Linking firm performance with innovation culture: An algorithmic approach towards theory building

Abstract

To address the growing demand for theory development in computational social science research, this study employs an algorithm-driven approach to formulate a comprehensive six-step theory generation process. By applying this original research method, a new theoretical model—the “Dynamic Resource-Culture Synergy Theory” is proposed which enhances the explanatory power regarding how firms maintain competitiveness in rapidly changing environments by emphasizing the pivotal role of culture in resource integration and innovation processes. Drawing on empirical data from 887 Chinese high-tech manufacturing firms, our analysis identifies key drivers of organizational performance, with a particular focus on the role of organizational culture, especially innovation culture, as a mediating force. Utilizing the GWO-SVM technique, we gain a nuanced understanding of how different cultural traits interact with innovation and leverage, uncovering how the initial enhancement of innovation culture positively impacts performance metrics such as ROA. The findings confirm that innovation, facilitated by organizational culture, significantly enhances performance outcomes. Furthermore, this study considers factors such as leverage and the proportion of technical personnel, investigating their moderating effects on the relationship between innovation culture and firm performance. This study not only deepens the understanding of how innovation and culture interact to influence firm performance but also provides significant theoretical and practical contributions to the study of the dynamics of high-tech manufacturing enterprises.