Abstract

A thorough understanding of the impact of culture on innovation strategy formulation and implementation processes as well as product innovation performance is crucial for successful innovation management. The paper through a combination of two research approach, KJ analysis and formal survey aims to shade light on the extent and direction of culture’s impact on product innovation performance. A hypothetical model that links the three bodies of knowledge, national culture, innovation strategy and product innovation performance was developed and tested by using survey data from Ethiopian manufacturing firms. Major problems with the current innovation strategy formulation and implementation process were identified and the role of culture was explored. The result indicates that even though the current cultural setup has a detrimental effect on the performance, the extent of its impact can be minimized through task oriented leadership practice.

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