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This second chapter provides a useful backdrop for understanding innovation beyond the conventional focus on mainstream technology and science by detailing the conceptual underpinnings of cultural innovation. First, the challenges of objectively assessing the worth of novel work in the various fields of art and architecture are explored through the philosophical views of beauty. Second, the strategies and models deployed over time by artists, patrons, and experts to characterize the merits of novelty in the creative fields are reviewed. Third, the economic principles that have been used to frame the value propositions associated with cultural innovations as articulated by cultural economists are explored.

The key to the success of multinational corporations’ (MNCs) business models is the improvement of their innovation quality. From the cross-border knowledge management perspective, this paper aims to analyze the improvement path of innovation quality of MNCs and construct the functional path of the relationships among the knowledge creation, knowledge application and innovation quality of MNCs in the cross-border knowledge management process, so as to achieve the success of their business models. Based on this, this paper introduces cultural distance to further analyze how such relationships will change with the cultural distance level.

Using data from Chinese A-share listed MNCs with production operations located in the Asia-Pacific region from 2014 to 2018, this paper constructs a panel data model to test the mediating effect of knowledge application and the moderating effect of cultural distance on such relationships.

This paper obtains the following research findings: knowledge creation and knowledge application each have a significant, inverted U-shaped relationship with innovation quality; knowledge creation has a significantly positive correlation with knowledge application and knowledge application has a partial mediating effect on the relationship between knowledge creation and innovation quality; cultural distance has a moderating effect on such relationships. The specific moderating direction depends on the extent of the knowledge creation and knowledge application.

The findings are helpful to MNCs’ managers, providing guidance and serve as a reference for them to make strategic decisions on cross-board knowledge management and business models innovation.

The theoretical contributions are summarized as follows: First, it further enriches and expands the theoretical of knowledge management and innovation quality relationship. Second, it further enriches and expands the theoretical framework of knowledge management. Third, it further enriches the theoretical framework of cross-cultural management.

The objective of this study is to advance the understanding of the connection between cultural distance and the cross-border diffusion of innovations by conducting a systematic review and analysis of previous literature.

This study involved a literature review. A total of 35 articles published in ABS journals were identified from key management, international business and marketing journals. The articles were analyzed by the methodologies and findings presented.

The literature review shows that the adoption and diffusion of innovation and new products are bound to be deeply influenced by cultural distance. Specifically, national cultures influence the willingness of consumers to buy new products at both the individual and organizational levels; organizational culture plays a key role in the process of launching new products and diffusing innovations to the market. However, existing studies and their findings are fragmented and inconsistent. Controversial views remain regarding the impact of national cultural dimensions on the diffusion of innovation at the individual and organizational levels.

This is the first systematic review of the literature specifically focusing on the impact of cultural distance on the cross-border diffusion of innovation. In identifying the research gaps and limitations of extant studies, the authors point to avenues for future research to develop a more integrated research agenda for marketing, management and international business research.

El objetivo de este estudio es avanzar en la compresión de la conexión que existe entre la distancia cultual y la difusión transfronteriza de innovaciones, mediante la realización de una revisión sistemática y un análisis de la literatura previa.

Este estudio incluyó una revisión de la literatura. Y se identificaron un total de 35 artículos en las revistas, relacionados con clave de gestión, negocios internacionales y marketing, publicados en revistas de ABS. Los artículos fueron analizados por las metodologías y hallazgos presentados.

La revisión de la literatura muestra que la adopción y la difusión de la innovación y los nuevos productos, están fuertemente influenciados por la distancia cultural. Específicamente, las culturas nacionales influyen en la disposición de los consumidores a comprar nuevos productos, tanto a nivel individual como a nivel organizacional; la cultura organizacional desempeña un papel clave en el proceso de lanzamiento de nuevos productos y difusión de innovaciones en el mercado. Sin embargo, los estudios existentes y sus hallazgos son fragmentados e inconsistentes. Sigue dándose opiniones controvertidas sobre el impacto de las dimensiones culturales nacionales en la difusión de la innovación a nivel individual y organizacional.

Esta es la primera revisión sistemática de la literatura, que se centra específicamente en el impacto de la distancia cultural en la difusión transfronteriza de la innovación. Al identificar las brechas de la investigación y las limitaciones de los estudios existentes, señalamos vías para futuras investigaciones, con el fin de desarrollar una agenda de investigación más integrada para el estudio de marketing, administración y negocios internacionales.

This paper aims to examine the relationship between cultural distance (both perceived and objective), innovation and firm export performance.

Hypotheses were tested here by structural equation modeling using data from 186 export ventures into 23 international markets by Swedish companies.

The results indicate that managers’ perceptions of substantial cultural differences as well as objective cultural differences (gauged using Hofstede’s (1980, 2001) scores for dimensions of national culture) and subsequent environmental uncertainty when expanding into culturally distant markets triggers strategies for interacting and integrating with the market environment. These include producing and adopting innovations to processes and products and to organizational strategy, structure and administrative procedures to cope with the new environment and overcome uncertainties. These innovations and the associated competitive advantages improve firm export performance.

Despite much research into the relationship between firm internationalization and innovation, little attention has been paid to the effect of the characteristics of the foreign markets (specifically cultural differences) on firm innovation strategies. Moreover, much research has been devoted to the effect of innovation on firm export performance, but such research has mainly focused on one type of innovation, i.e. technological innovation, while the influence of organizational innovation on firm export performance has been basically ignored. The present study validates the explanatory of cultural distance (both perceived and objective) in relation to innovation strategies (technological and organizational) and export performance.

The purpose of this paper is to argue, using the New Zealand context as reference, that heterogeneous societies with diverse cultures have an expanded space of possibilities for developing social innovations.

Incorporation of the cultural context is integral to finding innovative, collective solutions for mitigating complex social problems and sparking transformational social change. Empirical support for this contention draws on examples of social innovations that embed the cultural values of Māori, New Zealand’s indigenous people.

Using illustrative cases, the authors highlight the capacity of Māori values, encompassed in an ecosystem of Māori social institutions, to catalyse social innovation in New Zealand. The authors position these examples within two paradigms of social innovation.

The paper limits its focus to the implications of Māori cultural values for social innovation. However, it serves to highlight that appreciation of indigenous and minority cultural values can provide a foundation for social innovations in other contexts too.

Recognising cultural values increases the range of possibilities for innovatively addressing social and environmental challenges.

Respect and recognition of indigenous culture and knowledge offers potential for sustainable solutions to complex social challenges.

This is one of the few papers to explore the cultural embeddedness of social innovation and highlight public policy social innovations.

The purpose of this paper is to address the importance of cultural values, the organizational culture and management style for innovation. It also comparatively evaluates the actual performance of European countries in innovation.

In this paper, the theoretical frameworks of the well-known scholars Hofstede, House, Schwartz, Boisot and Cameron and Quinn are critically evaluated and compared with each other. In addition, the authors compared the cultural rankings and the actual performance in innovation of selected European countries. Before addressing the impact of culture on the innovative strength of nations, different definitions of innovation are being described. The theoretical framework developed on the basis of the six Hofstede dimensions is composed; the nine House dimensions are supplemented and the Schwartz values for innovative strength of nations are also being discussed. Culture as a knowledge asset, the positioning in information space and its influence on innovation following the theories of Boisot and the different cultural types as defined by Cameron and Quinn have been studied and evaluated. The performance of European countries in innovation has been evaluated on the basis of the Global Innovation Index, the patent applications to the European Patent Office and the European Innovation Scoreboard.

Based on literature review, one can conclude that there is a strong positive relation between several cultural characteristics of countries in question and their innovative strength. The results of this paper point out the importance of cultural values for innovation.

This research has assessed the relation between national culture in general on the innovative strength of nations. Future research on which cultural characteristics and management styles have the strongest correlation with the innovative strength of nations could provide valuable insights for both scholars in this research field and for institutions and companies that wish to improve their innovative strength.

The results of this study provide us with the insight that the innovative strength of a nation or organization can be altered by changing (parts of) its culture. A practical implication of this finding is that a government can, for example, increase its nation’s innovative strength by encouraging cooperation between different institutions and by limiting rules and regulations which could cause barriers in the innovation process.

A social implication of the findings of this study is the knowledge that to improve the innovative strength of a nation, a government needs to pursue a pro-active policy of transforming national culture, for example, by changing the educational system and decreasing the power distance between teachers and students. Such an effort to influence the national culture addresses interesting issues regarding the concept of social engineering.

By critically evaluating the qualitative cultural frameworks of several well-known scholars and relating them to quantitative statistical data about the innovative strength of nations, this study has combined the strengths of both qualitative and quantitative methodologies and produced non-trivial findings in an original manner.

Though there is broad agreement on the beneficial impact of diversity in management and leadership roles, much of the innovative capacity of an organization is realized at the unit level in working teams. Recent research points to cultural diversity having an especially significant impact on innovation team performance. The reports also highlight the need for the optimal team operating principles to derive maximum benefit. To prepare such innovation teams for success, it is valuable to understand the dynamics of team diversity at the project level and the underlying barriers and opportunities presented.

This paper reviews the literature and case studies on cultural inputs to ideation and innovation, assessing team diversity through readily available instruments and the deployment of the science of team science (SciTS) principles in innovation teams.

The key learnings include the importance of establishing communication standards, SciTS principles, team assessment of thinking styles and the utility of cultural awareness instruments.

Diversity provides a creative advantage for innovation teams. However, team dynamics play an important role in maximizing these advantages, and cross-cultural competence of team members is required. Deployment of appropriate assessment tools and team methodologies enhances the likelihood of successful outcomes including in remote team settings.

Literature from diverse functional areas is summarized including the science of team science, organizational management, diversity and inclusion methodologies and ethnocultural dynamics. It provides pointers for the optimal formation and operating principles with highly culturally diverse teams.

The purpose of this paper is to explore the relationship between culture and regional innovation performance in China where innovation is deemed as a key for sustainable economic development. The diversity of China’s regional culture and its rising economic and innovative capability enhancement provides an opportunity for such an exploration.

This paper adopts the GLOBE’s nine cultural dimensions to empirically examine the relationship between culture and Chinese regional innovation performance through multiple regression analysis.

The study results find that performance orientation and gender egalitarianism have positive and significant influences on regional innovation performance, while institutional collectivism has a negative and significant influence. The remaining six GLOBE cultural dimensions show no significant effect on regional innovation performance.

To the best of the authors’ knowledge, this is the first research exploring the relationship between culture and regional innovation performance in a Chinese context by using GLOBE’s cultural dimensions that are deemed as a valuable empirical alternative to Hofstede’s cultural measures. The results of this study help further the understanding of the cultural influence in China’s regional innovation performance.

Intense competitive environments demand the combination of quality and innovation. The potential of human resource management practices within the total quality framework for promoting innovation is under debate, particularly in relation to radical innovation. The purpose of this paper is to enhance and extend the analysis of the role of cultural change as a mediator.

The empirical study examines a sample of Spanish firms in highly competitive environments in their search for a combination of quality and innovation. To this end, the investigation includes structural equation analysis through partial least square path modelling.

According to the results, the cultural change towards exploitation and exploration brought about by the application of these practices has a positive and significant relationship with incremental innovation. The findings indicate that incremental innovation has a positive and significant effect on radical innovation as well. This outcome challenges a well-known phenomenon: the so-called “success trap”.

The study helps to understand how human resource management practices within a total quality framework can be designed and implemented as a means of generating synergies between the two fields.

This study adds two original contributions to the current dialogue on the implications of total quality management for innovation: it reveals the moderating role of cultural change for exploitation and exploration, and pinpoints the role of incremental innovation in facilitating radical innovation within the TQM framework.

This study aims to provide an in‐depth understanding of the innovation system and the learning processes involved in a very specific cultural field: the production of early music.

A single case study of the generic value chain in the music production industry describes and analyses the process and the actors involved in editing a new early music collection resulting from the collaboration between a record company and a public research organization.

There is a need for new knowledge in the various stages of performance and publication of a new recording. The early music sector is a knowledge‐intensive, science‐driven sector that can be characterized as a system because the interactions among actors substantially influence final products.

The single case study represents a specific sector within the music industry. However, its conclusions can be applied to other fields in the cultural heritage sector.

The literature on innovation in the cultural field primarily focuses on the relationship between art and information and communication technology (ICT). This paper is novel in analysing a case where scientific knowledge is key to new product development, and suggesting that we need to take account of the interactions among cultural heritage entities, universities and other knowledge production organizations. It concludes that these organizations should be involved institutionally in other aspects of the innovation process.