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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Chinese Management S...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
Chinese Management Studies
Article . 2022 . Peer-reviewed
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How large entrepreneurial-oriented companies breed innovation: the roles of interdepartmental collaboration and organizational culture

Authors: Xifang Ma; Zhengyun Rui; Genyuan Zhong;

How large entrepreneurial-oriented companies breed innovation: the roles of interdepartmental collaboration and organizational culture

Abstract

Purpose This study aims to provide a better understanding into how large-scale companies overcome their rigidity and bureaucracy, and transform entrepreneurial orientation (EO) into organizational responsiveness (e.g. interdepartmental collaboration [IDC]). It also clarifies the double-edged role of organizational culture in shaping IDC, specifically within the Chinese economy that is deeply influenced by Confucianism. Design/methodology/approach Datas were randomly collected from companies that reside in the Yangtze River Delta region. With a sample of 115 large-scale EO Chinese firms, consisting of 402 department managers and 115 executives. The study aggregates the scores to create an overall measurement for EO, collectivism, power distance and IDC in the analysis. Further, confirmatory factor analyses were used to measure the structural model fitness, and multiple regression analysis was used to assess the hypotheses. Findings The results show that in competitive environments, IDC, as a strategic response to EO and a risk aversion of inertia and bureaucracy, fully mediates the positive relationship between EO and organizational creativity. Furthermore, the positive association is more pronounced under high cultural collectivism or low power distance in large-scale firms. Research limitations/implications This paper contributes to the understanding of EO approach at the organizational level. The results posit that when large companies adopt EO, they are proactive rather than passive and would exhibit IDC as an important strategic responsiveness. Moreover, different organizational cultural orientations (i.e. high collectivism and low power distance) help to build IDC before cultivating innovation. Practical implications The results in this study suggest that large companies should focus on developing IDC to overcome knowledge fragmentation, bureaucracy and inertia. Also, large firms should develop Human Resource Management practices, such as creating job rotation and workflow, as well as cultural trust and common beliefs. In contrast, they should be on guard against status differences and workplace hierarchy’s cultural context. Originality/value To the best of the authors’ knowledge, this is the first study that considers the roles of IDC and organizational culture and examines how large-scale entrepreneurial-oriented companies breed innovation.

Keywords

General Business, Management and Accounting

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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