Running head: ORGANIZATION PERFORMANCE 1 ORGANIZATION PERFORMANCE 2 Organization Performance Name Institution Date Relationship between Market Demand, Organization Culture on Innovation and Performance Why is this phenomenon interesting? Innovation is a key component to an organization’s survival in the business industry. Every cooperation admits the fact that keeping up with the latest in terms of market trends and technology enables them to stay afloat and relevant to their clients. Companies continually thrive to outdo one another and maintain the highest ranks when it comes to the world of innovation. In as much as this is the case, this factor is not the only determinant of an organization’s ultimate success (Cornelissen & Durand, 2014). Other factors within a company also play a crucial role in determining the successful flow of business. The market demand, organization culture and employee performance play a significant role in influencing the rate of innovation in a company. Market demand, for example, determines the kind of products that a company manufactures. Client tastes and preferences may require that a particular product be designed in a given way to meet their needs. The need for innovation is already established within the corporation. However, the organizational culture may either be a limiting or fuelling factor for innovation (George, 2014). It can enhance both innovation and performance. The overall company and workforce performance is measured by how well the organization meets their client needs through innovative means. All these factors play a crucial role in the running of any corporation. Identifying the link will present knowledge on how well businesses can create a balance and better manage their organizations (Mantere, & Ketokivi, 2013). This study seeks to identify a relationship between market demand, organization culture on innovation and performance. A lot of study has been previously conducted on the influence of innovation, market demand, organizational culture and workforce performance on an organization. These studies have mainly focused on these factors independently with no much emphasis given on the relationship between all three; how they relate within an organization to either bring foster success or failure (Cornelissen & Durand, 2014). One of the main aims of this study is to bridge the gap in literature and provide credible data and reliable information that organizations can use to further their success. It is also aimed at identifying models that enhance innovation and performance. The capability of innovation playing a mediatory role between culture and performance will also be established in this study. How addressing this question will enhance understanding of this phenomenon. One of the things that are clear in the business world is that change is inevitable. It is the only constant factor that we can anticipate in various organizations (Mantere & Ketokivi, 2013). Constant e.

1. Running head: ORGANIZATION PERFORMANCE 1
ORGANIZATION PERFORMANCE 2
Organization Performance
Name
Institution
Date
Relationship between Market Demand, Organization Culture on
Innovation and Performance
Why is this phenomenon interesting?
Innovation is a key component to an organization’s
survival in the business industry. Every cooperation admits the
fact that keeping up with the latest in terms of market trends
and technology enables them to stay afloat and relevant to their
clients. Companies continually thrive to outdo one another and
maintain the highest ranks when it comes to the world of
innovation. In as much as this is the case, this factor is not the
only determinant of an organization’s ultimate success
(Cornelissen & Durand, 2014). Other factors within a company
also play a crucial role in determining the successful flow of
business.
The market demand, organization culture and employee
performance play a significant role in influencing the rate of
innovation in a company. Market demand, for example,
determines the kind of products that a company manufactures.

2. Client tastes and preferences may require that a particular
product be designed in a given way to meet their needs. The
need for innovation is already established within the
corporation. However, the organizational culture may either be
a limiting or fuelling factor for innovation (George, 2014). It
can enhance both innovation and performance. The overall
company and workforce performance is measured by how well
the organization meets their client needs through innovative
means. All these factors play a crucial role in the running of any
corporation. Identifying the link will present knowledge on how
well businesses can create a balance and better manage their
organizations (Mantere, & Ketokivi, 2013). This study seeks to
identify a relationship between market demand, organization
culture on innovation and performance.
A lot of study has been previously conducted on the
influence of innovation, market demand, organizational culture
and workforce performance on an organization. These studies
have mainly focused on these factors independently with no
much emphasis given on the relationship between all three; how
they relate within an organization to either bring foster success
or failure (Cornelissen & Durand, 2014). One of the main aims
of this study is to bridge the gap in literature and provide
credible data and reliable information that organizations can use
to further their success. It is also aimed at identifying models
that enhance innovation and performance. The capability of
innovation playing a mediatory role between culture and
performance will also be established in this study.
How addressing this question will enhance understanding of this
phenomenon.
One of the things that are clear in the business world is
that change is inevitable. It is the only constant factor that we
can anticipate in various organizations (Mantere & Ketokivi,
2013). Constant evolution in how we handle business processes
is paramount. This need is met through innovation. A company
cannot in any way survive without being innovative with
regards to its business ideas and technology. Competitors keep

3. organizations awake with each one seeking to be ahead (George,
2014). The need for an innovative culture within a corporation
cannot in any way be overlooked.
The market demand is also constantly changing with client
tastes and preferences tending towards products that are the
latest in the market. The population seeks to be identified with
the latest trends both in fashion, tech gadgets, lifestyles, among
other products and services. The enhanced connectivity of
people across the globe made possible through the internet has
been the main contributing factor to the constant changes. The
world is no longer unreachable as it was a few decades ago.
Having a global market has presented both merits and its share
of challenges in the business world. Keeping up with current
trends can be quite a huddle for business organizations
(Cornelissen & Durand, 2014).Constant market surveys and
consumer feedback provides information to the organization of
how they can meet client needs. Remaining relevant in this day
and age is of paramount importance because the latter will only
result in shelves stacked with goods that no one is willing to
buy.
The organizational culture is the backbone of all its
processes and activities. A culture that encourages creativity
and innovation within its workforce has been seen to be the
most effective. However, different individuals hold varying
beliefs when it comes to leadership and management. Some
belief in having more control over their workforce while others
push to have an independent team of employees who can think
for themselves and develop techniques that better aid the
organization (Mantere & Ketokivi, 2013). The culture engraved
in the workforce from the first day of business is the
determining factor of how an individual conducts themselves in
the workplace and performs their duties. These beliefs and
perceptions run deep and can either limit or enhance overall
performance. The culture within a company is also not constant
and can be altered with time to suit company needs.
The link between innovation and company performance has

4. already been established from previous studies. A highly
innovative workforce is inevitably effective and efficient within
the workplace and they are thus high performance. The contrary
is also true as these feel that they are working within a limited
environment. They tend to remain within their comfort zones
and do little to advance themselves and the corporation. The
Schein’s organizational model has provided a framework of how
an organization’s culture supports innovation (Alvesson,
&Sandberg, 2013). The use of this model in the study will
provide further understanding of the interconnectedness of
innovation and culture.
Establishing the relationship between all three factors will
provide more clarity to business management bodies on where
they ought to make necessary changes to enhance performance
(George, 2014). A link established between market demand and
organizational culture will provide answers to questions like;
does the market demand directly or indirectly influence
organizational culture? What influence does market demand
play on performance? How does the market demand influence
innovation within an organization? How do the three factors
relate within the normal business cycle? Which factors have the
greatest influence on company performance? The elements of
organizational innovation will also be looked into.
Practical significance of addressing the research question
Businesses are constantly going into bankruptcy and
making losses due to poorly made decisions. The results
obtained from this study will aid in the decision-making
process. An organization’s management will be in a better
position to identify the area that they need to invest in most to
enhance performance (Cornelissen & Durand, 2014). In some
instances, some organizations tend to focus on performing
market researches and identifying client needs while their
weakness is in their organizational culture. Others may consider
improving performance through appraisals and various
motivations rather than giving their workforce the privilege of
being creative and innovative which inevitably lowers

5. operational costs (Alvesson & Sandberg, 2013). Making proper
investments saves the company time and money which
inevitably results to higher returns.
The study will also make a great contribution into the
world of literature by availing findings on which further
research can be conducted. A model may be developed that
highlights a flow of the factors. Most of the results in the study
may not be very new concepts. They will however contribute in
supporting already made conclusions in the field or provide a
different perspective (George, 2014). An organization will be in
a position to apply this knowledge in whichever manner so as to
further its success.
New businesses will also be in a better position to avert
pitfalls in which those who have gone before them may have
fallen into. A new enterprise being put up, for example, will put
more emphasis on developing an innovation organizational
culture before it seeks to improve employee performance
through rewards and other benefits (Alvesson & Sandberg,
2013). A clear understanding of the relationship between the
three factors will help in prioritizing on the areas that require
the most investment and focus.
Overall, the study will help in making various business
processes and management easier. Diagnosing that which is
affecting performance both directly and indirectly will be made
easier as mangers will have various factors to analyze (Mantere
& Ketokivi, 2013). The flow established will avail the
opportunity for them to know how best to make changes in one
sector without bringing the other down. Furthering innovation
within the corporation will no longer be an uphill task.
References
Alvesson, M., & Sandberg, J. (2011). Generating research
questions through problematization. Academy of management
review, 36(2), 247-271.

6. Alvesson, M., & Sandberg, J. (2013). Has management studies
lost its way? Ideas for more imaginative and innovative
research. Journal of Management Studies, 50(1), 128-152.
Ashkanasy, N. M. (Ed.). (2013). Editor's comments:
Internationalizing theory—How “fusion theory” emanates from
Down Under.
Cornelissen, J. P., & Durand, R. (2014). Moving forward:
Developing theoretical contributions in management studies.
Journal of Management Studies, 51(6), 995-1022.
George, G. (2014). Rethinking management scholarship.
Mantere, S., &Ketokivi, M. (2013). Reasoning in organization
science. Academy of Management Review, 38(1), 70-89.
R- SL4 instructions
DEVELOPING RESEARCH HYPOTHESES
Based on the readings for this module, the content of previous
courses (especially ORG 601 and 602), and your SLP 3 research
question, develop one hypothesis which addresses, in part, your
research question.
1. Define the variables clearly, and identify the IV and DV.
2. Justify the effect you expect using prior research and logic.
3. State your hypothesis clearly, and explain how it relates to
the research question.
SLP Assignment Expectations
1. Answer all questions with clarity and depth. Show your
critical thinking ability.
2. Show ability to construct hypotheses.
3. Show necessary reasoning.
My notes:
(My interest): Market demand and organization culture on
innovation and performance relationship
Cite sources within your comment to support your statements.

7. Include references, properly formatted
5pgs
Attashed my SLP 3 RESEARCH QUESTION
Required Reading
Glynn, M. A., & Raffaelli, R. (2010). Uncovering Mechanisms
of Theory Development in an Academic Field: Lessons from
Leadership Research. Academy of Management Annals, 4, 359-
401. doi: 10.1080/19416520.2010.495530
Alvesson, M., & Karreman, D. (2007). Constructing mystery:
Empirical matters in theory development. Academy of
Management Review, 32(4), 1265-1281.
Tsang, E. W. K., & Kwan, K. M. (1999). Replication and theory
development in organizational science: A critical realist
perspective. Academy of Management Review, 24(4), 759-780.
doi: 10.2307/259353
Prasad, S., Rao, A., & Rehani, E. (2001). Developing hypothesis
and research questions. Retrieved
from http://www.public.asu.edu/~kroel/www500/hypothesis.pdf
Wallace, R. (2013). Research questions, hypothesis, and
variables. Retrieved
from https://www.youtube.com/watch?v=_BmjujlZExQ
Optional Reading

8. McKinley, W. (2010). Organizational Theory Development:
Displacement of Ends? Organization Studies, 31(1), 47-68. doi:
10.1177/0170840609347055
Tsang, E. W. K. (2006). Behavioral assumptions and theory
development: The case of transaction cost economics. Strategic
Management Journal, 27(11), 999-1011. doi: 10.1002/smj.553
Hallier, J., & Forbes, T. (2004). In search of theory
development in grounded investigations: Doctors' experiences
of managing as an example of fitted and prospective
theorizing. Journal of Management Studies, 41(8), 1379-1410.
doi: 10.1111/j.1467-6486.2004.00479.x