Proceedings of the 8th International Conference on Intellectual ...

Organizational Learning in Pr<strong>of</strong>it and Non-Pr<strong>of</strong>it
Organizations: The Perspective <strong>of</strong> Innovative Culture
Development
Brigita Janiunaite, Gintautas Cibulskas and Monika Petraite
Kaunas University <strong>of</strong> Technology, Kaunas, Lithuania
brigita.janiunaite@ktu.lt
gintautas.cibulskas@ktu.lt
monika.petraite@ktu.lt
Abstract: The focus <strong>of</strong> this paper is on learning in an organization as an important characteristic <strong>of</strong> innovative
culture and its development. The paper addresses <strong>the</strong> following questions: what features <strong>of</strong> organizational
learning prevail in pr<strong>of</strong>it and non-pr<strong>of</strong>it organizations; how <strong>the</strong>se features provide or do not provide preconditions
in <strong>the</strong>se types <strong>of</strong> organizations? The attempts to answer this question are reflected in four parts <strong>of</strong> this paper: <strong>the</strong>
first and <strong>the</strong> second parts reveal <strong>the</strong> concept <strong>of</strong> innovative culture and its characteristics, <strong>the</strong> essence <strong>of</strong>
organizational learning, its types and relationship with a learning organization; <strong>the</strong> third part presents <strong>the</strong>
research methodology. The paper is based on <strong>the</strong> empirical study <strong>of</strong> 30 pr<strong>of</strong>it and non-pr<strong>of</strong>it organizations. The
research was carried out drawing on a quantitative approach. The method <strong>of</strong> written survey was employed to
evaluate <strong>the</strong> features <strong>of</strong> organizational learning. The fourth part <strong>of</strong> <strong>the</strong> paper presents <strong>the</strong> empirical research
results that are discussed to reveal <strong>the</strong> advantages and differences <strong>of</strong> organizational learning in pr<strong>of</strong>it and nonpr<strong>of</strong>it
organizations. The paper seeks to bridge <strong>the</strong> gap in innovatics, which emerges as a result <strong>of</strong> a narrow
approach to learning and innovations regardless <strong>of</strong> sectorial specificity.
Keywords: innovative culture, organizational learning, sectorial dimension, pr<strong>of</strong>it and non-pr<strong>of</strong>it organization
1. Introduction
To be innovative, <strong>the</strong> society and its organizations must possess <strong>the</strong> general characteristics <strong>of</strong>
innovative culture: 1) high tolerance <strong>of</strong> risk, complexity and change; 2) emphasis on flexibility and
mobility, enabled by flat organizational structures, 3) trust-based cooperative relations inside and
inside <strong>the</strong> organization, 4) emphasis on creativity and learning (on individual and collective levels)
(Jucevicius, 2010). The focus <strong>of</strong> this paper is on organizational learning as an important characteristic
<strong>of</strong> innovative culture and its development.
The paper draws on <strong>the</strong> approach that <strong>the</strong> characteristics <strong>of</strong> innovative culture, learning among <strong>the</strong>m,
are treated as universal, but at <strong>the</strong> same time <strong>the</strong>y may have unique features in certain socioorganizational
contexts (Dombrowski et al., 2007; Jucevicius, 2008, 2009; Janiunaite, 2007; H<strong>of</strong>stede,
2001; Inglehart, 1997). Those unique features may also be disclosed when innovative culture is
addressed in organizations <strong>of</strong> different types. Pr<strong>of</strong>it organizations are usually treated as acting in a
competitive environment. They may survive only drawing on innovations. Thus <strong>the</strong>ir innovativeness
and learning are not questioned. Drawing on Thom and Ritz (2004), even though <strong>the</strong> new public
management concept points out <strong>the</strong> productivity and innovativeness <strong>of</strong> public service providers, <strong>the</strong>
public sector contains a number <strong>of</strong> barriers to innovations. For instance, <strong>the</strong>re is a strong dependence
<strong>of</strong> administrative activities and political decisions in this sector. For this reason, this kind <strong>of</strong> institutions
seldom show initiative or try to solve problems by illegitimate decisions. Errors, in principle, are
against a legal performance <strong>of</strong> <strong>the</strong> state. Risky innovations and socially sensitive errors are avoided.
The paper addresses <strong>the</strong> following question: what features <strong>of</strong> organizational learning prevail in pr<strong>of</strong>it
and non-pr<strong>of</strong>it organizations? The research instrument was developed drawing on <strong>the</strong> <strong>the</strong>oretical
model designed as a result <strong>of</strong> <strong>the</strong> involvement <strong>of</strong> <strong>the</strong> authors <strong>of</strong> this paper in <strong>the</strong> project ‘Study on <strong>the</strong>
Pr<strong>of</strong>iles <strong>of</strong> Innovative Culture in Organizations <strong>of</strong> Public and Private Sector.
2. The concept and characteristics <strong>of</strong> innovative culture
The innovative culture is one <strong>of</strong> those frequently used but rarely defined concepts that are
encountered in <strong>the</strong> recently booming literature on innovation. Ulijn (2003) treats <strong>the</strong> innovative culture
as an outcome <strong>of</strong> <strong>the</strong> interaction among <strong>the</strong> pr<strong>of</strong>essional culture (PC) (research, marketing, and
finance), corporate culture (CC) and national culture (NC). According to <strong>the</strong> Wieland (2006),
‘innovation culture is made up from technological visions, research traditions, value systems, etc.,
shared by those who take part in <strong>the</strong> innovation process. It can also serve as a reservoir for ideas
about new and improved products, processes and services. Heindenreich (2001) suggests defining
innovative culture as ‘a relatively stable way <strong>of</strong> reflection, behaviour and social organization taking
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