Organizational culture and performance: The mediating roles of innovation capacity

Abstract

This study highlights the service-dominant logic perspective of a firm'scomplex capability. The links between the functions of marketingstrategies and distinctive capabilities indicate the importance ofservice management innovation, and emphasize the conceptualization of aservice economy to verify the model. The model proposed in this studyexamines the relationships among market orientation, interactionorientation, innovativeness, innovative capacity, and performance, whichincludes customer performance and financial performance. This studypresents empirical results from 225 larger-sized service firms inTaiwan. First, the organizational culture factors positively affectinginnovative capacity include market orientation, interaction orientationand innovativeness. Innovative capacity in turn has a positive effect onperformance. Secondly, ranked in order of effect on financialperformance, these variables are innovative capacity, interactionorientation, market orientation and innovativeness. Finally, themediating effects of customer performance partially increase the totaleffect of innovative capacity on financial performance.