Linking Hierarchy Culture, Market Culture and Innovation Orientation: Moderating Roles of Causation and Effectuation

Khairia Ghuloum Al Maazmi, Yazid Abdullahi Abubakar and Muhammad Mustafa Raziq
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Khairia Ghuloum Al Maazmi: College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates
Yazid Abdullahi Abubakar: College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates
Muhammad Mustafa Raziq: College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates

International Review of Management and Marketing, 2024, vol. 14, issue 6, 378-388

Abstract: This paper aims to examine the influence of hierarchy and market cultures on firm’s innovation orientation. Also, it explores the moderating roles of the two decision-making logics, which are causation and effectuation on the relationship between hierarchy and market organizational cultures and innovation orientation. The current study extends past research on organizational culture and innovation, by being most likely the first study to examine the extent to which the relationship between hierarchical culture and SME innovation orientation is moderated by causal logic; and the extent to which effectual reasoning moderates the relationship between market culture and the innovation orientation of SMEs. The study utilizes survey data from 206 small and medium sized enterprises (SMEs) in the manufacturing and services sectors of the United Arab Emirates (UAE), that is analyzed using SmartPLS. The results of this study suggest that causation moderates the relationship between hierarchical culture and SME innovation orientation. Furthermore, market culture is only positively related to SME’s innovation orientation when effectuation moderates the relationship.

Keywords: Hierarchy Culture; Market Culture; Innovation Orientation; Causation; Effectuation (search for similar items in EconPapers)
JEL-codes: L26 M14 O30 (search for similar items in EconPapers)
Date: 2024
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