PERCEIVING VALUE IN ORGANISATIONAL INNOVATION: BUILDING A CULTURE OF CHANGE

Abstract

This paper uses Transactional Management Theory to examine the extent to which an organisational culture is apt to encourage organisational innovation by using reward mechanisms. We gathered responses from 208 middle managers in the United States and Mexico where firms acquire varying blends of organisational orientations and leadership styles. We found performance orientation, modesty, humane orientation and power distance to be significantly related to reward mechanisms, but not all positively. We also found that the practice of rewarding innovation creates value in such a practice.