Organizational culture, climate and IC: an interaction analysis
| Date | 19 April 2011 |
| DOI | https://doi.org/10.1108/14691931111123403 |
| Pages | 224-248 |
| Published date | 19 April 2011 |
| Author | Jamal A. Nazari,Irene M. Herremans,Robert G. Isaac,Armond Manassian,Theresa J.B. Kline |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Organizational culture, climate
and IC: an interaction analysis
Jamal A. Nazari
Bissett School of Business, Mount Royal University, Calgary, Canada, and
Haskayne School of Business, University of Calgary, Calgary, Canada
Irene M. Herremans and Robert G. Isaac
Haskayne School of Business, University of Calgary, Calgary, Canada
Armond Manassian
Olayan School of Business, American University of Beirut, Beirut, Lebanon, and
Theresa J.B. Kline
Faculty of Psychology, University of Calgary, Calgary, Canada
Abstract
Purpose – This study aims to empirically investigate the role of organizational culture and climate in
supporting intellectual capital (IC) management systems. Specifically, it seeks to investigate the
relationship between organizational characteristics (culture and climate) and IC management systems
in the Middle East (Iran and Lebanon) and Canada.
Design/methodology/approach – Data were gathered via a survey instrument and statistical
analysis was used to test for significance between dependent and independent variables. Then a
two-stage hierarchical multiple regression was used to test for the nature and effects of country of
origin as a moderating variable.
Findings – The findings suggest that both culture and climate play significant roles in developing
management systems for IC. In addition, for country, when organizational climate improves, Middle
Eastern respondents perceived an even greater improvement in IC management systems compared to
their Canadian counterparts.
Originality/value – There is limited research that has been undertaken to compare developed and
developing countries with regard to the influence of organizational characteristics on IC management
systems. This research is timely given the recent publication of the Arab Human Development Report
and the Arab Knowledge Report. This study provides insight into the ability of organizations in the
Middle East to develop a knowledge base and reduce the knowledge gap between the Arab world and
countries currently classified as knowledge intensive.
Keywords Intellectualcapital, Organizational climate,Organizational culture, Canada, Iran,Lebanon,
Management techniques
Paper type Research paper
1. Introduction
Academic scholars, as well as profit and non-profit organizations, in many countries
have put a mounting emphasis on the successful management of knowledge
management and the broader concept of intellectual capital (IC). As managers’
awareness about the critical role of IC in improving organizational performance
increases, there is an increasing demand for studies (Tayles et al., 2007) investigating
the attributes that would lead to the successful implementation of IC management
systems, not only within their national boundaries, but also across borders. There
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1469-1930.htm
JIC
12,2
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Journal of Intellectual Capital
Vol. 12 No. 2, 2011
pp. 224-248
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691931111123403
seems to be an obvious gap in the literature to evaluate the role of culture and climate
in improving IC management systems, especially in an international context.
The study objective is to investigate empirically the effects of region of residence on
moderating the role of orga nizational culture and cl imate in supporting IC
management systems. The results of the analysis complement those studies that
have found culture and climate to be significant in a domestic context (e.g. Isaac et al.,
2010) and in an international context (Nazari, Herremans, Isaac, Manassian and Kline,
2009) for supporting IC. This significance in the current study is tested in an
international setting by comparing Canada and the Middle East (Iran and Lebanon).
This study offers a contribution by investigating the moderating effects of the region
of residence on the relationship between organizational characteristics (culture and
climate) and IC management systems. The analysis is conducted at the level of an
individual’s perception of his/her organization, as this is often the point at which IC has
an opportunity to take hold and eventually be transferred to the organization level.
1.1 Background
Two significant reports, co-sponsored by the United National Development Program
(UNDP) and key Arab organizations, are pertinent to fostering intellectual capital in
Middle Eastern organizations: the Arab Human Development Report 2003: Building a
Knowledge Society (UNDP, 2003) and the Arab Knowledge Report 2009 (UNDP, 2009).
The first report urgently encouraged Arab nations to transform themselves into
“knowledge societies” or risk being left behind. Although the report portrayed a dismal
picture of the region’s negative cultural, intellectual, and economic consequences
arising from a self-imposed technological dependency on the West, it fell short of
providing concrete suggestions for improving the situation and embarking on a path
toward becoming knowledge societies. Thereafter, the Arab Knowledge Report (UNDP,
2009) followed to lay the foundation for establishing and developing a “comprehensive
knowledge base through the generation of future public and private sector leaders”
(UNDP, 2009, p. 1). It suggests adopting a new code of ethics with principles of
“openness to, and inter-communication with, humanity at large” (UNDP, 2009, p. 220)
to absorb new knowledge and reduce the knowledge gap between the Arab world and
countries currently classified as knowledge-intensive (UNDP, 2009).
According to the 2003 Arab Human Development Report (UNDP, 2003), the average
expenditure on R&D as a percentage of gross national product (GNP) was 0.2 percent
in the Middle Eastern region, one of the lowest in the world. Research output is very
low due to several factors which include insufficient financing, poor working
conditions, the prevalence of oppressive climates of intellectual restrictions, and the
lack of support and arrogance of existing political powers. The Arab Knowledge Report
(2009) suggested that political, institutional, cultural, and intellectual aspects of Arab
society need to be reformed to develop a solid foundation for confronting its challenges.
The planned outcomes are “stimulating leadership in business, fostering innovation
and creativity [...], and revitalizing the concept of productive culture” by finding ways
of bringing different cultures together (UNDP, 2009, p. 1).
In line with these reports’ aims, the current study investigates the type of context in
which knowledge and its complementary elements of supportive structures and
cooperative relationships will flourish in Middle Eastern organizations. Because
intellectual capital resides in the employees of these organizations, it is most
Organizational
culture and IC
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