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TERM PAPER ON ORGANIZATIONAL CULTURE Inhalt Organizational culture and its various manifestations. 2 Key characteristics of organizational Culture. 5 Organizational Culture and Managers:- 6 Organizational Culture and Classroom Environment:- 8 Organizational culture and its various manifestations Organizational culture refers to the values, belief and practices that represent and influence the way that organization functions and differs from one another. It is the perception of the employees based on their experience…

Building a climate for innovation through transformational leadership and organizational culture.


Research has called for organizations to be more flexible, adaptive, entrepreneurial, and innovative in meeting the changing demands of today's environment. Appropriate leadership to effect such change is required; however, there has been little empirical analysis of the theoretical relationships among the key components that make up such change strategy, including transformational leadership, organizational culture, and organizational innovation.

This study examines these linkages in terms of their relationships with climate for organizational innovation in Australian private sector organizations. Structural equation modeling based on responses to a survey of 1,158 managers explores the relationship between transformational leadership and climate for organizational innovation and the extent to which a competitive, performance-oriented organizational culture mediates this relationship.

Strategies for building innovative organizations are discussed.


Keywords: transformational leadership; organizational culture; innovation


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Leadership and organizational culture are widely believed to be linked in the process of change (Afsaneh, 1993; Kotter, 1998; Schein, 1984). As Kotter (1998) stated, "Only through leadership can one truly develop and nurture culture that is adaptive to change" (p. 166).

Ostroff, Kinicki, and Tamkins (2003) identified leadership as an emergent process that acts on both organizational climate and culture. Similarly, Denison (1990) claimed that management behaviors reinforce principles of the culture. Organizational culture has been conceptualized as a mediator of the relationship between transformational leadership and organizational innovation (Amabile, Conti, Coon, Lazenby, & Herron, 1996; Deshpande, Farley, & Webster, 1993; Jassawalla & Sashittal, 2002; Prather & Turrell, 2002) and performance (Ogbonna & Harris, 2000; Xenikou & Simosi, 2006).

Nonetheless, although empirical research supports the proposition that transformational leadership and organizational innovation are related (Waldman & Bass, 1991), the inclusion of organizational culture as an intervening variable has yet to be exa.....[read full text]

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Organizational innovation refers to the introduction of any new product, process, or system into an organization (Suranyi-Unger, 1994). The word innovation is derived from the Latin word novus, or new, and is alternatively defined as "a new idea, method or device" or "the process of introducing something new" (Gopalakrishnan & Damanpour, 1994, p. 95).

The first definition views innovation as an outcome (e.g., Damanpour, 1991, 1992; Damanpour & Evan, 1984; Kimberly & Evanisko, 1981) and the second as a process (e.g., Cooper & Zmud, 1990; Ettlie, 1980; Rogers, 1983). Reviews of the organizational innovation literature have identified three emergent categories: the determinants of innovation, the process of intrafirm diffusion, and the interfirm diffusion research streams.

Consistent with Wolfe (1994), we view innovation as an outcome of various antecedent organizational factors or determinants, namely, transformational leadership and organizational culture. This perspective supports Ahmed's (1998) claim that "innovation is the engine of change . [and] culture is a primary determinant of innovation" (p. 31).

These determinants also feature in the meta-analyses of innovation conducted by Damanpour (1991) and King (1990), and in Scott and Bruce's (1994) model of innovative behavior.


In this study, we examine climate for innovation as an indicator of the capacity of organizations to become innovative. That is, the degree of support and encouragement an organization provides its employees to take initiative and explore innovative approaches is predicted to influence the degree of actual innovation in that organization (Martins & Terblanche, 2003, pp. 67-68; Mumford & Gustafson, 1988, p. 37).

This view takes up the challenge from Ostroff et al. (2003) that only a few "climates-for" studies have been undertaken empirically and is consistent with Barrett and Sexton's (2006, p. 333) view that innovation is both an end and a means in achieving sustainable competitiveness.

We also believe climate for organizational innovation is a useful proxy when it is difficult to get direct behavioral measures of innovation across diverse organizations and industry sectors. Throughout this article, we use the term organizational innovation when referring to the extant literature, and we refer to the term climate for organizational innovation more specifically in the framing of ou.....

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As a result, employees feel engaged and personally rewarded through work, and work outcomes such as satisfaction and extra effort are enhanced (Bass & Avolio, 1994, 1997; Gardner & Avolio, 1998; Howell & Avolio, 1993; Lowe, Kroeck, & Sivasubramaniam, 1996; Sosik, Kahai, & Avolio, 1998).


Transformational leadership, as examined in this article, uses the six factors proposed by Podsakoff, MacKenzie, Moorman, and Fetter (1990): articulating a vision for the future, providing an appropriate role model, fostering the acceptance of goals, setting high performance expectations, providing individual support, and providing intellectual stimulation.

In this study we were interested in the effects of the six transformational factors on organizational culture and climate for organizational innovation. Consequently, the six transformational leadership factors were treated as a set of distinct but related dimensions rather than as a single construct (Edwards, 2001).

This approach is consistent with research that indicates some individual leadership styles, such as inspiring others and creating and communicating a vision, take prominence when dealing with organizational culture and change imperatives (Avolio & Bass, 2002).


Leadership and Organizational Innovation


Transformational leadership has been theoretically and empirically linked to a range of organizational outcomes (Howell & Avolio, 1993; Kavanagh & Ashkanasy, 2006; Ogbonna & Harris, 2000; Waldman, Ramirez, House, & Puraman, 2001).

Specifically, Jung, Chow, and Wu (2003) argued that transformational leadership enhances innovation by (a) engaging employees' personal value systems (Bass, 1985; Gardner & Avolio, 1998) and thereby heightening levels of motivation toward higher levels of performance (Shamir, House, & Arthur, 1993) and (b) encouraging employees to think creatively (Sosik, Avoli.....

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