Innovation or imitation? The role of organizational culture

Purpose - Innovation is crucial for attaining a competitive advantage for companies. Innovation, versus imitation, motivates companies to launch new products and become pioneers on markets. Many factors have been shown to be determinants for supporting an organizational innovative orientation. One of them is organizational culture. The objective of this paper is to analyze the organizational culture that fosters or inhibits organizational innovation and imitation strategy. Design/methodology/approach - The paper uses a sample of 471 Spanish companies for examining the hypotheses. Using hierarchical multiple regression analysis, it relates the effect of organizational culture with an innovation strategy. Findings - The results confirm the hypotheses. The paper finds that organizational culture is a clear determinant of innovation strategy. Moreover, adhocracy cultures foster innovation strategies and hierarchical cultures promote imitation cultures. Research limitations/implications - The main limitations are that data in the study were collected from one source for the cross-sectional design of this research. Practical implications - Managers should pay more attention to their organization culture if they pursue innovation/imitation strategies. Moreover, depending on this orientation (to be the first company to introduce in new markets or develop new products for a market versus to follow a pioneer), companies should promote different values and norms in their organizations. Originality/value - The main value of this paper is its analysis and testing of the relation of organizational culture and innovation orientation. The majority of the literature underlines the paper's seeking after organizational culture for innovation. However, this topic has not been studied in depth and requires attention to different organizational cultures and innovation orientations.