IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v6y2016i10p326-338.html
   My bibliography  Save this article

Investigating the Moderation of Organizational Culture on the Relationship between Innovativeness, Reactiveness, and Risk-Taking Propensity with Business Performance: A Case of Pakistan

Author

Listed:
  • Nadeem Khalid
  • Munwar Hussain Pahi
  • Sallam Bin Abdullah

Abstract

The present study investigated the role of core components of entrepreneurial orientation and its impact on business performance. The study examined how innovativeness, proactiveness, and risk-taking propensity can influence business performance in an emerging economy like Pakistan. Accordingly, the study also tested how organizational culture could moderate these relationships. Employees from a large national level organization from Karachi, Pakistan were sampled for the study. 300 questionnaires in total were distributed across the company out of which, 193 were received back. 31 questionnaires were discarded and 162 were taken for final analysis. Structural equation modeling results through using Smart PLS 2.0 revealed a positive relationship of all the three factors with business performance. More importantly, the study also found strong moderation of organizational culture on the hypothesized relationships. Findings, recommendations and contributions of the study are discussed in detail.

Suggested Citation

  • Nadeem Khalid & Munwar Hussain Pahi & Sallam Bin Abdullah, 2016. "Investigating the Moderation of Organizational Culture on the Relationship between Innovativeness, Reactiveness, and Risk-Taking Propensity with Business Performance: A Case of Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(10), pages 326-338, October.
    • Handle: RePEc:hur:ijarbs:v:6:y:2016:i:10:p:326-338
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Investigating_the_Moderation_of_Organizational_Culture_on_the_Relationship_between_Innovativene.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Investigating_the_Moderation_of_Organizational_Culture_on_the_Relationship_between_Innovativene.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fairlie, Robert W. & Holleran, William, 2012. "Entrepreneurship training, risk aversion and other personality traits: Evidence from a random experiment," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 366-378.
    2. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    3. Stanley F. Slater & Eric M. Olson, 2001. "Marketing's contribution to the implementation of business strategy: an empirical analysis," Strategic Management Journal, Wiley Blackwell, vol. 22(11), pages 1055-1067, November.
    4. Schuler, Randall S., 2000. "The internationalization of human resource management," Journal of International Management, Elsevier, vol. 6(3), pages 239-260.
    5. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    6. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    7. William Gartner & Jianwen Liao, 2012. "The effects of perceptions of risk, environmental uncertainty, and growth aspirations on new venture creation success," Small Business Economics, Springer, vol. 39(3), pages 703-712, October.
    8. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felipe Hernández-Perlines & Manuel Alejandro Ibarra Cisneros, 2018. "The Role of Environment in Sustainable Entrepreneurial Orientation. The Case of Family Firms," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    2. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    3. Rodney C. Runyan & Baoshan Ge & Baobao Dong & Jane L. Swinney, 2012. "Entrepreneurial Orientation in Cross–Cultural Research: Assessing Measurement Invariance in the Construct," Entrepreneurship Theory and Practice, , vol. 36(4), pages 819-836, July.
    4. Lim Euncheon & Kim Dohyeon, 2020. "Entrepreneurial Orientation and Performance in South Korea: The Mediating Roles of Dynamic Capabilities and Corporate Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 10(3), pages 1-18, July.
    5. Chahal, Hardeep & Gupta, Mahesh & Lonial, Subhash & Raina, Swati, 2019. "Operational flexibility-entrepreneurial orientation relationship: Effects and consequences," Journal of Business Research, Elsevier, vol. 105(C), pages 154-167.
    6. Arslan Ayub & Muhammad Salman Aslam & Hanan Iftekhar & Adeel Razzaq & Sabiha Hafeez, 2013. "Compete or Leapfrog: Creating Blue Ocean through Entrepreneurial Orientation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(5), pages 211-221, October.
    7. UMRANI Waheed Ali & MAHMOOD Rosli & AHMED Umair, 2016. "Unveiling The Direct Effect Of Corporate Entrepreneurship’S Dimensions On The Business Performance: A Case Of Big Five Banks In Pakistan," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 181-195, April.
    8. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    9. Shaker A. Zahra & Daniel F. Jennings & Donald F. Kuratko, 1999. "The Antecedents and Consequences of Firm-Level Entrepreneurship: The State of the Field," Entrepreneurship Theory and Practice, , vol. 24(2), pages 45-65, December.
    10. Danny Miller & Isabelle Le Breton–Miller, 2017. "Sources of Entrepreneurial Courage and Imagination: Three Perspectives, Three Contexts," Entrepreneurship Theory and Practice, , vol. 41(5), pages 667-675, September.
    11. Krzysztof Wach & Agnieszka Głodowska & Marek Maciejewski, 2018. "Entrepreneurial Orientation, Knowledge Utilization and Internationalization of Firms," Sustainability, MDPI, vol. 10(12), pages 1-23, December.
    12. Encarnacion García-Sánchez & Víctor Jesús García-Morales & Rodrigo Martín-Rojas, 2018. "Analysis of the influence of the environment, stakeholder integration capability, absorptive capacity, and technological skills on organizational performance through corporate entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 345-377, June.
    13. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    14. Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    15. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    16. Bekir Emre KurtulmuÅŸ & Alev Katrinli & Bernadette Warner, 2020. "International Entrepreneurial Orientation and Performance of SMEs: The Mediating Role of Informal Institutional Framework," SAGE Open, , vol. 10(4), pages 21582440209, December.
    17. Gupta, Rakesh & Pandey, Ritesh & Sebastian, V.J., 2021. "International Entrepreneurial Orientation (IEO): A bibliometric overview of scholarly research," Journal of Business Research, Elsevier, vol. 125(C), pages 74-88.
    18. Muhammad Imran, Hassan Mujtaba Nawaz Saleem, Jawad Iqbal, S. M. Tariq Rafi, 2020. "Entrepreneurial Orientation and Firm's Export Performance: Evidence from Surgical Industry," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(1), pages 47-63, March.
    19. Eugene Ofoegbu Onyema, 2014. "Effects of Entrepreneurial Orientations on Organizational Learning in a Manufacturing Firm in Nigeria," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(2), pages 94-106, March.
    20. Shathees Baskaran & Nomahaza Mahadi & Siti Zaleha Abdul Rasid & Adriana Mohd Rizal, 2017. "A Proposed Framework of Academic Staff Up-Take in Integrating E-Learning in the Education Delivery," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 345-355, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:6:y:2016:i:10:p:326-338. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.