The Impact of Innovative Culture on Individual Employees: The Moderating Role of Market Information Sharing

Authors

  • Yinghong (Susan) Wei,

  • Hugh O'Neill,

  • Ruby P. Lee,

  • Nan Zhou


Address correspondence to: Yinghong (Susan) Wei, A. R. Sanchez, Jr. School of Business, Texas A&M International University, Laredo, TX78041. E-mail: susanwei.yinghong@gmail.com. Tel: 918-729-0072.

Abstract

Current innovation literature provides a very limited understanding of the potential impacts of innovative culture on employees. Building on resource-based view theory, the authors investigate theoretically and empirically how a perceived innovative culture can be a building block for a firm's competitive resource and advantage by creating superior employee-level outcomes and how a market information-sharing process may moderate these effects. The authors identify three distinct types of individual-level outcomes stemming from an innovative culture. The three outcome variables—job satisfaction, organizational dynamism perception, and firm performance perception—reflect employees’ psychological and cognitive reactions to the process of creating organizational innovation and innovative culture. The authors collect survey data from 3960 individual employees in China. Their findings first show that a perceived innovative culture significantly and positively affects employees’ job satisfaction and perceptions of organizational dynamism and firm performance. Moreover, organizational dynamism perception plays an important mediating role among three employee-level outcomes by converting job satisfaction into firm performance perception. The authors also find support for the direct, positive effect of a perceived market information-sharing process on job satisfaction but not on perceptions of organizational dynamism and firm performance. Most importantly, their findings on the significant moderating role of a market information-sharing system contribute to innovation theory by emphasizing the importance of the innovation/marketing interface: bundling market information sharing and innovative culture together enhances employees’ positive attitudes and perceptions. This result also suggests that examining only the direct effects of innovative culture and market information sharing may lead to incorrect conclusions as to how to manage the cultural infusion process: the market information-sharing process shows only a weak effect on job satisfaction and no effect on perceptions of organizational dynamism or firm performance. Organizational designs should ensure simultaneous consideration of both variables in the cultural transformation process to enhance employees’ derived benefits in the process of creating an innovative culture. We offer a new insight: a perceived market information-sharing process may strengthen the effect of an innovative culture on employees’ job satisfaction and organizational dynamism perception, while it may weaken the effect of an innovative culture on firm performance perception. This more nuanced view of market information sharing in the cultural infusion process presents new wisdom and calls for further studies in entrepreneurial innovation.

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