Role of Organization Culture and Innovation in Organization Performance

Abstract

The present research examines the importance of organisational culture and innovation on organization performance. To assess the relationship between organisational culture and innovation on organisational performance. The research adopted a descriptive methodology. 311 responses were gathered from employees working in IT Industries by adopting a simple random sampling method. A self-administered questionnaire was prepared for the research with five five-point Likert scale. SPSS software was used to analyse the data. Descriptive Statistics, KMO test for sampling adequacy, Correlation and Regression analysis, Exploratory Factor Analysis, Confirmatory Factor Analysis and Structural Equation Modelling were adopted to analyse the data and check the hypothesis. The model fit indices examined were found to be acceptable. Today’s dynamic and changing business environment requires business leaders’ attention towards building a conducive organisational culture which enables innovativeness in business activities. Supportive Organization Culture empowers employees to think innovatively, making use of their intellectual capability thus ensuring better organization performance. The research provides insights for business managers, bringing awareness about the prominent factors enabling effective organization culture and innovation in the workplace.