Organizational culture refers to all the rules, regulations, values, beliefs, and ethics that are adopted by a business organization. All the employees in the business organization have to work under the guidelines of the business organization.

A flexible organizational culture will support the innovation taking place in the business environment. If the structure of the organization is flexible, then it will be able to adopt innovative methods regularly and will be able to produce creative and updated products according to the market conditions. To adopt innovation, employees of the organization should have to be flexible, and the staff of the organization will be flexible only when the organizational structure of the firm is flexible.