The effect of entrepreneurial orientation on Bangladeshi SME performance: Role of organizational culture

This study explores the role of organizational culture (OC) in the relationship between entrepreneurial orientation (EO) and Bangladeshi small and medium enterprises (SMEs) performance. Their relationship obtains a substantial scholarly attention, however very few empirical studies have been conducted among Bangladeshi SMEs. Generally, SMEs contribute to the economy through employment generation, poverty reduction, innovation, social cohesion, and so on, which in turn contribute to the growth domestic product (GDP) of Bangladesh. Hence, SMEs are considered as a key reactor of economic growth in Bangladesh. Grounded on the literature and theoretical fact, a model was developed and intended to examine this relationship. A quantitative survey technique was exercised and the data were collected from the randomly selected 384 owners of SMEs in Dhaka-Bangladesh. The data were analyzed by using SEM-AMOS. Based on the statistical results, EO and OC were significantly related to SME performance and OC was found to mediate the relationship between EO and SME performance. This study will help entrepreneurs as well as policy makers make better decisions for maximizing SME performance through improving OC in the competitive global economy.