The Effect of Organizational Culture on Corporate Entrepreneurship in Small and Medium Enterprises: A Case Study of Small and Medium Enterprises in Yazd Province

This study examines the effects of organizational culture (OC) on corporate entrepreneurship (CE) among small and medium enterprises (SMEs). First, some models were developed to measure organizational culture and corporate entrepreneurial activities. These models measure the key factors of OC that influence personnel to initiate CE and different entrepreneurial activities that SMEs applied for success. For this purpose, the stratified data sampling method was used and samples were selected from middle managers of SMEs in Yazd Province. Based on factors loading scores and components loading distribution, latent factors were extracted and named. The study concluded the existence of twelve different factors for OC and four factors for CE. These results were confirmed by other relevant studies. Validity of conceptual models derived in respect of OC and CE was assessed through path analysis and confirmatory factor analysis. The results indicated the causality between indicators and latent factors. Then, a structural model was developed based on the relationship between latent factors of OC and corporate entrepreneurship. Result confirms the effects of all cultural factors except for strategic motives on SME's innovational actions. coordination factor has negative effect and tendency to change has the most effect on innovation and organizational self renewal. Developing the culture to be open to changes is the best solution in order to succeed in the small and medium enterprises. The climate of harmony has more effect on Risky investments in business.