Research On The Mechanism Of Enterprise Culture To Enterprise Innovation

The famous institutional economist Douglass Cecil North once said:"There is path dependence in innovation decision making. Culture, due to its characteristics of history and long-run, becomes the rule of innovation, providing a choice set…Namely culture affects innovation."Does enterprise culture, as a kind of subculture, have impact on innovation of the enterprise? Surely, it is. Enterprise culture, which is an official language of the philosophy of a company, coheres the whole meaning of existing of an enterprise. It, directly or indirectly, presents the attitude of innovation in the company's value-oriented, makes clear that"the core of Haier's culture is innovation", and affects innovation in different channels, for example 15% rule of 3M. Peter F. Drucker, an American managerialist indicated one day:"Management is based on culture", while innovation can not work without management. In other words, innovation can not survive in the absence of culture.Results of relative researches of scholars home and abroad are firstly introduced in this essay, a summary and review of the intension, structure, function and theory of innovation of enterprise culture as well. Secondly, we expound the interaction between culture and innovation systematically: In the level of strategy, enterprise culture is a sort of philosophy resource that is difficult to imitate and can not be copied, whose feature determines a guarantee effect for enterprise innovation; In the facet of transmission mechanism, culture takes a role in innovation by institution of the company, obtaining a competitive advantage; From the angle of cognition of innovation subject, identification with the culture and its incentive and coherence function is indispensable; In the aspect of learning ability of an organization, it's of great importance of guiding and share function of the enterprise culture for a company to get new, unique knowledge so as to response to a quickly changing competitive market environment. It is perfectly necessary to keep sustainable innovation. Based on the analysis above, an interaction mechanism model between enterprise and innovation has been put forward to summarize and illustrate the process and approach of culture and innovation in a company. Finally, an example of Haier Group is set to validate the point mentioned above through the developing history of culture and innovation.