Abstract:
The purpose of this research article is to examine the impact of organisational culture on service innovation.
A conceptual framework was proposed from the related literature and empirically tested using primary data
collected from managers of service centric business organisations in Sri Lanka. The study employs a cross
sectional, survey-based methodology. Data was analysed via Smart PLS program. The result reveals that
adhocracy culture is positively related to service innovations. Further, it provides evidence that, first, in order to
increase service innovations companies should foster cultures with external and flexibility orientations. Moreover,
the paper suggests that values, beliefs and assumptions that are coherent with adhocracy culture are key drivers
for developing new services. Hence, the result provides evidence regarding the implications of organisational
culture as well as enabling factors behind innovations of service firms.
