Innovation or Imitation? The Impact of Organizational Culture on Market Entry Strategies

We examined the impacts of different kinds of organizational culture on an innovative organizational orientation in China. We used multiple linear regression analysis to test a sample of 300 Chinese companies. The empirical results show that adhocracy culture fosters an innovative organizational strategy while hierarchical culture promotes an imitative strategy. Furthermore, the findings provide evidence that China's unique cultural characteristics show differences from previous Western-based studies. The authors suggest that organizational culture should be given more importance by managers if they seek innovation/imitation strategies