Investigating the Role of Organizational Culture of Firm Innovation: The

Moderating Role of Environment and Technological Turbulent.

University of Education Lahore, Multan Campus

Submitted to:
Dr.Zulqurnain Ali

Submitted By:
Muhammad Waseem Anjum

Roll no BSF1703492

BBA (HONS)

Section (A) Morning

8th Semester

Session 2017-2021
Investigating the Role of Organizational Culture of Firm
Innovation: The Moderating Role of Environment and
Technological Turbulent.
Department of Business Administration, The University of education

Abstract

 Purpose - The purpose of this research is to find the Role of Organizational Culture of
Firm Innovation. Role of Environment and Technological Turbulent

 Design/methodology/approach – The knowledge gathered from both essential and

auxiliary sources. Data was collected from the first source through a structured
questionnaire supported a five-point Liker scale starting from 5= strongly agreed to 1=
strongly disagreed. an in-depth literature review was collected from secondary sources
like online articles, research papers, journals, etc.
 I collected the info from the university students, assistant professors, associate professors,
lecturers, and other people. I explored inside the kind of a poll and got some information
about variables to utilize work entrances from a task searcher's viewpoint.

 Findings – Through our data we find that innovation organizational culture is positively
related to firm performance and play mediating role in it.

 Originality/Value – This is the primary research data and was never searched before
and it shows the relations of organizational culture and firm Innovation

Keywords
Firm innovation, Organization culture, Environmental Turbulent, Technological Turbulent

Introduction

Organization is a group of people working together to achieve a specific goal.

Every organization has top manager they relation between different activities of the
organization and employees of the company, assign duties to the every employee,
their responsibilities, and duty to the middle manager and staff to full fill tasks
which was assign by managers. Organization is flexible system because they
change by external and internal surrounding. Every organization is consisting of
three elements people, goal and system. People are working in system for the
purpose of accomplished organizational or people's goals. Organizational culture
includes an organization's goals, values, and interactions with the external
environment. Culture based on feelings, beliefs, norms, customs, and written and
unwritten rules that become part of organizational rules and policies, every
organizational culture is different with the other organization and difficult to
change organizational culture. There are number of categories/kinds of
organizational culture by which can measure the organizational culture exist in the
particular/specific organization. Here in study only take three categories of
organizational culture they are bureaucratic, innovative and supportive cultures
that we usually see in most organizations.

There are two main models of firm innovation: a “technology push” model and a
“market pull” model. However, it is now widely accepted that innovation is a
complex and interactive process, involving constant feedback loops between the
different phases. Moreover, the process of firm innovation depends on multiple
factors related to innovation characteristics, as well as firm characteristics, and
framework conditions. Innovation output may differ along several dimensions,
including the type of innovation and the impact of innovation. Moreover, a wide
range of actors may be involved in the innovation process, such as suppliers,
customers or universities. 

The environment can be stable, that is, one in which there is little unpredictable
change. Another type of environment is referred to as changing. A turbulent
environment exists when changes are unexpected and unpredictable.

The key environmental issues concern the nature of the pressure for change and the
speed at which the organization must be able to respond an act. The level of
environmental turbulence appears to influence structure.

One of the most famous studies of the effects of environment on organization

design was conducted by Tom Burns and G. M. Stalker. In studying 20 British
industrial firms, they discovered that the firms had different characteristics,
depending on whether they operated in a stable environment or an unstable
environment. The firms that operated in a stable environment tended to have r 2.

Problem statement
The purpose of this research is to address the theoretical gaps in the literature. A
few studies have addressed the relationship between organizational culture (OC)
and Organizational Innovation (OI) by considering different aspects of
organizational learning, such as commitment to learning, shared vision and open-
mindedness. Based on the problem statement, the objective of the research is to
examine the effect of organizational culture on organizational innovation directly
and through mediating variable like environment and technology change.
Consequently, the current study will first examine the relationship between
organizational culture and organization innovation. Secondly, this study will
determine the relationship amid organizational culture and organizational
environmental turbulence and finally, it purposes to determine the association
between environmental turbulence and organization innovation. On the bases of
introductions and aims, this paper includes; literature review, knowledge based
theory, research model, and conclusion.

Literature Review
Over the past 30 years, innovation has caught the attention of researchers and
practitioners in the technological competitive environment. Specifically,
innovation plays a key role in providing unique products/services, creating new
values that were not recognized, and establishing entry barriers.

Literature on innovation indicates a variety of types of innovation ranging from

incremental to radical innovation. Some researchers group the types of innovation
into three main categories; administrative and technical, product and process, and
radical and incremental. In the twenty-first century, with increasing specialization
and individualization, the changes of industry and technology have become more
significant the importance of innovation has motivated researchers to identify
various driving forces of innovation.

Organizational culture is assumed to be another significant factor to effective

innovation and organizational learning because organization culture forms values,
beliefs, and work systems that could boost or impede both learning and knowledge
sharing.
Organizational Culture

Organizational culture can be described as the values, beliefs and hidden

assumptions that organizational members have in common. Based on Cameron and
Quinn (2011), the study of organizational culture originated from anthropology and
sociology. Within these two disciplines, two different perspectives of
organizational culture emerged that included the functionalist and semiotic
approaches. These perspectives have led researchers to define, measure, and
characterize culture differently. Culture is a pattern of norms, values, beliefs and
attitudes that influences behavior within an organization. The literature reveals
multiple traditions in the evolution of the organizational culture construct.
Researchers will generally choose an approach based on their particular research
question, interests, and abilities

Organization Innovation

Innovation is the process to develop and improve products, processes and

markets, with the aim to aggregate value. The definition is based on a distinction
made by Schumpeter between an invention, an idea, and innovation as the
generation of value out of an idea. Innovation typically involves creativity, but is
not identical to it: innovation involves acting on the creative ideas to make some
specific and tangible difference in the domain in which the innovation occurs.
Amiable et al (1996) define innovation as the successful implementation of
creative ideas within an organization. In this view, creativity by individuals and
teams is a starting point for innovation; the first is necessary but not sufficient
condition for the second. A further characterization of innovation is as an
organizational or management process. Based on Davila et al. (2012), Innovation
like many business functions is a management process that requires specific tools,
rules, and discipline. Through these varieties of viewpoints, creativity is typically
seen as the basis for innovation, and innovation as the successful implementation
of creative ideas within an organization. From this point of view, individuals may
display creativity, but innovation occurs in the organizational context only.

The firm’s learning capabilities play a crucial role in generating innovations.

Innovation implies the generation, acceptance, and implementation of new ideas,
processes, products, or services. Organizational innovation is defined as the
application of ideas that are new to the firm, whether the newness is embodied in
products, processes, and management or marketing systems. It is obvious that an
organizational learning is closely related to organizational innovation. It is
essential to understand the types of innovation and their features because a specific
type of innovation requires unique and sophisticated responses from an
organization.

Although, previous innovation studies suggested several innovations typologies,

the most prominent type of innovation comprises the following categories;
technological versus administrative innovation, incremental versus radical
innovation, and product versus process innovation. In this study, the
knowledgebase theory is a suitable theory to support conceptual framework.

Technological and Environmental Turbulence 

Technological turbulence refers to the degree to which technology changes over

time within an industry, in production and in process, as well as in the product
itself, including new product technologies. Shorter product life cycles brought
about as a result of technological turbulence make it difficult for manufacturers
and retailers to maintain target customer-service levels, necessitating greater
collaboration in the supply chain. Accordingly, we take a contingency approach
similar to Jiang and Li (2008) and argue that the cross-border learning
effectiveness and efficiency-firm performance relationships are likely to be
moderated by the levels of technological turbulence in the environment where the
focal firm operates. Technological turbulence affects today's advanced technology
developers' activities. In this context, initiatives are designed to be more flexible by
using product development teams to overcome technological turbulence.
Technological turbulence refers to the development of information and technology
changes in production areas - out of the direction and in terms of speed - and the
irregularity of the emergence and spread of this development [10].Technological
turbulence advocates the short product-life cycle, the formation of a dynamic
market structure where rapid entries and exits are experienced, rapid loss of know-
how and rapid change in customer expectations. Therefore, it is argued that
technology orbital change is the source of environmental velocity, uncertainty,
complexity and ambiguity in business life, such as air flow and gap created by
turbulence as a geographical term [11]. Conceptually, in this study, technological
turbulence (i) is defined as rapid change of technology in the industry in which an
enterprise operates, (ii) most of the ideas of new product development are realized
through technological developments in the industry, and (iii) technological changes
offer important opportunities for the industry. Technological turbulence is a critical
context factor for supply chain operations. It covers the rate of technological
change, the amount of change in new product, fabrication and process technologies
and the unpredictability. Turbulent operating contexts provide rapid innovation
conjunctures and require more information on environmental factors. Especially,
technology firms. Must carefully examine the turbulence in the market to answer to
rapid and inconstant changes. Therefore, under high technological turbulence,
active innovation management is given importance in order to come across the
performance needs of a company.

A turbulent environment exists when changes are unexpected and unpredictable.

The key environmental issues concern the nature of the pressure for change and the
speed at which the organization must be able to respond an act. The level of
environmental turbulence appears to influence structure. During the last two
decades, several parallel and mutually influencing processes have contributed to
increase the “turbulence” in the competitive environments of an increasing
number of industries s. This phenomenon has been widely acknowledged in the
Strategic Management literature. Environmental turbulence is attributed to the
increasing rate of change and to the drastic nature of many of these changes,
especially those related to technology, that make increasingly difficult to identify
causes or predict results of competitive initiatives with reasonable certainty .

METHODOLOGY
Research Approach
The information gathered from both essential and auxiliary sources. Data was
collected from the primary source through a structured questionnaire based on a
five-point Liker scale ranging from 5= strongly agreed to 1= strongly disagreed.
An extensive literature review was collected from secondary sources like online
articles, research papers, journals, etc. Quantitative research technique models use
for, theories hypotheses testing, quantitative data is number form such as statistics,
 percentages. In quantitative researcher technique clearly define and to the point
questions asked to collect data from respondents for less time taken.

Research Design
Regression analysis is use for statistical regression to estimate how strong or weak
relations between independent and dependent variables. Primary data collected by
online questionnaire.
Data Collection Techniques/ Tools
Data was collected by questionnaire to examine the response of the respondent a
small scale piloting 1) strongly
Agree 2) agree 3) un-decided 4) disagreed 5) strongly disagreed variable effect on
other variable

Research model

Environment Turbulent

Organizational culture Firm Innovation

Technological Turbulent

Questionnaire:

Model hypothesis:
  H1:Technology and organizational culture has great impact on firm productivity

 H2: Innovative culture has a significant effect on firm.

 H3: Technological and Environmental Turbulence has a significant effect on firm

performance.

Results:

Regression
1. Table

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

Innovative_cultu . Enter
re, Technological
1 and
Environmental
Turbulence

a. Dependent Variable: Firm Innovation

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .171a .029 .009 .48271

a. Predictors: (Constant), Innovative_culture, Technological and

Environmental Turbulence

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression .683 2 .341 1.465 .236b

1 Residual 22.602 97 .233

Total 23.284 99

a. Dependent Variable: Firm Innovation

b. Predictors: (Constant), Innovative_culture, Technological and Environmental Turbulence
 Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 2.674 .342 7.824 .000

1 En -.140 .103 -.136 -1.358 .178

Innovative_culture .069 .070 .099 .990 .325

a. Dependent Variable:Firm Innovation

Table number 01 shows the regression between three variables , one is dependent variable that is
Firm Innovation and others are independent variables i.e Technological and Environmental
Turbulence and innovative culture. The regression between Technological and Environmental
Turbulence and firm innovation insignificant as standard alpha is 0.05 and regression is greater
than 0.05 that is .178>0.05 since the hypothesis that there is positive relationship between
Technological and Environmental Turbulence and firm innovation is rejected.
Second is the regressed vale between innovative culture and firm innovation so as per survey
innovative culture and firm innovation are not positively related as .325>0.05 so hypothesis
rejected as regression value is insignificant because of lying out of critical region.
Technological and Environmental Turbulence and innovative culture have a negative impact on
firm innovation.

2. Table
Variables Entered/Removeda
Model Variables Variables Method
Entered Removed

Innovative_cultu . Enter
re, Technological
and
1 Environmental
Turbulence and
innovative culture
Firm Innovation

a. Dependent Variable: Organizational_culture

b. All requested variables entered.
 Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .187 .035 .005 .56340

a. Predictors: (Constant), Innovative culture, Environmental Turbulence

and innovative culture, Firm Innovation

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 1.109 3 .370 1.165 .327b

1 Residual 30.473 96 .317

Total 31.582 99

a. Dependent Variable: Organizational_culture

b. Predictors: (Constant), Environmental Turbulence and innovative culture Firm Innovation

Coefficientsa

Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

(Constant) 3.166 .509 6.213 .000

Environmental Turbulence and .115 .121 .096 .945 .347

innovative culture Firm
1
Innovation

-.136 .119 -.117 -1.148 .254

Innovative_culture -.066 .082 -.081 -.806 .422

a. Dependent Variable: Organizational_culture

Table 02 shows the regression analysis between dependent and independent variables, in this analysis
organizational culture is a dependent variable whereas Environmental Turbulence and innovative culture
Firm Innovation are independent variables. The level of significance in regression taken is 5%, but the
results appeared are above 0.05 so its shows that hypothesis constructed are rejected as, in Environmental
Turbulence and innovative regression of coefficients is .347>0.05
And result of firm innovation is also insignificant so this is also rejected .25>005 the third independent
variable also shows a rejected hypothesis @ .422>0.05. so all the independent variables lies out of alpha
stated 5%.

Conclusion:

This research is done to check Investigating the Role of Organizational Culture of Firm
Innovation: The Moderating Role of Environment and Technological Turbulent.. After data
collection SPSS is applied on it to enter and analyze the data, for analysis regression is applied
to check the level of significance between the variables. It shows that how organizational
culture effected by diverse cultures of organizations. The results are organizational culture is
not effected by innovative culture of an organization, nor by technological and environmental
Turbulence. Firm innovation and technological and environmental Turbulence has a negative
relationship firm innovation and innovative culture is also negatively related.

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