The Influence of Organizational Culture, Innovation Drivers, and Information Technology Capability on Innovation Capability of Manufacturing Firms in Iraq

The study examines the mediating role of information technology capability on the influence of organizational culture and innovation drivers on innovation capabilities in manufacturing sectors in Iraq. The framework for this study was developed by combining the resource based view (RBV) and contingency theory and inspired by the congruence model. Findings of this study supported these theories and the process of making strategic decisions. Manufacturing sector in Iraq came under pressure and challenges and face competition that are increasingly global and technological advance. Over the past decade there has been a growing realization of the important contribution of organizational culture, innovation drivers and information technology capabilities to innovation capabilities. Both academics and practitioners agree that the effectiveness in these three factors can lead to sustainable competitive advantage and better innovation capabilities. The samples were chosen from Federation of Iraq Manufacturing (FIM) Directory of 2010. A questionnaire was designed and mailed to one thousand two hundred companies selected randomly. Organizational leaders were the respondents of the study. To analyze the data, SPSS software was used. Findings showed the role of information technology capabilities as mediation
variable in the relationship between organizational culture and innovation capabilities, and between innovation drivers and innovation capabilities. Specifically, the organizational culture (adhocracy and clan) had significant relationship with innovation capabilities and both of them were partially mediated by the information technology capabilities. Meanwhile, the innovation drivers
(technological advance, globalization and shorting product life cycle) had significant relationship with innovation capabilities and both of them were partially mediated by the information technology capabilities.The results of the study are expected to contribute to research literatures on innovation to which knowledge was added, and to the field practices, where organizational leaders are seeking keys to the general behavior of their firms and their ability to innovate.