The relationship between organizational culture and organizational entrepreneurship in Sepeh Bank branches in Central Province

Dissertation for Master's degree

(M.A)

Government management, transformation management trend

Abstract

This research was conducted with the purpose of the relationship between organizational culture and organizational entrepreneurship of Bank Sepe Shabat of Central Province in 2012. The statistical population of the research included 316 employees working in Sepeh Shabat Bank of Central Province, of which 174 people were considered as the sample size using Cochran's formula and stratified random sampling method. The data collection method was based on a questionnaire. The technical features of the questionnaire, including reliability and validity, were checked using different criteria; For example, Cronbach's alpha method was used as one of the reliability evaluation methods for this research, and the reliability coefficient for the standard questionnaire of Denison's organizational culture was 0.90 and for the standard questionnaire of Barringer and Bludorn's organizational entrepreneurship was 0.80, and content validity was also used to test the validity of the questionnaire. The analysis of the information obtained from the implementation of the questionnaires was done through SPSS and Smart PLS software in two sections, the measurement model and the structural section. In the measuring model section, the technical characteristics of the questionnaire, including reliability, convergent validity and divergent validity, were checked and the necessary corrections were made, and in the structural section, the structural coefficients of the model were used to check the research hypotheses. The results of the research show that there is a positive and significant relationship between the two structures of organizational culture and organizational entrepreneurship, as well as the relationship between all aspects of organizational culture on organizational entrepreneurship.

Key words: organizational culture, organizational entrepreneurship, Bank Sepe, creativity, innovation.

Chapter 1

Overview of the research

1-1. Introduction

In this chapter, the overview of the research will be discussed. For this purpose, the research problem will be stated first, and then the importance of the research topic will be explained. In the following, the hypotheses and objectives of the research are stated, and finally, the variables and components of the research are defined as theoretical and operational concepts.

1-2. Statement of the problem

The complexity and turbulence of today's business environment has forced organizations to increase their ability to respond to environmental changes. In response to significant changes in the business environment, many organizations place more importance on innovation and creativity to create new value for their customers. Des et al. (1999) state that in order for organizations to be more competitive in the market, they must have an entrepreneurial approach. Entrepreneurship is fundamental for job creation, innovation, new value, and competition in the market.

The subject of organizational entrepreneurship is considered as one of the basic and essential characteristics for high performance of the company (Lampkin and Dess, 1996; Lee and Patterson, 2000). Also, the role of culture to improve the entrepreneurship situation in organizations has been clearly highlighted in the research conducted (Lampkin and Des; 1996; Hemelgor, 2002). Therefore, to strengthen entrepreneurship in organizations, it is necessary to pay special attention to the category of culture.

However, there is little empirical research on measuring entrepreneurship at the organization level and identifying the relationship between organizational culture and its dimensions on organizational entrepreneurship. Therefore, the purpose of this research is to examine the relationship between organizational culture and organizational entrepreneurship and provide a general understanding and insight into the concept of organizational entrepreneurship with regard to the existing cultural context in the organization. For this purpose, the literature on culture and organizational entrepreneurship, the relationship between these two variables and the effect of culture on organizational entrepreneurship have been reviewed. Lumpkin and Dess (1996) by examining the role of environmental and organizational variables in order to increase the general understanding of how organizational entrepreneurship leads to higher performance, considered organizational culture as one of the key components that is related to the entrepreneurial performance of the organization. Also, the results of many other studies indicate the relationship between organizational entrepreneurship and high performance of the organization (Kid and Mohammad, 2011; Lee et al., 2011).

Many definitions for organizational culture have been presented from different perspectives. Robbins (2005) defines culture as a system of common concepts and beliefs among organization members that determine their behavior towards each other and people outside the organization. According to Shin (1985), organizational culture is a pattern of basic assumptions that has been proposed and developed by a group of people.According to Shin (1985), organizational culture is a pattern of basic assumptions that has been raised and expanded by a group of people in such a way that it matches with the external environment and causes cohesion within the group. Robbins (2005) considers the origin of organizational culture formation to be the philosophy of the founders of the organization, and also considers the selection criteria of the organization to employ employees to be very effective in the formation of this culture. Dennison (2000) points out that organizational culture is the basic values, beliefs and moral principles that play a basic role for an organizational management system, and introduces the four dimensions of organizational culture: involvement in work, adaptability, mission or mission, and sustainability. and new that can differentiate a company from other companies in the market (Chen et al., 2006; Naldi et al., 2007). In addition, Hitt et al. (2001) have defined organizational entrepreneurship as "the identification and exploitation of previously undiscovered opportunities by the organization".

Regarding the dimensions of organizational entrepreneurship, Quinn and Slovin (1989) in their studies suggest that organizational entrepreneurship is a multidimensional construct and can be evaluated from different perspectives (Chang et al., 2007). The main framework of dimensions of organizational entrepreneurship was first proposed by Miller (1983). He proposed certain dimensions to describe organizational entrepreneurship; He introduces entrepreneurial organizations as organizations that are involved in markets with innovative products, involve little risky risk, as well as being pioneers in innovation, and putting competitors in a bottleneck (Morris et al., 2007). Innovation is a reflection of the company's desire for new ideas and creative processes, which may result in new products, services, or technological processes; Innovation requires separating the company from existing technologies and activities and setting up the company beyond the current situation. Risk tolerance shows the willingness of companies to allocate basic resources to projects that are likely to fail or succeed. Also, risk-taking can be referred to the quick pursuit of opportunities, quick supply of resources, and daring activities (Kordnaij et al., 2018). Pioneering refers to the tendency of companies to pursue and discover new opportunities (Chang et al., 2007). Leading organizations monitor market trends, identify the future needs of current customers, and anticipate changes in demand or the emergence of problems that can lead to the opportunity to create a new company.

Lampkin and Dess (1996) added two other factors that can play an important role in organizational entrepreneurship to the above: aggressive approach and independence. Aggressive approach refers to the company's willingness to take tough and direct challenges with competitors to improve their market position. In many studies, the aggressive approach with pioneering is considered as a variable (Antonsik, 2007). Lampkin and Dess (1996), in their definitions, specified that these two factors are distinct from each other. Pioneering is a response to opportunities while an aggressive approach is a response to threats. Independence refers to the independent activities of individuals or teams in creating ideas and implementing them (Lee et al., 2011). Seeking independence provides an incentive for the people of the organization to identify opportunities and pursue them until they are presented to the market (Zali et al., 2018). In general, the characteristics of organizational entrepreneurship extend to the decision-making styles and actions of the members of an organization. These factors, which include innovation, risk-taking, pioneering, aggressive approach and independence, often work together to improve the performance of an organization. Therefore, considering the necessity and importance of organizational entrepreneurship, in this research we are looking for suitable platforms to improve the status of this variable in the organization and whether there is a relationship between organizational culture and organizational entrepreneurship in Sepeh Bank branches in Central Province? 1-3.