Organizational innovation culture and firms’ new product performance in two emerging markets: The moderating effects of institutional environments and organizational cohesion

Abstract

AbstractAs a source of competitive advantages for firms, innovation has boosted scholars’ interest in the identification of its main determinants from the perspective of organizational culture. However, there is a lack of research on innovation cultures in the context of emerging markets. Based on survey data from 433 manufacturing firms (331 Chinese firms and 102 Vietnamese firms), this study addresses this research gap using a hierarchical regression analysis to explore the impact of organizational innovation culture on firms’ new product performance and to examine the moderating effects of institutional environments and organizational cohesion on this relationship. We find that there are positive relationships between organizational innovation culture and firms’ new product performance. In contrast to recent research on organizational cohesion, we report that organizational cohesion has both a direct, positive effect on new product performance and a positive moderating role in organizational innovation culture and firms’ new product performance. Furthermore, regarding the institutional environment in the context of emerging markets, we find that the effects of organizational innovation culture on firms’ new product performance are stronger in China than in Vietnam. Therefore, this paper enriches organizational culture research by providing a multidimensional theoretical framework and extends institutional theory in the context of emerging markets by examining the moderating effect of institutional environments on the relationship between organizational innovation culture and firms’ new product performance in both China and Vietnam.