The Impact of Innovative-Supportive Culture on Employee Performance in Software Development Companies of Sri Lanka

Abstract

The main purpose of this research is to investigate the impact of innovative culture on employee performance at software companies of Sri Lanka. It explores the degree of impact on each factor of innovative culture on employee performance. The research hypothesizes that in software companies, innovative culture has a positive relationship on the employee performance and determinants of innovative culture. This empirical study draws upon a survey from software developers, business analyst, project managers and others who are directly involved in projects from the software development companies. orrelation and Multiple regression analyses proved that the impact innovative culture had on employee performance is strongly positive. Dimensions of innovative culture also had a positive impact on employee performance except the dimension ‘trust’ which did not have a statistically significant impact. This research study emphasises on the importance of fostering innovation as a way of business philosophy through the organisational culture which results in having a sustainable competitive advantage. It is not limited to the product but extends to employees too. The knowledge created has contributed to the business environment of Sri Lanka in relation to best organisational culture practices. Finally recommendations are given to practically implement some of the cultural practices that are lacking in Sri Lankan software companies.