Do organizations really evolve? The critical link between organizational culture and organizational innovation toward organizational effectiveness: Pivotal role of organizational resistance

Abstract

In today's global economy, organizational effectiveness and innovation have become top priorities, putting pressure on all businesses worldwide. Therefore, this study aims to explore the impact of organizational culture on effectiveness through organizational innovation. We analyzed organizational resistance as a boundary condition on the relation of organizational innovation and effectiveness to seek whether organizational resistance enhances the positive effect of organizational innovation on effectiveness and on the indirect effect of organizational culture on the effectiveness of organization via organizational effectiveness. Organizational resistance is important because it occurs when employees understand how they fit into the new way of doing things, such that organizational innovation has a positive impact on organizational effectiveness. The data were collected in two waves from 280 manager-employee dyads operating in Pakistan's banking industry. The outcomes indicated that organizational culture positively influences organizational effectiveness; therefore, this relationship is mediated by organizational innovation. The positive influence of organizational innovation on organizational effectiveness is greater among individuals who embraced improvements rapidly than among those who did not. Additionally, organizational resistance reinforces the relationship between organizational culture and effectiveness through organizational innovation, such that the relationship is greater for those who embrace compliant advancement. Thus, the theoretical and practical implications of this study are discussed.