Small Business Struggle in a Developing Economy:Does Organizational Culture Matter?

Abstract

The paper examines the relationship between two important variables that define small and medium-sized enterprises:organizational culture and responsiveness. Firms operating in Romania were selected for the study. The country offers a business context with many changes over the last two decades, a challenge and an opportunity for researchers. Results show that the combination of entrepreneurial characteristics and planning and goal oriented managerial styles suits best successful companies. The market-driven type of culture has the best coordination and is best positioned to deliver customer-centered versatility, while adhocracy helps businesses respond fast to changes in the market environment