Investigating the influence of organisational culture on the performance of Small and Medium Enterprises (SMEs)

Abstract

The study assessed the impact of organizational culture on the performance of Small and Medium Enterprises (SMEs) in Abuja. The questionnaire used was created based on Cameron and Quinn’s Organizational Culture Assessment Instrument (OCAI) in identifying different types of organizational culture. Using a cross-sectional survey research design, the primary data was obtained through administered structured questionnaire to one hundred and twenty-seven (127) SMEs at different sampled locations in Nigeria. Pearson Product Moment Correlation analysis was used to identify the relationship that exists between the variables and the results revealed that organizational culture measured by clan culture, market culture, adhocracy culture and Hierarchy culture variables have significant relationship of r = 0.616, 0.514, 0.604 and 0.784 respectively with performance. The study concludes that organizational culture have significant influence on the performance of Small and Medium Enterprises (SMEs) in Abuja and that Hierarchy culture is found important in promoting innovative performance than the other type of culture. The study recommendation is thus that SME owners should ensure that all new employees receive a formal briefing on the company's traditions, beliefs, vision, and strategies. They should create and print a common set of procedures and policies to promote seamless discharge of duties and responsibilities in such a way that will foster innovative performance in the work place.