The impact of corporate vision, customer orientation, and core values with experience as a moderator – insights from Vietnamese enterprises

Abstract

Employee innovation capability is a vital driver of business development and competitive advantage in today's dynamic markets. This study examines the role of corporate culture—specifically corporate vision, core values, customer orientation, and leadership—in shaping employees' innovation capability within enterprises. Drawing on data collected from 890 employees across various Vietnamese companies, this research utilizes the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, analyzed using Smart-PLS version 3.0 software, to test its hypotheses. The findings reveal that corporate vision, while not directly influencing innovation capability, has a significant indirect impact through customer orientation and leadership. Core values, in contrast, demonstrate both direct and indirect positive effects on innovation capability via these mediating factors. Additionally, the study highlights the moderating role of employee experience, showing that more experienced employees tend to be less responsive to visionary initiatives than their less experienced counterparts. This research contributes to the theoretical understanding of how corporate culture influences innovation by integrating Social Exchange Theory, Self-Determination Theory, and Social Learning Theory. It also provides practical implications for organizations seeking to foster innovation, emphasizing the importance of aligning vision and core values with leadership strategies and customer orientation while addressing the potential challenges posed by employee experience. By advancing insights into these dynamics, this study offers valuable contributions to the fields of organizational behavior and innovation management, with implications that extend beyond regional boundaries to global enterprises operating in complex and competitive environments.