Naranjo-Valencia et al. (2016) conducted a study to investigate the links between the organizational culture, innovation and performance. All these three factors add to a company’s competitive advantage, and they are crucial determinants of the company’s long-term success. The study was guided by several hypotheses that were related to organizational culture, innovation and performance. For the study, Naranjo-Valencia et al. (2016) considered for categories of innovations that include product innovation, organizational innovations, marketing innovations and process innovations. For the analysis of Organizational culture, competing values model that was formulated by Cameron and Quinn (1999) was utilized. As a result, organizational culture was broken into four types, including hierarchy, market, adhocracy and clan organizational cultures.
Naranjo-Valencia et al. (2016) used a qualitative study that consisted of 1600 Spanish organizations that operated from southeast Spain. Interviews were the primary data collection method, and the interview process was guided by a questionnaire that was previously tested. A 5-point Likert scale to measure performance and innovation, whereas the Organizational Culture Assessment Instrument (OCAI) was used to measure the organizational culture. Naranjo-Valencia et al. (2016) reported that there exists a link between performance and innovation. Also, there is a strong link between organizational culture, performance and also innovation. Concerning organizational culture-performance link, it is indeed true that innovation is determined by organizational culture whereby culture can either foster or suppress innovation. However, adhocracy culture had a positive influence on innovation, whereas hierarchy culture influences innovation negatively. The study obtained no significant results concerning the market and clan culture. With regards to the organizational culture-performance link, Naranjo-Valencia et al. (2016) reported that adhocracy culture affects performance positively, whereas negative link was established between hierarchy culture and performance. Also, both market and clan culture affect performance positively, although the effect is relatively lower than that of adhocracy culture. Finally, Naranjo-Valencia et al. (2016) concluded that innovation mediates organizational culture and performance.
Comparison between Naranjo-Valencia et al. (2016) and Hogan & Coote (2014)
The articles by Naranjo-Valencia et al. (2016) and Hogan & Coote (2014) explore the different aspects of organizational culture, innovation and performance. Naranjo-Valencia et al. (2016) investigated the links between culture, performance and innovation. In this, four types of organizational culture were considered, and they include hierarchy, market, adhocracy and clan organizational cultures. In contrast, Hogan and Coote (2014) study the processes that support innovation, whereby a multi-layered model of organizational culture is used to help understand the various processes that nurture innovation. The organizational culture layers considered in the study by Hogan and Coote (2014) include artefacts, values, norms and behaviours. The research by Naranjo-Valencia et al. (2016) adopted a quantitative approach and used interviews that were guided by a questionnaire that was tested previously, as the primary data collection method. The research included 1600 Spanish companies from South East Spain. In the same way, Hogan and Coote (2014) adopted a quantitative approach that used 658 firm principals from law firms situated in Sydney, Australia. For this research, Hogan and Coote (2014) used a survey questionnaire to collect information from the law firm’s principals.
The findings by Naranjo-Valencia et al. (2016) indicate that there is a strong link between organizational culture, performance and also innovation. Therefore innovation is determined by organizational culture whereby culture can either foster or suppress innovation, although adhocracy culture had a positive influence on innovation, whereas hierarchy culture influences innovation negatively. Also, the research found that market and clan culture affect performance positively, although the effect is relatively lower than that of adhocracy culture. Thus, innovation mediates organizational culture and performance. In contrast, Hogan and Coote (2014) established a positive link between norms and innovation, behaviours and innovation, artefacts and innovation and innovation artefacts and behaviours. Based on this, it is indeed true that organizational culture is a mediating factor that supports innovation for better firm performance.