Furthermore, from the institutional theories, prior research mainly investigates how a firm’s external environment interacted with a firm’s AC affects its innovation performance (Lichtenthaler, 2009).
However, efforts to explore how a firm’s internal organizational climate affects the firm’s AC and its innovation are relatively limited. Although a number of prior studies focus on the impact of organizational climate on innovativeness, they mainly investigate the direct effect of organizational climate on innovation. For instance, Denison (1990) argues that firms possessing a participative culture and awell-organized workplace outperform those that do not. Liu, Chen, and Yao (2011) also assert that multi-level autonomy supports in an organization will enhance harmonious passion, and then increase individual creativity. Thus, a firm with a participative culture or autonomous climate can achieve better
innovation.
Furthermore, from the institutional theories, prior research mainly investigates how a firm’s external environment interacted with a firm’s AC affects its innovation performance (Lichtenthaler, 2009).However, efforts to explore how a firm’s internal organizational climate affects the firm’s AC and its innovation are relatively limited. Although a number of prior studies focus on the impact of organizational climate on innovativeness, they mainly investigate the direct effect of organizational climate on innovation. For instance, Denison (1990) argues that firms possessing a participative culture and awell-organized workplace outperform those that do not. Liu, Chen, and Yao (2011) also assert that multi-level autonomy supports in an organization will enhance harmonious passion, and then increase individual creativity. Thus, a firm with a participative culture or autonomous climate can achieve betterinnovation.
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