EFFECTS OF ORGANIZATIONAL CULTURE ON INNOVATION IN THE CASE OF ETHIOPIAN ELECTRIC UTILITY

Abstract

Organizational Culture is frequently regarded as a critical foundation for how an organization runs. The primary goal of this research is to identify the predominat organizational culture of EEU and to assess the effect of organizational culture on innovation in Ethiopian electric utility. Because most prior studies, have focused on factors other than organizational cultures and innovation, such as access to financing factors affecting performance and productivity and business challenges. Despite the relevance of organizational culture as an innovation stimulant, empirical research on organizational culture and creativity is scarce. The study employed an explanatory research design. The populationof study was employees in EEU at head office. A simple random sampling technique was employed to select the departments and employees who responded to the survey. The study relied on primary data acquired through self-administered questionnaires on 240 participants. According to studies results the dominant culture in the EEU is Market culture; Adhocracy and Clan cultures had a stronger correlation with innovation and positive effect on innovation. we conclude that Market culture is the predominat culture in EEU where as Adhocracy and Clan cultures are the important factors to consider for innovation.