Exploring the Relationships Between Organizational Culture, Management Control System and Organizational Innovation

Abstract

Organizations consist of numerous tangible and intangible factors. Many of these factors were individually studied in relation to each other, but several factors still need a more thorough investigation. This study aims to examine the direct and indirect effects of organizational culture (OC) on organizational innovation (OI) through the management control system (MCS) as a mediating factor. To achieve this aim, studies were comprehensively conducted in regard to the effects of OC on OI, the effects of OC on the MCS and the effects of MCS on OI. This study attempts to focus on the effects of OC and the MCS as mediating factors for OI among universities in Saudi Arabia. In this study, SmartPLS was used to validate the measurement model and relations between variables. The study results found that OC was significantly and directly related to OI, and it was significantly and indirectly related through the MCS as the mediating factor. This finding confirmed previous findings and supported the important roles of both constructs in university improvements.