THE EFFECTS OF ORGANIZATIONAL CULTURE IN THE INNOVATION OF SMALL BUSINESS OF A DEVELOPING COUNTRY

In this new millennium, every organization must find the strategy that allows the achievement of competitive advantages, for that reason, one of the strategies that can generate the best results for smaller companies is innovation. In this sense, an empirical research of explanatory type was made from a sample of 251 micro, small and medium size enterprises of the state of Guanajuato, with the purpose of knowing the effects of the organizational culture in the level of innovation of this type of firms. The results obtained through the Structural Equation Modeling allow us to infer that the effects of the organizational culture have a strong positive and significant influence on the level of innovation of this type of organizations. Therefore, decision makers must implement within their organizations this strategic business practice in which creativity and the development of new products are strengthened to obtain desired organizational results.