Influence of organisational culture on pro-activeness, innovativeness and risk taking behaviour of SMEs
Yacoub Hamdan, Ahmad Fathi Alheet
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.