Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Developing Items for Organizational Culture among SMES in Jordan: An Exploratory Factor Analysis

Manal Dehisat, Zainudin Awang

http://dx.doi.org/10.6007/IJARBSS/v10-i12/8393

Open access

This study explored and developed a valid and reliable instrument to measure Organizational Culture (OC) in Small and Medium Enterprises (SMEs) in Jordan. A pilot study was conducted with a random sample of 100 managers/owners of SMEs from the sampling frame of SMEs in Jordan. The data were collected using self-administered questionnaires. The Exploratory Factor Analysis (EFA) procedure employing Principal Component Analysis (PCA) was conducted utilizing IBM-SPSS version 21.0, which extracted all figures required for assessing the usefulness of the instrument. Finally, the assessment of the internal reliability of the retained items was carried out using Cronbach’s Alpha. The study resulted in a remarkable contribution to the measurement of OC construct among SMEs in Jordan. This instrument can be beneficial for future researchers.

Ahmad, N. H., Wilson, C., & Kummerow, L. (2011). Assessing the dimensionality of business success: The perspectives of Malaysian SME owner-managers. Journal of Asia-Pacific Business, 12(3), 207-224.
Ahmad, N., Lodhi, M. S., Zaman, K., & Naseem, I. (2015). Knowledge management: a gateway for organizational performance. Journal of the Knowledge Economy, 8(3), 859-876.
Ahmed, M., & Shafiq, S. (2018). The impact of organizational culture on organizational performance: a case study of telecom sector, Global Journal of Management and Business Research: administration and management, 14(3), 21-30.
Al-Hussamee, R., and Nassar, M. (2017). The suitability of the Jordanian small and medium-sized enterprises to the requirements of international financial reporting standards, international business research, 10(8), 242-248.
Alias, N., Awang, Z., & Muda, H. (2019). Policy Implementation Performance of Primary School Leaders in Malaysia: An Exploratory Factor Analysis. IIUM Journal of Educational Studies, 7(2), 22-39.
Alrowwad, A. A., Obeidat, B. Y., & Aqqad, N. (2017). The impact of transformational leadership on organizational performance via the mediating role of corporate social responsibility: A structural equation modeling approach. International Business Research, 10(1), 199-221.
Alzuod, M., Isa, M., & Othman, S. (2017). Organizational learning, innovative performance and the moderating effect of entrepreneurial orientation among Jordanian Smes. Australian Journal of Basic and Applied Sciences, 11(1), 16-26.
Awang, Z., Afthanorhan, A., Mamat, M. (2016). The likert scale analysis using parametric based structural equation modeling (SEM). Computational Methods in Social Sciences, 4(1), 13-21.
Bahkia, A. S., Awang, Z., Afthanorhan, A., Ghazali, P. L., Foziah, H. (2019). Exploratory Factor Analysis on occupational stress in context of Malaysian sewerage operations. AIP Conference Proceedings. https://doi.org/10.1063/1.5121111.
Bahri, S., Hamzah, D., & Yusuf, R. M. (2012). Implementation of Total Quality Management and Its Effect on Organizational Performance of Manufacturing Industries Through Organizational Culture in South Sulawesi, Indonesia. IOSR Journal of Business and Management, 5(1), 10–24.
Baistaman, J., Awang, Z., Afthanorhan, A., and Abdul Rahim, M. Z. (2020). Developing and Validating the Measurement Model for Financial Literacy Construct using Confirmatory Factor Analysis. Humanities and Social Science Review, 8(2), 413-422.
Barney, J. (1991). Firm Resources And Sustained Competitive Advantage, Journal Of Management, 17(1), 99-120.
Cania, L. (2014). The impact of strategic human resource management on organisational performance. Economia:Seria Management, 17(2), 373–383.
Dehisat, M. M., & Awang, Z. (2020). Exploring Items and Developing Instrument for Measuring Organizational Performance among Small Medium Enterprises in Jordan. International Review of Management and Marketing, 10(6), 51-57.
Denison, D. R., Janovics, J., Young, J., & Cho, H. J. (2006). Diagnosing organizational cultures: Validating a model and method. Denison Consulting Group. Available from https://www.researchgate.net/publication/228801211_Diagnosing_organizational_cultures_Validating_a_model_and_method.
Ehido, A., Awang, Z., Halim, B. A., and Ibeabuchi, C. (2020). Developing Items for Measuring Quality of Worklife among Malaysian Academics: An Exploratory Factor Analysis Procedure. Humanities & Social Sciences Reviews, 8(3), 1295-1309.
Fotopoulus, C. B., and Posmas, E. L. (2009). The impact of soft & hard TQM elements on quality management results, International Journal of Quality and Reliability Management, 26(2), 150-163.
Fuentes-Fuentes, M. M., Albacete-Saez, C. A., & Llorens-Montes, F. J. (2004). The impact of environmental characteristics on TQM principles and organizational performance. Omega, 32(6), 425-442.
Garcia-Fernandez, J., Martelo-Landroguez, S., Velez-Colon, L., & Cepeda-Carrion, G. (2018). An explanatory and predictive PLS-SEM approach to the relationship between organizational culture, organizational performance and customer loyalty. Journal of Hospitality and Tourism Technology. 9(3), 438–454.
Haldma, T., Nasi, S., Grossi, G., Hernaus, T., Bach, M. P., & Vukši?, V. B. (2012). Influence Of strategic approach to BPM on financial and non?financial performance. Baltic Journal of Management, 7(4), 376-396.
Harif, M., Azhar, M. A., Hoe, C., & Ahmad, M. I. (2013). The financial and non-financial performance indicators of paddy farmers’ organizations in Kedah. World Review of Business Research, 3(1), 80-102.
Ho, T. C., Ahmad, N. H., & Ramayah, T. (2016). Competitive capabilities and business performance among manufacturing Smes: Evidence from an emerging economy, Malaysia. Journal of Asia-Pacific Business, 17(1), 37-58.
Hoque, A. S. M., Siddiqui, B. A., Awang, Z. B., & Baharu, S. M. A. (2018). Exploratory factor analysis of entrepreneurial orientation in the context of Bangladesh small and medium enterprises (SMES). European Journal of Management and Marketing Studies, 3(2), 81-94.
Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661.
JEDCO (Jordan Enterprise Development Corporation). (2019). Indices of Jordanian industries. Retrieved from http://www.jedco.gov.jo/Pages/viewpage.aspx?pageID=256.
JEDCO (Jordan Enterprise Development Corporation). (2020). Indices of Jordanian industries. Retrieved from http://www.jedco.gov.jo/Pages/viewpage.aspx?pageID=256.
Jogaratnam, G. (2017). How organizational culture influences market orientation and business performance in the restaurant industry. Journal of Hospitality and Tourism Management, 31, 211-219.
Khan, H., Halabi, A. K., & Khan, R. (2011). Non-financial performance measures-organizational performance relationship in the Bangladeshi firms: The moderator role of environmental uncertainty and corporate culture. Working Paper. Available at: https://Doi.Org/10.2139/Ssrn.1965612.
Khalid, N. (2020). Artificial intelligence learning and entrepreneurial performance among university students: evidence from malaysian higher educational institutions. Journal of Intelligent & Fuzzy Systems, (Preprint), 1-19.
Lavie, D. (2006). The competitive advantage of interconnected firms: An extension of the resource-based view. Academy of Management Review, 31 (3), 638-658.
Maina, J. (2016). Influence of organizational culture on performance of commercial banks in Kenya (Unpublished master’s thesis). The University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/99563/Maina_Influence%20Of%20Organizational%20Culture%20On%20Performance%20Of%20Commercial%20Banks%20In%20Kenya.pdf?sequence=1&isAllowed=y.
Mashal, A. (2018). Do Non-Financial Factors Matter for SMEs Performance? “Case from Jordan.” International Journal of Business and Social Science, 9(1), 156–167.
Matko, A., & Takacs, T. (2017). Examination of the relationship between organizational culture and performance. International Review of Applied Sciences and Engineering, 8(1), 99-105.
Nasri, Y., & Zekovski, A. (2014). Entrepreneurial orientation, business performance and the moderating role of firm life cycles (Unpublished master’s thesis). Kristianstad University, Sweden. Retrieved from http://www.diva-portal.org/smash/get/diva2:941929/FULLTEXT01.pdf.
Nikpour, A. (2017). The impact of organizational culture on organizational performance: The mediating role of employee’s organizational commitment. International Journal of Organizational Leadership, 6(1), 65-72.
Oduol, S. M. (2015).Effects of organizational culture on performance of subsidiaries of selected regional commercial banks headquartered in Kenya. Unpublished MBA project, University of Nairobi, Nairobi, Kenya.
Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and organizational performance: An empirical study of container shipping companies in Taiwan. Maritime Business Review, 3(1), 36-52.
Purnama, C. (2013). Influence analysis of organizational culture organizational commitment job and satisfaction organizational citizenship behavior (OCB) toward improved organizational performance. International journal of business, humanities and technology, 3(5), 86-100.
Rahlin, N. A., Awang, Z., Afthanorhan, A., & Aimran, N. (2019). Antecedents and Consequences of Employee Safety Climate in Small Manufacturing Enterprises: Translation, Validation and Application of Generic Safety Climate Questionnaire. International Journal of Innovation, Creativity and Change, 5(2), 104 – 135.
Shehu, A. M., & Mahmood, R. (2014). The relationship between market orientation and business performance of Nigerian SMEs: The role of organizational culture. International Journal of Business and Social Science, 5(9), 159-168.
Shkeer, A. S., and Awang, Z. (2019). Exploring Items for Measuring Marketing Information System Construct: An Exploratory Factor analysis. International Review of Management and Marketing, 9(6), 87-97.
Yahaya, T., Idris, K., Suandi, T., & Ismail, I. (2018). Adapting instruments and modifying statements: The confirmation method for the inventory and model for information sharing behavior using social media. Management Science Letters, 8(5), 271-282.

In-Text Citation: (Dehisat & Awang, 2020)
To Cite this Article: Dehisat, M., & Awang, Z. (2020). Developing Items for Organizational Culture among SMES in Jordan: An Exploratory Factor Analysis. International Journal of Academic Research in Business and Social Sciences, 10(12), 1229-1242.