Title: The influence of radical innovation culture on business performance in the Croatian manufacturing industry

Authors: Tomislav Baković; Alica Grilec Kaurić; Patsy Perry

Addresses: Faculty of Economics and Business, University of Zagreb, Trg J.F. Kennedy 6, 10000 Zagreb, Croatia ' Faculty of Textile Technology, University of Zagreb, Prilaz Baruna Flipovica 28a, 10000 Zagreb, Croatia ' School of Materials, The University of Manchester, Oxford Road, Manchester M13 9PL, UK

Abstract: The aim of this paper is to define the main subcomponents of radical innovation culture (RIC) and investigate their impact on non-financial business performance in the Croatian manufacturing industry. The influence of autonomy, cannibalisation, proactiveness and risk-taking on firm effectiveness, customer satisfaction and time-to-market was examined by PLS-SEM of quantitative data from a survey of 203 Croatian manufacturing firms. Results suggest that RIC subcomponents may be divided into two groups, according to their influence on business performance. The first group, consisting of autonomy and proactiveness, positively influenced business performance. However, the second group, consisting of risk-taking and cannibalisation, had no influence on business performance. Implications of the research contribute to understanding of radical innovation culture in transitional economies.

Keywords: radical innovation culture; RIC; organisational culture; business performance; manufacturing industry; Croatia; quantitative; partial least squares; PLS; structural equation modelling; SEM; non-financial performance; firm performance; autonomy; cannibalisation; proactiveness; risk taking; firm effectiveness; customer satisfaction; time-to-market; transition economies.

DOI: 10.1504/IJTM.2016.081576

International Journal of Technology Management, 2016 Vol.72 No.4, pp.333 - 351

Received: 20 Nov 2014
Accepted: 29 Feb 2016

Published online: 15 Jan 2017 *

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