What are the effects of a hierarchal organisational culture on the ability of a company to innovate?
by Tjula Daelmans, Hessel Dikkers, Dagmara Kukawka and Lotte Nelson
The hierarchical culture within companies is defined as a formalised and structured place to work. Furthermore, this culture is characterised by rules and top-down control to streamline business processes. The hierarchical culture, as described in the competing values framework, is often seen as unable to innovate. This paper investigates the assumption that companies with a hierarchical culture are not able to adapt. Three case studies have been performed to test this claim. The case studies examine the effect of culture and structure on a company’s ability to innovate. The outcomes show that there are mechanisms that a company can introduce to increase flexibility and creativity while sustaining the top-down control.