EFFECT OF ORGANIZATIONAL CLIMATE ON INNOVATION IN MARKET RESEARCH FIRMS IN KENYA
Abstract
The purpose of the study was to empirically find out the relationship between organizational climate (OC) and innovation in Market and Social Research Firms (MSRFs) in Kenya. There has been inconsistent conclusions and little attention on the effect of organizational climate on innovation. To assess such a relationship, organizational climate was measured by training support, workplace support and transformational leadership characteristics. On the other hand innovation was measured by idea generation and implementation. The study adopted a cross-sectional research design and the data was collected using a structured questionnaire. Further, the data was analysed using multivariate methods and covariance based Structural Equation Modelling (SEM). The study found training and workplace support had statistically insignificant effect on innovation while transformational leadership had a positive significant influence to innovation. The findings offer more insights to the theorists of intrinsic motivation that intrinsic motivation taps on some organizational climate factors to promote innovation. The result might help the human resources practitioners and policy makers when deciding on a mix of organizational climate factors to promote innovation in institutions. Consideration of multiple organisational factors as opposed to a single factor to enhance innovation at micro level in their work place is hinted.
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i4.599
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