IDEAS home Printed from https://ideas.repec.org/a/rse/wpaper/v24y2022i2p106-120.html
   My bibliography  Save this article

Critical evaluation of organizational structure and culture impact on the productivity of MFIs within the example of Agroleasing

Author

Listed:
  • Aram Mkhitaryan

    (European University of Armenia, Department of Economics & Management)

Abstract

Nowadays, for surviving in dynamic and global environment, companies need to have strong organizational culture to have competitive production or service, flexibility for quick response of environmental changes, which can be achieved by optimal organizational structure. It will impact on the whole company's productivity and influence on better performance and duties balance. The main purpose of this study is to identify the cultural and structural issues of the MFIs in Armenia, examine the best practice and give improvement action plan. Based on the literature review there are diverse studies that prove the relationship between structure and culture of the company and their correlation with productivity. Actually, organizational structure and culture have a great influence on the productivity, as the formal and informal communications between employees predict the level of their work efficiency. Being a driver of a company's execution, organizational culture and structure are connected with different activity outcomes. While examining the current situation in Agroleasing few problems were identified in accordance with productivity of the company. One of them is connected with the complicated organizational structure as there are several positions that are not used in reality. The other was linked with the absence of cultural behavior; the employees are acting based on their preferences and professional level. These two issues had a serious impact on the performance of the company. Summarizing the best approaches of literature review and identifying the problems of Agroleasing, several test-cases were organized in order to evaluate the current efficiency of the organizational structure and to understand the roots of employee's diverse behavior approaches. According to the results of researches recommendations were highlighted for each sphere. A new organizational structure was offered in order to simplify the complexity of the duties, also servant leadership behavior was recommended as a way of better internal cultural environment creation.

Suggested Citation

  • Aram Mkhitaryan, 2022. "Critical evaluation of organizational structure and culture impact on the productivity of MFIs within the example of Agroleasing," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 106-120, December.
    • Handle: RePEc:rse:wpaper:v:24:y:2022:i:2:p:106-120
    as

    Download full text from publisher

    File URL: http://reaser.eu/RePec/rse/wpaper/REASER24_08Aram_P106-120.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Franco GANDOLFI & Seth STONE & Frank DENO, 2017. "Servant Leadership: An Ancient Style with 21st Century Relevance," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(4), pages 350-361, October.
    2. Zheng, Wei & Yang, Baiyin & McLean, Gary N., 2010. "Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management," Journal of Business Research, Elsevier, vol. 63(7), pages 763-771, July.
    3. Bob Ssekiziyivu & Rogers Mwesigwa & Juma Bananuka & Zainab Namusobya, 2018. "Corporate governance practices in microfinance institutions: Evidence from Uganda," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1488508-148, January.
    4. Hogan, Suellen J. & Coote, Leonard V., 2014. "Organizational culture, innovation, and performance: A test of Schein's model," Journal of Business Research, Elsevier, vol. 67(8), pages 1609-1621.
    5. Manuel Carlos Vallejo-Martos, 2011. "The organizational culture of family firms as a key factor of competitiveness," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(3), pages 451-481, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wissal Affes & Habib Affes, 2022. "Business Model and Firm Performance in Tunisian Firms: a Mediated Moderation Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2822-2839, December.
    2. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    3. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    4. Jan Stejskal & Petr Hajek, 2019. "Modelling collaboration and innovation in creative industries using fuzzy set qualitative comparative analysis," The Journal of Technology Transfer, Springer, vol. 44(3), pages 981-1006, June.
    5. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    6. Antonio Botti & Massimiliano Vesci, 2018. "Competing Value Framework and Public Administration: Managerial Insights, Theoretical Reflections and Practical Implications from Italy," International Business Research, Canadian Center of Science and Education, vol. 11(2), pages 147-160, February.
    7. Javanmardi Kashan, Alireza & Wiewiora, Anna & Mohannak, Kavoos, 2021. "Unpacking organisational culture for innovation in Australian mining industry," Resources Policy, Elsevier, vol. 73(C).
    8. Sung Ook Park & Seung Uk Choi & Seong Tae Kim & Hyung Jong Na, 2021. "The Relationship between Corporate Culture and Value at Different Life Cycle Stages," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    9. Porcu, Lucia & del Barrio-García, Salvador & Kitchen, Philip J. & Tourky, Marwa, 2020. "The antecedent role of a collaborative vs. a controlling corporate culture on firm-wide integrated marketing communication and brand performance," Journal of Business Research, Elsevier, vol. 119(C), pages 435-443.
    10. Njoroge Paul Thumbi & Bula Hannah & Wanyoike Rosemarie, 2021. "Moderating Effect of Organizational Culture on the Relationship between Organizational Learning and Employees’ Performance in Classified Hospitality Firms in Kenya," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(12), pages 1-51, July.
    11. Natalia Strobel & Jan Kratzer, 2017. "OBSTACLES TO INNOVATION FOR SMEs: EVIDENCE FROM GERMANY," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-28, April.
    12. Groza, Mark D. & Groza, Mya Pronschinske, 2018. "Salesperson regulatory knowledge and sales performance," Journal of Business Research, Elsevier, vol. 89(C), pages 37-46.
    13. Oubrich, Mourad & Hakmaoui, Abdelati & Benhayoun, Lamiae & Solberg Söilen, Klaus & Abdulkader, Bisan, 2021. "Impacts of leadership style, organizational design and HRM practices on knowledge hiding: The indirect roles of organizational justice and competitive work environment," Journal of Business Research, Elsevier, vol. 137(C), pages 488-499.
    14. A. E. Rodríguez Salazar & M. A. Domínguez-Crespo & A. M. Torres-Huerta & A. I. Licona-Aguilar & A. Nivón-Pellón & V. N. Orta-Guzmán, 2021. "Analysis of the Dynamical Capabilities into the Public Research Institutes to Their Strategic Decision-Making," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    15. Arnett, Dennis B. & Sandvik, Izabela L. & Sandvik, Kåre, 2018. "Two paths to organizational effectiveness – Product advantage and life-cycle flexibility," Journal of Business Research, Elsevier, vol. 84(C), pages 285-292.
    16. José Roberto Frega & Alex Antonio Ferraresi & Carlos Olavo Quandt & Claudimar Pereira da Veiga, 2018. "Relationships Among Knowledge Management, Organisational Innovativeness and Performance: Covariance-Based Versus Partial Least-Squares Structural Equation Modelling," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-19, March.
    17. Driss Rahma & Jarboui Anis, 2015. "Contribution of Social Disclosure and Organizational Culture to Create Financial Value of Tunisian Companies," Growth, Asian Online Journal Publishing Group, vol. 2(1), pages 10-17.
    18. Daniel Makina, 2021. "Corporate Governance and Financial Inclusion: A Preliminary Review of Literature," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 12-23, October.
    19. Pedraza-Rodríguez, José A. & Ruiz-Vélez, Andrea & Sánchez-Rodríguez, M. Isabel & Fernández-Esquinas, Manuel, 2023. "Management skills and organizational culture as sources of innovation for firms in peripheral regions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    20. Ghulam Mustafa & Richard Glavee-Geo & Kjell Gronhaug & Hanan Saber Almazrouei, 2019. "Structural Impacts on Formation of Self-Efficacy and Its Performance Effects," Sustainability, MDPI, vol. 11(3), pages 1-24, February.

    More about this item

    Keywords

    microfinance; culture; microloan; efficiency; productivity;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rse:wpaper:v:24:y:2022:i:2:p:106-120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Epure (email available below). General contact details of provider: https://edirc.repec.org/data/pgsaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.