The Impact of Organisational Culture on Innovation: A Study of Cultural Drivers and Employee Creative Behaviour

Abstract

In today’s highly competitive and fast-changing business environment, innovation has become a critical determinant of organizational success and resilience. Organisational culture—the shared values, beliefs and behaviours of an organization—acts as an unseen force that shapes norms, strategies and employee actions, playing a pivotal role in fostering or inhibiting innovation. This study examines the relationship between organisational culture and innovation, focusing on cultural elements such as leadership style, communication, employee engagement, risk tolerance and resource availability. Using a mixed-method approach, data were gathered from employees within the Strategic Asset Management Division of Randwater in South Africa. Quantitative data were analysed using Cronbach’s alpha, correlation and regression analysis, while qualitative insights were gathered through literature review and contextual analysis. Findings reveal that autonomy, open communication, leadership support and collaboration significantly influence innovative work behaviours, while some elements (e.g., excessive autonomy) show nuanced or negative effects. The study emphasizes the importance of aligning cultural values and management practices to foster innovation and offers practical recommendations for leaders seeking to create and sustain an innovative organisational culture.