Constructing Innovation Culture for Low-middle Economies: A Systems Approach

Abstract

The objective of this study was to test a model on building a culture of innovation that best fits organisations from developing countries. It examined the roles of organisational strategy, leadership and support systems in building an innovation culture. Specifically, it used the open systems theory in examining the mediating role of support systems in the relationship between organisational strategy, leadership and innovation culture. This study utilised data surveyed from 671 employees from 23 different business organisations in the Philippines. Participants completed questionnaires that measured organisational strategy, leadership, support systems and innovation culture. Structural equation modelling (SEM) confirmed the hypothesis that support systems, leadership and organisational strategy predict an organisational innovation culture. Mediation analysis showed that support systems account for 38% of the impact of organisational strategy on the perceived innovation culture. It also showed that support systems account for 77% of the impact of leadership on the perceived innovation culture. The main contribution of this study was to present an innovation culture model suitable for developing countries at the same time showing how the relationships of the determinants of innovation culture predict innovation in an organisation. Specifically, it showed how support systems mediate between the relationships of organisational strategy, leadership and innovation.