Abstract
Using formal survey data from textile and leather product manufacturing firms in Ethiopia, we investigate how the current national cultural setup (power distance, collectivism, masculinity and uncertainty avoidance) is affecting organizational learning, orientation and product innovation performance. Further, we assess the moderating role of sector and ownership structure on the interrelationship. The result demonstrates that the current national culture setup is negatively affecting the learning and innovation activities of the firms in the country. It also shows that while sector type is neutral, ownership type significantly affects the interrelationship among culture, learning orientation and product innovation performance.
Highlights
In this era of globalisation, a firm’s profitability and survival in the international market is entirely dependent on continuous innovation [1]
Using formal survey data from textile and leather product manufacturing firms in Ethiopia, we investigate how the current national cultural setup is affecting organizational learning, orientation and product innovation performance
This paper examines the extent of the impact of the four cultural dimensions on the learning orientation and product innovation performance of Ethiopian manufacturing firms
Summary
In this era of globalisation, a firm’s profitability and survival in the international market is entirely dependent on continuous innovation [1]. Organisations are being forced – by intense competition, technological change, and much-reduced product lifecycles – to look for new and better ways of doing business. The generation and development of new marketable products has long been considered a key strategic advantage for an organisation’s survival and its ability to outperform its competition. From the perspective of contingency theory, the role of socio-economic and socio-cultural factors in the business operations of organisations has attracted the attention of managers and academics [3]. The role of a country’s cultural factors in the learning and innovation activity of the manufacturing firms operating within it has been the focus of much research ([4, 5]). A national culture is a collective mindset that reflects the behaviour, attitudes and norms of a society and influences the perceptions, expectations, and motivation of its members [6, 7]
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