Abstract:

Growing literature in organizational psychology suggests that cultivating entrepreneurial climate is an important factor of continuous innovation in organizations. Entrepreneurial climate determinants attracting the attention of researchers over the past decade include management support, work discretion, rewarding entrepreneurial initiatives and time availability for entrepreneurial activities. The article suggests that entrepreneurial climate determinants affect the product-service innovation in companies. Moreover, the article puts the concepts of organizational climate and culture against each other, and tests the mediating role of learning orientation as part of the organizational culture, in the relationship between the entrepreneurial climate determinants and product-service innovation. The originality of the research lies in a model which has not been tested in this form by the wider academic community. The study was conducted on a sample of 115 medium and large enterprises in the Republic of Croatia. Results point to the need for a paradigm shift towards learning orientation, and the need to harmonize visible practices and procedures with the value system for learning in order to use the potential of the entrepreneurial climate determinants in stimulating product-service innovation.

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