International Journal of Entrepreneurial Knowledge

Open Access Open Access  Restricted Access Subscription Access

Assessment of the Relationship Between Entrepreneurial Orientation, Organisational Culture Adaptability and Performance of Christian Faith-Based Hotels in Kenya


Affiliations
1 School of Business, Karatina University, Karatina, Kenya
2 School of Pure and Applied Science, Karatina University, Karatina, Kenya
 

Organisational culture has been the focus in both theory and practice and has captured attention throughout the last decade because of its substantial relationship between the concept itself and its outcomes such as gaining competitive advantage and performance in businesses. Entrepreneurial Orientation refers to the strategy making processes that it provides organisations with a basis for entrepreneurial decisions and actions. Despite of its importance and being a popular entrepreneurship concept there is little evidence of research that has been done to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance in hotels and where applied it is minimal. The purpose of this study was to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance of Christian Faith-Based Hotels in Kenya. This study was anchored on the epistemology philosophy and adopted a positivist approach. The study used the mixed methods approach guided by a cross-sectional survey research design. The variable items for organisational culture adaptability and performance were measured using the five-point Likert scale and using the Denison’s organisational survey instruments. The population of the study included 72 managers and 1878 junior staff from 24 Christian faith-based hotels in Kenya. Structural equation models (SEM) and an MMR model were fitted to assess the objective of the study. Based on the SEM and MMR models, the study found that adaptability has a significant positive influencing on the performance of Christian Faith Based Hotels β= 0.520, t= 2.444, p-value=0.018). The study also found that Entrepreneurial Orientation had a moderating role on the relationship between organisational culture adaptability and performance of Christian Faith Based Hotels based on the MMR model that had a significant change in R due to addition of the interaction term (R-square change=.063, F-change=4.293, p-value=0.043). The study is important to a business because it will encourage it to adapt to the environment to improve performance.

Keywords

Organisational Culture Adaptability, Entrepreneurial Orientation and Performance.
User
Notifications
Font Size


  • Amah, E. (2009). Corporate culture and organizational effectiveness: A Study of the Nigerian Banking Industry. An Unpublished PhD Thesis. Faculty of Management Sciences, University of Port Harcourt, Nigeria.

  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: a review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.

  • Anand, G., & Ward, P.T. (2004). Flexibility and Performance in Manufacturing: Coping with Dynamic Environments. Production and Operations Management, 13(4), 369-385.

  • Aquinis, H., & Gottfrdson, R. K. (2010). Best Practice recommendations for Estimating interactions effects using moderated multiple regression. Journal of organizational behavior, 31(6), 776-786.

  • Babbie, Earl R. (1990). Survey research methods. Belmont, Calif. :Wadsworth Pub. Co.

  • Bailey, K.D., (1987). Methods of Social Research. 3rd Edition, New York: the Free Press.

  • Bhuian, S.N., Menguc, B., & Bell, S. J. (2005). Just Entrepreneurship Enough: The Moderating effect of entrepreneurship on the relationship between marketing orientation and performance. Journal of Business Research, 58, 9-17.

  • Calori, R., & Sarnin, P. (1991). Corporate Culture and Economic Performance: A French Study. Organization Studies, 12(1): 49-74.

  • Cooper, D.R., & Schindler, P.S. (2011). Business research methods, (11th edition). New York: MC Graw-Hill.

  • Covin, J. G., & Slevin, D. P. 1991. A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1), 7-24.

  • Daft (2000). Organization Theory and Design. Houston, TX U.S.A.: South-Western College Publishing, Thomson Learning.

  • Dasanayake, S. W. S.B. and Mahakalanda I. (2008) A Literature Survey on Organisational Culture and Innovation. Global Business and Management Research, 539-550.

  • Denison Consulting, (2013).The Denson Organizational Culture Model. Retrieved from http: //www.denisonconsulting.com/model-surveys/Denison-model/ocs-mission.

  • Denison, D.R., Haaland, R., & Goelzea, S.P. (2004). Corporate culture and organizational effectiveness: Is there a similar pattern around the world? Advances in Global Leadership, 3, 205–227.

  • Denison, D. R., Lief, C., & Ward, J. L. (2004). Culture in family-owned enterprises: Recognizing and leveraging unique strengths. Family Business Review, 17, 61-70.

  • Denison,D. R (2007). Denison Consulting An Arbor Zurich Shanghai.

  • Denison, D. R., Janovics, J., Young, J., & Cho, H. J. (2006). Diagnosing organizational cultures: Validating a model and method. Working Paper, Denison Consulting Group Retrieved 25.11, 2018, from https://www.researchgate.net/publication/228801211_Diagnosing_organizational_cultures_Validating_a_model_and_method.

  • Denison, D.R., & Mishra, A.K. (1995). Towards a Theory of Organizational culture and effectiveness organization science, 6(2):204-223.

  • Denson, D.R. (1990). Corporate culture and organizational effectiveness New York: John Wiley and sons.

  • Denison, D. R. (2001). Organizational culture: Can it be a key lever for driving organizational change? In C. Cooper, Cartwright, S., & Earley, P. (Eds.), International handbook of organizational culture and climate. Chichester: Wiley, 347–372.

  • Denson, D.R. (2000). Organizational culture: can it be a key lever for driving organizational change. S. Cart Wright & C. Cooper (eds.), The handbook of organization culture. London: Joley & sons.

  • Edwards, P., Roberts, I., Clarke, M., DiGuiseppi, C., Pratap, S., Wentz, R., (2002). Increasing response rates to postal questionnaires: Systematic review. British Medical Journal, 324.

  • Eisenhardt, K.M., Brown, S.L. (1998). Time pacing: Competing in markets that won't stand still. Harvard Business Review, 76(2), 59-67.

  • Evers, A. (2004). The third sector in Europe. Massachusetts, USA: Edward Elgar publishing.

  • Fey, C. and Denison, D.R. (2003). ‘Organizational culture and effectiveness’ can American theory be applied in Russia? Oorganizational Science 14 (6) 686 – 706.

  • Fisher, C., & Alford, R. (2000). "Consulting on culture." Consulting Psychology: Research & Practice 52(3): 206-207.

  • Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, Journal of Marketing Research 18(1), 39-50.

  • Global Generosity Network. (2014). An initiative of the world Evangelical Alliance, Mission Africa Trust Fund. Retrieved from https://www.ministrywatch.com/generosity-resources-list.pdf.

  • Hair, J. F., Black, W. C., & Babin, B. J. (2010). Multivariate Data Analysis: A Global Perspective. Upper Saddle River, NJ: Pearson Prentice-Hall.

  • Hayton, (2010). National Culture and Entrepreneurship: A review of behavioral Research, Entrepreneurship Theory and practice 26 (4), 33.

  • Kotter, J.P., & Heskett, J. L.(1992). Corporate culture and performance. New York: Macmillan.

  • Lamberg, J., Tikkanen, H., Nokelainen, T., & Suur-Inkeroinen, H. (2009). Competitive dynamics, strategic consistency, and organizational survival. Strategic management Journal, 30, 45-60.

  • Ling, Y.& Jaw, B. J. (2011). Entrepreneurial Leadership Human Capital Management and Global Competitive Journal of Chinese Human Resource Management, 2(2), 117-135.

  • Loisch, C.U., (2007). Organisationskulturals Einflussgröße der Export Performance. Wiesbaden: Deutscher Universitäts Verlag.

  • Lumpkin, G.T., & Sloat C. (2001). Do family firms an entrepreneurial orientation? Flontiers of entrepreneurship research, 26 (5), 347-366.

  • Miles, J. & Shevlin, M. (2003). Structural equation modelling: Navigating spaghetti junction. Psychologist, 16, 639-641.

  • Mintgberg H. (1998). structure in fives; designing effective organizations. Pp.312. Englewood cliffs, NJ: Prentice – Hall.

  • Mossete, G.N. (2013). Social entrepreneurial leadership. Career Development International 4 (3): 140-145.

  • Nadler, D. A. (1998). Champions of change: How CEOs and their companies are mastering the skills of radical change. San Francisco: Jossey-Bass.

  • Ndungu, S. I. (2014). Moderating Role of entrepreneurial orientation between security management and firm performance. Unpublished PhD. Thesis. Nairobi. Jomo Kenyatta University & Technology.

  • Ogbonna, E. & Harris, L. (2000). Leadership style, organizational culture and performance: Empirical evidence from U.K companies, international Journal of human resource management; 11(4), 706-788.

  • Olsen, B. (2008). How reasons for entry into the profession illuminate teacher identity development. Teacher Education Quarterly, 35(3).

  • Ongori, H (2009). Managing behind the scenes: A view point on employee empowerment. African Journal of Business Management, 3 (1), 009-015.

  • Rauch, A., Wiklund, J., Lumpkin, G.T. and Frese, M. (2009). EO and Business Performance: An Assessment of Past Research and Suggestions for the Future. Entrepreneurship Theory and Practice. 33, 761-787.

  • Richard, O.C., Barnett T., Dwyer. S. and Chadwick, K. (2004). Culture diversity in management firm performance and moderating role of entrepreneurial orientation dimensions. Academy of management, Journal, 47 (2): 255-266.

  • Schneider, B., Brief, A. P., & Guzzo, R. A. (1996). Creating a climate and culture for sustainable organizational change. Organizational Dynamics, 24(4), 7-19.

  • Senge, P. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday/Currency.

  • Shihab, M. S., Wismiarsi, T., & Sine, K. (2011). Relationship between organizational culture and entrepreneurial orientation: Indonesian SMEs context. International Proceedings of Economics Development & Research, 24, 93.

  • Singh, S. K. (2011). Organizational Innovation as Competitive Advantage during Global Recession. The Indian Journal of Industrial Relations, 46(4).165–185.

  • Stalk, G. J. (1998). The time paradigm. Forbes (ASAP Supplement), 213-14.

  • Swanson, S. & Davis, J. C. (2003). The Relationship of Differential Loci with Perceived Quality and Behavioral Intentions. Journal of Services Marketing, 17 (2), 202-219.

  • Tidor, A., Gelmereanu, C., Baru, P., & Morar, L. (2012). Diagnosing Organizational Culture for SMEs Performance. Procedia Econonomics and Finance, 710-715.

  • Wales, W. J., Gupta V. K., & Mousa FT (2013a). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal 31(4): 357–383.

  • Wandongo, B., Odhuno, E., & Kambona, O. (2010). Managerial role and choice of performance measure in the Kenyan five star hotels using a cross- sectional correlation design. Managing leisure, 15(11), 17-31.

  • Wei, L., Liu J., & Herndon, N.C. (2011). SHRM and Product Innovation: Testing the moderating effects of organizational culture and structure in Chinese Firms. The International Journal of Human Resource Management, 22 (1), 19–33.

  • Wiklund, J., & Shepherd, D.A. (2003). Knowledge-based resources, entrepreneurial orientation and the performance of small and medium sized businesses. Strategic Management Journal 24, 1307-1314.

  • Wilkins, A.L., & Ouchin W.G. (1983). Efficient cultures; exploring the relationship between culture and organizational performance Administrative science Quarterly, 28 (3): 468 – 481.


Abstract Views: 398

PDF Views: 163




  • Assessment of the Relationship Between Entrepreneurial Orientation, Organisational Culture Adaptability and Performance of Christian Faith-Based Hotels in Kenya

Abstract Views: 398  |  PDF Views: 163

Authors

Ruth Wanjiku Muriithi
School of Business, Karatina University, Karatina, Kenya
Teresia Kyalo
School of Business, Karatina University, Karatina, Kenya
Josphat Kinyanjui
School of Pure and Applied Science, Karatina University, Karatina, Kenya

Abstract


Organisational culture has been the focus in both theory and practice and has captured attention throughout the last decade because of its substantial relationship between the concept itself and its outcomes such as gaining competitive advantage and performance in businesses. Entrepreneurial Orientation refers to the strategy making processes that it provides organisations with a basis for entrepreneurial decisions and actions. Despite of its importance and being a popular entrepreneurship concept there is little evidence of research that has been done to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance in hotels and where applied it is minimal. The purpose of this study was to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance of Christian Faith-Based Hotels in Kenya. This study was anchored on the epistemology philosophy and adopted a positivist approach. The study used the mixed methods approach guided by a cross-sectional survey research design. The variable items for organisational culture adaptability and performance were measured using the five-point Likert scale and using the Denison’s organisational survey instruments. The population of the study included 72 managers and 1878 junior staff from 24 Christian faith-based hotels in Kenya. Structural equation models (SEM) and an MMR model were fitted to assess the objective of the study. Based on the SEM and MMR models, the study found that adaptability has a significant positive influencing on the performance of Christian Faith Based Hotels β= 0.520, t= 2.444, p-value=0.018). The study also found that Entrepreneurial Orientation had a moderating role on the relationship between organisational culture adaptability and performance of Christian Faith Based Hotels based on the MMR model that had a significant change in R due to addition of the interaction term (R-square change=.063, F-change=4.293, p-value=0.043). The study is important to a business because it will encourage it to adapt to the environment to improve performance.

Keywords


Organisational Culture Adaptability, Entrepreneurial Orientation and Performance.

References





DOI: https://doi.org/10.15759/ijek%2F2019%2Fv7i1%2F183966