International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Empirical Link between Environmental Conditions, Organizational Culture, Corporate Entrepreneurship and Performance: The Mediating Role of Corporate Entrepreneurship
Nihal Kartaltepe Behram, Ata Özdemirci

Given the increasing findings that support a positive relationship between corporate entrepreneurship and firm performance, it is important to identify and examine the antecedents that stimulate or impede corporate entrepreneurship. This study examines the effect of environmental conditions and organizational culture on corporate entrepreneurship and the mediator effect of corporate entrepreneurship on environmental conditions, organizational culture and firm performance. Face-to-face or online surveys were conducted with three respondents per company – one junior administrative officer, one middle level manager and one top level manager. Mean averages for each company were used in data analysis. 561 surveys, which were properly filled out and included all three levels of managers, from 187 companies were approved. Results from regression tests showed that market culture and adhocracy culture have positive and strong effects on all corporate entrepreneurship dimensions, that clan culture positively affects innovativeness but has no significant effect on new business venturing-self renewal and proactiveness. Also, hierarchy culture has no effect on corporate entrepreneurship. So it is possible to suggest that adhocracy and market cultures enhance corporate entrepreneurship more than clan and hierarchy cultures. It can also be observed that innovativeness and proactiveness are negatively affected by munificence. Munificence also has a positive effect on sales and financial performance while dynamism negatively affects market share. Besides the direct effects of the environment on firm performance, proactiveness is a mediator between munificence and financial performance. The final findings of this research show that hierarchy culture directly, strongly and positively effects sales, financial performance and market share, which means that it is the best working culture type in the Turkey market although it has no significant effect on corporate entrepreneurship. Also new business venturing-self renewal is a mediator between market culture and sales, and new business venturing-self renewal positively and strongly affects market share, while proactiveness has a negative effect on financial performance and market share. This may be caused by the proactive attempts of firms that have financial problems or/and that lose their market share.

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