ORGANIZATIONAL CULTURE AND PERFORMANCE OF SMES IN ANHUI CHINA.doc

1、1ORGANIZATIONAL CULTURE AND PERFORMANCE OF SMES IN ANHUI CHINAAbstract. An empirical analysis is used to test the relation of organizational culture and performance of SMEs in Anhui China. Key words： organizational culture； performance； SME 1 Rationale of the Study Retrieval result shows， from CNKI

2、（China National Knowledge Infrastructure/Internet）： there are as many journal articles as 95575 on organizational culture， and the number of the Master theses and Doctor dissertations on the same topic is respectively 2133 and 97. However on enterprise performance of SMEs are fewer， especially on th

3、e relation of the boat. 2 The Problem Statement of the Problem The study attempted to test the relation of organizational culture and performance of Small and Medium Enterprises （SME） in Anhui， China Statement of Hypotheses There is a significant relationship between organizational 2culture and perf

4、ormance of SMEs. 3 Definition of Terms Organizational culture in the study， comprises of material culture， institutional culture and spiritual culture， and is tested in terms of the material environment， customer orientation， standard management， vision and mission， organizational identity， learning

5、 and innovation， teamwork and social responsibility. Organizational performance is tested by profit rate， sales increase， capital turnover， market share， market increase， product development， employee satisfaction， work dedication and customer satisfaction in terms of perceived level. 4 Significance

6、 of the Study This study is significant for the following： Researchers. The study can be a basis for further enriching the research models in terms of the components of organizational culture. The managers of SMEs. The quantitative analysis will give them a clear idea of the relationship of organiza

7、tional culture and performance. RESEARCH METHODOLOGY Correlation analysis and regression analysis are used to 3test the hypotheses of the study. RESULTS AND DISCUSSIONS， 5 Correlation Analysis Correlation analysis of organizational culture and performance is made through SPSS 16.0， and the related c

8、oefficient is shown as in Table 1. Table 1： Related Coefficient of Organizational Culture and Performance As Table 1 shows， conclusions are drawn as below： （1） There is a positive relation between Material Environment and Capital Turnover， Sales Increase， Profit Rate， Employee Satisfaction， Work Ded

9、ication and Customer Satisfaction， 4 of which are of high significance， H1 is partially verified. （2） There is no significant relation between Customer Orientation and Profit Rate， and Product Development. However， the positive relation between Customer Orientation and Capital Turnover， Market Share

10、， Sales Increase， Market Increase， Employee Satisfaction， Work Dedication and Customer Satisfaction is of high significance. H2 is partially verified. （3） There is a significant positive relation between Vision & Mission and Capital Turnover， Market Share， Sales 4Increase， Profit Rate， Market Increa

11、se， Employee Satisfaction， Work Dedication and Customer Satisfaction. H3 is partially verified. （4） There is a significant positive relation between Standard Management and Capital Turnover， Market Share， Sales Increase， Market Increase， Employee Satisfaction， Work Dedication and Customer Satisfacti

12、on. H4 is partially verified. （5） There is no significant relation between Organizational Identity and Market Share， Sales Increase， Product Development， Market Increase， but there is significantly positive relation with 5 others. H5 is partially verified. （6） There is a significant positive relatio

13、n between Learning & Innovation and 9 variables of performance. H6 is verified. （7） There is a significant positive relation between Teamwork and Capital Turnover， Market Share， Sales Increase， Profit Rate， Market Increase， Employee Satisfaction， Work Dedication and Customer Satisfaction， H7 is part

14、ially verified. （8） There is a significant positive relation between Teamwork and Capital Turnover， Market Share， Sales Increase， 5Market Increase， Employee Satisfaction， Work Dedication and Customer Satisfaction. H8 is partially verified. 6 Regression Analysis As predictive variables， 8 variables o

15、f organizational culture will predict performance by Std. Regression Coefficient， which indicates the importance or ability in predicting. The result is as below from SPSS 16.0. Table 2： Regression Analysis on Organizational Culture and Capital Turnover In Table 2， Vision & Mission and Team Work ent

16、er regression equation， with or at 0.465 and R Square at 0.216， and Beta is positive indicating the two factors affect the dependent variable positively. Table 3： Regression Analysis on Organizational Culture and Market Share As Table 3 shows， Standard Management enters the regression equation， and

17、R is 0.294， R Square is 0.087. Beta is positive， indicating that the more standard the management is， the bigger the market share will be. Table 4： Regression Analysis on Organizational Culture and Sales Increase As Table 4 shows， Learning & Innovation enter the 6regression equation， and R is 0.344，

18、 R Square is 0.118. Beta is positive， indicating that the more there are learning and innovation， the more the sales will increase. Table 5： Regression Analysis on Organizational Culture and Profit Ratio As in Table 5， Customer Orientation enters the regression equation， and R is 0.400， R Square is

19、0.160， Beta is positive， indicating that the more customer orientation is emphasized， the higher the profit ratio will be. Table 6： Regression Analysis on Organizational Culture and Product Development In Table 6， Learning & Innovation enter the regression equation， and R is 0.185， R Square is 0.034

20、， Beta is positive， indicating that the more learning and innovation is emphasized， the better the product development will be. Table 7： Regression Analysis on Organizational Culture and Market Increase In Table 7， Learning & Innovation enter the regression equation， and R is 0.269， R Square is 0.07

21、2， Beta is positive indicating the more learning and innovation is emphasized， the more the market will increase. Table 8： Regression Analysis on Organizational Culture and 7Employee Satisfaction In Table 8， Material Environment and Organizational Identify enter the regression equation. R is 0.512 a

22、nd R Square is 0.262. The positive value of Beta indicates the positive effect of the two factors on employee satisfaction. Table 9： Regression Analysis on Organizational Culture and Work Dedication In Table 9， Vision & Mission and Team Work enter the regression equation. R is 0.466 and R Square is

23、0.217， The positive value of Beta indicates the positive effect of the two factors on work dedication. Table 10： Regression Analysis on Organizational Culture and Customer Satisfaction The result in Table 10 shows that three factors have entered the regression equation. R is 0.566 and R Square is 0.

24、321， indicating the joint ability in explaining the dependent variable is 32.1.7%. The largest contribution to the dependent variable is made by Customer Orientation， Team Work is ranked second. Data shows the value of Beta of Customer Orientation and Team Work is positive， indicating the positive e

25、ffect on customer satisfaction. Meanwhile， it is found that the correlation of Customer 8Satisfaction and Material Environment is significantly positive in correlation analysis， while in regression analysis， Beta is negative （-0.195 ）. So Collinearity diagnostics are conducted to find out the change

26、. Table 11 shows that the tolerance of Customer Orientation， Team Work and Material Environment is respectively 0.599， 0.451， 0.591， indicating there is no obvious collinearity. Table 11： Coefficientsa of Collinearity diagnostics a. Dependent Variable： Customer Satisfaction Then hierarchical regress

27、ion is used to further explore the relation between Material Environment and Customer Satisfaction， which is conducted as the following steps： （1） Let Material Environment enter regression equation， and Beta is significantly 0.192， the same as in correlation analysis， indicating there is a positive

28、relation between Material Environment and Customer Satisfaction if Material Environment works solely. （2） Let Material Environment and Customer Orientation enter regression equation， and the result shows the joint ability of Employee Orientation and Customer Orientation in prediction increases great

29、ly （0.278） ， while the relation between Material Environment and Customer Satisfaction is 9negative but not significant， indicating the ability of Material Environment of prediction is weakened. （3） Let Team Work enter regression equation， and the result shows the joint ability of the three factors

30、in predicting the dependent variable increases a little （0.321） ， however Material Environment is significantly of negative correlation with Customer Satisfaction. It is due to the interactions of the three factors that the Material Environment affects Customer Satisfaction negatively. Table 12： Res

31、ult of Hierarchical Regression Analysis 7 Findings As data show， the hypothesis made above （H1-H8） is verified. However there are differences in the function of independent variables when regression analysis is made. E.g. Most of the single independent variables are significantly in positive relatio

32、n with the dependent variables， however there are factors not entering the regression equation in regression analysis of the joint action of the independent variables， and the positive relation of particular factors changes into negative relation. 8 Conclusions Based on the findings of this study， i

33、t is concluded 10that： There is a significant and positive relationship between organizational culture and performance of SMEs. 9 Acknowledgements Master Research Project of SuZhou University in 2009（No.2009YSS14）：Organizational change based on environment of financial crisis. References 1 Wu Minglong. SPSS in Application M. Beijing： Chinese Railway Press， 2001. 2 Yu Wenzhao， Lu Xiaojun， and Wang Yilin. On Organizational Culture of Sustainable Learning J. Psychological Science， Vol.2， 2002： 8-11 3 Zheng Boxun. Quantitative Measurement of Organizational Culture Values J. Vol.32， 1990： 31-49.