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The Mediating Role of Empowerment on the Relationship Between Organizational Culture and Innovation Performance

Year 2018, Volume: 7 Issue: 1, 53 - 74, 01.06.2018

Abstract

Purpose: The purpose of this study is to determine organizational cultures and innovation performance mediating effect of empowerment by examining a set of manufacturing firms. Methodology: The research data was collected via questionnaire from 821 employees and different levels of managers in 85 manufacturing companies. In this study questionnaire form was used as data collection method. Findings: The findings show that there is a significant relationship between different organizational cultures features empowerment and innovation performance. It is also found that only adhocracy culture directly supports innovation performance and it is determined as the most important predictor of innovation performance. Practical Implications: Empowerment full mediate the effects of clan, hierarchy and market culture that support innovation performance. The findings indicate that not only adhocracy culture but olsa other organizational cultures clan, hierarchy and market support innovation performance when empowered their employees. Originality: This paper is aimed to provide not only theoretical study but also practical results This study has shown that innovative performance in different organizational cultures can be achieved.

References

  • Ahuja, G. and Riitta Katila (2001), “Technological Acquisition and The Innovative Performance of Acquiring Firms: A Longitudinal Study”, Strategic Management Journal, 22, 197–220.
  • Antoncic, B and Robert D. Hisrich (2001), “Intrapreneurship: Construct Refinement and Cross-cultural Validation”, Journal of Business Venturing, 16(5), 495–527.
  • Amabile, T. M. (1988), “A model of creativity and innovation in organizations”, In B. M. Staw and L. L. Cummings (Eds.), Research in Organizational Behavior, 10, 123-167. Greenwich, CT: JAI Press.
  • Bhatnagar, J. (2012), “Management of innovation: Role of psychological empowerment, work engagement and turnover intention in the Indian context”, The International Journal of Human Resource Management, 23(5), 928-951.
  • Black, J. Stewart. and Lyman W. Porter, (2000). Management, Prentice Hall, Inc.
  • Cameron, K. S. and Sarah J. Freeman, (1991). “Cultural Congruence, Strength, and Type: Relationships to Effectiveness”. In: Woodman RW, Pasmore WA (Eds.), Research in Organizational Change and Development, 5.
  • Cameron, Kim S. and Robert E. Quinn (1999), Diagnosing and Changing Organizational Culture, Massachusetts, Pub. Addison-Wesley Publishing Company Inc. Çakar, N. D and Alper Ertürk, (2010). “Comparing Innovation Capability of Small and Medium‐sized Enterprises: Examining the Effects of Organizational Culture and Empowerment”, Journal of Small Business Management, 48(3), 325-359.
  • Conger, J, A. and Rabindra N. Kanungo. (1988), “The Empowerment Process: Integrating Theory and Practice”, The Academy of Management Review, 13(3), 478.
  • Cunningham, I., Jeff Hyman and Chris Baldry (1996), “Empowerment: The Power to Do What?”, Industrial Relations Journal, 27 (2), 143-154.
  • Daft, R.L. (1982), “Bureaucratic Versus Nonbureaucratic Structure and the Process of Innovation and Change”. In: Bacharach S.B. (Ed.), Research in The Sociology of Organizations, Greenwich, CT: JAI Press, 1, 129– 66.
  • Damanpour, F and William M. Evan. (1984) “Organizational Innovation and Performance: The Problem of Organizational Lag”, Administrative Science Quarterly, 2, 392–409.
  • Deal, Terry E. and Allan A. Kennedy (1982), Corporate Culture: The Rites and Rituals of Corporate Life, Reading (MA), Addison-Wesley Publishing.
  • Denison, Daniel R. (1997), Corporate Culture and Organizational Effectiveness, John Wiley & Sons
  • Denison, D. R., Aneil K. Mishra (1995), “Toward a Theory of Organizational Culture and Effectiveness”, Organization Science, 6(2), 204-223.
  • Denison, D. R. (2000), “Organizational Culture: Can It Be a Key Lever for Driving Organizational Change”, In: S. Cartwright and C. Cooper (Eds.), The Handbook of Organizational Culture, London, John Wiley & Sons.
  • Deshpande, R., John U. Farley and Frederick E. Webster, Jr. (1993), “Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis Journal of Marketing”, 57, 23-37.
  • Deshpande, R., John U. Farley (2004), “Organizational Culture, Market Orientation, Innovativeness, and Firm Performance: An International Research Odyssey”, International Journal of Research in Marketing, 21(1), 3-22.
  • Drucker, P. F. (1988), “The Coming of the New Organization”, Harvard Business Review, 66, 45-53.
  • Drucker, Peter Ferdinand (2014), Innovation and Entrepreneurship, Routledge. Ergün, E. and Yunus Emre Tasgit, (2013), “Cultures of Adhocracy, Clan, Hierarchy and Market and Innovation Performance: A Case of Hotels in Turkey”, Journal of Travel and Tourism Research (Online), 13(1/2), 132.
  • Frazier, P.A., Andrew P. Tix, and Kenneth E. Barron (2004), “Testing Moderator and Mediator Effects in Counseling”, Psychology Research, 51(1), 115-134.
  • Freeman, Christopher and Luc Soete (1997), The Economics of Industrial Innovation, Psychology Press.
  • Hagedoorn, J. and Myriam Cloodt (2003), “Measuring Innovative Performance: Is There an Advantage in Using Multiple Indicators?”, Research Policy, 32(8), 1365–1379.
  • Hales, C. & Antonis Klidas (1998), “Empowerment in Five-stars Hotels: Choice, Voice or Rhetoric?”, International Journal of Contemporary Hospitality Management, 10(3), 88- 95.
  • Harris, L. C. (1998), “Cultural Domination: The Key to Market-oriented Culture?”, European Journal of Marketing, 32(3/4), 354-373.
  • Hatch, M.J. (1993), “The Dynamics of Organizational Culture”, Academy of Management Review, 18(4), 657-693.
  • Hofstede, G., Gert Jan Hofstede and Michael Minkov (2010), Cultures and Organizations: Software of the Mind: Intercultural Cooperation and Its Importance for Survival, U.S.A., McGraw-Hill.
  • Hogan, S. J. and Leonard V. Coote (2014), “Organizational Culture, Innovation, and Performance: A Test of Schein’s Model”, Journal of Business Research, 67(8), 1609-21.
  • Hooijberg, R. and Jaepil Choi (2001), “The impact of Organizational Characteristics on Leadership Effectiveness Models: An Examination of Leadership in a Private and a Public-Sector Organization”, Administration & Society, 33(4), 403-431.
  • Johnson, J. D., Marcy E. Meyer, Judy M. Berkowitz, Caroline T. Ethington and Vernon D. Miller (1997). “Testing Two Contrasting Structural Models of Innovativeness in a Contractual Network”, Human Communication Research, 24(2), 320-348.
  • Kalay, F and Gary S. Lynn (2015), “The Impact of Strategic Innovation Management Practices on Firm Innovation”, Research Journal of Business and Management, 2(3), 412- 429.
  • Lund, B. D. (2003), “Organizational Culture and Job Satisfaction”, The Journal of Business & Industrial Marketing, 18(30), 219–236.
  • Martin, (1992), Cultures in Organizations: Three Perspectives. New York, Oxford University Press.
  • Neely, A. and Jasper H. (1998), Innovation and Business Performance: A Literature Review, The Judge Institute of Management Studies, University of Cambridge.
  • Quinn, R. E. and Gretchen M. Spreitzer (1991), “The Psychometrics of the Competing Values Culture Instrument and an Analysis of the Impact of Organizational Culture on Quality of Life”, In: Woodman R.W., Pasmore W.A. (eds.), Research in Organizational Change and Development, Vol: 5.
  • Quinn, Robert E. (1988), Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance, San Francisco, Josey-Bass.
  • Quinn, Robert E., David Bright, Sue R. Faerman, Michael P. Thompson and Michael R. McGrath (1990), Becoming A Master Manager: A Competency Framework, USA, John Wiley.
  • O’Reilly C. A., Jennifer Chatman and David F. Caldwell (1991), “People and Organizational Culture: A Profile Comparison Approach to Assessing Person–Organization Fit”, Academy of Management Journal, 34(3), 487–516.
  • Redmond, M. R., Michael D. Mumford and Richard Teach (1993), “Putting Creativity to Work: Effects of Leader Behavior on Subordinate Creativity”, Organizational Behavior & Human Decision Processes, 55(1), 120-151.
  • Rodriguez, P. R., Ma Hechanova and Ma Regina. (2014), “A Study of Culture Dimensions, Organizational Ambidexterity, and Perceived Innovation in Teams”, Journal of Technology Management & Innovation, 9(3), 21-33.
  • Schein, Edgar H. (2010), Organizational Culture and Leadership, John Wiley & Sons.
  • Shane, S. (1992), “Why Do Some Societies Invent More Than Others?”, Journal of Business Venturing, 7(1), 29-46.
  • Spreitzer, G. M., (1995), “Psychological Empowerment in The Workplace: Dimensions, Measurement, and Validation”, Academy of Management Journal, 38(5), 1442-1465.
  • Stuart, T. E. (2000), “Interorganizational Alliances and The Performance of Firms: A Study of Growth and Innovation Rates in a High-Technology Industry”. Strategic Management Journal, Vol. 21, 791–811.
  • Thomas, K. W. and Betty A. Velthouse (1990), “Cognitive Elements of Empowerment: An Interpretive Model of Intrinsic Task Motivation”, Academy of Management Review, 15(4), 666–681.
  • Veryzer, R. Jr., (1998) “Discontinuous Innovation and the New Product Development Process”, Journal of Product Innovation Management, 15(4), 304-321.
  • Yıldırım, F. & Canan Nur Karabey (2016), “Örgüt Kültürünün Yeniliğe Etkisinde Personel Güçlendirmenin Biçimsel Rolü” İktisadi ve İdari Bilimler Fakültesi Dergisi, 18(2), 426-453.
  • Yılmaz, C. and Ercan Ergun (2008), Organizational Culture and Firm Effectiveness: An Examination of Relative Effects of Culture Traits and the Balanced Culture Hypothesis in an Emerging Economy, Journal of World Business, 43(3), 290-306.

Örgüt Kültürü ve Yenilik Performansı İlişkisinde Güçlendirmenin Ara Değişken Etkisi

Year 2018, Volume: 7 Issue: 1, 53 - 74, 01.06.2018

Abstract

Amaç: Bu çalışmanın amacı, imalat firmalarında örgüt kültürlerinin yenilik performansına etkisinde çalışanı güçlendirmenin ara değişken etkisi ortaya koymaktır. Yöntem: Araştırma verileri, 85 imalat firmasında 821 farklı seviyelerdeki çalışan ve yöneticilerden toplanmıştır. Araştırmada veri toplama yöntemi olarak anket formu kullanılmıştır. Bulgular: Araştırma bulguları farklı örgüt kültürü özelliklerinin, güçlendirme ve yenilik performansı arasında anlamlı bir ilişki olduğunu göstermektedir. Sadece adhokrasi kültürünün yenilik performansını doğrudan desteklediği ve yenilik performansının en önemli belirleyicisi olduğu belirlendi. Sonuç ve Öneriler: Güçlendirme klan, bürokrasi ve pazar kültürlerinin yenilik performansına etkisinde tam ara değişken etkisini göstermiştir. Çalışma sonuçları çalışanlar güçlendirildiğinde, sadece adhokrasi kültürünün değil diğer örgüt kültürlerininde klan, bürokrasi ve pazar yenilik performansını desteleyeceğini göstermiştir. Özgün Değer: .Bu makalede sadece teorik çalışma değil, aynı zamanda pratik sonuçlar sağlaması amaçlanmıştır. Bu çalışma ile farklı örgüt kültürlerinde yenilikçi performans sağlanabileceğini göstermiştir.

References

  • Ahuja, G. and Riitta Katila (2001), “Technological Acquisition and The Innovative Performance of Acquiring Firms: A Longitudinal Study”, Strategic Management Journal, 22, 197–220.
  • Antoncic, B and Robert D. Hisrich (2001), “Intrapreneurship: Construct Refinement and Cross-cultural Validation”, Journal of Business Venturing, 16(5), 495–527.
  • Amabile, T. M. (1988), “A model of creativity and innovation in organizations”, In B. M. Staw and L. L. Cummings (Eds.), Research in Organizational Behavior, 10, 123-167. Greenwich, CT: JAI Press.
  • Bhatnagar, J. (2012), “Management of innovation: Role of psychological empowerment, work engagement and turnover intention in the Indian context”, The International Journal of Human Resource Management, 23(5), 928-951.
  • Black, J. Stewart. and Lyman W. Porter, (2000). Management, Prentice Hall, Inc.
  • Cameron, K. S. and Sarah J. Freeman, (1991). “Cultural Congruence, Strength, and Type: Relationships to Effectiveness”. In: Woodman RW, Pasmore WA (Eds.), Research in Organizational Change and Development, 5.
  • Cameron, Kim S. and Robert E. Quinn (1999), Diagnosing and Changing Organizational Culture, Massachusetts, Pub. Addison-Wesley Publishing Company Inc. Çakar, N. D and Alper Ertürk, (2010). “Comparing Innovation Capability of Small and Medium‐sized Enterprises: Examining the Effects of Organizational Culture and Empowerment”, Journal of Small Business Management, 48(3), 325-359.
  • Conger, J, A. and Rabindra N. Kanungo. (1988), “The Empowerment Process: Integrating Theory and Practice”, The Academy of Management Review, 13(3), 478.
  • Cunningham, I., Jeff Hyman and Chris Baldry (1996), “Empowerment: The Power to Do What?”, Industrial Relations Journal, 27 (2), 143-154.
  • Daft, R.L. (1982), “Bureaucratic Versus Nonbureaucratic Structure and the Process of Innovation and Change”. In: Bacharach S.B. (Ed.), Research in The Sociology of Organizations, Greenwich, CT: JAI Press, 1, 129– 66.
  • Damanpour, F and William M. Evan. (1984) “Organizational Innovation and Performance: The Problem of Organizational Lag”, Administrative Science Quarterly, 2, 392–409.
  • Deal, Terry E. and Allan A. Kennedy (1982), Corporate Culture: The Rites and Rituals of Corporate Life, Reading (MA), Addison-Wesley Publishing.
  • Denison, Daniel R. (1997), Corporate Culture and Organizational Effectiveness, John Wiley & Sons
  • Denison, D. R., Aneil K. Mishra (1995), “Toward a Theory of Organizational Culture and Effectiveness”, Organization Science, 6(2), 204-223.
  • Denison, D. R. (2000), “Organizational Culture: Can It Be a Key Lever for Driving Organizational Change”, In: S. Cartwright and C. Cooper (Eds.), The Handbook of Organizational Culture, London, John Wiley & Sons.
  • Deshpande, R., John U. Farley and Frederick E. Webster, Jr. (1993), “Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis Journal of Marketing”, 57, 23-37.
  • Deshpande, R., John U. Farley (2004), “Organizational Culture, Market Orientation, Innovativeness, and Firm Performance: An International Research Odyssey”, International Journal of Research in Marketing, 21(1), 3-22.
  • Drucker, P. F. (1988), “The Coming of the New Organization”, Harvard Business Review, 66, 45-53.
  • Drucker, Peter Ferdinand (2014), Innovation and Entrepreneurship, Routledge. Ergün, E. and Yunus Emre Tasgit, (2013), “Cultures of Adhocracy, Clan, Hierarchy and Market and Innovation Performance: A Case of Hotels in Turkey”, Journal of Travel and Tourism Research (Online), 13(1/2), 132.
  • Frazier, P.A., Andrew P. Tix, and Kenneth E. Barron (2004), “Testing Moderator and Mediator Effects in Counseling”, Psychology Research, 51(1), 115-134.
  • Freeman, Christopher and Luc Soete (1997), The Economics of Industrial Innovation, Psychology Press.
  • Hagedoorn, J. and Myriam Cloodt (2003), “Measuring Innovative Performance: Is There an Advantage in Using Multiple Indicators?”, Research Policy, 32(8), 1365–1379.
  • Hales, C. & Antonis Klidas (1998), “Empowerment in Five-stars Hotels: Choice, Voice or Rhetoric?”, International Journal of Contemporary Hospitality Management, 10(3), 88- 95.
  • Harris, L. C. (1998), “Cultural Domination: The Key to Market-oriented Culture?”, European Journal of Marketing, 32(3/4), 354-373.
  • Hatch, M.J. (1993), “The Dynamics of Organizational Culture”, Academy of Management Review, 18(4), 657-693.
  • Hofstede, G., Gert Jan Hofstede and Michael Minkov (2010), Cultures and Organizations: Software of the Mind: Intercultural Cooperation and Its Importance for Survival, U.S.A., McGraw-Hill.
  • Hogan, S. J. and Leonard V. Coote (2014), “Organizational Culture, Innovation, and Performance: A Test of Schein’s Model”, Journal of Business Research, 67(8), 1609-21.
  • Hooijberg, R. and Jaepil Choi (2001), “The impact of Organizational Characteristics on Leadership Effectiveness Models: An Examination of Leadership in a Private and a Public-Sector Organization”, Administration & Society, 33(4), 403-431.
  • Johnson, J. D., Marcy E. Meyer, Judy M. Berkowitz, Caroline T. Ethington and Vernon D. Miller (1997). “Testing Two Contrasting Structural Models of Innovativeness in a Contractual Network”, Human Communication Research, 24(2), 320-348.
  • Kalay, F and Gary S. Lynn (2015), “The Impact of Strategic Innovation Management Practices on Firm Innovation”, Research Journal of Business and Management, 2(3), 412- 429.
  • Lund, B. D. (2003), “Organizational Culture and Job Satisfaction”, The Journal of Business & Industrial Marketing, 18(30), 219–236.
  • Martin, (1992), Cultures in Organizations: Three Perspectives. New York, Oxford University Press.
  • Neely, A. and Jasper H. (1998), Innovation and Business Performance: A Literature Review, The Judge Institute of Management Studies, University of Cambridge.
  • Quinn, R. E. and Gretchen M. Spreitzer (1991), “The Psychometrics of the Competing Values Culture Instrument and an Analysis of the Impact of Organizational Culture on Quality of Life”, In: Woodman R.W., Pasmore W.A. (eds.), Research in Organizational Change and Development, Vol: 5.
  • Quinn, Robert E. (1988), Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance, San Francisco, Josey-Bass.
  • Quinn, Robert E., David Bright, Sue R. Faerman, Michael P. Thompson and Michael R. McGrath (1990), Becoming A Master Manager: A Competency Framework, USA, John Wiley.
  • O’Reilly C. A., Jennifer Chatman and David F. Caldwell (1991), “People and Organizational Culture: A Profile Comparison Approach to Assessing Person–Organization Fit”, Academy of Management Journal, 34(3), 487–516.
  • Redmond, M. R., Michael D. Mumford and Richard Teach (1993), “Putting Creativity to Work: Effects of Leader Behavior on Subordinate Creativity”, Organizational Behavior & Human Decision Processes, 55(1), 120-151.
  • Rodriguez, P. R., Ma Hechanova and Ma Regina. (2014), “A Study of Culture Dimensions, Organizational Ambidexterity, and Perceived Innovation in Teams”, Journal of Technology Management & Innovation, 9(3), 21-33.
  • Schein, Edgar H. (2010), Organizational Culture and Leadership, John Wiley & Sons.
  • Shane, S. (1992), “Why Do Some Societies Invent More Than Others?”, Journal of Business Venturing, 7(1), 29-46.
  • Spreitzer, G. M., (1995), “Psychological Empowerment in The Workplace: Dimensions, Measurement, and Validation”, Academy of Management Journal, 38(5), 1442-1465.
  • Stuart, T. E. (2000), “Interorganizational Alliances and The Performance of Firms: A Study of Growth and Innovation Rates in a High-Technology Industry”. Strategic Management Journal, Vol. 21, 791–811.
  • Thomas, K. W. and Betty A. Velthouse (1990), “Cognitive Elements of Empowerment: An Interpretive Model of Intrinsic Task Motivation”, Academy of Management Review, 15(4), 666–681.
  • Veryzer, R. Jr., (1998) “Discontinuous Innovation and the New Product Development Process”, Journal of Product Innovation Management, 15(4), 304-321.
  • Yıldırım, F. & Canan Nur Karabey (2016), “Örgüt Kültürünün Yeniliğe Etkisinde Personel Güçlendirmenin Biçimsel Rolü” İktisadi ve İdari Bilimler Fakültesi Dergisi, 18(2), 426-453.
  • Yılmaz, C. and Ercan Ergun (2008), Organizational Culture and Firm Effectiveness: An Examination of Relative Effects of Culture Traits and the Balanced Culture Hypothesis in an Emerging Economy, Journal of World Business, 43(3), 290-306.
There are 47 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Ercan Ergün This is me

Publication Date June 1, 2018
Published in Issue Year 2018 Volume: 7 Issue: 1

Cite

APA Ergün, E. (2018). The Mediating Role of Empowerment on the Relationship Between Organizational Culture and Innovation Performance. Journal of Entrepreneurship and Innovation Management, 7(1), 53-74.