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Influence of organisational culture on pro-activeness, innovativeness and risk taking behaviour of SMEs

Author

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  • Yacoub Hamdan

    (Al-Ahliyya Amman University, Jordan)

  • Ahmad Fathi Alheet

    (Al-Ahliyya Amman University, Jordan)

Abstract

The business performance of small and medium enterprises (SMEs) is influenced by their entrepreneurial orientation (EO). EO involves different dimensions like proactive behaviour, innovation, and risk-taking behaviour. It is to be noted that organisational culture (OC) plays a prominent role in achieving improved business performance. This is because SMEs that emphasise on their internal and external business environment are likely to sustain their survival in the highly competitive environment. The impact of organisational culture on innovation, proactive, and risk-taking behaviour of SMEs in UK was assessed. A quantitative method was employed to gather and analyse the primary data obtained through survey questionnaire. The analysis revealed that organisational cultures like group, rational, and developmental culture impact the proactiveness, innovativeness, as well as risk-taking behaviour of SMEs. Also, a significant correlation was observed between group, developmental, and rational culture on innovativeness of SMEs. Thus, it is inferred that organisational culture tends to have influence on SMEs' proactiveness, innovativeness, and risk-taking behaviours.

Suggested Citation

  • Yacoub Hamdan & Ahmad Fathi Alheet, 2020. "Influence of organisational culture on pro-activeness, innovativeness and risk taking behaviour of SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 203-217, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:203-217
    DOI: 10.9770/jesi.2020.8.1(13)
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    References listed on IDEAS

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    1. Salma Abdullah & Chalid Imran Musa & Muhammad Azis, 2017. "The Effect of Organizational Culture on Entrepreneurship Characteristics and Competitive Advantage of Small and Medium Catering Enterprises in Makassar," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 409-414.
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      More about this item

      Keywords

      organisational culture; innovativeness; risk taking; Small and Medium-sized Enterprises (SMEs);
      All these keywords.

      JEL classification:

      • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
      • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
      • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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