Organizational culture and innovation in small businesses in Paraguay

This paper studies the influence of organizational culture on the implementation of innovations in small businesses. Cameron and Quinn's competing values framework is applied to capture the organizational culture. The empirical analysis is carried out using a sample of 194 small businesses from two regions in Paraguay: the Asuncion area and Central Department. Organizational cultures with external orientation (adhocratic and market) are found to have a significant positive impact on innovation. However, the effect of organizational culture on the specific types of innovation (product, process, organizational, and marketing) differs. Hierarchical culture shows a positive influence on process innovation.