Running Head: ORGANIZATION CULTURE 1 ORGANIZATIONAL CULTURE 8 Organizational Structure Name Institutional Affiliation Date Organizational Structure The research question seeks to assess the impact of market demand and organizational culture on innovation and performance relationship. In the study, the market demand and culture mostly defines the innovation boundaries and also indirectly influences the organization’s performance. The market demand and the organizational culture are the independent variables while the innovation and the performance are the dependent variables. The purpose of the assignment is to come up with a hypothesis that relates directly to the research question. Independent Variables: The market demand and organizational culture influences changes in performance and innovation. The market demand could be measured in parameters of customer needs and supply options while organization culture could be examined using the working environment, strategies, effectiveness and overall performance. Market demand is characterized by trends, preferences, and tastes. On the other hand, organizational culture could be scaled on a basis of how effective, the degree of cooperation, performance and innovative a company is. Dependent Variables: Innovation and Performance are directly influenced by the market demand and the organizational culture. The market could define how the organization could innovate to meet the market needs while the culture could influence the innovation processes in a company and hence directly influence performance. Innovation, on the other hand, could be the determining factor in a company's performance rating. The performance could be measured in both financial and non-financial ways, for example, the organization's objectives and goals and fiscal year audit. According to research carried out previously, the market demand defines the kinds of innovation a company can indulge in. The market demand shapes the company’s innovation and performance. The demand constantly changes according to trends, preferences or tastes. These factors, in turn, prompt the organization to innovate towards fulfilling the clients' needs. The demand also influences performance as it increases, the organization will either increase performance or risk collapse due to the demand. On the other hand, the performance of the organization as a whole depends on individual performance hence indirectly being influenced by organizational culture. The market demand, for example, influences the innovativeness in a company in different ways. The market can demand improvement on a product that has been on the market and hence the company has to come up with ways to improve the product. Likewise, trends, preferences, and tastes, change each and every day. It is, therefore, the duty of the organization to come up with w.