Effect of Organizational Culture, Leadership Style, and Organizational Learning on Organizational Innovation in the Public Sector

The purpose of this study is to investigate the relationship between organizational culture, leadership style, organizational learning, and organizational innovation. Structural Equation Modeling (SEM) was used to investigate the degree of influence among the constructs as well as determine whether or not these constructs affect innovation capability and performance. A questionnaire survey was conducted to collect data from governmental public service agencies. Out of 500 issued surveys, a total of 398 valid responses were received. The analysis results reveal that (1) organizational culture influences organizational performance positively through organizational innovation; (2) leadership style has no direct impact on innovation capability; (3) organizational learning positively influences organizational performance, either directly or indirectly through organizational innovation; and (4) organizational innovation positively influences organizational performance. The study shows that by increasing innovation activities in the public sector, it is possible to improve organizational performance by means of organization culture and organizational learning.