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The relationship between organizational culture and innovation in the Zimbabwean IT industry: Case of Milter (PVT) LTD

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First of all, I would like to thank the management of Milter Private Limited for giving me the opportunity to use Milter Private Limited as a case study. The target population was more than 250 male and female employees of Milter Private Limited.

A firm’s culture

Naranjo-Valencia (2018) argues that a company's culture is one of the most essential elements in innovation initiation. A firm's culture is especially essential when organization is undergoing significant transformation or when major changes are introduced that require new value attributes than those demonstrated in the past.

Research Study Background

Kotter et al., (1992) also believe that values ​​are associated with the organization's performance for a long period of time. Employees, being an important organ, accept perception of the organization and perform their duties accordingly.

Statement of the problem

As a result, corporate culture thrives in most corporations and the phenomenon should shake up the information technology industry. There is evidence that culture is linked to organizational performance as it provides job satisfaction, commitment, cooperation and effective strategy implementation in the organization.

Objectives

Questions for Research

Research hypotheses

Research methodology

The researcher used a single methodology because this is a good way to improve the quality of the research and because it is less cumbersome than using a mixed approach (Mouton, 2009).

Scope of research

Significance of study

Chapters outline

  • Chapter One
  • Chapter Two
  • Chapter Three
  • Chapter Four
  • Chapter Five

The results of the literature review are compared with primary data results from the research and discussions of each research objective.

Chapter summary

Introduction

A firm’s culture

Organizational culture classification

Therefore, it is crucial to understand and distinguish an organizational culture type and further how this will enhance or inhibit the analysis, development and execution stages of an information system. Procedures that produce high performance results that are constant and efficient are the main objective of this culture type.

A firm’s culture and employee performance

Kozlowski and Klein (2000) emphasize the presence of a strong organizational culture based on true value and belief systems to achieve sustainable free enterprise benefits. The study of organizational culture has significance when it correlates with performance to improve actions (Alvesson, 1990).

Importance of A firm’s culture

Al-Matari and Omira (2017) conducted a study in Saudi Arabia to examine the relationship between organizational culture and performance in the public sector. Their findings indicated a positive relationship for the two variables. Kang and Stewart (2007) also highlight a positive correlation between work culture and high organizational and individual performance.

Organisational Innovation

For example, Shan and Zhang (2009) noted that sustainable competitive advantage can be achieved by enhancing the firm's unlimited innovation capabilities. First, in the context of changes in the environment of modern firms and increased global competition, management innovations can become a major source of free enterprise advantage.

A firm’s culture and innovation

They are also expected to create conditions conducive to technological innovation and its launch through absorption of external knowledge and use of internal resources, thereby contributing to improved efficiency and effectiveness of these processes.

A firm’s culture and Leadership traits

Conceptual Framework

Research gap

Therefore, an empirical study investigating the relationship between a firm's culture and innovation capability would be a major contribution to both the firm's culture and the innovation literature. The fact that this research is being conducted in a developing country is expected to bring new insights into the concept of a firm's culture and innovation.

Chapter summary

One of the most important organizational factors, a company's culture is less studied in the field of innovation as previously mentioned and is therefore chosen as the subject of this study.

Introduction

Research philosophy

Pragmatists do not agree with positivism because of an over-deterministic view of leaving very little room for choice due to a cause and effect relationship.

Research Design

Research strategy

Case studies

According to Reige (2003), case study research is about constructing theory and is also based on the need to understand an actual phenomenon, where researchers get new, systematic and in-depth concepts, explanations and interpretations about previous experiences that come from creative discovery. The researcher made use of a case study as the researcher is able to examine data by in-depth analysis, of culture at Milter private limited and also because a case study helped to understand detailed behavior of the subject of interest. The study conducted by the researcher focused on culture and innovation at Milter private limited.

Survey Strategy

Target population

Study population and sample composition

Sampling Method

Research Instruments

Questionnaire

Data Collection Procedure

Analysis of data and Methods of Presentation

Data Reliability and Validity

Reliability

Validity

Ethical Considerations

During data collection, the beliefs and opinions of the participants were taken into account in order to preserve the respect and dignity of the respondents (Sekaran, 2003).

Summary of Chapter Three

Introduction

Rate of response

Data on Demographics

  • Age
  • Sex
  • Educational Qualification
  • Hierarchical Level
  • Number of years at Milter Private Limited

The researcher used the percentage column for easy interpretation and explanation of the educational level of employees of Milter Private Limited. The following statistical table shows the working experience of employees at Milter Private Limited. 2-4 years old have 12.6% of respondents, while respondents under one year old and over ten years old have 6.3% each.

Table 1: Age range
Table 1: Age range

Test of Reliability and Test of Validity

Reliability Statistics

Variable testing (Independent and Dependent)

Normality Tests

Objective 1

  • Descriptive Statistics
  • Analysis of Regression
  • Variance
  • Total Variance
  • Discussion of findings

This section provides the descriptive analysis of the key characteristics of a firm's culture in the IT sector. The findings of the research study showed that participants agreed with the key characteristics of a company's culture. The regression showed that key characteristics of a firm's culture are predictors of innovation within the organization.

Table 9: Descriptive statistics
Table 9: Descriptive statistics

Objective 2

Descriptive Statistics

Favorable corporate policies such as work-based performance at Milter Private Limited lead to growth and innovation. Working with targets and giving employees flexible shifts is necessary for companies in the IT industry to achieve growth and innovation. The results show that the respondents were able to identify the impact of a company's culture on innovation at Milter Private Limited.

Regression Analysis

It follows that the regression model was a good fit for analyzing the impact of corporate culture on innovation at Milter Private Limited. The research shows that one of the crucial points of this research was to identify the impact of the culture that promotes innovation. The values ​​fall within the range in which a factor analysis is appropriate for this data. Bartlett's Test of Sphericity was also considered, which yielded a p-value = 0.000.

Table 17: ANOVA
Table 17: ANOVA

Discussion of findings

The coefficient model indicated that the beta value for impact of culture was 0.816 and –p <0.05. The study seconded (Hartmann, 2006) which states that a company's culture has a positive impact on innovation in any organization. A promotion of values ​​at all levels helps companies in the information technology industry to meet demand which in turn leads to positive performance and innovation, the research supports that organizational values ​​as part of culture have a positive impact on innovation.

Objective 3

Descriptive Statistics

This section describes the participants' levels of agreement on the key leadership qualities that can be used to achieve a company's culture that influences innovation. Good leadership qualities are essential for companies in the IT industry to achieve the required culture. The results show that respondents generally agreed on the key leadership qualities that determine the A firm's culture of Milter Private Limited that influence innovation with mean responses ranging from 4.37 to 4.62.

Histogram

Regression Analysis

The adjusted R-squared (0.609) shows that the model explains the key leadership characteristics on a company's culture, which influence innovation. The regression model was a good fit for analyzing the leadership characteristics that influence a company's culture on innovation. This indicates a better level of significance of leadership characteristics for organizational culture influencing innovation.

Table 25: KMO and Bartlett’s Test
Table 25: KMO and Bartlett’s Test

Discussion of findings

The study identified that, from the above, 2 components with eigenvalues ​​greater than 1.0 were extracted and all explained 75.832% of the total variation. He further states that leaders are only there to maintain order in such companies but not necessarily to create innovation, however (Bass and Avolio, 1993) states that leaders are responsible for identifying employees who are innovative and support the ideas of them at all costs, as long as the ideas are creating value for the company.

Objective 4

  • Descriptive Statistics
  • Histogram
  • Normal Distribution
  • Analysis of Regression
  • Analysis of Variance
  • Total Variance
  • Discussion of findings

Regression analysis was conducted to test the relationship between two sets of variables, cultural elements of Milter Private Limited and innovation. The table showed a regression coefficient for the relationship of the cultural elements that can be recommended and organizational innovation was 0.340 with a corresponding adjusted R-squared statistic of 0.333. Therefore, the regression model was a good fit for the analysis of the cultural elements that can be adopted to achieve better innovation levels in the company.

Table above indicates that participants agreed on the questions on cultural elements that can be  used in promoting organisational innovation
Table above indicates that participants agreed on the questions on cultural elements that can be used in promoting organisational innovation

Hypothesis Testing

The coefficients in the table above were used to test the hypothesis of the study.

Chapter Summary

Introduction

Conclusion

The research also concludes that promoting employee performance is another key feature that the organization has implemented in their operations and developed as part of the organizational culture. Employing qualified and experienced personnel was another key feature identified as part of the organization's culture. The research also concluded that the leadership traits that can be used by Milter private limited and the IT industry are the ability to maintain good organizational culture, the ability to achieve the organization's goals with the current culture, the ability to apply modern traits of leadership and the ability for it. assess market opportunities and other capabilities.

Theoretical contribution

Based on the research question, some conclusions have been drawn about the cultural elements that can be used to achieve performance and innovation levels. The survey also concluded that the culture elements that can be used by Milter Private Limited and the IT industry are organizing end-of-year parties, encouraging employees to gain more skills through schooling, attending workshops and seminars, promoting of good morale, improving Milter private limited's good cultural practices, such as encouraging employees to avoid absenteeism and to be on time for work and the availability of help for employees who need help, for example contributions to funerals , weddings and other social activities within the organization support innovative ideas.

Contribution to Methodology

Contribution to Empirical Research

Recommendation towards Policy Formulation

Managerial recommendation

Generalisation of findings

Limitations observed

Areas of further study

Measuring innovation culture in organizations: Development and validation of a generalized innovation culture construct using exploratory factor analysis. The mediating effect of organizational commitment on the relationship between organizational culture and organizational performance in the public sector. Organizational culture and corporate effectiveness: An examination of relative effects of cultural traits and the balanced culture hypothesis in an emerging economy.

To complete this questionnaire, please read the statement in the specific objective and place your answer on the appropriate number that best reflects your feelings, attitudes, opinions or beliefs about the statement. Read the statements and variables below and give your answer by circling an appropriate answer that best describes your feelings, attitudes or beliefs. Read the statements and variables below and answer by marking the correct number that best describes your feelings, attitudes or beliefs.

Gambar

Table 1: Age range
Figure 2: Sex
Figure 4: Hierarchical level
Table 5: Number of years at Milter Private Limited
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