Although open innovation systems have drastically improved manufacturing performance, still many organizations are not able to leverage on the open innovation systems due to cultural barriers. This research aimed to investigate the interventions of the open innovation systems between the relationships of organizational culture and organizational performance with the moderating effect of management support. A quantitative research design was employed to achieve research objectives. Data was collected through a structured questionnaire from 384 managers of the large manufacturing industry in Malaysia using a multistage random sampling technique. Structural equation modelling by using SMART PLS was used to test hypotheses. Results indicated that the relationship between organizational culture (e.g. clan, adhocracy, and market culture) and organizational performance was mediated by open innovation. Open innovation has no mediation effect between hierarchy culture and organizational performance relationship. While management support moderates the relationship between open innovation and organizational culture. The organizations exhibited more organic culture and focused on differentiation can harness open innovation and enhanced organizational performance.
Bibliographical noteFunding Information:
This research was a result of a collaborative research between researchers from Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Malaysia, Azman Hashim International Business School, Universiti Teknology Malaysia (UTM) Johor Bahru, Malaysia, Department of Business Studies, Namal Institute Mianwali. Pakistan and Rowe School of Business, Dalhousie University, Canada.
© 2020, The Author(s), under exclusive licence to Springer Nature B.V. part of Springer Nature.