The impact of culture and strategic orientation on service innovation capability: Evidence from banking industry

This paper presents a study to measure the effects of culture and strategic orientation on service innovation capabilities on selected banks in province of Alborz, Iran. The survey uses a questionnaire consists of 40 questions where 5 questions are associated with service innovation, 11 questions are related to strategic orientation and 24 questions measures organizational culture. Cronbach alpha for service innovation capabilities, strategic orientation and organizational culture were 0.73, 0.84 and 0.91, respectively. Using structural equation modeling as well as regression technique, the study has determined that organizational culture influences positively on structural orientation (B = 0.6, t-value = 13.56), organizational culture influences positively on service innovation capability (B = 0.43, t-value = 8.73) and finally structural orientation influences positively on service innovation capability (B = 0.35, t-value = 7.22).