Radical innovation culture in Croatian manufacturing industry

Purpose – Radical innovations are considered as a main source of competitive advantage for both small and medium enterprises and small economies such as Croatia. Although from a theoretical point of view a clear distinction between incremental and radical innovations exists there is much less investigation into differences in organizational culture that foster these types of innovations. The aim of this paper is to investigate the radical innovation culture in the Croatian manufacturing industry. Design/methodology/approach – Key prerequisites for creating radical innovation culture are selected and then analyzed by using multiple regression analysis. Elements of radical innovation culture analyzed were: autonomy, cannibalization, pro activeness and risk taking. Findings – When it comes to generating radical product innovations or creating appropriate culture the current state in Croatian manufacturing industry is far from satisfactory. Some recommendations for improving the current state with suggestions for further research are discusses in the final part of the paper. Originality/value – Originality of the paper comes mainly from three key aspects. First of all the paper identifies key components of radical innovation culture specific to manufacturing industry. Second, in this process special attention is given to specifics of a small country like Croatia. Third, the paper offers clear guidance to management on ways of stimulating radical innovation culture.