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Small Business Struggle in a Developing Economy:Does Organizational Culture Matter?

Author

Listed:
  • Michael STOICA

    (Washburn University, School of Business, Topeka, Kansas, USA)

  • Liviu FLOREA

    (Washburn University, School of Business, Topeka, Kansas, USA)

  • Edit LUKACS

    (Dunarea de Jos University of Galati, Romania)

Abstract

The paper examines the relationship between two important variables that define small and medium-sized enterprises:organizational culture and responsiveness. Firms operating in Romania were selected for the study. The country offers a business context with many changes over the last two decades, a challenge and an opportunity for researchers. Results show that the combination of entrepreneurial characteristics and planning and goal oriented managerial styles suits best successful companies. The market-driven type of culture has the best coordination and is best positioned to deliver customer-centered versatility, while adhocracy helps businesses respond fast to changes in the market environment.

Suggested Citation

  • Michael STOICA & Liviu FLOREA & Edit LUKACS, 2011. "Small Business Struggle in a Developing Economy:Does Organizational Culture Matter?," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 197-208.
    • Handle: RePEc:ddj:fserec:y:2011:p:197-208
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    File URL: http://www.rce.feaa.ugal.ro/images/stories/RCE2011/management-marketing/MStoica_LFlorea_ELukacs.pdf
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    References listed on IDEAS

    as
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    4. Vijay Pothukuchi & Fariborz Damanpour & Jaepil Choi & Chao C Chen & Seung Ho Park, 2002. "National and Organizational Culture Differences and International Joint Venture Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 243-265, June.
    5. Yadong Luo & Mike W Peng, 1999. "Learning to Compete in a Transition Economy: Experience, Environment, and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 269-295, June.
    6. Julius H Johnson, 1995. "An Empirical Analysis of the Integration-Responsiveness Framework: U.S. Construction Equipment Industry Firms in Global Competition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 621-635, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    organizational culture; responsiveness; developing economy; small and medium-sized enterprises.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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