Companies have already begun to realize the importance of internal operations and the knowledge driven environment within a company. The effectiveness to contribute towards new knowledge useful for the company, that is, innovation by an employee is dependent on his/her perception of the organization. Using data obtained from an Indian software company, this study examines the effect of some important organizational factors on the “innovation” dimension of its employees, that is, the ability to generate and stimulate creativity and innovation. The study supports the fact that the employee’s perception of organizational culture has an impact on the employee’s performance on the innovation dimension of performance. Therefore, it is the ‘feeling’ that guides the individual’s behaviour. Thus, the perceived congeniality in the working culture duly supported by the supervisor’s encouragement and acceptance of an idea and its reinforcement by appropriate recognition and rewards fosters innovation in the organization. The study also discusses its implications for the industry.
flexibility, innovation, organization culture and management
