International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


The relationship between organizational culture and organizational performance

Author(s): Yasmine Muhammed Hakami

Culture in all its forms seems to be a new trend that attracts many researchers recently. Lots of studies found that organizational culture has a positive impact on organizational aspects, such as human resource development and organizational success. In Saudi Arabia, Small and Medium Enterprises (SMEs) still have unsatisfactory performance that leads to failure in the early years. This study aims to determine the impact of organizational culture on performance in SMEs in Saudi Arabia. For this purpose, the study used the Organizational Culture Assessment Instrument (OCAI) tool that was driven from Competing Value Framework (CVF) which includes four types of cultures (clan, adhocracy, market, and hierarchy). Further, the study used a statistical and quantitative method to collect data through a questionnaire, and it used SPSS to analyze the data. A number of 43 employees from more than 30 SMEs participated in this study. The results indicate that there is a positive and direct relationship between organizational culture and organizational performance at SMEs in Saudi Arabia. This research gives insights for entrepreneurs to diagnose the type of current culture in the enterprise and the desired culture that is consistent with organizational goals and positively affects performance.

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