Local traditions, global ambitions: influence of organizational culture on innovative capability and international growth orientation in Brazilian wineries

Abstract

PurposeThis study examines the influence of organizational culture types, specifically clan, adhocracy, hierarchy and market culture, on innovative capability and a firm’s international growth orientation within Brazil’s wine industry.Design/methodology/approachThe paper builds on empirical evidence gathered from responses of managers from 230 Brazilian winemaking organizations based on a self-administered survey. The hypotheses in the conceptual model are tested using Smart-PLS (partial least square).FindingsThe types of culture that showed a positive relationship with dynamic innovation capability were clan, adhocracy, and market. Regarding the orientation for international growth, the market culture is the most conducive. Clan culture is not ideal for internationalization, and both adhocracy and hierarchical cultures showed no relationship. It was found that dynamic innovation capability has a positive relationship with the orientation for international growth.Practical implicationsThe study broadens the research perspectives for analyzing resources from the Brazilian wine industry, further examining their linkage with the orientation for the international growth of the segment. The findings provide managers with insights about which types of culture should be fostered when aiming to innovate and internationalize.Social implicationsThe advancements are related to the Sustainable Development Goals advocated by the United Nations.Originality/valueThe study is motivated by the lack of integrated methodologies that relate organizational culture, dynamic innovation capability and orientation for international growth. International business research has neglected to specify which particular resources a company needs to have a propensity for international growth orientation.