DefinePK

Abstract

The present study examined the association between organizational innovation and effectiveness and the role of innovative climate as a potential mediator in this association. Data was obtained from 164 employees from three cellular companies in Islamabad. Subjective and objective measures were collectively used to measure organizational effectiveness. Subjective measures included Affective Commitment Scale (Allen & Meyer, 1990), Aspects of Identity Scale (Cheek, 1983), Group Cohesion Scale (Glass & Benshoff, 2002), Job Satisfaction Scale (Spector, 1985), Transformational Leadership Questionnaire (Avolio, Bass, & Jung, 1999), and New Product Development. Objective measures included Market Share, Sales, and Profitability, for which items were developed and validated (Joreskog & Sorbom, 1996). To assess Organizational Innovation and Innovative Climate, adapted versions of Organizational Innovation Questionnaire (Ismail, Belli, Sohn, & Toussaint, 2002) and Organizational Climate Measure (Patterson et al., 2005) were used. A series of regression analyses was done to test the proposed hypotheses. Results suggest that organizational innovation indeed predict firm effectiveness while some support was also found for the role of innovative climate as a mediator in the relationship between organizational innovation and firm effectiveness. Overall, our findings suggest a strong association between organizational innovation and overall organizational effectiveness of a firm. These findings also endorse the significance of innovative climate as an imperative factor in the relationship between organizational innovation and organizational effectiveness. We discuss the implications of these findings in detail.