Grounded in the Competing Values Framework, this study examines how organizational culture (adhocracy, clan, and market) influences innovative work behavior (IWB) among employees in Indonesian SMEs, with knowledge sharing as a mediating mechanism. A quantitative cross-sectional survey of 185 SME employees was analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). Results indicate that clan culture exerts the strongest direct effect on IWB (β = .307, p < .001), followed by adhocracy culture (β = .241, p = .002) and market culture (β = .226, p < .001). Knowledge sharing significantly mediates all three culture-IWB relationships (adhocracy: β = .264; clan: β = .236; market: β = .196; all p < .05). These findings underscore the pivotal role of knowledge-sharing practices in translating organizational culture into employee innovation, with practical implications for SME management in developing economy contexts.
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