Organizational culture and innovation culture: exploring the relationships between constructs

The purpose of this paper is to examine the influence of organizational culture (OC) on the building blocks of innovation culture (IC) in Iranian auto companies.

In total, a sample of six large auto companies were examined and 245 questionnaires completed by employees. A conceptual model was developed and the hypotheses analyzed by using exploratory factor analysis and then the direct and indirect effects of constructs were analyzed by path analysis technique.

Findings suggest that the constructs of OC correlate with those of IC. These correlations are all positive except for the relations between consistency and organizational learning, as well as of that between consistency and creativity and improvement.

First, this paper has checked the validity of both questionnaires in an Iranian context so that they could be used with more confidence. Second, innovation can flow in the organizations when organizational culture supports it. This research specified those elements which can help managers and executives find the aspects of OC which can increase IC.

The paper serves as a reference for fostering an IC in auto companies. Paying attention to different aspects of OC can have a positive effect on making innovation pervasive in organizations. This research was done for the first time in an Asian context and is literally unprecedented in Iran.