Dimension of organisational culture in innovation orientation

Chapter 4 focuses on the dimension of organisational culture in companies with an innovation orientation providing business services. Organisational culture is one of the most important dimensions of innovation orientation because it directly affects the company’s innovativeness and moderates knowledge management, which is the company’s key resource in light of the knowledge-based view. Organisational culture also has an indirect impact on other dimensions, human resources, among others. It is claimed that organisational culture is an important predictor of organisational effectiveness. Organisational culture itself can have an innovative orientation and in the case of service companies, the category service innovation culture is used. In this chapter authors argue that adhocracy is the culture best suited to innovative orientation. Its important features are competitive external orientation and responsiveness. With respect to knowledge transfer, the pivotal role of OC is limiting stickiness by creating an atmosphere that fosters sharing knowledge. The second significant issue is increasing a firm’s absorptive capacity by creating an atmosphere of organisational learning and increasing employee awareness and attention to potential innovations.