The Mediating Role Of Organizational Culture In The Impact Of Strategic Innovation On Operational Performance

Abstract

This study investigates the mediating role of organizational culture in the relationship between strategic innovation and operational performance within the steel manufacturing industry. Using a quantitative approach and structural equation modeling (PLS-SEM) on data collected from 350 employees at a leading steel company, the research explores how innovation-driven strategies influence performance outcomes when supported by a robust organizational culture. The findings reveal that strategic innovation positively affects operational performance and that organizational culture significantly enhances this impact by fostering adaptability, continuous learning, and knowledge sharing. The analysis confirms that while innovation directly contributes to performance improvements, its full potential is realized when embedded in a supportive cultural environment. These results extend existing literature by emphasizing the crucial intermediary role of culture in translating innovative practices into superior operational outcomes. The study offers theoretical insights for scholars and practical recommendations for managers, highlighting the importance of cultivating an organizational culture that supports and amplifies strategic innovation to achieve sustained performance gains.