Abstract
There is abundant literature on Entrepreneurship within the organization, but the evidence on how it is caused is still dispersed. Moreover, it still lacks a proper theoretical framework. Brettel et. al. (2015) used the Competing Values Model in explaining the effect of organizational culture on Entrepreneurial Orientation. We modified this model, including enabling environment factors, as well as more enriched dimensions of Entrepreneurial Orientation. Hence we hypothesized that organizational culture (Clan, Hierarchical, Developmental, Rational, and Open Culture), and enabling environment (Flexibility/ support, Open Communication, External Orientation, and Team Work) affect Employees’ Entrepreneurial Orientation measured by new product innovation, new organizational practice, proactivity, and risk-taking. We applied this model by conducted a survey using a Likert scale type questionnaire. The data was collected from 325 employees working in different organizations in Karachi. Data were analyzed using confirmatory factor analysis and structured equation modeling. The results showed that new product innovation was positively influenced by Rational Culture, Open Culture, Flexibility, and External Orientation. And negatively affected by Clan Culture. Similarly, the risk-taking ability is positively influenced by Developmental Culture, External Orientation, and Team Work. Proactivity is positively affected by Rational Culture and External Orientation. Unlike Innovation, which was negatively affected by Clan culture, New Organizational Practice got positively affected along with Open Communication.
Highlights
1.1 Background to the Study In today's business world, innovation is a major pillar of success for all organizations
No such study was conducted on Pakistan combining diverse factors like teamwork, external orientation, developmental culture, rational culture, clan culture, open culture, open communication, flexibility/ support to change, hierarchical culture and entrepreneurial orientation was measured by innovativeness, risk-taking, new organizational practice and proactiveness, in a single structural model
1.6 Significance Historically, there are a lot of researches were conducted on organizational culture and entrepreneurial orientation but no one has ever conduct a comparative or nexus research in which organizational culture was measured by teamwork, external orientation, developmental culture, rational culture, clan culture, open culture, open communication, flexibility/ support to change, hierarchical culture and entrepreneurial orientation was measured by innovativeness, risk-taking, new organizational practice and proactiveness
Summary
1.1 Background to the Study In today's business world, innovation is a major pillar of success for all organizations. Entrepreneurial orientation of an organization can be understand with the help of competitive aggressiveness, pro-activeness, new organizational practices, autonomy, innovativeness and risk taking. While hierarchical culture negatively affects innovativeness, risktaking and proactiveness They fall short in explaining enabling environment factors, as well as different dimensions of Entrepreneurial Orientation. No such study was conducted on Pakistan combining diverse factors like teamwork, external orientation, developmental culture, rational culture, clan culture, open culture, open communication, flexibility/ support to change, hierarchical culture (altogether) and entrepreneurial orientation was measured by innovativeness, risk-taking, new organizational practice and proactiveness, in a single structural model. The objective of this study includes the effect of organizational culture on new product innovation, new organizational practice, proactivity and risk-taking It is based on the exceeding research problems, the research objectives are as follows: 1. To determine the effect of organizational culture on risk-taking
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