Exploring the Impact of Organizational Learning and Culture on Organizational and Institutional Innovations from System Dynamics Perspective

The dynamic capability view argues that organizations should constantly advance and integrate their core competences and require unique innovations, so as to cope with the turbulent environments and drastic competition. This paper applied the methodology of system dynamics (SD) and examined the cause-effect feedback loops of the drives for changes in organizations. The findings of the research revealed that organizational learning and organizational culture play pivotal roles on organizational and institutional innovations considering the interactions of three innovational driving forces- mimetic, coercive, and normative forces. The organizational performance and institutional innovations are associated with superior organizational learning capability and good organizational culture. In other words, the organizational learning and culture affect the success of the organizational and institutional innovations, and thus should be emphasized.