THE IMPACT OF ORGANIZATIONAL CULTURE AND ENTREPRENEURSHIP ORIENTATION ON BUSINESS PERFORMANCE USING SELECTED BUSINESS IN LIMBE CAMEROON AS A CASE STUDY

CHAPTER ONE

INTRODUCTION

Background of the Study

Businesses organizations have emerged as a prominent contributor to the Cameroonian economy, particularly in terms of labor absorption, contribution to the national gross domestic product (GDP), valuation of national exports, and national investment. Small and micro-level industries have demonstrated their resilience and capacity to endure challenging circumstances, most notably the current economic crisis. According to Hitt, Bierman, Shimizu, and Kochhar (2021), small businesses possess certain advantages over large businesses, including enhanced flexibility, ingenuity, and agility. 

As stated by Hafsah (2019), business organizations are generally underdeveloped due to a number of challenges: (1) internal factors (lack of capital; small and medium enterprises, in particular, are proprietor-operated entities that rely on the owner for capital; and (2) inadequate human resources in terms of education, expertise, and skills, which impact business management; and (3) weak business networks and market penetration capabilities). According to Zimmerer and Scarborough (2018), this is also due to the absence of internal capabilities that prevents some businesses from adapting to and responding to the business environment in which they operate. 

The poor performance of business organizations is purportedly attributable to the absence of entrepreneurship skills among business proprietors and the presence of low organizational cultural values. One attribute attributed to culture, as stated (Molenaar, Brown, Caile, & Smith, 2022), is its capacity to exert a substantial impact on both individuals and performance. According to Heskett and Kotter (2019), culture exerts a significant impact on both the work environment and individual performance. Consequently, organizational culture can be described as both the organization's and its members' soul (Dyer, Kilmann, Saxton, & Serpa, 2023). This exemplifies the necessity for internal stakeholders to comprehend the organizational culture in order to inspire and enhance employee performance (Ghani, 2019). This explanation substantiates the notion that culture influences the enhancement of work performance. 

Cultural factors may influence an individual's choice to pursue entrepreneurship, according to some researchers (Downing, 2024; Jones & Craven, 2021). As previously discussed (Miller & Toulouse, 2018; Covin & Slevin, 2020), culture can be viewed from two distinct vantage points in the context of entrepreneurship: a behavioral approach and a process approach. A literature review elucidates that the efficacy of a business in attaining superior performance is profoundly correlated with its capacity to ascertain its strategic position (Thompson, 2019). Currently, a robust culture fosters exceptional performance; however, Kotter and Heskett acknowledge the theory. When organizations have a robust corporate culture, it is more likely that managers will operate with enthusiasm and effective coordination. 

Entrepreneurs who want to become leaders or managers need to have an entrepreneurship orientation in addition to a strong organizational culture. The significance of entrepreneurship orientation and its influence on performance is elucidated by numerous theories and studies in the field of entrepreneurship (Keh, Nguyen, & Ng, 2020; Wiklund, 2022; Li, Huang, & Tsai, 2019; Wang, 2018). Entrepreneurship orientation can enhance business performance, according to the study's findings. The concept of entrepreneurship has been implemented at numerous levels, including those of individuals, groups, organizations, and nations. Entrepreneurship is frequently applied to individuals due to its association with the launch of innovative services or products (Groves, 2022). Some theories posit that its primary application lies in the business domain, given that the majority of organizations are regarded as catalysts for economic expansion and employment generation. The outcomes of entrepreneurship orientation at the individual and organizational levels, including sales, market share, stakeholder satisfaction, and organizational commitment, are the results of entrepreneurial actions implemented during the entrepreneurship process, according to (Lumpkin and Dess, 1996 in Groves, 2022). Research indicates that an individual's capacity for entrepreneurship has an impact on both individual and organizational performance. 

Statement of the Problem

An active area of study in the field of entrepreneurship research, entrepreneurial orientation (EO), which Anderson et al. (2018) define as "a firm strategic posture toward entrepreneurship" (Covin and Wales, 2019), is entrepreneurial orientation. Numerous studies have provided evidence of its favorable influence on the performance of organizations (Do Couto Soares and Perin, 2019; Rauch et al., 2019; Saeed et al., 2021). Researchers have extensively examined various antecedents of entrepreneurial outcomes (EO), one of which is organizational culture (OC). This has been the subject of extensive research, as culture, defined as a collection of behaviors grounded in "values, beliefs, and assumptions" (Schein, 2019), exerts an especially potent impact on entrepreneurial outcomes. 

Despite the significance of organizational culture (OC) as a subject of study (Lee et al. 2019; Wales, 2019), the literature regarding the potential influence of organizational culture on entrepreneurial orientation is inconsistent. One reason is that culture's influence is difficult to assess comprehensively due to the fact that it has been evaluated in so many different ways. Several studies have examined the influence of organizational culture on EO, including market, adhocracy, clan, and hierarchy cultures (Bechtel et al., 2020); others have focused on particular aspects of organizational culture, such as the contrast between stability and flexibility (Kemelgor, 2022); and still others have examined a variety of values, including commitment (De Clerq et al., 2019), innovation support (Russel and Russel, 2021), and shared vision (Burgers an 

Furthermore, the contradictory results of these studies contribute to the ambiguity surrounding the connection between organizational culture and entrepreneurial orientation. As an illustration, Brettel et al. (2020) discovered a positive correlation between market culture and entrepreneurial orientation; market culture is characterized by a focus on competition and control; and is externally oriented. Conversely, Engelen et al. (2019) discovered a negative correlation between market culture and entrepreneurial orientation. 

In light of these various findings and the significance of organizational culture to entrepreneurial orientation, now is an opportune moment to compile and contrast all of these results in order to conduct a comprehensive analysis of the extent to which organizational culture can positively or negatively influence entrepreneurial orientation. 

To address this research gap, this study tends to examine the impact of organizational culture and entrepreneurship orientation on business performance using selected business in Limbe Cameroon as a case study.

Objectives of the Study

The primary objective of this study is to examine the impact of organizational culture and entrepreneurship orientation on business performance using selected business in Limbe Cameroon as a case study. Specific objectives of this study are to:

Ascertain whether there is a significant relationship between organizational culture, entrepreneurship orientation and business performance.

Evaluate the effect of organizational culture on the business performance of selected business in Limbe Cameroon.

Evaluate the effect of entrepreneurship orientation on the business performance of selected business in Limbe Cameroon. 

Research Questions

The following research questions will be answered in this study:

Is there a significant relationship between organizational culture, entrepreneurship orientation and business performance?

What is the effect of organizational culture on the business performance of selected business in Limbe Cameroon?

What is the effect of entrepreneurship orientation on the business performance of selected business in Limbe Cameroon?

Research Hypothesis

Ho: There is no significant relationship between organizational culture, entrepreneurship orientation and business performance. 

Ha: There is a significant relationship between organizational culture, entrepreneurship orientation and business performance.

Significance of the Study

Academic institutions, SMBs, and business organizations will all find this research significant. 

Organizations will benefit from the findings of this study because they will be motivated to continuously adapt to shifting market conditions and seek out new opportunities. This, in turn, can result in the creation of innovative products, services, and processes, which will provide a competitive advantage. 

The success and sustainability of businesses across a range of industries and segments depend on the interdependent relationship between organizational culture, entrepreneurship orientation, and business performance. Acknowledging and fostering these elements can result in a multitude of advantages, encompassing heightened levels of innovation and adaptability, enhanced employee involvement and contentment, and ultimately, superior business results and sustained expansion. 

In conclusion, this study will function as a valuable reference for academicians who are inclined to undertake analogous investigations.

1.7 Scope of the Study

The study focuses on the impact of organizational culture and entrepreneurship orientation on business performance using selected business in Limbe Cameroon as a case study. Hence, the study will be delimited to selected business in Limbe Cameroon.

1.8 Limitation of the Study

Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.

However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.

1.9 Definition of Terms

Organizational Culture: refers to the shared values, beliefs, norms, attitudes, and behaviors that characterize an organization and guide the actions and interactions of its members. It represents the collective identity of an organization and influences how individuals within the organization perceive, interpret, and respond to various situations and challenges.

Entrepreneurship: This is a process of creating something different with the value by devoting the necessary time and effort assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction.

Entrepreneurial Orientation: Is a firm-level strategic orientation which captures an organization's strategy-making practices, managerial philosophies, and firm behaviors that are entrepreneurial in nature.