How Organizational Culture Affects the Innovativeness of Firms in Djibouti

Abstract

The study focused on determining how organizational culture affects the innovativeness of firms in Djibouti. Primary sources of data were used which were sourced from the selected elements of the population and the selected elements were some of the employees of some firms in Djibuti. Pearson correlation and regression analysis were used as the estimation techniques in the study. The regression result depicted that organizational culture has a positive and significant impact on firm performance, innovation has a positive and significant impact on firm performance, that is, a unit increase in innovation will increase the firm performance of the organization, while adhocracy in organization exhibits a positive and significance impact on firm performance. Based on the method used, the findings of the study concluded that organizational culture is regarded as the major driver of performance and the culture of the organization motivates employees to be innovative at all time. Also, innovativeness promotes organizational culture and gives hedge among its competitors and most firms generate new ideas internally rather than external means and agreed that management always motivate the employees to create new ideas and to make decision on organizational culture.