engleski

The influence of Radical Innovation Culture on Innovation Performance in the Croatian Manufacturing Industry

Innovation is viewed as one of the most important sources of sustainable competitive advantage because it leads to product improvements that increase the value of the product portfolio (Martin de-Castro et al. 2013) however innovation as a source of competitive advantage depends on the rate of innovativeness in a product being deployed. When new technological knowledge is attained during the development of new products or in the improvement of existing ones, this process constitutes product innovation (Martin de-Castro et al. 2013). Although it is accepted that organizational culture affects innovation, the character of this relationship together with implications on business performance needs to be further analyzed (McDermott 1999 ; McLaughlin et al., 2008). There are three types of innovation that may be stimulated by organizational culture: incremental, radical or ambidextrous (Lin and McDonaugh, 2011 ; McLaughlin et al., 2008). This paper makes a contribution in three ways. Firstly, we analyze the main sub-components of radical innovation culture: autonomy, cannibalization, pro-activeness and risk-taking. We focus on radical innovation culture because its impact on business results is most significant and because defining the key components of radical innovation culture represent an important research question. Our second contribution is made by linking radical innovation culture to innovation performance and examining the moderating effect of export orientation. The third contribution of the paper is its focus on the Croatian economic context. Croatian manufacturing industry was chosen for research because Croatia recently joined EU and the competitive environment of its manufacturing industry changed. This topic is also especially important for examining whether undeveloped countries such as Croatia can offer products competitive on world markets.

radical innovation culture; innovation performance; manufacturing industry; Croatia

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