The Role of organisational culture in innovative performance of small and medium-sized knowledge-intensive companies in the Baltic states
ENCurrently there is a belief that innovations are the main aim of any organisation, while organisational culture is recognised as one of the most important factors influencing them, as it encourages employees’ innovative behaviour and creation of innovations. Assumption, that a certain type of organisational culture provides better performance, is one of the reasons that explain the great interest in it. However, there is still no united consensus between scholars on this relationship. The aim of this article is to examine the role of organisational culture in innovative performance of small and medium-sized knowledge-intensive companies in the Baltic States and two hypotheses were proposed: Adhocracy promotes the innovative performance of small and medium-sized IT companies in the Baltic States; and Hierarchy hinders the innovative performance of small and medium-sized IT companies in the Baltic States. The Competing Values Framework was used for diagnosis of organisational culture types and the innovative company indicators made by Latvian Technology Centre for measuring the innovative performance. The study covered 27 IT companies from the Baltic States. The research results reveal that the innovative performance of small and medium-sized Baltic States’ IT companies is promoted by adhocracy, as there was strong statistically significant positive correlation between innovation coefficient and adhocracy. In turn, the hypothesis that hierarchy hinders the companies’ innovative performance was partly confirmed – there was a statistically significant relationship between innovation coefficient and hierarchy. However, hierarchy had stronger a statistically significant negative correlation with adhocracy than the innovation coefficient.
