UNIVERSITY OF

BEDFORDSHIRE

RESEARCH TITLE: An exploration into the impact of Organizational

Culture on Innovation at The Walt Disney Co.
during the period of 1990 – 2005.

UNIT CODE AND NAME: BSS064-3 New Advancements in Business

STUDENT NAME: Saiesha Aashiyanna Maharaj

STUDENT ID: 2026181

DATE OF SUBMISSION:

WORD COUNT:
 1.0 CHAPTER ONE – RESEARCH PROPOSAL

1.1. Research Title

An exploration into the impact of Organizational Culture on Innovation at The

Walt Disney Co. during the period of 1990 – 2005.

1.2. Research Background

Dr. Elliott Jaques coined the term “organizational culture” or “culture in the
organizational context” in his book The Changing Culture of a Factory (Jaques,
1951). This was a published report on “a case study of developments in one
industrial community’s social life between April 1948 and November 1950
(Schuneman, 2019). Organizational culture encompasses an organization’s
expectations, experiences, philosophy, and values that guide employee behavior,
and is evidenced in employee self-image, internal dynamics, interactions with the
outside world, and future expectations. Culture is based on shared attitudes,
beliefs, customs, and written and unwritten rules that have evolved over time and
are considered valid (The Business Dictionary, n.d.). Culture also includes the
organization’s vision, values, norms, systems, symbols, language, assumptions,
beliefs, and habits (Needle, 2004). Simply put, organizational culture is “the ways
things are done around here” (Deal and Kennedy, 2000). This paper seeks to
conduct an extensive exploration into how Walt Disney’s organizational culture
ties in to the company’s innovation. Organizational culture influences every
aspect of a company, from punctuality and tone to contract terms and employee
benefits (Wong, 2020). When workplace culture is in alignment with the
employees’ needs, they are more likely to feel at ease, supported, and valued.
Companies that prioritize culture are more likely to weather difficult times and
changes in the business environment and emerge stronger (Wong, 2020). When
it comes to attracting talent and outperforming the competition, culture is a
crucial advantage. According to a mission and culture survey conducted in 2019
by Glassdoor, 77 percent of workers consider a company’s culture before
applying, and nearly half of employees would leave their current job for a lower
paying opportunity at a better- cultured organization. The culture of an
organization is also one of the top predictors of employee satisfaction and one of
the primary reasons that nearly two-thirds (65%) of employees stay with their
current company. (Wong, 2020). Corporate culture in business is linked to
American culture. According to Xiaoli et al. (2019), the company is successful
because it has a corporate culture that empowers employees to improve their
performance and the company’s profit. The corporate culture assists the
corporation in managing its growth strategy and opportunities. According to Li et
al. (2018), this culture emphasizes innovation, which motivates the company to
develop products that are compatible with new technologies and trends in
entertainment, mass media, amusement parks and resort industries
(Totalassignmenthelp, n.d.).
Walter Elias Disney and his brother Roy founded the Disney Brothers Cartoon
Studio in Hollywood, California on October 16, 1923. The Walt Disney Company,
now known as the Walt Disney Studios, has had a massive impact on the
entertainment industry and is now one of the world’s major media conglomerates
(History.com, 2019). The Walt Disney Studios’ initial distribution arrangement was
with Margaret Winkler, a New York distributor, to publish their Alice Cartoons
(Biography.com, 2021). Following the success of the Alice Comedies and a series
based on a character named Oswald the Lucky Rabbit, Disney began work on his
most famous creation. With the release of Steamboat Willie in 1928, the world
was introduced to Mickey Mouse. The character would go on to become one of, if
not the, most popular cartoon characters in history (History.com, 2019). As the
company pushed the boundaries of animation, being on the cutting edge of
technology became par for the course. During the decades that followed,
including the Great Depression and World War II, Disney created the first color
cartoons and the first animated feature-length film, Snow White and the Seven
Dwarfs. The film was a hit but the costs of these ground-breaking films were so
high, and the margins so thin, that a poor box office performance could still sink
the studio. Walt and Roy began 1940 with some great films, but a lot of debt
(Beattie, 2020).

1.3. Problem Statement and Rationale

Disney’s corporate culture is inextricably linked with American culture. However,

the company’s international success is due to organizational cultural
characteristic that enable employees to maximize their performance and the
company’s profitability. For example, The Walt Disney Company’s emphasis on
innovation motivates its human resources to contribute to product development
that corresponds to trends in the amusement park, entertainment, and mass
media industry environments. As a result, the corporate culture aids the
corporation’s efforts to manage strategic growth and related opportunities.
(Williams, 2019). Despite these strengths, a challenge that Disney faces in the
presence of its competitors is market vitality. Disney is in the business of
entertainment, which is all about the preferences and tastes of customers. This
operation has the potential to easily lead to the company’s demise if the
company’s management does not focus on strategic approaches to satisfying
customers’ needs in terms of what they have a preference for, but does not exist
in the market (UKEssays, 2017). If the product already exists, it is the company’s
responsibility to modify it and make it more appealing to customers without
changing the likes but scrapping the dislikes. With this sensitivity, Disney has
received as much criticism as it has received motivating responses whenever it
has a new release in the market. This is how difficult it is for Disney to maintain a
strong position by focusing solely on the preferences of its customers. Other
issues, such as the cost of services, aggravate the situation. These strategic issues
simply need to be addressed with the proper approach in order to ensure the
company’s future success (Rukstad and Collis, 2009).

The fundamental purpose for this research is to conduct an in-depth examination

of how a company’s organizational culture can have an impact on its innovation.
Much research has been previously conducted on organizational culture,
specifically pertaining to the importance of culture, to the engagement of
employees within the workplace, or even the strategies used by senior company
executives to establish an effective organizational culture in order to improve
performance. However, few researchers have taken a dive into the relationship
between Culture and Innovation. This paper will be focusing primarily on how the
two aspects correspond together and their influence on each other. Only after
this clear and descriptive analysis is conducted, we will be able to explain how The
Walt Disney Company’s corporate culture has influenced their innovation and
how it has managed to keep them relevant and ahead of competitors in the
entertainment industry.

1.4. Research Question

Based on the research title and problem statement, the primary research
question that will be asked is: To what extent can organizational culture influence
innovation?

1.5. Research Objectives

In order to answer the stated research question, this study will look at the
objectives listed below:

1. To critically analyze the theories of Organizational Culture.

2. To identify the types of innovation.
3. To examine the Organizational Culture of the Walt Disney Company.

1.6. Research Aim

The aim of this study is to conduct an extensive investigation into the impact of
organizational culture on innovation at the Walt Disney Company and how it
ensures that employees reflect ideals that align with the target customers’
preferences and expectations in the entertainment industry.

1.7. Chapter Summary

This study is designed to show the extent of how organizational culture can help
influence the innovation at The Walt Disney Company and how it ensures that
employees reflect ideals that align with the target customers’ preferences and
expectations in the entertainment industry. Previous research has been
conducted on organizational culture importance, specifically pertaining to the
engagement of employees within the workplace, the different types of culture
that can be found in an organization or country, and the strategies used by senior
company executives to establish an effective organizational culture in order to
improve performance. However, few researchers have taken a dive into how The
Walt Disney Company’s corporate culture has influenced their innovation and has
managed to keep them relevant and ahead of competitors in the entertainment
industry.
 2.0. CHAPTER TWO – THE LITERATURE REVIEW

2.1. Introduction

Keeping within the research objectives, in this chapter, theories and research
studies related to organizational culture and its relationship with innovation will
be explored. An explanation of two major components of organizational culture –
values and norms will be discussed, and the types of innovation that exist in
organizations will also be identified.

2.2. Organizational Culture and Theories

Organizational culture is defined as the underlying beliefs, assumptions, values,

and ways of interacting that contribute to an organization’s distinct social and
psychological environment (SHRM.org, 2021). The culture of an organization
defines the proper way to behave within the organization. This culture is made up
of shared beliefs and values that are established by leaders and then
communicated and reinforced through various methods, ultimately shaping
employee perceptions, behaviors, and knowledge. The context for everything an
organization does is established by its culture (SHRM.org, 2021). Because
industries and situations vary significantly, there is no one-size-fits-all culture
template that can be applied to all organizations (SHRM.org, 2021). Simply put,
organizational culture is “the way we do things around here” (Deal and Kennedy,
2000). While there is no agreement on what culture is or how prevalent it is
within an organization, there is general agreement that culture is a major force
influencing employee behavior and organizational effectiveness (BCilmann,
Saxton and Serpa 1985; Marcoulides and Heck, 1993; Schein, 1985 a, 1990).
Nonetheless, despite much concentrated attention on the topic of organizational
culture, existing literature does not adequately document the characteristics of an
organizational culture that fosters innovation. Importantly, prior research has
failed to adequately document the explicit process by which organizational values
(i.e., the fundamental building blocks of culture) translate into observable desired
behaviors. Furthermore, advancing the literature necessitates a finer-grained
perspective and a clearer explanation of the specific layers of an organizational
culture that supports innovation. One of the main goals of this paper is to add to
the existing literature by providing a better understanding of the relationships
between the various layers of an organization’s culture and innovative behaviors.
Culture may be introduced by the organization’s founders and written into the
mission and vision statements, or it may change over time as new elements are
added to the organization. There are numerous theories on the subject, but only a
couple were considered for this review.

2.2.1 Schein’s Model of Organizational Culture

Edgar Schein proposed a model of organizational culture in which basic
assumptions shape values, and values shape practices and behavior, which are
visible aspects of the culture. Organizations do not adopt a culture in a single day,
rather, they learn from past experiences and begin practicing it every day,
thereby forming the workplace culture (Managementstudyhq). According to
Schein (2010), culture can be analyzed at three levels, as shown in (Figure 1):
artifacts (which may include logos, vision and mission statements), espoused
beliefs and values, and fundamental underlying assumption. Schein relied on
empirical observation rather than theoretical literature to collect data for his
model. He relied heavily on his clients and colleagues for his extensive portfolio of
information as a consultant and researcher.

In practice, the three levels of Schein’s Model of Organizational Culture are

sometimes represented as an onion model (Figure 2) because they are based on
different layers. The outer layer is fierily adaptable and changeable. The deeper
the layer, the more difficult it is to adjust it. The assumptions are deeply
embedded in the onion’s core. The values are located around the core. The
artefacts and symbols can be found in the onion’s outer layer and can be changed
more easily. Between this layer and the layer in which the values are embedded,
there may be another layer containing so-called “heroes”; people who play or
have played an important role in the organization and are admired. The onion’s
core is made up of assumptions.
 Artifacts – Visual
structures and
processes (hard to
decipher)

Values – Strategies, goals, philosophies

(espoused justifications)

Basic Assumptions – Unconscious, taken-for-granted beliefs, thoughts

and feelings (ultimate source of values and actions)

Figure 1: Schein’s Triangular Model of Organizational Culture

Source: Created by Author, data adapted from Schein (2010)
 Figure 2: Schein’s Onion Model of
Organizational Culture
Source: Toolshero.com

2.2.2. Handy’s Four Power Culture Theory

Charles Handy’s method of looking at culture prompted researchers to use it to

link organizational structure to culture. Handy classified cultures into four
categories: ‘Power Culture,’ ‘Role Culture,’ ‘Task Culture,’ and ‘Person Culture.’

Power culture, according to Handy, can be represented as a ‘web,’ and it refers to

control that is spread out like a network from the center to the rest of the
organization (Handy, 1993:184). Power dynamics are common in small
entrepreneurial organizations such as real estate, trading, and finance firms.
When an organization adopts a power culture, rules and bureaucracies are
minimized. These are also political organizations in which decisions are made
primarily through persuasion rather than on a bureaucratic or rational basis
(Handy, 1993:184).

Role culture is defined as a highly structured organization in which employees

have specific delegated authorities and are provided with security and
predictability (Handy 1993:185). Handy (1993) refers to the structure of this type
of organization as a ‘Greek temple,’ owing to the fact that this culture is based on
logic and rationality (1993:185).

Task culture is job-oriented, and it exists in organizations where individuals work

as a team and power is derived solely from expertise and only when necessary
(Handy, 1993:188). Handy (1993) depicts this type of organization as a ‘net,’ with
much of the power and influence concentrated at the “interstices” (1993:188).

A Person culture is quite unusual, reflecting organizations in which individuals

believe they are superior to the organization in which they work (Handy,
1993:190). Goals and objectives are frequently followed by a group of employees
who are in agreement. Control systems and management hierarchies are only
possible with mutual approval in these cultures.

According to Handy (1993), each of the above types of cultures is fine, but
employees are often inflexible when it comes to culture, which means they often
believe the myth that what works well in one organization will also work well in
another (1993:183). Furthermore, Handy adds that an employee who is successful
in one culture may not always perform well in another (1993:204). As such, it is
up to the organization’s executive to manage all four cultures, distinguishing and
integrating them within the organization (Handy, 1993:216).

Figure 3: Charles Handy’s Four Classes of Culture Framework

Source: Image obtained from WorldPress.com

2.3. Values

Different researchers have defined values in various ways. According to Sathe

(1983), values are an important type of shared understanding in a culture. They
develop a set of appropriate behavioral rules for members of an organization,
which serves as a social glue to hold the organization together (Kilmann, 1984)
and keeps every member pulling toward a common goal (Deal and Kennedy,
1983; Uttal, 1983). Values provide a sense of common direction and guidelines for
employees’ day-to-day activities. If they are strong enough, they may be able to
attract the employee’s attention. Values are not written rules, but when choices
and decisions must be made, they are usually guided by values (Deal and
Kennedy, 1982). According to Schein (1985), once values are seen to work reliably
in solving group problems of external adaption and internal integration, they can
transform into rarely questioned beliefs and, eventually, basic assumptions
(Pedersen and Sorenson, 1989). Posner et al. (1985) concluded that a high degree
of shared values – the link between personal and organizational values –
correlates positively with certain feelings and behaviors such as organizational
commitment, self-confidence, personal success, ethical behavior, less personal
and job stress, and an increase in embers’ attachment to the goals and objectives
of their organization.

2.4. Norms

Norms are the foundation of organizational culture. They encompass all behavior
that is expected, accepted, and supported by the work group, whether the
behavior is stated or not (Allen, 1985). Kilmann (1985) believes that norms are the
most important aspect of culture, and that they are an important and critical part
of the culture’s content because they regulate and guide much of the day-to-day
behaviors and attitudes of employees. Organizational norms are critical. They are
the cultural aspects that have the most direct influence on behavior and
performance (Cooke, 1989). They describe the attitudes and behaviors that
members of a work group pressure one another to adopt, thereby facilitating a
stable pattern of behavior that provides coherence and stricture to an
organization’s cultural life. Essentially, they are the unwritten rules of behavior
that govern what is and is not acceptable (Beyer, 1981; Brown, 1995).
2.5. Innovation

Innovation in business is the process by which an organization introduces new

ideas, workflows, methodologies, services, or products (Pratt, n.d.). Business
innovation, like IT innovation, calls for the use of technology in new ways to
create a more efficient and agile organization. Business innovation should enable
the achievement of goals across the entire organization, with a focus on core
business aims and initiatives. Idea generation is a common starting point for
innovation, after which ideas are narrowed down during brainstorming sessions,
and leaders consider the business viability, feasibility, and desirability of each idea
(Mclaughlin, n.d.).

Modern businesses grow and succeed in today’s corporate climate for a variety of
reasons. Some are known for their products, other for their services, and still
others for less easily defined factors such as strong brand loyalty or captivating ad
campaigns. This growing need for growth and change also creates a lot of
opportunity for businesses. Simply put, businesses cannot afford to stay afloat if
they do not embrace innovation and change (Purcell, 2019). At its core,
innovation is about doing something different than everyone else in your
industry. If your company uses innovation on its products, for example, the goal is
to develop or update the products until there is nothing else on the market that is
similar to it. If your company is using process innovation, it is because it will save
you time, money, or other resources, as well as give you a competitive advantage
over other companies that are stuck in their systems. In either scenarios, your
organization is taking the time to try something new because the status quo is no
longer working (Purcell, 2019). According to the Northeastern University (2019),
there are three critical factors on the importance of innovation in business;

1. Innovation Helps Companies Grow

2. Innovation Keeps Organizations Relevant
3. Innovation Helps Organizations Differentiate Themselves

Business leaders must be able to think creatively and incorporate innovation into
their business models in order to drive business growth, stay relevant in changing
times, and differentiate themselves from the competition.

2.5.1. Types of Innovation

When assessing a company’s innovation maturity, the presence of multiple

definitions of innovation is an important criterion to consider. The recognition
that there are different types of innovation and that we should treat them
differently.

The Innovation Matrix

The Innovation Matrix is one of the most common ways of looking at innovation.
The Innovation matrix categorizes innovations based on both the technology used
and the market in which they operate. This matrix created by Greg Satell, is used
to map innovation based on whether or not a problem is clearly defined and
where it exits in the market. Its purpose revolves around strategy and where to
solve these problems, but looking at the definitions has helped researchers
consider how to map different types of innovation in a way that would be useful
for management purposes (Hough, 2020).

Breakthrough Sustaining
NEW Innovation Innovation
MARKET

Disruptive
EXISTING
Basic Research
Innovation

EXISTING NEW
TECHNOLOGY

Figure 4: Greg Satell’s Innovation Matrix

Source: Mapping Innovation by Greg Satell (2017.)

The Innovation Matrix is a visual representation of how to easily identify different

types of innovation based on whatever goal is required for a specific perspective.
Understand, for example, how to accelerate innovation, where to innovate, how
to manage innovation, and so on (Gons, 2020).

The Doblin Ten (10) Types of Innovation Framework

The Ten Types of Innovation methodology is especially useful for helping users
think more broadly (Doblin, 2020). The Doblin group has been using the Ten
Types Framework, led by Larry Keely, since the late 1990s (Woods, 2015). The ten
types are divided into three categories. The Offering is in the center, and it
contains the core product elements as well as how the product is organized and
integrated. Configuration, or how the company is organized to make a profit, is on
the left. To the right is the Experience, which describes how the company
interacts with the customer (Woods, 2015).

Figure 5: The Ten (10) Types of Innovation Framework (Doblin)

Source: Larry Keeler, Ryan Pikkel, Brian Quinn, and Helen Walters: Ten Types of Innovation: The
Discipline of Building Breakthroughs (Hoboken, New Jersey: John Wily and Sons, 2013).
2.6. Culture and Innovation

Several research studies have concluded that culture plays a critical role in
innovation (Ahmed, 1998; Dobni, 2008; Higgins and Mcallaster, 2002; Jamrog et
al., 2006; Jassawalla and Sashittal, 2002; Lau and Ngo, 2004; Martins and
Terblanche, 2003; Mumford, 2000). The main reason is that it can encourage
innovative behavior among members of an organization by leading them to
accept innovation as a basic value of the organization and foster commitment to
it (Hartman, 2006). According to Tesluk et al. (1997), the fundamental elements of
culture have a dual impact on creativity and innovation from the perspectives of
socialization and coordination. Individuals can learn whether creative and
innovative behaviors are part of the business’s path through socialization.
Simultaneously, the business can generate values that support creativity and
innovation through activities, policies, and procedures, and its innovative capacity
will improve as a result.

Empirical research has also revealed a strong link between culture and innovation
(Chang and Lee, 2007; Jaskyte, 2004; Lau and Ngo, 2004; Mayondo and Farrell,
2003; Miron et al., 2004; Obenchain and Johnson, 2004). What the literature has
not clarified, is which types of cultures foster or stifle innovation. In order to
analyze this, the competing values framework (CVF) model proposed by Cameron
and Quinn (1999) can be applied. Although other organizational culture typologies
exist (Kets De Vries and Miller, 1986; Reigle, 2001; Wallach, 1983), the CVF is one
of the most comprehensive and has been used in some empirical studies on
organizational culture (Deshpandé et al., 1993). There are two dimensions of the
model: stability/flexibility and internal/external organization. Since opposing
values are represented, it is critical to determine which extreme of these values
the business should focus on in order to foster innovation. In the case of the first
dimension of the model, stability/flexibility, it is to be expected that flexibility
oriented cultures will favor innovation while stability oriented ones will hinder it,
because flexibility is one of the values most associated with innovative culture,
according to the literature (Arad et al., 1997; Martins and Terblanche, 2003).
Concerning the second dimension, internal focus/external focus, Deshpandé et al.
(1993) state that cultures with an emphasis on the internal (integration, little
novel activity) may cause the business to be less attentive to market changes,
which is critical in the innovation process.

Figures 6 and 7: The Completing Values Framework (CVF)

Source: Cameron, K. and Quinn, R. (1999). Image obtained from Cultural Competence
Learning Institute (community.astc.org).
2.7. Chapter Summary

Culture can be found in every business, from the smallest to the largest
conglomerate. Depending on the values instilled by the founder from the
organizations inception, an organization’s culture may grow to be a force to be
reckoned with in terms of competitive advantage, or it may fail. An organizational
culture is not completely ‘homogenous’ in practice (Williams et al. 1993:23). This
means that no organization adopts a single type of culture, and complex
organizations may have sub-cultures that overlap and disagree. Trompenaars and
Deal and Kennedy both agree on this point. Employees who are successful in one
organization may not be successful in another, as illustrated by Handy, whereas
Schein defined culture as an entity that is nearly impossible to measure, study, or
change. Values are an important type of shared understanding in a culture (Sathe,
1983). They develop a set of appropriate behavioral rules for members of an
organization, which serves as a social glue to hold the organization together
(Kilmann, 1984) and keeps every member pulling toward a common goal (Deal
and Kennedy, 1983; Uttal, 1983). Norms are the foundation of organizational
culture. They encompass all behavior that is expected, accepted, and supported
by the work group, whether the behavior is stated or not (Allen, 1985). At its core,
innovation is about doing something different than everyone else in your
industry. When assessing a company’s innovation maturity, the presence of
multiple definitions of innovation is an important criterion to consider. There are
different types of innovation and they should be treated as different. These can
be presented in multiple ways, but only the Innovation Matrix and Doblin’s Ten
Types of Innovation were looked at.
 3.0. CHAPTER THREE – METHOD OF ANALYSIS

3.1. Research Design

In order to accumulate the relevant information required to produce this study, a

mono-method qualitative systematic review was conducted. A systematic review
is one in which a large body of literature on a specific topic or subject is reviewed
and analyzed without bias in order to filter the relevant information pertaining to
a specific question (Denscombe, 2014). A traditional literature review focuses on
refining a research question, whereas a systematic review uses a methodical
approach to answer a specific question. A systematic approach will result in an
unbiased analysis of information, which will aid in the identification of knowledge
gaps (Petticrew and Roberts, 2006), and it is also well suited for this type of
research study. Because organizational culture is a broad topic with a large body
of literature to review, the scope of the study was limited to the impact of
organizational culture on innovation, specifically on the employees within a
company and on the different theories of culture.

A research design, according to Saunders et al. (2009), is a clearly defined scheme

used to answer a research question. The qualitative method of research design
was employed in the creation of an evaluative body of work. The qualitative
method was used because it works well with interpretive philosophy (Denzin and
Lincoln, 2005). Using a qualitative research design, some data collection methods
such as; interviews, focus groups, ethnography, and action research were
observed in order to be able to answer the research question at hand. I then
analyzed this data utilizing a thematic analysis. Thematic analysis is a qualitative
data analysis method that involves search across a data set to identify, analyze,
and report on repeated patterns (Braun and Clarke, 2006). It is a method for
describing data, but it also incorporates interpretation in the processes of
selecting codes and developing themes (Kiger and Varpio, 2020). Data was
gathered from previous studies, so only secondary data was used throughout the
study. Secondary data was easily obtained from archival research posted on the
internet, which included text documentary from the databases of the chosen
organizations, business magazines, and newspaper articles. Secondary data was
gathered from a variety of sources, including academic journals and textbooks
(Saunders et al., 2012).

3.2. Research Strategy

The Research Onion (Saunders, Lewis, and Thornhill, 2019) was used to refine the
direction and scope of the chosen search and helped emphasize the importance
of maintaining reflexivity at all stages of planning and execution. Other factors
that influenced the planning process included feasibility, originality, application to
the chosen case, and the study’s usefulness to others. Because it is necessary to
delve into the organizational context of the phenomenon, a case study strategy
was most appropriate for this research.

Google Scholar was chosen as the search engine to assist in locating relevant
sources. Research Gate, Emerald Journals, Sage Publications, and Jstor were the
primary databases used. Secondary resources included academic books, peer-
reviewed articles, business periodicals such as Fortune magazine and Harvard
Business Review, and journals sourced from various scholarly platforms.
Organizational culture and Innovation, Disney’s culture issues and market
challenges, Disney’s Management Style, and success timeline of Walt Disney Co.
were the key search terms.

3.3. Research Approach

Kumar (2011) explains that secondary research was required for this paper,
“Sometimes the information required is already available in other sources such as
journals, previous reports, censuses, and you extract that information for the
specific purpose of your study. This type of data which already exists but you
extract for the purpose of your study is called secondary data.” When compared
to primary research, this provided numerous advantages. It allowed for significant
resource savings, particularly in terms of time and money and provided access to
higher quality data that could have been obtained on your own (Smith, 2006)
(Ghauri and Gronhaug, 2010). In a relatively short period of time, this can result in
higher quality research and recommendations based on reliable and credible
information.

The archival research strategy employed yielded a large number of secondary

sources on the relationship between organizational culture and its impact on
innovation on the Walt Disney Company, and also the challenges faced by the
company in order to stay relevant in the industry.
3.4. Data Collection and Analysis

The Saunders Research Onion, developed by Saunders et al., depicts the stages
involved in the development of a research study (2007). In other words, the onion
layers describe the stages of a research process in greater detail. It provides an
effective progression for developing a research methodology. Its utility stems
from its adaptability to almost any type of research methodology and its ability to
be used in a variety of contexts (Bryman, 2012). According to Saunders et al.
(2012), when using a research onion, one must move from the outer layer to the
inner layer.

Figure 1: The Research Onion

Source: Saunders et al. (2012)

Each layer of the onion, when viewed from the outside, describes a more detailed
stage of the research process (Saunders et al., 2007). According to Saunders et al.,
the research process is analogous to unwrapping an onion layer; in order to see
the inner layer, the outer layer must first be unwrapped. In order to achieve a
goal, the proper steps must be taken; this also applies to research; cover one step
first before moving on to the next.

This research study used the induction approach, also known as a grounded
approach, in when the collected data was analyzed to determine which themes
were most relevant to this specific study (Charmaz, 2006). However, Yin (2009,
cited in Saunders et al., 2012) believed that an inductive approach will be difficult
for a novice researcher to use, leading to failure. Although this approach has been
criticized in comparison to deduction and abduction, it was deemed appropriate
and valuable for this study, using this approach aided in the identification of
trends and links to the research objectives and data collected.

3.5. Data Quality and Evaluation

Denscombe (2014) proposed that researchers use well-founded and simple

benchmarks to determine whether the information gathered should be included
or excluded from a study. This criterion was useful because organizational culture
is a broad subject with numerous journals and research papers available. The
tables on the following pages explain how the sources were identified and
provide a summary of their findings:
 Table I: Sources chosen and the topics highlighted

No. Year Source Type Report Title Author(s) Topics Highlighted

1. 2018 Journal: Harvard Disney Defines its Corporate Culture by Jones, B. This study highlighted the importance of leaders being proactive and authentic in the
Business Review the Actions of its Leaders workplace and the impact of their behavior as an innovative outcome on the company.
2. 2020 Website Organizational Culture within the Walt Udokang, M. This study highlighted how the Disney Corporation has managed to be sustainable within its
Disney Company organizational culture, by doing what might appear as the impossible: by building
franchises while adapting to change.
3. 2019 Website Disney’s Organizational Culture for Williams, A. This study highlighted how the company’s segments are strategically managed to achieve
Excellent Entertainment (Analysis) excellence in entertainment products for customers in the global mass media,
entertainment, and amusement park industries by utilizing their corporate culture
characteristics: Innovation, decency, quality, community, storytelling, and optimism.
4. 2017 Website How Disney Nurtures a Culture of Dimmit, M. Innovation in Walt Disney Co. and its relationship with company culture.
Innovation
5. 2015 Journal Understanding Organizational Culture Chartered This study looked at various approaches to understanding organizational culture. E.g. Edgar
Management Institute Schein, Geert Hofstede, Charles Handy, Gerry Johnson and Kevan Scholes.
6. 1998 Journal Organizational Culture Schein, E. Organizational Culture and its various levels.

7. 2019 Journal The Importance of Innovation in Purcell, W. This study highlighted how innovation helps companies grow and remain relevant by
Business differentiating themselves.
8. 2014 Journal One Man’s Dream: How a Company’s Zink, C. This thesis answers the question of whether a unique organizational culture can help a
Unique Culture can Translate into Long company find long- term success.
Term Success
9. 2008 Journal Organizational Culture and Its Themes Sun, S. Explores the role of culture within an organization and examines its different themes.
10. 1999 Journal Handy’s Four Types of Organizational Handy, C. A model of culture presenting organizational cultures as classified into four major types.
Cultures
11. 2019 Website Company Values and Norms Management Mania Values and Norms as terms used to describe the basic pillars of the organizational culture.

12. 2009 Journal Navigating the Innovation Matrix: An Kyffin, S., and Gardien, The Innovation matrix categorizes innovations based on both the technology used and the
Approach to Design-Led Innovation P. market in which they operate. This matrix created by Greg Satell, is used to map innovation
based on whether or not a problem is clearly defined and where it exits in the market.
13. 2014 Journal The good research guide: for small-scale Denscombe, M. Strategies for social research and experiments were looked at in this case study.
social research projects. 5th ed.
14. 2006 Journal/Book Systematic Reviews in the Social Petticrew, M. and Illustrates in practical terms the decision making processes involved in the application of
Sciences: A Practical Guide Roberts, H. the guidance to a specific narrative synthesis.
15. 2009 Journal Research Methods for Business Students Saunders, M. and Introduces the logical choices available in research methodologies; which enable the
Thornhill, A. drawing of correct inferences to answer the various research questions that are asked by
accounting researchers.
16. 2005 Journal The Discipline and Practice of Denzin, K. N. and Defines the field of qualitative research, then navigates, charts, and reviews the history of
Qualitative Research Lincoln, S. Y. qualitative research in the human disciplines.
17. 2006 Journal Using thematic analysis in psychology. Braun, V. and Clarke, V. Thematic analysis: Providing accessible guidance on doing and understanding.
Qualitative Research in Psychology, 3,
77–101
18. 2020 Journal Thematic analysis of qualitative data: Kiger, E. M. and Varpio, Outlines what thematic analysis is, positioning it in relation to other methods of qualitative
AMEE Guide L. analysis, and describes when it is appropriate to use the method under a variety of
No. 131 epistemological frameworks.
19. 2011 Journal RESEARCH METHODOLOGY a step-by- Kumar, R. The thesis answers why secondary data is required to establish a research problem.
step guide for beginners 3rd ed.
20. 2010 Journal Research Method in Business Studies. Ghauri, P. and The Impact of Cross-Cultural Communication on Foreign Managers’ Leadership Style in
4th Edition, Pearson, London. Gronhaug, K. China-Based International Organization.
21. 2021 Journal Social Research Methods, 4th Edition Bryman, A. The book offers an encyclopedic introduction to social research methodology, and
considers a broad range of qualitative and quantitative methods to help students identify
and evaluate the best approach for their research needs.
22. 2006 Journal Constructing Grounded Theory - A Charmaz, K. Constructing grounded theory by traversing basic grounded theory steps.
Practical Guide Through Qualitative
Analysis

Source: Created by Author

3.6. Ethical Considerations

Ethical issues are likely to arise during the research process, which may have an
impact on the study’s outcome; therefore, mechanisms to deal with them should
be put in place (Kumar, 2011). To avoid ethical issues, all theorists’ and academic
authors’ bodies of work were accurately referenced to avoid plagiarism and to
acknowledge the original authors. The Harvard Referencing Guide provided by the
University of Bedfordshire was used to ensure proper referencing.

It should be noted that no primary data was gathered for this study, and thus no
personal information was obtained from individuals. Furthermore, all sources of
information were obtained legally as a University student and will only be used in
the context of this study. Solely liable websites and search engines were utilized
and no information was obtained from inaccurate sources of information such as
Wikipedia.

To gain access to online journals, proper netiquette was followed: the University
issued student e-mail address was used to confirm that the journals were being
accessed by a research student when using the search engine, Google Scholar.

3.7. Research Constraints

Throughout my research process, a few constraints or limitations had arisen.

Firstly, the dissertation was required to be completed between a period of
approximately fifteen (15) weeks in the cross-sectional timeframe. As a student
who also has a full-time job in a heavy working environment, time was of the
essence to complete the thesis at hand. Another limitation was the fact that the
only available data resources were secondary in nature and, in some cases, not
available to be downloaded freely. Lastly, the limited word count awarded for the
information within this study was difficult to maintain as there were large
amounts of information which could have been included and would have possibly
provided a deeper and clearer look into the topic at hand.
 4.0. CHAPTER FOUR – FINDINGS AND DISCUSSION

4.1. Findings and Discussion

This chapter aims at briefly analyzing the data collected to identify the extent
organizational culture impacts innovation at the global entertainment company,
the Walt Disney Co.

4.2. THEME 1: ORGANIZATIONAL CULTURE THEORIES

4.2.1 Schein’s Model of Organizational Culture on the Walt Disney Company

According to Schein (2010), culture can be studied at three levels: artifacts (which
may include logos, vision, and mission statements), espoused beliefs and values,
and fundamental underlying assumptions. The organizational culture of the Walt
Disney Company includes excellent storytelling abilities (Williams, 2019). The
company’s history, as well as its products in the global mass media,
entertainment, and theme park industries, are fascinating. The company
facilitates employee behaviors that add value to products through this cultural
factor. The corporate culture, for example, encourages employees to use their
personal experiences to make the company’s entertainment products more
memorable to customers (Williams, 2019). This cultural trait can be found in the
company’s films and related programs, as well as in Disneyland theme parks and
related resorts, where employees are motivated to put on a show that makes
customers’ experiences magical. As a result, storytelling is a cultural trait that
 improves strategic management for the Walt Disney Company’s excellent
entertainment brand image. The following illustration shows the company’s
organizational culture mirrored using Schein’s model:

Figure 1: Schein’s Model of Organizational Culture and the Walt Disney Co.

Disney's corporate culture is

inextricably linked with American
culture. However, the company is
successful on a global scale because it
also has organizational cultural
characteristics that enable employees
to maximize their performance and the
company's profitability.
Assumptions
Beliefs and Values

“Using our portfolio of brands to differentiate our

content, services and consumer products, we seek to
develop the most creative, innovative and profitable
entertainment experiences and related products in the
Artefacts world” – Disney’s Mission Statement shows the values
and beliefs of the company

The Walt Disney Co. has multiple artefacts that are displayed throughout every one of
their locations (inclusive of theme parks, theatres, etc.). Their mission and vision
statements are plastered and visible throughout the destinations, along with their logo
and their iconic characters (e.g. Mickey Mouse, Dumbo, Disney princesses, etc.). The
Disney logo is symbolic of childhood fun and entertainment.

Source: Created by Author, data adapted from The Walt Disney Company (2021)

Analysis: According to Schein (1990) the Walt Disney Co. has a strong approach to
organizational culture by being creative and innovative when it comes to their
products and also has a culture where employees are encouraged to work
together to perform their duties in a ‘happy and pleasant’ way. The Walt Disney
Co.’s employees all over the world contribute to the brand's success by instilling
values in them that they then pass on to all the people they meet on the job. In
line with Disney's ultimate goal of fostering happiness, Maanen (1990) asserts
that Disney is a business that sells a magical and personal experience, and it is the
employees' responsibility to ensure that this goal is met by making each person
feel special. The mission and vision statements of a company establish the
direction in which the company is expected to grow. These two (2) 'artefacts'
incorporate an organization's purpose and goals and are visually represented in
any organization around the world, whether in the lobby or on the company's
website. These words encourage and motivate employees to achieve the
company's goals. This theory, however, ignores the fact that the strength of an
organization's culture is heavily dependent on whether employees' personal
values and beliefs align with the values and beliefs of the organization.

4.2.2. Handy’s Four Power Culture Theory on Walt Disney Co.

Researchers used Charles Handy’s method of looking at culture to link

organizational structure to culture. Handy classified cultures into four categories:
‘Power Culture,’ ‘Role Culture,’ Task Culture,’ and ‘Person Culture.’ According to
Handy (1993), each of the above types of cultures is acceptable; however,
employees are frequently inflexible when it comes to culture, which leads them to
believe the myth that what works well in one organization will also work well in
another (1993:183). Furthermore, Handy points out that an employee who excels
in one culture may not always excel in another (1993:204). As a result, it is up to
the executive of the organization to manage all four cultures, distinguishing and
 integrating them within the organization (Handy, 1993:216). The following
diagrams show Walt Disney’s culture when linked to Handy’s Theory:

Figure 2: Walt Disney’s culture when linked to Handy’s Four Power Theory

High
Power Culture Role Culture
Senior executives bring tremendous experience, Referred to as cast members, Disney employees are
visionary thinking, and a shared commitment to extensively trained in order to provide the best and
excellence, creativity, and innovation to the happiest experience for the customers. They are
company's day-to-day operations. The Walt Disney expected to be happy and polite and are even
Company's Board of Directors represents renowned prohibited from saying the phrases “I don’t know.”
Distribution

global organizations and industries, bringing a Each employee has a role in exhibiting top of the line
Power

diverse range of knowledge, perspective, and attitudes and mannerisms in order to keep Disney’s
experience to guide and drive the company's long- reputation of being “The Happiest Place on Earth”
term value. alive.

Task Culture Person Culture

The Walt Disney Company's employees all over the
Low world contribute to the brand's success by instilling
values in them that they then pass on to all the
people they meet on the job. In line with Disney's
ultimate goal of fostering happiness, Maanen (1990)
asserts that Disney is a business that sells a magical
and personal experience, and it is the employees'
responsibility to ensure that this goal is met by
making each person feel special.
This type of culture does not exist within the Walt
Disney Co. as the organization strives for cooperation.
According to Hightower (1993), The Walt Disney
Company's leaders recognize that creativity is at the
heart of their business and that "a continuous flow of
inspiration and encouragement, of training and
guidance, is the basis for success" (p. 56). 

Low Level of Cooperation High

Source: Created by Author, information obtained from The Walt Disney Co. (2021)

Analysis: Each of the above types of cultures, according to Handy (1993), is fine,
but employees are sometimes inflexible when it comes to culture, which means
they frequently accept the myth that what works well in one business would also
work well in another (1993:183). Furthermore, a successful person in one culture
may not always do well in another, Handy (1993:204). As a result, it is the
responsibility of the organization's executive to manage all four cultures,
distinguishing and integrating them within the company (Handy, 1993:216). Aside
from The Walt Disney Company's core values of innovation, quality, community,
storytelling, optimism, and decency, one must delve deeper into Disney culture to
understand what motivates employees to strive for the level of service that
provides a uniquely "Disney" experience when visitors visit one of the theme
parks, retail stores, or watch one of the movies.

4.3. THEME 2: INNOVATION

4.3.1. The Innovation Matrix Linked To The Walt Disney Co.

At its core, innovation is about doing something that no one else in your industry
is doing. For example, if your company uses innovation on its products, the goal is
to develop or update the products until there is nothing else on the market that is
similar to it. If your company is utilizing process innovation, it is because it will
save you time, money, or other resources while also providing you with a
competitive advantage over other companies that are stuck in their systems
(Alderton, 2021).

Disney innovation elevates storytelling and the creation of immersive experiences

—processes that require extensive BIM coordination in its theme parks. Disney is
best known for its films and theme parks, but storytelling is at the heart of
everything they do (Alderton, 2021). Creating immersive experiences for Disney
theme parks necessitates the collaboration of architects, artists, technologists,
and engineers. BIM is critical for coordinating these disparate disciplines in the
design, fabrication, and installation of Disney parks and attractions. When Walt
Disney opened his first theme park, the original Disneyland in Anaheim, California,
in 1955, he wanted it to be joyful. What he ended up creating, on the other hand,
is far more than that (Alderton, 2021).

The following diagram shows the Innovation Matrix when linked to the Walt
Disney Co.:

Figure 3: The Innovation Matrix When Linked to the Walt Disney Co.

Source: Image obtained from Mazzum Idea Management Solution (2017).

 Breakthrough Innovation at Walt Disney Co.

Disney’s films have always emphasized innovation. Steamboat Willy, an animated

film from the 1920s, was the first to sync sound and picture (Erickson, 2017).
Snow White was released a decade later and was the first full-length animated
film to use multiple frames to depict scenes with depth perception (Erickson,
2017). Walt Disney took things a step further in 1955, when he opened the doors
to the public to Disneyland. For the first time, children and parents could
experience the magic of Disney’s characters in person at a theme park, making
them feel more real than watching them on a movie screen.

 Sustaining Innovation at Walt Disney Co.

In the wonderful world of Disney, it is not so much a matter of maintaining the

empire’s founders’ creative vision as it is of managing the creative process in
order to sustain and continually surpass it. Disney management achieves
continuous innovation by encouraging its 55,000 cast members to discard
preconceived notions and start over every day (Lynch, 2001). It’s a four step
process that works equally well for small businesses and large corporations:

1. Establish the culture - Walt’s philosophy that “good ideas come from
everywhere and everyone” is still followed by the company.
2. Align the concepts – Disney frequently asks the “Three Ws”: “Who are we?”
“What should we do?” ‘What are our plans?”
3. Create the procedure – Disney’s process is guided by three key principles:
create consistency in idea evaluation, include decision-making checkpoints,
and define deliverables.
4. Improve the product – Long after a product or service has been launched,
Disney management refines it to ensure that additional creative ideas are
always implemented. But, perhaps most importantly, Disney has created a
“fail-safe” environment that encourages “successful failures” and encourages
cast members to take creative risks. Because understanding what doesn’t work
can help you get closer to a solution (Lynch, 2001).

 Basic Research at Walt Disney Co.

The mission of Disney Research is to create value for The Walt Disney Company by
delivering scientific and technological innovation across the organization. Their
world-class research talent creates and commercializes the most compelling
technologies, allowing the company to differentiate its content, services, and
products. Disney Research combines the best of academia and industry by
conducting both fundamental and applied research. They use publication as a
primary quality control mechanism and encourage engagement with the global
research community. Millions of people have access to their research applications
and technology (Flame, 2017).

 Disruptive Innovation at Walt Disney Co.

Across its various business lines, Disney competes with a wide range of media
conglomerates. Comcast, Time Warner, 21st Century Fox, CBS Corp., and
Discovery Communications are the company's main competitors (Delaney and
Stawicki, 2016). Disney has established itself as the market leader in the media
industry, with the largest revenue market share among all competitors. Disney
reported $52.465 billion in revenue in 2016, which is equivalent to 31.82 percent
of the total revenue generated by its ten closest competitors combined (Delaney
and Stawicki, 2016). Disney is an innovator and a market leader in its core
business segments. ESPN, ABC, and the Disney Channels provide exclusive content
that is not licensed or distributed by other media networks. Because of the
strength and exclusivity of this content, Disney is able to outperform their
competitors in terms of profit through advertising and affiliate fees. The company
also connects many of its business units so that consumers can interact with the
same characters across multiple platforms such as television, film, consumer
products, parks, and video games (Delaney and Stawicki, 2016).

Analysis: With its strong brand recognition and consumer loyalty, The Walt Disney
Company has been a leader in the media entertainment industry throughout its
history. The company's unique media network content, dominance in its world-
renowned parks and resorts, and consistent ability to monetize its intellectual
property will continue to provide long-term value. Since its inception, the
company has experienced consistent and rapid growth, and it continues to
innovate across all segments. Disney's minority stake in BAMTech and other OTT
streaming services will help the company expand distribution and thus maintain
its leadership position in the industry.
4.4. Culture and Innovation When Linked To Walt Disney

By doing what appears to be the impossible, the Disney Corporation has managed
to be sustainable within its organizational culture. That is, by establishing
franchises while remaining adaptable to change. Walt Disney did an excellent job
of establishing a strong presence in the franchise industry (Udokang, 2021).
Because change is constant, Robert Iger, who took over as C.E.O. from Michael
Eisner in 2005, demonstrated fresh, modern, and visionary thinking. Iger had the
recipe for modern success by combing creative content, technological innovation,
and global expansion. This combination has a disruptive effect because Iger
recognized how to take an external market force, such as technology, and turn it
into an opportunity to expand Disney’s financial arm to reach across the world,
enveloping many complex, and sometimes simple-unstable forces. Thus, Robert
Iger restricted Disney to comfortably fit into the external environment, leveraging
their resources and capabilities to create a competitive advantage (Udokang,
2021).
 CHAPTER FIVE – CONCLUSION AND RECOMMENDATIONS

5.0 Conclusion

The organizational culture of The Walt Disney Company is associated with

American culture (Williams, 2019). The conglomerate is frequently regarded as
one of the many cultural representations of the United States. The organizational
culture of a company is the set of values, traditions, and customs that influence
employees' motivation and behavior (Williams, 2019). Disney's corporate culture
ensures that employees reflect ideals that align with target customers'
preferences and expectations in the mass media, parks and resorts, and
entertainment industries in this case study. Employees' advocacy for good
storytelling, for example, aids in managing and satisfying customers' expectations
about the company's movies, television shows, and related products. The success
of The Walt Disney Company is an indicator of strategic alignment between
corporate culture and the cultural traits of the target market, particularly the
United States. This connection between American culture and Disney's
organizational culture contributes to business success in the United States and
even internationally. Disney's corporate culture is inextricably linked with
American culture. However, the company's international success is due to
organizational cultural characteristics that enable employees to maximize their
performance and the company's profitability (Williams, 2019). For example, The
Walt Disney Company's emphasis on innovation motivates its human resources to
contribute to product development that corresponds to trends in the amusement
park, entertainment, and mass media industry environments. As a result, the
corporate culture aids the corporation's efforts to manage strategic growth and
related opportunities.

5.1. Recommendations

One disadvantage of Disney’s corporate culture is the company’s lack of emphasis

on non-family-oriented themes (Williams, 2019). Though its cultural traits of
decency and community, the company focuses on family orientation. This focus,
however, limits business diversification and expansion. The Walt Disney Company,
for example, cannot easily offer adult-only entertainment products because doing
so would jeopardize its family-oriented brand and culture. A recommendation is
to gradually integrate support for some deviation from such a family orientation
into the company’s organizational culture. This assistance provides additional
flexibility for non-family-oriented business ventures in some segments of the
international market. This business analysis case also demonstrates how
innovation plays a role in Disney’s organizational culture. This cultural factor,
however, does not compel the company to pursue rapid technological innovation
and corresponding strategic management policies. This condition results in a lack
of motivational encouragement for employees to adopt more aggressive
innovation behaviors. To ensure innovation-based advantages against
competitors, it is recommended that the Walt Disney Company promote a more
innovative mindset through its corporate culture.

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