Abstract
The study assessed the impact of organizational culture on the performance of Small and Medium Enterprises (SMEs) in Abuja. The questionnaire used was created based on Cameron and Quinn’s Organizational Culture Assessment Instrument (OCAI) in identifying different types of organizational culture. Using a cross-sectional survey research design, the primary data was obtained through administered structured questionnaire to one hundred and twenty-seven (127) SMEs at different sampled locations in Nigeria. Pearson Product Moment Correlation analysis was used to identify the relationship that exists between the variables and the results revealed that organizational culture measured by clan culture, market culture, adhocracy culture and Hierarchy culture variables have significant relationship of r = 0.616, 0.514, 0.604 and 0.784 respectively with performance. The study concludes that organizational culture have significant influence on the performance of Small and Medium Enterprises (SMEs) in Abuja and that Hierarchy culture is found important in promoting innovative performance than the other type of culture. The study recommendation is thus that SME owners should ensure that all new employees receive a formal briefing on the company's traditions, beliefs, vision, and strategies. They should create and print a common set of procedures and policies to promote seamless discharge of duties and responsibilities in such a way that will foster innovative performance in the work place.
Highlights
Small and medium enterprises (SMEs) are considered the backbone of a country's economy because they account for the vast majority of businesses worldwide and are important contributors to job creation and global economic development (Cicea, Popa, Marinescu & Catalina 2019)
Above, the result of the Pearson correlation revealed that the coefficient between clan culture (CLC) and Innovative performance (IP) is 0.616 with significance value of 0.000 indicating that a positive relationship exists between CLS and SMEP
The need to study Small and Medium Enterprises (SMEs) innovative performance was necessitated by the importance of SME to Nigeria economy
Summary
Small and medium enterprises (SMEs) are considered the backbone of a country's economy because they account for the vast majority of businesses worldwide and are important contributors to job creation and global economic development (Cicea, Popa, Marinescu & Catalina 2019). According to the World Bank report on Small and Medium Enterprises (SMEs), SMEs account for roughly 90% of businesses and more than half of all jobs globally and in developing economies, formal SMEs account for up to 40% of GDP (World Bank 2018). This figure excludes informal SMEs that have grown widely due to squeezing economic realities
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