Transformation of Organizational Culture and the Effects on Innovative Activities: The Case of Estonian ICT Companies

Abstract

The ICT sector has often been considered to be on the frontline of innovation and this sector has been recognized as strategically significant for economic development. In Estonian context it is newborn sector which has experienced extremely fast development during last two decades. Organizational culture has been considered an important factor that may facilitate or impede innovation activities of organizations. The paper aims to bring out the patterns of transformation of the organizational culture of Estonian ICT organizations, and find connections between the culture and innovation activities of those organizations. The study draws on the case study of three Estonian ICT organizations. The research was designed as a retrospective study: semistructured and focus group interview with CEOs and employees were carried out in the organizations. Our study showed that the companies have passed comparable development phases, they share more or less similar organizational values, and innovativeness is seen as a part of organization’s strategy. No evidence was found to the connection between organizational values and certain types of innovation and it seems that different types of innovation depend mostly on companies’ profiles and not on values.