Innovation Climate: A Comprehensive Literature Review and Future Research Agenda
DOI:
https://doi.org/10.51137/wrp.ijarbm.694Keywords:
Innovation Climate, Comprehensive Literature ReviewAbstract
This study on innovation climate aims to provide a comprehensive literature review and outline future research directions. There is a dearth of empirical studies on the topic of innovation climate within firms. This article conducts a comprehensive review of the literature on this construct, highlighting findings and empirical studies that have examined it as a mediator. We propose a research plan that emphasizes the need to integrate alternative theoretical perspectives to better understand innovation climate and its influence on organizational outcomes. The literature search identified peer-reviewed articles on innovation climate through a ProQuest database search of a specific set of source journals initially containing the phrases "innovation climate," "climate for innovation," or "innovation-supportive climate." The initial search included 186 articles, after which the researchers excluded six articles not published in English-language journals, resulting in a total of 180 articles. Subsequently, an independent review was conducted to identify empirical studies assessing innovation climate at the team or organizational level, resulting in 51 articles. Subsequently, 16 articles published in the last five years were selected and retained. Articles addressing different types of organizational climate were excluded, and 16 articles published in the last five years were selected. In addition to prospective theoretical research, we also emphasize the potential for empirical progress in this area. We emphasize the need to investigate the impact of innovation climate, apply more dynamic methodologies to analyze its evolution over time, and assess the effects of cultural and institutional factors on the progress of innovation climate.
References
Abdel-Razek, R., & Alharbi, F. B. (2017). Assessment of technological innovation climate in organizations. Journal of Innovation Management, 5(3), 34–54.
Adel, H. M., & Younis, R. A. A. (2019). Using co-creating mass-customisation and innovation climate for enhanced value. Journal of Humanities and Applied Social Sciences, 1(1), 25–42. https://doi.org/10.1108/jhass-05-2019-002
Afsar, B., & Umrani, W. A. (2020). Transformational Leadership and Innovative Work Behavior: The Role of Motivation to learn, Task Complexity and Innovation Climate. European Journal of Innovation Management, 23(3), 402–428. https://doi.org/10.1108/EJIM-12-2018-0257
Baer, M., & Frese, M. (2003). Innovation is not enough: Climates for initiative and psychological safety, process innovations, and firm performance. Journal of Organizational Behavior, 24(1), 45–68. https://doi.org/10.1002/job.179
Brockner, J., Flynn, F. J., Dolan, R. J., Ostfield, A., Pace, D., & Ziskin, I. V. (2014). The Role of Autothentic Leadership in Fostering Workplace Inclusion: A Sosial Information Processing Perspective. Human Resource Management, 54(1), 127–145. https://doi.org/10.1002/hrm.21669
Brockner, J., Higgins, E. T., & Low, M. B. (2004). Regulatory focus theory and the entrepreneurial process. Journal of Business Venturing, 19(2), 203–220. https://doi.org/10.1016/S0883-9026(03)00007-7
Dabić, M., Lažnjak, J., Smallbone, D., & Švarc, J. (2019). Intellectual capital, organisational climate, innovation culture, and SME performance: Evidence from Croatia. Journal of Small Business and Enterprise Development, 26(4), 522–544. https://doi.org/10.1108/JSBED-04-2018-0117
Greert Hofstade. (2001). Culture’s Recent Consequences: Using Dimension Scores in Theory and Research. International Journal of Cross Cultural Management, 1(1), 11–30.
He, P. X., Wu, T. J., Zhao, H. D., & Yang, Y. (2019). How to Motivate Employees for Sustained Innovation Behavior in Job Stressors? A Cross-Level Analysis of Organizational Innovation Climate. International Journal of Environmental Research and Public Health, 16(23). https://doi.org/10.3390/ijerph16234608
Hotho, S., & Champion, K. (2011). Small businesses in the new creative industries: innovation as a people management challenge. Management Decision, 49(1), 29–54.
Huang, H., & Li, F. (2021). Innovation Climate , Knowledge Management , and Innovative Work Behavior in Small Software Companies. Social Behavior and Personality, 49(4), 1–18.
Isaksen, S. G., & Akkermans, H. J. (2011). Creative climate: A leadership lever for innovation. The Journal of Creative Behavior, 45(3), 161–187.
Jasna Prester, TNajla Podrug, Bm. D. (2015). Innovation Climate as a Source of Competitive Advantage. Journal of Economic and Social Development, 2(1), 25–33.
Khan, Z. A. (2016). Leadership Theories and Styles : A Literature Review. 16, 1–7.
Lee, T. H. (2001). The Distinction Between Charisma and Vision : 373–393.
Mumford, M. D. (2000). Managing CreativePeople: Strategies and Tactics for Innovation. Human Resource Management Review, 10(3), 313–351.
Najar, T., & Dhaouadi, K. (2020). Chief Executive Officer’s Traits and Open Innovation in Small and Medium Enterprises: The Mediating Role of Innovation Climate. Journal of Small Business and Enterprise Development, 27(4), 607–631. https://doi.org/10.1108/JSBED-04-2020-0109
Ngo, J. C. (2015). The Impact of Innovation Climate on Organizational Effectiveness. Journal of Asia Entrepreneurship and Sustainability, XI(6), 114–160. http://www.dillardpartners.com/images/latest/pdf/WorkshopsPage/TeamIMPACT!_2-Page_Sell_Sheet.pdf
Niguse, T., Kant, S., & Borji, B. (2025). Green innovation strategy , sustainable business model innovation and sustainable competitive advantage with mediating role of green intellectual capital in emerging markets : evidence from Ethiopian eco ‑ hotels. Future Business Journal, 11(244), 1–19. https://doi.org/10.1186/s43093-025-00669-6
Perry-Smith, J. M. (2019). From Creativity to Innovation: The Social Network Drivers of The Four Phases of The Idea Journey. Academy of Management Review, 1–62.
Sarros, J. C., Cooper, B. K., & Santora, J. C. (2008). Building a Climate for Innovation Through Transformational Leadership and Organizational Culture. Journal of Leadership and Organizational Studies, 15(2), 145–158. https://doi.org/10.1177/1548051808324100
Silva, E. M. S. G. da, Weber, A. F., Moreira, M. F., & Silva, S. M. da. (2022). Innovation Climate, Human Capital and Dynamic Capacities: Interrelations Between Innovation Antecedents. Emerald, 19(4), 270–289. https://doi.org/10.1108/INMR-06-2019-0087
Tett, R. P., & Guterman, H. A. (2000). Situation Trait Relevance, Trait Expression, and Cross-Situational Consistency: Testing a Principle of Trait Activation. Journal of Research in Personality, 34(4), 397–423. https://doi.org/10.1006/jrpe.2000.2292
Thiagarajan, T., & Kumar, K. S. (2018). Organizational Climate for Innovation and Creativity. BVIMSR’s Journal of Management Research, 10(1), 165–173.
Ujang, R. (2024). Understanding Consumer Behavior in Kuching’s Black Market Gambling: The Psychological, Economic and Regulatory Impacts of Illicit Gambling Markets. Journal of International Business, Economics and Entrepreneurship, 9(2), 125–144. https://doi.org/10.24191//jibe.v9i2.3571
Waheed, A., Miao, X., Waheed, S., Ahmad, N., & Majeed, A. (2019). How New HRM Practices, Organizational Innovation, and Innovative Climate Affect the Innovation Performance in The IT Industry: A Moderated-Mediation Analysis. Sustainability (Switzerland), 11(3). https://doi.org/10.3390/su11030621
West, M. A., & Anderson, N. R. (1996). Innovation in Top Management Teams. Journal of Applied Psychology, 81(6), 680–693. https://doi.org/10.1037/0021-9010.81.6.680
Xu, S., Hao, L., An, X., Yang, G., & Wang, F. (2019). Emerging research topics detection with multiple machine learning models. Journal of Informetrics, 13(4), 100983. https://doi.org/10.1016/j.joi.2019.100983
Yu, S., Zhang, S., & Yuizono, T. (2021). Exploring The Influences of Innovation Climate and Resource Endowments Through Two Types of University–iIdustry Collaborative Activities on Regional Sustainable Development. Sustainability, 13(1–20). https://doi.org/10.3390/su13147559
Zhou, C., & Zhang, H. (2017). Exploring The Influence of Curtomer Participation on Employee Service Innovation Behavior: The Mediating Effect of Customer Psychological Empowerment and The Moderating Effect of Organizational Innovation Climate. Expert Projects Publishing House, 57, 159–181.
Zuraik, A., & Kelly, L. (2019). The Role of CEO Transformational Leadership and Innovation Climate in Exploration and Exploitation. European Journal of Innovation Management, 22(1), 84–104. https://doi.org/10.1108/EJIM-10-2017-0142
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Florentina Anif Farida (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
