The effects of tightness-looseness in organizational culture on corporate entrepreneurship and firm performance: A regional study in Turkey
Keywords:
Organizational culture, tightness-looseness, corporate entrepreneurship, firm performance, industrial enterprisesAbstract
In this study, the tightness-looseness dimension, suggested as a cultural dimension of community was examined at organizational level. Introducing the tightness-looseness dimension to the literature, and identifying the effects of the dimension on corporate entrepreneurship activities and firm performance, which poses great importance for organizations, were the main purposes of the study. In the study, the correlations between dependent and independent variables were examined through the hypotheses suggested, and the consistency level of the model was analyzed through the structural equation modeling. It was concluded from the study that there was a significant positive correlation between the tightness-looseness level and corporate entrepreneurship and firm performance. Coefficients of corporate entrepreneurship, proactivity, innovational orientation, and coefficients of firm performance, and coefficients concerning the profit, growth, and customer satisfaction seem to be statistically significant. Accordingly, the higher (or lower) the level of looseness is, the higher (or lower) the level of corporate entrepreneurship and firm performance will be. The validity of the model on the target sample has been discussed considering the compliance indices of the model proposed in the study on Turkey's leading industrial enterprises. As the results of the analysis of the constructed structural equation model gave the values of good and acceptance level goodness of fit (RMSEA <0.05, GFI and CFI> 0.95 and AGFI> 0.90), the model was found to be acceptable.
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