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

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.