Enhancing innovation culture: the case of multinational advertising agency VMLY&R Lisboa
The world is going through an unprecedent experience marked by one of the most serious pandemic to date. Companies currently face multiple challenges, including maintaining their organizational culture while defining and validating new working and business models and completely rethinking past competitive advantages. Innovation is a fundamental part of these processes. This study identifies the main findings in the literature on company culture and the promotion of innovation within organizations. Problem structuring methods (i.e., design thinking (DT) and decision making trial and evaluation laboratory (DEMATEL)) were applied to explore innovation culture further and apply the results to the multinational advertising agency VMLY&R Lisboa in order to delineate this company’s culture and enhance its potential for innovation. An expert panel was recruited to develop a fuller understanding of the cause-effect relationships between factors that influence innovation and to enable a more collaborative, constructivist approach to this decision problem. The main findings were validated by VMLY&R Lisboa’s chief executive officer, and concrete initiatives were proposed that can enhance this company’s innovation culture. The study’s contributions and limitations are also discussed.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Ackermann, F., & Eden, C. (2010). Strategic options development and analysis. In M. Reynolds & S. Holwell (Eds.), Systems approaches to managing change: A practical guide (pp. 135–190). Springer London Press. https://doi.org/10.1007/978-1-84882-809-4_4
Acosta Rubio, Z., Febles Acosta, J., Banaitis, A., & Ferreira, F. (2022). Managing communication and participation in Canary Island firms. E&M Economics and Management, 25(2), 75–92. https://doi.org/10.15240/tul/001/2022-2-005
Aggarwal, I., & Wooley, A. (2018). Team creativity, cognition, and cognitive style diversity. Management Science, 65(4), 1–14. https://doi.org/10.1287/mnsc.2017.3001
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297–1333. https://doi.org/10.1177/0149206314527128
Bana e Costa, C., Correia, E., Corte, J., & Vansnick, J. (2002). Facilitating bid evaluation in public call for tenders: A socio-technical approach. Omega – The International Journal of Management Sciences, 30(3), 227–242. https://doi.org/10.1016/S0305-0483(02)00029-4
Belton, V., & Stewart, T. (2002). Multiple criteria decision analysis: An integrated approach. Kluwer Academic Publishers. https://doi.org/10.1007/978-1-4615-1495-4
Beverland, M., Wilner, S., & Micheli, P. (2015). Reconciling the tension between consistency and relevance: Design thinking as a mechanism for brand ambidexterity. Journal of the Academy of Marketing Science, 43, 589–609. https://doi.org/10.1007/s11747-015-0443-8
Braga, I., Ferreira, F., Ferreira, J., Pereira, L., Correia, R., & Falcão, P. (2021). A DEMATEL analysis of smart city determinants. Technology in Society, 66, 1–13. https://doi.org/10.1016/j.techsoc.2021.101687
Brown, T. (2008). Design thinking. Harvard Business Review, 86, 85–92.
Cameron, K., De Graff, J., Quinn, R., & Thakor, A. (2006). Competing values leadership: Creating value in organizations. Edward Elgar Publishing. https://doi.org/10.4337/9781847201560
Carlgren, I., Elmquist, M., & Rauth, I. (2016). The challenges of using Design Thinking in industry: Experiences from five large firms. Creativity and Innovation Management, 25(3), 344–362. https://doi.org/10.1111/caim.12176
Castela, B., Ferreira, F., Ferreira, J., & Marques, C. (2018). Assessing the innovation capability of small- and medium-sized enterprises using a non-parametric and integrative approach. Management Decision, 56(6), 1365–1383. https://doi.org/10.1108/MD-02-2017-0156
Chen, C. (2009). Technology commercialization, incubator and venture capital, and new venture performance. Journal of Business Research, 62(1), 93–103. https://doi.org/10.1016/j.jbusres.2008.01.003
Chen, V., Lin, J., & Tzeng, G. (2019). Assessment and improvement of wetlands environmental protection plans for achieving sustainable development. Environmental Research, 169(33), 280–296. https://doi.org/10.1016/j.envres.2018.10.015
Claver, E., Llopis, J., Garcia, D., & Molina, H. (1998). Organizational culture for innovation and new technological behavior. The Journal of High Technology Management Research, 9(1), 55–68. https://doi.org/10.1016/1047-8310(88)90005-3
Cooperrider, D. (2010). Managing-as-designing in an era of massive innovation. The Journal of Corporate Citizenship, 37, 24–33.
Dombrowski, C., Kim, J., Desouza, K., Braganza, A., Papagari, S., Baloh, P., & Jha, S. (2007). Elements of innovative cultures. Knowledge and Process Management, 14(3), 190–202. https://doi.org/10.1002/kpm.279
Dong, Y., Zheng, X., Xu, Z., Chen, W., Shi, H., & Gong, K. (2021). A novel decision-making framework based on probabilistic linguistic term set for selecting sustainable supplier considering social credit. Technological and Economic Development of Economy, 27(6), 1447–1480. https://doi.org/10.3846/tede.2021.15351
Drucker, P. (1954). The practice of management. Harper Collins Publishers.
Dwijendra, N., Akhmadeev, R., Tumanov, D., Kosov, M., Shoar, S., & Banaitis, A. (2021). Modeling social impacts of high-rise residential buildings during the post-occupancy phase using DEMATEL method: A case study. Buildings, 11(11), 1–18. https://doi.org/10.3390/buildings11110504
Elsbach, K., & Stigliani, I. (2018). Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), 2274–2306. https://doi.org/10.1177/0149206317744252
Fatimah, Y., Govindan, K., Murniningsih, R., & Setiawan, A. (2020). Industry 4.0 based sustainable circular economy approach for smart waste management system to achieve sustainable development goals: A case study of Indonesia. Journal of Cleaner Production, 269, 122263. https://doi.org/10.1016/j.jclepro.2020.122263
Ferreira, F. (2011). Multiple criteria evaluation of bank branches: Decision analysis models and applications. Faro: Faculty of Economics, University of Algarve Press.
Ferreira, F., Marques, C., Bento, P., Ferreira, J., & Jalali, M. (2015). Operationalizing and measuring individual entrepreneurial orientation using cognitive mapping and MCDA technique. Journal of Business Research, 68(12), 2691–2702. https://doi.org/10.1016/j.jbusres.2015.04.002
Fiordelisi, F., Renneboog, L., Ricci, O., & Lopes, S. (2019). Creative corporate culture and innovation. Journal of International Financial Markets, Institutions & Money, 63, 1–14. https://doi.org/10.1016/j.intfin.2019.101137
Franco, L., & Montibeller, G. (2010). Facilitated modelling in operational research. European Journal of Operational Research, 205(3), 489–500. https://doi.org/10.1016/j.ejor.2009.09.030
Freire, C., Ferreira, F., Carayannis, E., & Ferreira, J. (2021). Artificial intelligence and smart cities: A DEMATEL approach to adaptation challenges and initiatives. IEEE Transactions on Engineering Management. https://doi.org/10.1109/TEM.2021.3098665
Gabus, A., & Fontela, E. (1972). World problems: An invitation to further thought within the framework of DEMATEL. Battelle Geneva Research Centre.
Gailly, B. (2018). Navigating innovation: How to identify, prioritize and capture opportunities for strategic success. Palgrave MacMillan.
Gregory, B., Harris, S., Amenakis, A., & Shook, C. (2009). Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes. Journal of Business Research, 62, 673–679. https://doi.org/10.1016/j.jbusres.2008.05.021
Han, J., Kim, N., & Srivastava, R. (1998). Market orientation and organizational performance: Is innovation a missing link? Journal of Marketing, 62(4), 30–45. https://doi.org/10.1177/002224299806200403
Ho, W., Tsai, C., Tzeng, G., & Fang, S. (2011). Combined DEMATEL technique with a novel MCDM model for exploring portfolio selection based on CAPM. Expert Systems with Applications, 38(1), 16–25. https://doi.org/10.1016/j.eswa.2010.05.058
Hogan, S., & Coote, L. (2014). Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), 1609–1621. https://doi.org/10.1016/j.jbusres.2013.09.007
Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: Measurement issues and performance outcomes. Journal of Marketing Research, 37(4), 449–462. https://doi.org/10.1509/jmkr.37.4.449.18786
Huang, Y., Ferreira, F., & Zheng, H. (2021). Impact of workspace environment on creativity and innovation: Empirical evidence from a makerspace in China. R&D Management. https://doi.org/10.1111/radm.12504
Huynh, T., Pham, A., & Le-Hoai, L. (2021). Building a strategic performance management model for enterprises investing to coastal urban projects toward sustainability. International Journal of Strategic Property Management, 25(2), 127–145. https://doi.org/10.3846/ijspm.2021.14298
Kauppila, O., Bizzi, L., & Obstfeld, D. (2018). Connecting and creating: Tertius iungens, individual creativity, and strategic decision processes. Strategy Management Journal, 39(3), 697–719. https://doi.org/10.1002/smj.2728
Kelley, T., & Littman, J. (2001). The art of innovation: Lessons in creativity from IDEO. Profile Books.
Kitayama, S. (2002). Culture and basic psychological processes: Toward a system view of culture. Psychological Bulletin, 128(1), 89–96. https://doi.org/10.1037/0033-2909.128.1.89
Lee, H., Tzeng, G., Yeih, W., Wang, Y., & Yang, S. (2013). Revised DEMATEL: Resolving the infeasibility of DEMATEL. Applied Mathematical Modelling, 37(10/11), 6746–6757. https://doi.org/10.1016/j.apm.2013.01.016
Liedtka, J. (2015). Perspective: Linking design thinking with innovation outcomes through cognitive bias reduction. Journal of Product Innovation Management, 32(6), 925–938. https://doi.org/10.1111/jpim.12163
Lin, C., Hsieh, M., & Tzeng, G. (2010). Evaluating vehicle telematics system by using a novel MCDM techniques with dependence and feedback. Expert Systems with Applications, 37(10), 6723–6736. https://doi.org/10.1016/j.eswa.2010.01.014
Lin, S., Hsu, C., Zhong, T., He, X., Li, J., Tzeng, G., & Hsieh, J. (2021). Exploring location determinants of Asia’s unique beverage shops based on a hybrid MADM model. International Journal of Strategic Property Management, 25(4), 291–315. https://doi.org/10.3846/ijspm.2021.14796
Lu, M., Chang, S., & Huang, L. (2022). Using the sustainability-balanced scorecard for assessing sustainability issues of the green energy companies. Technological and Economic Development of Economy, 28(2), 483–499. https://doi.org/10.3846/tede.2022.16334
Markus, H., & Kitayama, S. (2010). Culture and selves: A cycle of mutual constitution. Perspectives on Psychological Science, 5(4), 420–430. https://doi.org/10.1177/1745691610375557
Micheli, P., Wilner, S., Bhatti, S., Mura, M., & Beverland, M. (2019). Doing design thinking: Conceptual review, synthesis, and research agenda. Journal of Product Innovation Management, 36(2), 124–148. https://doi.org/10.1111/jpim.12466
Michelis, T., Aladin, R., & Pollack, J. (2018). Innovation culture and the performance of new product launches: A global study. Journal of Business Venturing Insights, 9, 116–127. https://doi.org/10.1016/j.jbvi.2018.04.001
Midgley, G., Cavana, R., Brocklesby, J., Foote, J., Wood, D., & Ahuriri-Driscoll, A. (2013). Towards a new framework for evaluating systemic problem structuring methods. European Journal of Operational Research, 229(1), 143–154. https://doi.org/10.1016/j.ejor.2013.01.047
Milici, A., Ferreira, F., Pereira, L., Carayannis, E., & Ferreira, J. (2021). Dynamics of open innovation in small- and medium-sized enterprises: A metacognitive approach. IEEE Transactions on Engineering Management. https://doi.org/10.1109/TEM.2020.3042458
Mingers, J., & Rosenhead, J. (2004). Problem structuring methods in action. European Journal of Operational Research, 152(3), 530–554. https://doi.org/10.1016/S0377-2217(03)00056-0
Mingers, J., & White, L. (2010). A review of the recent contribution of systems thinking to operational research. European Journal of Operational Research, 207(3), 1147–1161. https://doi.org/10.1016/j.ejor.2009.12.019
Murcia, N., Ferreira, F., & Ferreira, J. (2022). Enhancing strategic management using a “quantified VRIO”: Adding value with the MCDA approach. Technological Forecasting and Social Change, 174, 121251. https://doi.org/10.1016/j.techfore.2021.121251
Nakata, C., & Hwang, J. (2020). Design thinking for innovation: Composition, consequence, and contingency. Journal of Business Research, 118, 117–128. https://doi.org/10.1016/j.jbusres.2020.06.038
O’Reilly, C., Chatman, J., & Caldwell, D. (1991). People and organizational culture: A profile comparison approach to assessing person-organization fit. Academy of Management Journal, 34(3), 487–516.
Organization for Economic Cooperation and Development. (2010). Launch of the OECD’s innovation strategy. OECD. Retrieved September 2021, from http://www.oecd.org/document/12/0,3343,en_2469_3473_45330700_1_1_1_1,00.html
Pidd, M. (2009). Tools for thinking: Modelling in management science. Wiley.
Price, M. (2007). Infusing innovation into corporate culture. Organizational Dynamics, 36(3), 320–328. https://doi.org/10.1016/j.orgdyn.2007.04.005
Rodrigues, R., Ferreira, F., Teixeira, F., & Zopounidis, C. (2022). Artificial intelligence, digital transformation and cybersecurity in the banking sector: A multi-stakeholder cognition-driven framework. Research in International Business and Finance, 60, 101616. https://doi.org/10.1016/j.ribaf.2022.101616
Rosário, M., Ferreira, F., Çipi, A., Pérez-Bustamante, G., & Banaitienė, N. (2021). “Should I stay or should I go?”: A multiple-criteria group decision-making approach to SME internationalization. Technological and Economic Development of Economy, 27(4), 876–899. https://doi.org/10.3846/tede.2021.15055
Rosenhead, J. (1989). Rational analysis for a problematic world. John Wiley & Sons.
Rosenhead, J. (1996). What’s the problem? An introduction to problem structuring methods. Interfaces, 26(6), 117–131. https://doi.org/10.1287/inte.26.6.117
Rosenhead, J., & Mingers, J. (2001). Rational analysis for a problematic world revisited. Wiley.
Sara, J., Stikkelman, R., & Herder, P. (2015). Assessing relative importance and mutual influence of barriers for CCS deployment of the ROAD project using AHP and DEMATEL methods. International Journal of Greenhouse Gas Control, 41, 336–357. https://doi.org/10.1016/j.ijggc.2015.07.008
Schein, E. (1992). Organizational culture and leadership. Jossey-Bass Inc.
Schumpeter, J. (1934). The theory of economic development. Oxford University Press.
Si, S., You, X., Liu, H., & Zhang, P. (2018). DEMATEL technique: A systematic review of the state-of-the-art literature on methodologies and applications. Mathematical Problems in Engineering, 2018, 3696457. https://doi.org/10.1155/2018/3696457
Sindhwani, R., Afridi, S., Kumar, A., Banaitis, A., Luthra, S., & Singh, P. (2022). Can industry 5.0 revolutionize the wave of resilience and social value creation? A multi-criteria framework to analyze enablers. Technology in Society, 68, 101887. https://doi.org/10.1016/j.techsoc.2022.101887
Stanford, N. (2007). Guide to organization design: Creating high-performing and adaptable enterprises. Profile Books.
Subramaniam, M., & Youndt, M. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450–463. https://doi.org/10.5465/amj.2005.17407911
Sumrit, D., & Anuntavoranich, P. (2013). Using DEMATEL method to analyze the causal relations on technological innovation capability evaluation factors in Thai technology-based firms. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 4(2), 81–103.
Tzeng, G., Chiang, C., & Li, C. (2007). Evaluating intertwined effects in e-learning programs: A novel hybrid MCDM model based on factor analysis and DEMATEL. Expert Systems with Applications, 32(4), 1028–1044. https://doi.org/10.1016/j.eswa.2006.02.004
Yazdani, M., Wen, Z., Liao, H., Banaitis, A., & Turskis, Z. (2019). A grey combined compromise solution (CoCoSo-G) method for supplier selection in construction management. Journal of Civil Engineering and Management, 25(8), 858–874. https://doi.org/10.3846/jcem.2019.11309
Yazdi, M., Khan, F., Abbassi, R., & Rusli, R. (2020). Improved DEMATEL methodology for effective safety management decision-making. Safety Science, 127, 104705. https://doi.org/10.1016/j.ssci.2020.104705
Zheng, D. (2018). Design thinking is ambidextrous. Management Decisions, 56(4), 736–756. https://doi.org/10.1108/MD-04-2017-0295
Zheng, W., Yang, B., & McLean, G. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763–771. https://doi.org/10.1016/j.jbusres.2009.06.005