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Corporate culture is shown to be a pre-determinant of the capacity of an organisation to innovate. It has also been shown that culture is an enabler in that an inappropriate culture can kill innovation and an appropriate culture can facilitate it. Corporate culture on its own does not create innovation nor does it necessarily focus corporate energies on those factors that really matter in ensuring that an organisation is innovative whether incremental or radical.

The long-term improvements that are needed to ensure increased performance demand adjustments to organisational culture, which ensure that firms are able to develop a culture in which innovation is a prominent feature. Research has identified the powerful effect that corporate culture has on performance and hence the long term viability of an organisation. The significance of the ‘social environment’ in influencing innovative behaviour suggesting that creativity is a starting point for innovation has also been noted: “Creativity is the seed of all innovation, and psychological perceptions of innovation (the implementation of people’s ideas) within an organisation are likely to impact the motivation to generate new ideas.” (Amabile et al, 1998:1155)