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international journal of business management
Volume 4, 2019, Issue 1
Compatibility Culture and Outcomes of Product / Service Innovation
Fatemeh Pourasef
Pages: 60-72


Purpose of the study: Compatibility culture has been widely used and defined as a relative static that includes a set of shared values, beliefs, hypotheses, and signs within the organization. Contrary to static viewpoint, dynamic systems viewpoint does not necessarily consider culture as mutual and internal values. However, since cultures are constantly getting environmental pressures, they need sustained compatibility having an intrinsic incentive for changes termed as compatibility culture. In this study, the effect of compatibility culture as an antecedent for the outcomes of innovation in the products and services production has been highlighted, because innovation requires the gradual development of shared values, assumptions and beliefs. Method: The study population consisted of 190 companies with sectors classified as having high technology, medium technology and low technology. Each company received a two-part questionnaire (HR managers and operational managers). The results of the main research were determined using the structural equation model with EQS 2.6 program, and were developed using mathematical models, structural equation models and multiple dependency relationships. Findings: There was a positive and significant relationship between compatibility culture and innovation. The correlation between learning - Innovation and structural flexibility - innovation was fully mediated and supported by the compatibility culture. The current study`s results indicated that compatibility culture was considered as the basic method and structural flexibility and learning affected innovation. Conclusion: According to the cultural dynamics perspective, the current model confirmed that compatibility culture fully mediated the relationship between structural flexibility, reflective learning, and outcomes related to product and service innovation. The dynamic systems viewpoint assumed that culture evolved in response to the internal and external pressures faced by them. As the outcomes of product and service innovation resulted from organizational efforts entailing implementing changes and commitment to new projects, this study identified the characteristics of the organizational factors that facilitated the outcomes of product and service innovation.

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international journal of business management
Issue 1, Volume 5, 2020