1996. "One country many cultures: Organizational cultures of firms of different country origins," International Business Review, Elsevier, vol. 5(5), pages 469-486, October.
    8. Sariol, Ana M. & Abebe, Michael A., 2017. "The influence of CEO power on explorative and exploitative organizational innovation," Journal of Business Research, Elsevier, vol. 73(C), pages 38-45.
    9. Myeongju Lee & Hyunok Kim, 2017. "Exploring the Organizational Culture’s Moderating Role of Effects of Corporate Social Responsibility (CSR) on Firm Performance: Focused on Corporate Contributions in Korea," Sustainability, MDPI, vol. 9(10), pages 1-18, October.
    10. Robert E. Morgan & Pierre Berthon, 2008. "Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1329-1353, December.
    11. Bercovitz, Janet E.L. & Feldman, Maryann P., 2007. "Fishing upstream: Firm innovation strategy and university research alliances," Research Policy, Elsevier, vol. 36(7), pages 930-948, September.
    12. Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    13. Choi, Byounggu & Poon, Simon K. & Davis, Joseph G., 2008. "Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach," Omega, Elsevier, vol. 36(2), pages 235-251, April.
    14. Hughes, Paul & Morgan, Robert E., 2008. "Fitting strategic resources with product-market strategy: Performance implications," Journal of Business Research, Elsevier, vol. 61(4), pages 323-331, April.
    15. Malhotra, Neeru & Mavondo, Felix & Mukherjee, Avinandan & Hooley, Graham, 2013. "Service quality of frontline employees: A profile deviation analysis," Journal of Business Research, Elsevier, vol. 66(9), pages 1338-1344.
    16. Shibin Sheng & Kevin Zheng Zhou & L. Lessassy, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Post-Print halshs-00862665, HAL.
    17. Justin J.P. Jansen & Frans A.J. Van den Bosch & Henk W. Volberda, 2005. "Exploratory Innovation, Exploitative Innovation, And Ambidexterity: The Impact Of Environmental And Organizational Antecedents," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 57(4), pages 351-363, October.
    18. Wu, Tienhua & Jim Wu, Yen-Chun & Chen, Yenming J. & Goh, Mark, 2014. "Aligning supply chain strategy with corporate environmental strategy: A contingency approach," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 220-229.
    19. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    20. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
    21. Hertenstein, Peter & Williamson, Peter J., 2018. "The role of suppliers in enabling differing innovation strategies of competing multinationals from emerging and advanced economies: German and Chinese automotive firms compared," Technovation, Elsevier, vol. 70, pages 46-58.
    22. Álvaro J. Arnal & Patricia Royo & Gianpiero Pataro & Giovanna Ferrari & Víctor J. Ferreira & Ana M. López-Sabirón & Germán A. Ferreira, 2018. "Implementation of PEF Treatment at Real-Scale Tomatoes Processing Considering LCA Methodology as an Innovation Strategy in the Agri-Food Sector," Sustainability, MDPI, vol. 10(4), pages 1-16, March.
    23. Sheng, Shibin & Zhou, Kevin Zheng & Lessassy, Leopold, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Journal of Business Research, Elsevier, vol. 66(11), pages 2355-2362.
    24. Chen, Chung-Jen & Huang, Jing-Wen, 2009. "Strategic human resource practices and innovation performance -- The mediating role of knowledge management capacity," Journal of Business Research, Elsevier, vol. 62(1), pages 104-114, January.
    25. Jangwoo Lee & Danny Miller, 1999. "People matter: commitment to employees, strategy and performance in Korean firms," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 579-593, June.
    26. Sora Kang & Su Jin Han & Jounghae Bang, 2018. "The Fit between Employees’ Perception and the Organization’s Behavior in Terms of Corporate Social Responsibility," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    27. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    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. Peixu He & Yana Pei & Chunpei Lin & Di Ye, 2021. "Ambidextrous Marketing Capabilities, Exploratory and Exploitative Market-Based Innovation, and Innovation Performance: An Empirical Study on China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    2. Su Jin Yang & Seyoon Jang, 2020. "How Does Corporate Sustainability Increase Financial Performance for Small- and Medium-Sized Fashion Companies: Roles of Organizational Values and Business Model Innovation," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    3. Yong-Sun Chang & Jian Hui Guo & Joel M. Evans, 2023. "Flexible but stable: the mediated influence of an organization’s culture on performance," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 463-492, February.
    4. Zhengang Zhang & Yu Shang & Linyuan Cheng & Antao Hu, 2022. "Big Data Capability and Sustainable Competitive Advantage: The Mediating Role of Ambidextrous Innovation Strategy," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    5. Javier Martínez‐Falcó & Bartolomé Marco‐Lajara & Patrocinio Zaragoza‐Sáez & Luis A. Millán‐Tudela, 2023. "Analyzing the effect of Corporate Social Responsibility on Green Innovation Performance in the Spanish wine industry: A structural equation modeling analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 985-1006, October.
    6. Yang, Yefei & Chen, Jiayi & Lee, Peter K.C. & Cheng, T.C.E., 2023. "How to enhance the effects of the green supply chain management strategy in the organization: A diffusion process perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    7. Yaya Sun & Tao Wang & Xin Gu, 2019. "A Sustainable Development Perspective on Cooperative Culture, Knowledge Flow, and Innovation Network Governance Performance," Sustainability, MDPI, vol. 11(21), pages 1-17, November.
    8. Nina Shin & Sun Hyun Park & Sangwook Park, 2019. "Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    9. Luciana Aparecida Barbieri da Rosa & Clandia Maffini Gomes & Waleska Campos & Carolina Rodrigues & Tais Pentiado Godoy & Jordana Marques Kneipp, 2022. "Influencing Factors of The Innovation Power in the Adoption of Sustainability Strategies," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    10. Zhui Liu & Guo-Dong Chi & Liang Han, 2019. "Board Human Capital and Enterprise Growth: A Perspective of Ambidextrous Innovation," Sustainability, MDPI, vol. 11(14), pages 1-32, July.
    11. Benny Lianto, 2023. "Identifying Key Assessment Factors for a Company’s Innovation Capability Based on Intellectual Capital: An Application of the Fuzzy Delphi Method," Sustainability, MDPI, vol. 15(7), pages 1-21, March.
    12. María Sarabia & Fernando Crecente & Rafael Castaño, 2019. "Why Do Sustainable Mergers Fail to Manage Entrepreneurship?," Sustainability, MDPI, vol. 11(2), pages 1-9, January.
    13. Change Xiong & Tong Hu & Ying Xia & Jing Cheng & Xiao Chen, 2022. "Growth Culture and Public Hospital Performance: The Mediating Effect of Job Satisfaction and Person–Organization Fit," IJERPH, MDPI, vol. 19(19), pages 1-16, September.
    14. Hana Urbancová & Pavla Vrabcová, 2023. "Sustainability-oriented Innovation: Crucial Sources to Achieve Competitiveness," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 46-64, January.
    15. Daniel López & Miquel Oliver, 2023. "Integrating Innovation into Business Strategy: Perspectives from Innovation Managers," Sustainability, MDPI, vol. 15(8), pages 1-28, April.

    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. Kostopoulos, Konstantinos & Papalexandris, Alexandros & Papachroni, Margarita & Ioannou, George, 2011. "Absorptive capacity, innovation, and financial performance," Journal of Business Research, Elsevier, vol. 64(12), pages 1335-1343.
    2. Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "Exploration and exploitation and firm performance variability: a study of ambidexterity in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1147-1164, December.
    3. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    4. Cabeza-Pullés, Dainelis & Fernández-Pérez, Virginia & Roldán-Bravo, María Isabel, 2020. "Internal networking and innovation ambidexterity: The mediating role of knowledge management processes in university research," European Management Journal, Elsevier, vol. 38(3), pages 450-461.
    5. Michael Yao-Ping Peng & Ku-Ho Lin, 2019. "Impact of Ambidexterity and Environmental Dynamism on Dynamic Capability Development Trade-Offs," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    6. Mavroudi, Eva & Kesidou, Effie & Pandza, Krsto, 2023. "Effects of ambidextrous and specialized R&D strategies on firm performance: The contingent role of industry orientation," Journal of Business Research, Elsevier, vol. 154(C).
    7. Pilar Bernal & Juan P. Maicas & Pilar Vargas, 2016. "Exploration, exploitation and innovation performance: Disentangling environmental dynamism," Documentos de Trabajo dt2016-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    8. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    9. Solís-Molina, Miguel & Hernández-Espallardo, Miguel & Rodríguez-Orejuela, Augusto, 2018. "Performance implications of organizational ambidexterity versus specialization in exploitation or exploration: The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 91(C), pages 181-194.
    10. Lori Rosenkopf & Patia McGrath, 2011. "Advancing the Conceptualization and Operationalization of Novelty in Organizational Research," Organization Science, INFORMS, vol. 22(5), pages 1297-1311, October.
    11. Katou, Anastasia A. & Budhwar, Pawan S. & Patel, Charmi, 2021. "A trilogy of organizational ambidexterity: Leader’s social intelligence, employee work engagement and environmental changes," Journal of Business Research, Elsevier, vol. 128(C), pages 688-700.
    12. Nasirov, Shukhrat & Gokh, Irina & Filippaios, Fragkiskos, 2022. "Technological radicalness, R&D internationalization, and the moderating effect of intellectual property protection," Journal of Business Research, Elsevier, vol. 145(C), pages 215-227.
    13. Zhang, Xiaobin & Chu, Zhaofang & Ren, Lei & Xing, Jianguo, 2023. "Open innovation and sustainable competitive advantage: The role of organizational learning," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    14. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    15. Wang, Yanping & Gao, Jie & Wei, Zelong, 2022. "The double-edged sword of servitization in radical product innovation: The role of latent needs identification," Technovation, Elsevier, vol. 118(C).
    16. Guktae Kim & Moon-Goo Huh, 2015. "Exploration and organizational longevity: The moderating role of strategy and environment," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 389-414, June.
    17. Zhu, Xiaoxuan & Xiao, Zhenxin & Dong, Maggie Chuoyan & Gu, Jibao, 2019. "The fit between firms’ open innovation and business model for new product development speed: A contingent perspective," Technovation, Elsevier, vol. 86, pages 75-85.
    18. Chang, Yi-Ying & Hughes, Mathew, 2012. "Drivers of innovation ambidexterity in small- to medium-sized firms," European Management Journal, Elsevier, vol. 30(1), pages 1-17.
    19. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    20. Defeng Yang & Wei Jiang & Weihong Zhao, 2019. "Proactive environmental strategy, innovation capability, and stakeholder integration capability: A mediation analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1534-1547, December.

    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:gam:jsusta:v:10:y:2018:i:10:p:3378-:d:171253. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.