Ebook: Culture and Innovation in Peru from a Management Perspective

Political stability, macro-economic caution and the aggressive pursuit of free trade
have enabled Peru to emerge as one of the fastest growing economies in Latin
America. This economic expansion has created heightened interest in the evolution of
corporate culture and its influence on firm performance. This paper examines
organizational performance in relation to the influence of cultural values on
innovation by means of a survey of upper level managers. Involvement in innovation
did not assist sales growth whereas involvement in open innovation did. There was a
positive relation between open innovation and power distance and uncertainty. No
relationship was identified for individualism and masculinity. Practical implications
are open innovation may enhance business performance while declining power
distance and lower aversion to uncertainty can have a positive impact as well.