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Technical gazette, Vol. 26 No. 6, 2019.

Original scientific paper

https://doi.org/10.17559/TV-20180801135606

The Relationship between Organizational Culture and Performance of SME’s: Empirical Study from a Developing Country

Zoran Drašković* ; University of Novi Sad, Faculty of Technical Sciences, Trg Dositeja Obradovića 6, 21000 Novi Sad, Serbia
Đorđe Ćelić ; University of Novi Sad, Faculty of Technical Sciences, Trg Dositeja Obradovića 6, 21000 Novi Sad, Serbia
Ilija Ćosić orcid id orcid.org/0000-0001-9796-4452 ; University of Novi Sad, Faculty of Technical Sciences, Trg Dositeja Obradovića 6, 21000 Novi Sad, Serbia
Zorica Uzelac ; University of Novi Sad, Faculty of Technical Sciences, Trg Dositeja Obradovića 6, 21000 Novi Sad, Serbia
Viktorija Petrov orcid id orcid.org/0000-0001-6216-9715 ; University of Novi Sad, Faculty of Economics, Segedinski put 9-11, 24000 Subotica, Serbia

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Abstract

This article explores the link between organizational culture and effectiveness for SMEs in transitional socio-economic environment in Serbia. By analyzing the data from the survey gathered from 760 senior executives and employees from 86 SMEs in Serbia this study empirically evaluates the dimensions of OCTAPACE model of organizational culture, and presents a multi method analysis of the link between culture and growth of SMEs in a transitional economy. This study also examines whether the level of organizational culture depends on the type of the industry that SMEs belong to (knowledge or capital intensive). Furthermore, as a legacy of economic transition we have workforce with a unique set of subcultures. By analyzing the data from the second survey gathered from 257 senior executives and employees from SMEs in Serbia and Southern California we explore the differences in cultures of SMEs from transitional economy and developed economy. Given that strong culture brings competitive advantage, the results of the second study provide basis for understanding competitive position of SMEs in Serbia, and could propose directions for development of culture in SMEs in Serbia that should help them overcome problems of the transition and reach better business results more quickly.

Keywords

effectiveness; organizational culture; Serbia; SMEs; transition economies

Hrčak ID:

228507

URI

https://hrcak.srce.hr/228507

Publication date:

27.11.2019.

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