BEYOND SURFACE-LEVEL CULTURE: HOW DEEP ASSUMPTIONS DRIVE INNOVATION ADOPTION AND CHANGE READINESS IN JAPANESE AND THAI FIRMS
Abstract
This study combines qualitative and quantitative methods for comparing the impact of organizational culture (OC), operationalized by means of the three-level model by Schein and Schein (Artifacts, Espoused Values, and Basic Assumptions), on innovation adoption (IA) and readiness-for-change (RC) in a Japanese multinational corporation and in a Thai company in Bangkok, Thailand. The study was based on survey data from 60 employees (30 in each organization) and semi-structured interviews with 10 managers. The statistical analysis was performed using the t-test, Pearson correlation tests with Fisher’s z-transformation, and stepwise multiple regression. All three OC levels were positively correlated with IA and RC across both companies. Nevertheless, none of the first two factors (Artifacts and Espoused Values) showed any effect, even when both were included in the regression analysis along with Basic Assumptions. Such a pattern supports the hierarchy proposed by Schein & Schein and shows that deep-seated beliefs have a prevailing impact on innovation. The correlation between RC and IA was strong in both firms, especially in the case of the Thai firm (R² = .48) compared to the Japanese MNC (R² = .34). Contrary to the cultural belief about collectivist/rule-based cultures, the Thai firm had significantly more IA than the Japanese firm (p = .003, Cohen’s d = 0.80). None of the coefficients in the regression analyses were significantly different from each other between the two firms (Fisher’s z all p > .05), suggesting no moderation by nationality. The implications of these findings suggest that firms promoting innovation need to work on their assumptions regarding risk/change, not just their artifacts/espoused values.
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References
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