The Effect of Organizational Structure on Entrepreneurial Orientation: The Mediating Role of Organizational Culture in the Basic Metals Industry of Ethiopia
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Date
2020-07
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A.A.U
Abstract
The Study examines the Effect of Organizational structure on Entrepreneurial Orientation with the mediating role of Organizational Culture in the Basic Metals Industry of Ethiopia. The research used Organizational theory to evaluate its effect on Entrepreneurial Orientation and in doing so it integrates Organizational Culture to investigate its mediating role robustly. Primary data were used on 19 Basic Metals manufacturing companies to solicit response of 95 respondents. Out of questionnaires that have been distributed, all were usable. An exploratory factor analysis was conducted and structural equation modeling techniques that fulfills measurement construct validity and reliability through AMOS, version 23 software was used. The Result showed OS has a statistically significant negative effect on EO. However, the mediating variable OC have no mediation role between OS and EO. Similarly, Centralization and Formalization individually does not exhibit a significant effect on EO. In terms of testing second order variables, the result indicates that out of three variables that make out OS construct complexity and formalization have significant positive association with second order variable OS. Likewise, autonomy and innovativeness are first order variables and have significant positive association with second order variable EO. This study suggests the importance for rethinking and reviewing the current organizational structure. Also, since the companies rely on employees for their mass production, employees need to be regularly updated and build their capacity on regular bases that would address the strategic orientation elements gap
Description
Thesis submitted to College of Business and Economics of Addis Ababa for the degree of Master of Science in Management Program
Keywords
Entrepreneurial orientation, Organizational culture, Metal Industry, Organizational structure