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

-□

□ -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

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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

Innovation plays a crucial role in organizational culture Innovation isthe process of developing and improving products, processes, and marketswith the goal of increasing value Define innovation as the successfulimplementation of creative ideas within a company The purpose of thisresearch is to investigate the relationship between corporate culture andinnovation It is critical for both innovation and organizational culturespecialists to comprehend the systemic relationship between these conceptsand its value in generating and preserving sustainable competitiveadvantage 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 analysisand 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

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

to tackle practical problems by prioritizing organizational culture thatimproves employee innovation

Value: This research proposal contributes to organizational culture

research by highlighting the impact of organizational culture activities inimproving employee innovation

Keywords: organizational culture, employee innovation, influence.

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 everyinternal 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

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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 tothe 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

Organizational culture refers to the workplace value system that influenceshow employees think, do, and distinguish substantially between and withinfirms(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 taxonomiesare 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

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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 orperhaps 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 dobut 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 organizationalculture 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

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 thedegree 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 encompasseschange 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)

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Adaptability

EmployeeInnovationConsistency

Mission

Figure 1: Conceptual framework

CHAPTER 2 RESEARCH METHOD

2.1 Sample and data collection.

To collect data for analysis, I will conduct an employee survey in Quang Ninh, Vietnam The targets would be young people under the age of

30 This research proposal would use a convenient sampling method to approach and deliver the surveys to the respondents who have been targeted Because of the use of scale measurement, which has been shown in prior studies(Johannessen et al., 2001a), the questionnaire is easily translated into Vietnamese without the requirement for a pilot test The questionnaire will be conducted in 2021

2.2 Measurement scale.

For the variables that will be used in this research proposal, we willcreate scales from the research All items will be assessed on a Likert 5-

point scale (1 = strongly disagree to 5 = strongly agree) The appendix

contains the scales that will be modified for this study

Organizational culture dimensions: The Denison organizational culture

inventory was used to assess organizational culture(D R Denison &

Mishra, 1989b) There are four culture dimensions in this inventory,

consistency, involvement, adaptability, mission The Denison model

defines three organizational practices in each of the four aspects For

instance, "mission" encompasses strategic direction, ambitions, objectives, and sight; "involvement" includes empowerment, team orientation, and

development planning; "consistency" encompasses core values, contract,

and coordination, as well as integration; and "adaptability" encompasses

adjust, customer satisfaction, and organizational learning Four survey

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