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Purpose

The purpose of this study is to explore the effects of two independent variables, creative climate and learning organization, on innovation separately and simultaneously.

Design/methodology/approach

The methodology used was multiple regression analysis executed on the data collected. Apart from that, the study also used T‐tests to compare the means of variables between the randomly selected local organization and MNCs. ANOVA was also conducted to compare the means of the variables between three different employee categories of job levels, namely the top, middle/lower management and supporting staff.

Findings

The results indicated that both learning culture and creative climate contributed 58.5 percent to the explanation of the observed variances in the innovation construct. The learning organization culture separately was found to have a significantly stronger relationship with innovation (r=0.733) than did the organizational creative climate (r=0.473). This implied a larger contribution from the learning organization variable towards innovation. The findings also showed that there were no significant differences in the mean scores (P>0.05) among the three organizational job levels included, namely the top management, middle/lower management and staff, in the members' perceptions of innovation, creative climate and learning culture. The study also found no significant differences in the mean scores (P>0.05) among the small, medium, large and very large organizational population sizes in the members' perceptions on innovation, creative climate and learning culture.

Originality/value

The study involved a sample of 18 private organizations selected at random from a list of 165 organizations across various core businesses. The instrument used for innovation is developed by the researcher, validated by post hoc factor analysis involving 259 respondents.

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