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Understanding How Organizational Culture Affects Innovation Performance: A Management Context Perspective

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  • Wen Zhang

    (College of Business, Xi’an University of Finance and Economics, Xi’an 710100, China)

  • Xiaoshuang Zeng

    (College of Business, Xi’an University of Finance and Economics, Xi’an 710100, China)

  • Huigang Liang

    (Fogelman College of Business & Economics, University of Memphis, Memphis, TN 38152, USA)

  • Yajiong Xue

    (College of Business, East Carolina University, Greenville, NC 27858, USA)

  • Xuanze Cao

    (International College, Krirk University, Bangkok 10220, Thailand)

Abstract

This study takes the management context perspective to investigate how the social context and performance management context can jointly improve organizational innovation performance. We propose that organizational culture factors, including psychological safety, collectivism, and power distance, are antecedents of social context and performance management context. We collected survey data from 301 employees in Chinese organizations. Our data analysis results show that the social context and performance management context fully mediate the effects of psychological safety, collectivism, and power distance on innovation performance. Specifically, psychological safety and collectivism have positive indirect effects, whereas power distance has a negative indirect effect on innovation performance. Our findings offer insights regarding how firms can develop management contexts to enhance their innovation performance, which contributes to both research and practice in innovation management.

Suggested Citation

  • Wen Zhang & Xiaoshuang Zeng & Huigang Liang & Yajiong Xue & Xuanze Cao, 2023. "Understanding How Organizational Culture Affects Innovation Performance: A Management Context Perspective," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6644-:d:1123465
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    References listed on IDEAS

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