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Dion Dewa Barata

Innovation in the organization is currently demanded to raise the competitiveness between organizations in the era of globalization. The study was conducted using two different approaches to know how innovation culture created in the organization. First, a qualitative study by conducting a focus group discussion with resource person from three industrial sectors. It was found from the discussion that innovation culture in the organization will be established if there is an intention to innovate and an employee engagement from the members. In order to confirm the discussion result, a qualitative approach study was conducted. Sampling was done in 250 respondents who were employed in three different industrial sectors. It was concluded that the intention to innovate was influenced by working condition, support from the organization, and employee engagement, while not influenced by critical situation. Moreover, the intention to innovate together with the employee engagement give influence to the innovation culture in the organization. The result of this study can be used as a reference to establish an innovation culture in the organization.