RESEARCH PROPOSAL THE INFLUENCE OF ORGANIZATIONAL CULTURE ON INNOVATION

Purpose: The following article studies the influence of organizational culture on employee innovation Methodology: A questionnaire of 100 personnel will be undertaken from new hires to

NATIONAL ECONOMICS UNIVERSITY

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RESEARCH PROPOSAL THE INFLUENCE OF ORGANIZATIONAL CULTURE ON INNOVATION

Students: Tran Hoang Thanh - 11194734

Major: Business Administration

Intake: 61

Class: Management of quality and innovation

Supervisor: Vũ Hoàng Nam, PhD

Ha Noi, 06/2021

DECLARATION

I hereby declare that this is my recent research proposal The study's references are included in the references section All data utilized in the research article for evaluation and analysis was gathered by me, examined honestly and objectively, has a clear source, and has never been used or published in any other project If I'm wrong, I'd prefer to accept full

responsibility and accept all of the consequences imposed by the faculty and the institution

Ha Noi, November, 2021

LIST OF TABLES AND FIGURES

Figure 1: Conceptual framework 14

ABSTRACT

Innovation plays a crucial role in organizational culture Innovation is the process of developing and improving products, processes, and markets with the goal of increasing value Define innovation as the successful implementation of creative ideas within a company The purpose of this research is to investigate the relationship between corporate culture and innovation It is critical for both innovation and organizational culture specialists to comprehend the systemic relationship between these concepts and its value in generating and preserving sustainable competitive advantage for firms

Purpose: The following article studies the influence of organizational

culture on employee innovation

Methodology: A questionnaire of 100 personnel will be undertaken from new

hires to experienced and expert employees; we've got you covered in Vietnam The study hypotheses will be examined using correlation and regression analysis and considered from a descriptive statistic analysis

Research limitations/implications: Because the scope of this study will be

limited to one country, additional research in other nations is required The

poll will be performed during a period of economic downturn It would be

proposed that the investigation be repeated in a stable financial condition to

analyze the findings' specificity

Practical implications: Directors could use this proposal to find the results

to tackle practical problems by prioritizing organizational culture that improves employee innovation

Value: This research proposal contributes to organizational culture research

by highlighting the impact of organizational culture activities in improving employee innovation

Keywords: organizational culture, employee innovation, influence

INTRODUCTION

From 1990s, Vietnam has made a move from a exceedingly

centralized aggranged economy to a communist situated advertise

economy Over that period, the economy has experienced rapid growth At present, Vietnam is in a period of integration into the global economy But the major of all Vietnamese enterprises are still small and medium

enterprises and lack competitiveness, especially in this global market In order to take advantage of chances and go through challenges in the market

in the long term, Vietnam companies need to concentrate on the root

problems, especially innovation In reality, innovation is critical to the development of a dynamic and entrepreneurial firm (Johannessen et al., 2001a) that has become widely realized as the important element to

competitive success(Francis & Bessant, 2005)

Furthermore, organizational culture is a component that arises in every internal corporation in order to improve work performance and create an environment conducive to creativity Strong cultures rated higher in new product development and were predicted to expand more in the future, according to growth projections in stock prices, according to some experts

On the other side, a well-balanced culture can aid an organization's ability

to innovate Some researchers have discovered that attributes such as

engagement and adaptability are vital for execution and implementation, which leads to innovation(Schein, 1989a)

In recent years, according to my knowledge, there have been a number

of researches about innovation on companies deeply but they are still

fragmented and disconnected As a result, it's critical to conduct a

comprehensive literature review to assess previous work and identify

relevant study themes and developing patterns Moreover, we will be able

to consolidate and integrate existing knowledge, as well as present the key

discoveries related to this link for future studies to expand on Secondly,

earlier research has a tendency to treat the impact of culture on innovation

in an absolutized manner However, a more comprehensive and complete

understanding of the relationship between culture and innovation requires

synthesizing conceptual advancements and different empirical data

Finally, there is a gap in current research on the impact of organizational

culture on innovation at various phases

As a result, the study will attempt to investigate and seek an answer to

the following questions “Does the organizational culture encourage

employee innovation ?”

Research method

Primary data will be used from online survey questionnaires collected from 100 people in our research The relationship between organizational

culture and employees' innovation will be tested by multiple linear

regression,… used by me

Structure of the report

The following chapters will go over the specifics of the project:

 Chapter 1 illustrates the literature review and hypothesis influence

of organizational culture on employee innovation;

 Chapter 2 presents the study technique used in this study, which

includes collection and information capture, measurement, and statistical

analysis;

 Chapter 3 gives conclusions

CHAPTER 1 LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

1.1 Organizational culture

In an organization, organizational culture is depicted as the people's shared mental software or shared concepts(Hofstede et al., 1991) It is a shared understanding of how members of an organization think and carry out their responsibilities that separate one organization from another It is one of an organization’s most essential social qualities.(Schein, 1989b) Organizational culture refers to the workplace value system that influences how employees think, do, and distinguish substantially between and within firms(Warrick et al., 2016) It correlates well with the desired workplace development and performance (Chatterjee et al., 2018)

Organizational culture can be diagnosed using a variety of descriptive methodologies (Handy, 1999; Schein, 1989b) In the literature, the

competing value framework and Dension organizational culture taxonomies are commonly utilized Competing esteem system could be a typological system that employments the Jungian prime example approach to classify organizations into one of numerous commonly elite societies, such as clan, progressive, market-oriented, or adhocracy, while Dension organizational culture could be a settled structure of organizational culture in which the first-order measurements are particular sufficient to permit clear

explanations almost behavioral standards and values, and the higher-order variables are wide sufficient to permit conceptual linkages to other

cultures(D Denison et al., 2014) Dension organizational culture does not categorize organizations as a whole; rather, it profiles an organization's organizational culture Mission, engagement, consistency, and flexibility are the four dimensions of Dension organizational culture

1.2 Employee Innovation

Innovation is widely regarded as an important source of competitive advantage in a rapidly changing environment According to management scholars, innovation capability is the most crucial determination of firm performance(Mone et al., 1998) According to Schumpeter, innovation manifests in novel outputs: a new product or a new quality of a product; a new method of production; a new market; a new organizational structure or perhaps a new source of supply, which can be summed as “doing things distinctively” Innovation is defined as “ the deliberate admission and implementation of ideas, processes, goods, or procedures that are new to the relevant unit of adoption and are intended to improve the individual, group, organization, or wider society within a position, group, or

organization” (van der Vlist, 1992a) Another definition about innovation is

as an "An individual or other unit of adoption perceives a new idea,

practice, or item." (Rogers, 1995)

Enhancing management practices, in addition to introducing new and upgrading existing technology and procedures, is also considered

innovation.(Johannessen et al., 2001b) Innovation is also regarded as newness, as suggested by(Johannessen et al., 2001b) in which case did their scholars decade, first of all, newness provides the beginning of

implementing innovative concepts is provided by novelty Second, when intellectual capital is the end result that inspires creativity and improves organizational performance, newness can be an indicator of developing organizational competitive advantages that are sustainable This study considers innovation as a process relating to the generation, adoption, implementation, and incorporation of new the organization's ideals,

procedures, or artifacts.(van der Vlist, 1992b)

Additionally, innovation is also analyzed in two kinds as incremental and radical following to its degree of novelty Moreover, radical innovation

is doing something distinctive, incremental innovation is doing what we do but it is better

1.3 Organizational culture and employee innovation

Since studies have shown that innovation improves performance,

companies have been actively embedding innovation into their culture, especially with regard to an innovative workforce Our literature

assessment also finds a scarcity of studies in Asia, particularly in Vietnam,

on the association between organizational culture and employee innovation Current evidence is only about certain aspects of innovation such as

organizational innovativeness and the antecedents of creative culture,

which are now supported by evidence These limitations will affect the knowledge of the young generation on employee innovation

Cultural values have the potential to improve employee innovation (Dibyantoro et al., 2021) The positive relationship between organizational culture and employee innovation have been reported by past studies

(Martins & Terblanche, 2003) Results from (Shahzad et al., 2017)

confirmed that corporate culture has a subtaintially favorable impact on growth Amabile ( 2013) set up that the componential hypothesis of

imagination contains four key components: domain-relevant capacities, creativity-relevant forms, natural errand inspiration, and the work

environment, all of which are connected to worker advancement

Therefore, it is hypothesized:

H1: Organizational mission is positively associated with Employee Innovation

Null hypothesis: there is no relationship between organizational

mission and Employee Innovation

Alternative hypothesis: there exists a relationship between

organizational mission and employee innovation: the more organizational mission, the more Employee Innovation

Employee innovation and the company's mission External adaptation

is referred to as mission Three characteristics characterize an

organization's ability to generate a meaningful direction: strategic direction, goals and objectives, and vision(D R Denison & Mishra, 1989a) The mission of the organization encourages creativity(Lemon & Sahota, 2004)

By establishing a vision and plan, as well as offering a roadmap, the

mission is linked to Employee innovation(H J Denison et al., 2013)

H2: Organizational involvement is positively associated with Employee Innovation

Null hypothesis: There is no relationship between organizational

involvement and Employee Innovation

Alternative hypothesis: there exists a relationship between

organizational involvement and employee innovation: the more

organizational involvement, the more Employee Innovation

Employee innovation and involvement The internal integration process

is referred to as "involvement." The cornerstone of any company is its ability to build values, systems, and behaviors Empowerment, teamwork focus, and capability development are examples of this characteristic(D R Denison & Mishra, 1989a) Involvement and creativity were found to be much more favorable when there was a high level of involvement In

Vietnamese organizations, employee involvement and empowerment have been demonstrated to have a good impact on creativity(Nguyen &

Robinson, 2015) Wallace et al (2016) demonstrated that employee

involvement has a favorable indirect influence on innovation By

developing autonomy and accountability, teamwork, and empowerment, engagement is linked to EI(H J Denison et al., 2013) The greater the level

of employee involvement, the bigger the impact on the firm's innovative performance(Rangus & Slavec, 2017)

H3: Organizational consistency is positively associated with Employee Innovation

Null hypothesis: There is no relationship between organizational

consistency and Employee Innovation

Alternative hypothesis: there exists a relationship between

organizational consistency and employee innovation: the more

organizational consistency, the more Employee Innovation

Employee innovation and consistency Internal consistency refers to the degree to which people and organizations understand the organizational system of beliefs, which includes fundamental principles, consensus,

coordination, and integration(D R Denison & Mishra, 1989b) Barton (1992)found that innovation is linked to cooperation and

Leonard-fundamental ideals of consistency Cross-functional collaboration, which supports alignment and coordination in the innovation process, is related to consistency and Employee Innovation (H J Denison et al., 2013)

H4: Organizational adaptability is positively associated with Employee Innovation

Null hypothesis: There is no relationship between organizational

adaptability and Employee Innovation

Alternative hypothesis: there exists a relationship between

organizational adaptability and employee innovation: the more

organizational adaptability, the more Employee Innovation

External adaptability refers to an organization's ability to examine and comprehend the market in which it works This characteristic encompasses change management, client orientation, and organizational learning (D R Denison & Mishra, 1989a) According to some experts, innovation is defined as the adoption of a novel idea or behavior within an organization (Damanpour et al., 1989) The source of ideas, proactive response, and risk-taking are all linked to organizational adaptability and innovation(H J Denison et al., 2013)