Examining the Relationship between Organisational Culture and Entrepreneurial Orientation in Texas-based Small Businesses

Abstract

Small business owners often operate with limited staff and lack flexible resources and hierarchical administrative systems compared to large business leaders, impacting their ability to create and manage innovations. Research on small businesses is crucial because they are the driving force of the U.S. economy, representing 49% of the U.S. workforce and 97% of U.S. exporters. Texas’s small businesses employ 4.8 million people, constituting 45.1% of the private workforce. Innovation is the primary driver of economic growth, allowing organisations to seize new opportunities. The area of entrepreneurial orientation (EO) in small businesses is relatively underexplored in terms of organisational culture. The lack of knowledge makes it difficult for small business leaders to understand how small businesses can gain advantages from specific organisational cultures. This study examined the relationship between organisational culture and EO in Texas-based small businesses. The investigation enhances our understanding of the link between organisational culture and entrepreneurial orientation in small businesses. This study used a qualitative research method. Data analysis reveal that there were more insignificant results than significant results. Adhocracy culture was found to predict at least one of the subsets of EO. Market and clan culture types were significant when combined with the adhocracy culture. The hierarchy culture was excluded from the analysis due to high multicollinearity, meaning it was too highly correlated with the other independent variables in the sample. Although the premises associated with the different cultures’ predictions of EO were insignificant, there were significant results when the cultures were combined.

Presenters

Sithembiso Govuzela
Senior Lecturer, Logistics & Supply Chian Management, Vaal University of Technology, Gauteng, South Africa

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

Organizational Studies

KEYWORDS

Organisational culture, Entrepreneurial Orientation, Small Businesses, Innovativeness, Proactiveness, Risk-taking