Innovation culture, transformational capability and transformational performance: An empirical study of SMEs in China

Organizational innovation culture is the consistent perception which employees hold about innovation value, innovation institutional system, innovation criterion of conduct and innovation environment measured by their perceptions. Organizational culture is closely related to organizational performance. The study tries to verify the relationship between innovation culture, transformational capabilities and transformational performance via multilevel organizational behavioral questionnaires. It points out that innovation culture have remarkably positive effect on transformational performance. The study farther indicates that transformational capabilities evidently mediate the impact of innovation culture on transformational performance.