Role of Organizational Culture towards Organizational Innovation: Evidence from Kulim Hi-tech Park, Malaysia

Abstract

Organizations are hying to be competitive through the level of adapting innovation so that they can provide goods and services that meet customers' expectations. One of the aspects that can affect organizational innovation is the dimensions of organization's culture. This study aims at exploring the dimensions of cultures influencing organizational innovation. A quantitative survey was conducted at Kulim Hi-Tech Park, Malaysia. The primary data were collected from 67 respondents who were the managers of companies registered under Kulim Hi-Tech Park. The collected data were analyzed using partial least square structural equation modeling (PLS SEM) with the support of smart PLS software version 2.0M3. The statistical findings reveal that all four cultures are positively and significantly correlated with organizational innovation. Among the four cultures, adhocracy culture was found to be the most significant followed by clan culture, hierarchy culture and market culture in influencing organizational innovation.