Innovative Behaviour, Organizational Culture and SME's Performance.
Loading...
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The purpose of the study was to establish the relationship between innovative behaviour, organizational culture and SMEs Performance, the combined contribution of innovative behaviour and organizational culture on SMEs Performance – a case of SMEs in South Division Mbarara City. The study adopted a cross-sectional and correlation design using a sample of 354 SMEs. One respondent filled the questionnaire per SME. Data was analysed using descriptive statistics, factor analysis, Pearson correlation and hierarchical correlation regression. It was established from the study that there was a significant positive relationship between innovative behaviour and SMEs Performance, a significant positive relationship between organizational culture and SMEs Performance, and nine-point five percent of variation in SMEs Performance is explained by innovative behaviour and organizational culture. The study was conducted during the presence of the Covid-19 pandemic which may have affected the response rate and study. Although the constructs were defined as precisely as possible by drawing relevant literature and validated by practitioners, they could only be proxies for an underlying latent phenomenon that is itself not fully measurable. It is therefore recommended that owners/managers should always suggest new working methods in their business and suggest new techniques that they feel would improve performance in their business. SME owners/ Managers should always be keen on challenging routine actions to improve their businesses and always suggest for new instruments that the business can use to reduce operational costs. Furthermore, SME owners / managers should always look for new ways to improve work or new ways to perform tasks, and always make up their mind to find original solutions to work on related problems. They also should look for possibilities to improve the existing work processes in their businesses, and also spend a lot of time building positive relationships with their employees which in return help to support new ways of doing things. When a colleague comes up with a new idea, SME owners / managers should encourage him/her and encourage other employees to support his or her idea. It is also recommended that SMEs owners/managers should ensure that there is always adherence to the rules of the organisation while carrying out the day-to-day activities. Furthermore, more emphasis should be put on preference to carry out duties in a team and giving mutual respect to all work colleagues. SME owners / managers should also encourage truthfulness and openness among the team members while carrying out organisational activities and the belief in excelling at their workplace. Overall, SMEs owners/ managers should improve in the aspects of idea generation, opportunity exploration, idea championing and idea implementation while also maintaining emphasis on the key organisational culture aspects of norms, beliefs, and values in order to achieve positive results in SMEs performance.
Description
A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN A).
Keywords
Citation
Joseph, K (2023) Innovative Behaviour, Organizational Culture and SME's Performance : A Case of Small and Medium Enterprises (SME's) in South Division, Mbarara City. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.