Organizational Culture as a Determinant of Innovation – Comparative Study Between Public and Private Organizations

This study investigates the role of organizational culture as a key determinant of innovation capacity by conducting a comparative analysis between public and private sector organizations. Drawing on a mixed-methods approach that combines survey data and semi-structured interviews, the research explores how different cultural models—hierarchical, clan, adhocratic, and market— shape innovation practices and employee behavior. Findings reveal that private sector organizations are more likely to foster adhocracy and market cultures, which correlate strongly with innovation, flexibility, and autonomy. Conversely, public sector institutions tend to emphasize hierarchical cultures, prioritizing stability and formal procedures, often at the expense of innovation potential. However, leadership and organizational learning emerged as mediating factors that can overcome these cultural constraints. The study highlights the need for tailored cultural transformations to align innovation goals with internal values and structure, offering actionable recommendations for both public administration reform and corporate innovation strategy.