Does organizational culture matter in the relationship between trust and SMEs performance

Abstract

Purpose Although literature indicated that business social responsibility (BSR) is now a common practice and accepted norm among business enterprises globally, the concept is not well understood and its influence on business performance is contradictory. Therefore, based on the stakeholder theory, the purpose of this paper is to examine the association among trust of BSR and the performance of small-scale industries in Nigeria with organizational culture as a moderating factor. Design/methodology/approach The hypotheses of the study were tested using personally administered survey questionnaires; the study obtained 486 valid questionnaires, which were evaluated using SmartPLS Algorithm and bootstrapping functions. Findings The research findings were established using SmartPLS Algorithm and bootstrapping functions. According to the results, the research constructs have a satisfactory convergent and discriminant validity. Equally, the overall model has a very high predictive relevance. In addition, the results showed that all the predicting variables explained 40 percent variance in the criterion variable. Thus, the study established strong positive influence of trust of BSR on the small-scale industrial performance. Correspondingly, the study established a strong positive impact of organizational culture on the performance of the small-scale industries. However, the study could not establish the moderating influence of organizational culture on the constructs. Research limitations/implications The study used perceptions of owner/managers and only small-scale industries. Practical implications The research findings may be found beneficial to policy makers and academics, particularly in understanding trust of social responsibility, its influence on performance of small-scale industries and fit between organizational culture and strategic direction of a business enterprise. Originality/value The study offers some meaningful contribution to knowledge on BSR by exploring the mechanisms connecting trust of BSR with performance. Also, research expert in the field of BSR usually explores the advantage of these findings by utilizing the action of BSR on internal and external stakeholders.

Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs

“…Malaysian SMEs faces issues regarding innovative culture and organizational learning (Abdul-Halim, Ahmad, Geare, & Thurasamy, 2018;Gorondutse & Hilman, 2018;Hanifah, Halim, Ahmad, & Vafaei-Zadeh, 2017). Moreover, Malaysian government plans to renovate their economy by adopting innovative culture and organizational learning among SMEs (Abdul-Halim et al, 2018;Hanifah et al, 2017).…”

Effect of Organisational Culture on Sustainable Growth of SMEs: Mediating Role of Innovation Competitive Advantage

“…Clearly, this is not to overlook the fact that sustainability may also be linked to issues of, for instance, durability or continuity; nevertheless, increasing particular attention is required in relation to (environmental) sustainability especially in small-to-medium-sized enterprises [SMEs] (Kraus et al, 2020, Spence, 2016Wickert et al, 2016). Likewise, (Gorondutse, & Hilman, 2019) have established that there was a strong positive impact of organizational culture on the performance of the small-scale industries. However, (Dzomonda, & Fatoki, 2019) found that small and medium enterprises (SMEs) had an average level of entrepreneurial orientation (EO) as well an average level of organisational culture.…”

The mediating role of job satisfaction on compensation, work environment, and employee performance: Evidence from Indonesia

“…Globalization has brought many challenges to organizations in managing employee performance to achieve organizational goals (Gorondutse & Hilman, 2019;Polychroniou & Trivellas, 2018). The success of an organization hang on the utilization of human resources such as people who provide energy, creativity, and enthusiasm for the organization and plays a pivotal role in the implementation of organizational operations (Ali Alsheikh, Ahmad Alremawi, & Bin A Tambi, 2018).…”