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International Business – Baltic Business Development- Tallinn 2013

Tallinn 2013

Edited By Gunnar Prause, Urve Venesaar and Wolfgang Kersten

This volume is a collection of the research papers presented at the colloquium Baltic Business Development, which took place in the environment of the 3rd international conference Economies of Central and Eastern Europe (ECEE) in Tallinn in 2012. The colloquium was organised by Tallinn School of Economics and Business Administration of Tallinn University of Technology in cooperation with Hamburg University of Technology and the Baltic-German University Liaison Office in Riga. The colloquium offered a great platform for promoting cooperation and for disseminating knowledge and experience on the development of international business in the Baltic Sea Region in the frame of the Baltic Sea Strategy and the Agenda EU2020.

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Organizational Culture as Predictor of Innovation Climate. Ruth Alas, Ülle Übius and Mary Ann Gaal

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169 Organizational Culture as Predictor of Innovation Climate Ruth Alas1, Ülle Übius1 and Mary Ann Gaal2 Abstract This paper analyses how organizational culture predicts innovation climate in Asian and East- European countries. The survey was conducted in Chinese, Japanese, Russian, Slovakian and Czech electric-electronic machine, retail store, and machine-building enterprises. The total number of respondents was 5119. The results of linear regression analysis show that in Japan and China three organizational culture types – clan, market, and adhocracy – predicted inno- vation climate. In Slovakia and Czech Republic two organizational culture types – market and adhocracy – predicted innovation climate, while in Russia only adhocracy culture type pre- dicted innovation climate. Differences between their national cultures may explain these re- sults. Keywords: innovation climate; organizational culture; Asia; Eastern Europe JEL classification: M1, O3 1. Introduction As more and more enterprises seek new markets and compete in existing ones, the ability to innovate, both internally and externally, adds a significant competi- tive advantage to enterprises. Our research looks to see whether organizational culture predicts innovation climate and further, how that may be influenced by national culture. We use Cameron and Quinn’s (1999) competing values model to describe the organizational climate. According to previous studies, culture is the lens through which a leader’s vision is manifested and helps build the cli- mate necessary for organizations to become innovative (James, Choi, Ko, McNeil, Minton, Wright and Kim 2007). According to Yukl (2002), specific leadership behaviours may influence innovation through compliance as part of the organizational culture. Research...

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