Track: Business Management

Abstract

Innovation has been crucial in developing sustainable business. Previous studies have also proved that innovation is one of the main strategies to compete in the globalized and diverse market. While many studies focus on innovation culture in large enterprises. Meanwhile, the MSME had not received enough attention despite their contributions to nations’ economic growth exist. Therefore, this study proposes an empirical investigation the influence of organizational culture, organizational learning and market orientation on innovation culture in MSMEs sector. This study is categorized a quantitative study with a mixed of direct and online questionnaires data collection technique. This study is conducted in big cities of MSME’s. Further, structural equation modelling was performed in order to test the construct relations in the theoretical framework of this study. This study found that organizational culture, organizational learning and market orientation have significant and positive impact on the creation of innovation culture among MSME’s in Indonesia. This study provides relevant information for MSMEs owners on the elements that could nurture innovation culture in their organizations. More effort should be devoted from practitioners and the government to comprehend the concept of innovation culture among MSMEs from the context of developing country.

Keywords

Organizational Culture, Organizational Learning, Market Orientation, Innovation Culture, MSME’s