Characteristics of organizational culture in stimulating service innovation and performance

Purpose The purpose of this paper is to examine the influence of four organizational culture traits, consistency, cooperativeness, effectiveness and innovativeness, on radical and incremental type of service innovations, which leads to new service market performance (NSMP). Design/methodology/approach The data are collected through a cross-sectional survey of 171 bank managers in Bangladesh and analyzed through structural equation modelling using SmartPLS software. Findings The results reveal no impact of “consistency” as a cultural trait on “radical” and “incremental” service innovations. “Cooperativeness” and “innovativeness” impact incremental and radical service innovations positively. “Effectiveness” impacts radical service innovations positively. Radical and incremental service innovations impact NSMP significantly. Practical implications These findings add to the knowledge in terms of how organizational culture can make service innovations happen in the growing banking industry in a developing market. Originality/value The model links organizational culture traits (internal/external and flexibility/control focussed) with radical and incremental service innovation.