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The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs

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  • W. A. Srisathan
  • C. Ketkaew
  • P. Naruetharadhol

Abstract

Small- and medium-sized enterprises (SMEs) are largely encouraged to take an open innovation model as a systematic area for R&D to expand networks in science and technology operation (Sci-Tech), especially in Thailand and China. Our paper examines the relationship between organizational culture (OC) and open innovation performance (OIP) of SMEs and the mediating effect of organizational sustainability (OS). Our investigation of 300 SMEs from different business industries in Thailand and China reveals that organizational sustainability significantly intervenes in the interaction of organizational culture and open innovation performance. From the findings, it is established that organizations should set robust and appropriate strategies for organizational sustainability to have excellent innovation outputs in SMEs’ performance. This paper also shows the significant effect of organizational culture on organizational sustainability in that cultural characteristics maintain the core business competencies in terms of marketing, operations, customer orientation, capital management, and monitoring & evaluation for sustainability. Such elements of organizational sustainability operate in a significant mediator contribution to SMEs’ performance to manage open innovation. As a practical contribution, this paper suggests managers realize the crucial elements of organizational culture, such as leadership, teamwork, and organizational climate, to improve performance by combining organizational sustainability in their strategic decisions made during the open innovation processes.

Suggested Citation

  • W. A. Srisathan & C. Ketkaew & P. Naruetharadhol, 2020. "The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1717408-171, January.
    • Handle: RePEc:taf:oabmxx:v:7:y:2020:i:1:p:1717408
    DOI: 10.1080/23311975.2020.1717408
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    Citations

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    Cited by:

    1. Chung-Chang Lee & Wen-Chih Yeh & Zheng Yu & Yuan-Chen Luo, 2023. "Knowledge sharing and innovation performance: a case study on the impact of organizational culture, structural capital, human resource management practices, and relational capital of real estate agent," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    2. Omar Carrasco-Carvajal & Mauricio Castillo-Vergara & Domingo García-Pérez-de-Lema, 2023. "Measuring open innovation in SMEs: an overview of current research," Review of Managerial Science, Springer, vol. 17(2), pages 397-442, February.
    3. Małgorzata Jasiulewicz-Kaczmarek & Katarzyna Antosz & Ryszard Wyczółkowski & Małgorzata Sławińska, 2022. "Integrated Approach for Safety Culture Factor Evaluation from a Sustainability Perspective," IJERPH, MDPI, vol. 19(19), pages 1-30, September.
    4. Olufunke P. Adebayo & Rowland E. Worlu & Chinonye L. Moses & Olaleke O. Ogunnaike, 2020. "An Integrated Organisational Culture for Sustainable Environmental Performance in the Nigerian Context," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    5. Bilal Haider Subhani & Umar Farooq & M. Ishaq Bhatti & Muhammad Asif Khan, 2021. "Economic Policy Uncertainty, National Culture, and Corporate Debt Financing," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    6. 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.
    7. Huang, Yanzhi & Baruah, Bidyut & Ward, Anthony, 2022. "How founder-entrepreneurs from Chinese high-tech SMEs assess market risks and explore new opportunities for growth and survival during COVID-19," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(2), pages 504-504, September.
    8. Abhari, Kaveh & McGuckin, Summer, 2023. "Limiting factors of open innovation organizations: A case of social product development and research agenda," Technovation, Elsevier, vol. 119(C).
    9. Muhammad Farhan Jalil & Wasim Ullah & Zeeshan Ahmed, 2021. "Training Perception and Innovative Behavior of SME Employees: Examining the Mediating Effects of Firm Commitment," SAGE Open, , vol. 11(4), pages 21582440211, December.
    10. Chanchai Phonthanukitithaworn & Wutthiya Aekthanate Srisathan & Chavis Ketkaew & Phaninee Naruetharadhol, 2023. "Sustainable Development towards Openness SME Innovation: Taking Advantage of Intellectual Capital, Sustainable Initiatives, and Open Innovation," Sustainability, MDPI, vol. 15(3), pages 1-24, January.

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