The Determining Effect of Capital and Organizational Culture on Digital Innovation


International Research Journal of Economics and Management Studies
© 2026 by IRJEMS
Volume 5  Issue 7
Year of Publication : 2026
Authors : Momeena Mehdi
irjems doi : 10.56472/25835238/IRJEMS-V5I7P111

Citation:

Momeena Mehdi. "The Determining Effect of Capital and Organizational Culture on Digital Innovation" International Research Journal of Economics and Management Studies, Vol. 5, No. 7, pp. 88-91, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I7P111

Abstract:

Organizational culture encompasses both tangible and intangible elements from the environment in which it operates, influencing employees' work behaviour. Open-context cultures promote a high level of experimentation, especially with contemporary practices and development tools. This research explores the role of organizational culture and capital in driving digital innovation, technology and related competencies within management settings. Based on recent empirical research, the paper examines how diverse values, practices, leadership behaviours and finances within organisations enable or impede innovation through technology adoption. It examines key drivers and enablers that provide recommendations for managers and academics who wish to realise a successful digital transformation while nurturing innovation within the organisation. This paper consolidates findings from peer-reviewed journals and statistical data derived from reports to add practical implications and guidance informed by academic research.

References:

[1] AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The enabling role of ethical leadership and blockchain. Technological Forecasting and Social Change, 174, Article 121024. Retrieved from https://discovery.dundee.ac.uk/ws/files/99515024/1_s2.0_S0148296322002727_main.pdf
[2] Baojing, Z. (2025). The relationship between organizational culture and digital transformation. Malque Publishers. Retrieved from https://malque.pub
[3] Cambridge University Press. (2025). Cambridge University Press. (2025). Strategic management in the digital age: Culture and innovation. Retrieved from https://www.cambridge.org
[4] Dinasti International Journal of Digital Business Management. (2024). The effect of digital organizational culture on organizational performance. Retrieved from https://dinastipub.org
[5] Evans, N. (2015). Strategic management for tourism, hospitality and events. Routledge.
[6] Hung, T. H. (2024). Financial resources and business performance of small and medium enterprises. Pakistan Journal of Life and Social Sciences, 22(2), 24262-24270. Retrieved from https://www.pjlss.edu.pk/pdf_files/2024_2/24262-24270.pdf
[7] Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, Article 119962. doi:10.1016/j.techfore.2019.119962
[8] O'Connor, L. (2024). Organizational culture as a catalyst for digital transformation. Journal of Research in Management & Digital Economics, 14(1), 33-49. Retrieved from https://journalrmde.com
[9] Robbins, S. P., Coulter, M., & Long, J. (2017). Management (16th ed.). Pearson Education.
[10] Schein, E. H. (2010). Organizational culture and leadership (4th ed.). Jossey-Bass.
[11] Organizational culture as a catalyst for digital transformation. (2025). Journal of Resource Management and Decision Engineering, 3(3). Retrieved from https://www.journalrmde.com/index.php/jrmde/article/view/53
[12] Susanto, A., et al. (2021). The influence of financial resources, human capital, and entrepreneurial competencies on business performance. EAI Endorsed Transactions on Scalable Information Systems, 8(4), Article e7. Retrieved from https://eudl.eu/doi/10.4108/eai.15-9-2021.2315204
[13] Zolfaghari, M. S. (2023). The impact of digital disruption on organizational sociology. Digital Transformation and Administration Innovation, 1(1), 27-35. Retrieved from https://www.journaldtai.com/index.php/jdtai/article/download/44/44/87

Keywords:

Capital, Digital, Innovation, Organizational Culture.