WP10

Innovative culture: The characteristics of national and organizational cultures supporting innovations in firms

Key partner: VSE

According to the European Innovation Scoreboard 2005, major differences exist across European countries in terms of their innovation performance. A gap exists between leading countries (e.g. Switzerland and Germany), average performers (e.g. Italy), catching up countries (e.g. the Czech Republic) and countries which are losing ground. Despite the fact that many studies on the relationships between innovation inputs and outputs have been done, there is not sufficient information on the relation between the characteristics of national culture and the unevenness of innovation outputs. Conceptual arguments relating cultural characteristics to innovative performance have been around existed for decades. It has been argued that cultural characteristics of innovating societies include willingness to face uncertainties, have a dynamic long-term orientation, low power distance and value creativity. However, the topic has not received appropriate research attention. Most of the existing studies used Hofstede's dimensions (e.g. Shane's studies) and came with some evidence of relations between broad cultural dimensions (e.g. high individualism, low uncertainty avoidance) and innovations (e.g. national innovation output). Nevertheless, the findings are not consistent in time.

An independent measure of cultural values that are directly related to innovations as well as a comprehensive theoretical model of the association between culture and different outcomes of innovative behaviour need to be developed. While not diminishing the significance of innovations in other fields, our backgrounds and interests lead us to further consider innovations in the organizational context and examine the interaction between national and organizational cultures and their joint effects upon innovation. Indeed, the European cultural diversity can be due to the current economic and business climate either triumph or failure of European multinational companies on the global markets. Multicultural companies have more complicated management of human resources than mono-cultural ones. On the other hand, in cultural diversity lie opportunities for the creation of innovations and their development. On a larger scale, innovation is not vital just for companies, but also for the economic and social development at a societal and global level.

The main sub-objectives of this WP are identification and operationalization of the key characteristics of both national cultures and organizational cultures of international companies that support innovative actions. In particular, our goals are to deliver:

A better understanding of key characteristics of particular national cultures that support innovations will be beneficial for policymakers.
A model of organizational culture of international company to support and generate innovations will be helpful for companies.
The definition of key characteristics of innovation culture and their operationalization and the methods of measurement of innovation culture on the national and organizational level will be important for further research in the field.

Particular cultures' strengths in relation to innovations will be explored both at the national and at the organizational (ethnocentric, polycentric and geocentric types of corporate culture) level. Specific type of company (business sector, size, level of inner multiculturalism) with specific firm history (continuity vs. discontinuity) will be taken into account. In the context of encountering of different organizational and national cultures crucial methodical tools for creation and enforcement of organizational innovation culture will be formulated.To empirically study the relationship between culture and innovation at both the individual and the organisational level, this work package will relay on a representative survey of innovation characteristics of national cultures.

Based on literature review, analysis of relations between national culture and innovations will be done and will result in methodology for representative survey of innovation characteristics of national cultures. These adult population surveys will be done by selected vendors in Italy, Switzerland, Germany, and the Czech Republic. Data evaluation will contribute to a National Innovative Culture report. Empirical survey in the companies will follow with an analysis of critical situations in companies in relation to innovations and in relation to cooperation between cultures and innovative actions. Different types of cooperation of two and more cultures (e.g. dominance vs. submission, cooperation, integration, innovation) as well as intrapreneurship and the level of empowerment will be described and analysed. Also hard data will be taken into account: Measures of innovation activity outputs (e.g. patents, new products) and inputs (e.g. financial strength, technological background). Suggestions for accelerating cultural dynamics towards innovations will be produced. Implementation of these recommendations in the selected companies will be finally used for the verification of the methodical tools.

Last updated April 21, 2009

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