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Investigating the influence of organisational culture on the performance of Small and Medium Enterprises (SMEs):Evidence from Nigeria

Author

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  • Adeyinka Oluwa

    (FCA,Department of Business Administration, Nile University of Nigeria, Plot 681, Cadastral Zone C-OO, Research & Institution Area Nigeria, Airport Road, Jabi Abuja -FCT, 900001, Nigeria)

  • Umar Abbas Ibrahim

    (ead of Department, Department of Business Administration, Nile University of Nigeria, Plot 681, Cadastral Zone C-OO, Research & Institution Area Nigeria, Airport Road, Jabi 900001, Abuja, Nigeria)

Abstract

The study assessed the impact of organizational culture on the performance of Small and Medium Enterprises (SMEs) in Abuja. The questionnaire used was created based on Cameron and Quinn’s Organizational Culture Assessment Instrument (OCAI) in identifying different types of organizational culture. Using a cross-sectional survey research design, the primary data was obtained through administered structured questionnaire to one hundred and twenty-seven (127) SMEs at different sampled locations in Nigeria. Pearson Product Moment Correlation analysis was used to identify the relationship that exists between the variables and the results revealed that organizational culture measured by clan culture, market culture, adhocracy culture and Hierarchy culture variables have significant relationship of r = 0.616, 0.514, 0.604 and 0.784 respectively with performance. The study concludes that organizational culture have significant influence on the performance of Small and Medium Enterprises (SMEs) in Abuja and that Hierarchy culture is found important in promoting innovative performance than the other type of culture. The study recommendation is thus that SME owners should ensure that all new employees receive a formal briefing on the company's traditions, beliefs, vision, and strategies. They should create and print a common set of procedures and policies to promote seamless discharge of duties and responsibilities in such a way that will foster innovative performance in the work place. Key Words:SMEs, Organizational Culture, Innovative Performance, Clan Culture, Adhocracy Culture, Market Culture, Hierarchy Culture

Suggested Citation

  • Adeyinka Oluwa & Umar Abbas Ibrahim, 2021. "Investigating the influence of organisational culture on the performance of Small and Medium Enterprises (SMEs):Evidence from Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 485-495, June.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:4:p:485-495
    DOI: 10.20525/ijrbs.v10i4.1249
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    References listed on IDEAS

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    1. Paulinus Chigozie Mbah & Chijioke Ekechukwu & Irenausnna Emeka Obi, 2018. "An Exploration of the Relationship between Organizational Culture and Turnover Intentions of Selected Small and Medium Enterprises (SMEs) in South-East," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(5), pages 568-588, May.
    2. Owino O. Joseph & Francis Kibera, 2019. "Organizational Culture and Performance: Evidence From Microfinance Institutions in Kenya," SAGE Open, , vol. 9(1), pages 21582440198, March.
    3. Shahzad, Fakhar & Xiu, GuoYi & Shahbaz, Muhammad, 2017. "Organizational culture and innovation performance in Pakistan's software industry," Technology in Society, Elsevier, vol. 51(C), pages 66-73.
    4. Edgar Antonio Sánchez‐Báez & José Fernández‐Serrano & Isidoro Romero, 2020. "Organizational culture and innovation in small businesses in Paraguay," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 233-247, April.
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