The Impact of Organisational Culture Factors on Innovation Levels in SMEs: An Empirical Investigation.

Abstract

An innovative organisational culture is one in which continuous improvement throughout the organisation is the norm. This is achieved through the generation and implementation of ideas. In other words, innovation is not confined to something that a small minority are charged with doing (e.g. those in R&D), with the results appearing at fixed times. Literature in the area shows little agreement on the type of organisational culture needed to improve creativity and innovation. Previous research findings are paradoxical in the sense that organisational culture can stimulate or hinder creativity and innovation. Several researchers have worked on identifying values, norms and assumptions considered to be important in promoting and implementing creativity and innovation. However, very few empirical studies involving quantitative research have been carried out to support the findings of researchers. This paper presents the results from a quantitative study on innovation in SMEs (small to medium enterprises). Data was obtained from a total of twenty-five respondents to a questionnaire regarding innovation within companies.