An Examination of the Effects of Organizational Norms, Organizational Structure, and Environmental Uncertainty on Entrepreneurial Strategy

Abstract

Investigators have examined the impact of organizations' structural and environmental characteristics on innovation. We developed a measure of the innovation management process, specifically organizational norms toward innovation, and examined its relationship to innovation (as measured by effective entrepreneurial strategy) in combination with measures of organizational structure and environment. Survey responses from respondents within 77 strategic business units were analyzed. Innovation norms, degree of decentralization in organizational structure, and environmental uncertainty explained significant and meaningful variance in entrepreneurial strategy. Interestingly, correlations between success of entrepreneurial strategy and (a) organizational structure and (b) environmental uncertainty approach zero when innovation-related norms are partialled out. Implications are discussed for the integration of this previously unexamined process variable innovation norms-to extend theories of innovation and corporate entrepreneurship.

The Effect of Pro-Entrepreneurship Architecture on Organisational Outcomes

“…However, small businesses can adopt entrepreneurial behavior long after their creation by constantly scanning for opportunities (Merz, Sauber 1995;Messeghem 2003). In this paper it is argued that the nexus between entrepreneurship and strategy is equally relevant to small and medium size firms, who are usually more vulnerable to external influences since their competitive advantage tends to be less sustainable than large firms within the changing environment (Jumpponen et al 2008;Ketchen et al 2007;Russell, R. D., Russell, C. J. 1992;Urban 2010a).…”

The Effect of Organisational Culture Perceptions on the Relationship Between Budgetary Participation and Managerial Job-Related Outcomes

“…While organizations tend to cultivate differing levels of innovation based upon their business strategy, research findings suggest that organisational structure and processes need to be aligned with the level of innovative OC (Kimberley, 1981). Russell and Russell (1992) 2 O'Reilly and his associates identified seven value dimensions: attention to detail; innovation; outcome-orientation; respect for people; stability; team-orientation; and aggressiveness. These dimensions have been subsequently replicated by Chatman and Jehn (1994) and Windsor and Ashkanasy (1996).…”

“…First, while the interactions among three or more of the seven OC dimensions are theoretically possible, conducting such a study requires large data sets and is beyond the scope of the present sample. Second, innovation and attention to detail were chosen because prior studies indicate that variations in these two dimensions within an OC have implications for managers' needs for information exchange and systematic decision making systems (Russell and Russell, 1992;Chatman and Jehn, 1994). Given that budgetary participation may fulfil such needs, an examination of the interaction between the two OC dimensions and budgetary participation is justified.…”

Uncertain Environment and Organizational Performance: The Mediating Role of Organizational Innovation

“…Ultimately, we can say that only emphasis level can be difference but the end story is almost always the same: "that organizations residing in relatively uncertain environments may be expected to adopt a greater number of innovations than those residing in relatively certain environments" (Russell & Russell, 1992). There is a relative consensus favoring a positive link between uncertain environment and the propensity to innovate which generates the below hypothesis:…”