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Entrepreneurship and Innovation Management Journal http://www.absronline.

org/eimj
ISSN: 2310-0079
Volume: 1, Issue: 1 (November 2013), Pages: 19-32
© 2013 Academy of Business & Scientific Research

A Study of Relationship between Organizational Structure and


Culture with Corporate Entrepreneurship

Malikeh Beheshtifar1* and Fatemeh Shariatifar2


1&2. Management Department, Rafsanjan Branch, Islamic AZAD University, Iran

This research investigates the relationship between organizational structure and


organizational culture and entrepreneurial executive in Birjand city - Iran is discussed.
Measuring instruments were 3 questionnaires. The results showed there is a direct
relationship between the two variables and the organizational culture and
entrepreneurship, there is no significant relationship between the concentration and
corporate entrepreneurship and between complexity and the level of entrepreneurship and
international dimensions of organizational culture, there is a direct relationship between
corporate entrepreneurship. The general conclusions demonstrate appropriate
organizational structure for implementing agencies to develop an entrepreneurial
corporate culture than special arrangements are needed.

Keywords: Structure, Organizational culture, Organizational culture, Entrepreneurship,


Corporate entrepreneurship

INTRODUCTION
Since 1980 the rush to focus on entrepreneurship (Ahmadpour Daryani, 2004). Also, according to
and innovation for the company to survive and one of the values in the international environment
compete in the market appear to be more of competition and competitive advantage is
entrepreneurial, entrepreneurial activities led the created. One of the most basic mechanism of
company. Associated with processes and creation and competitive advantage in today's
bureaucracy of the corporate culture in the 1960s dynamic environment filled with industry
and 1970s were increasingly regarded developments, use of the system has been
entrepreneurship in large organizations, senior improved and innovations in products and
business executives to enable them to engage in production processes to achieve continuous
the process of invention, innovation and attention to quality and customer needs is
commercialization of their new products and inevitable, to achieve this important, the CE is
services. At the beginning of the 1960s and with necessary (Soltani, 1999). Search Results for
the sudden development of industry in the global successful entrepreneurship can be regarded as an
competition of entrepreneurial thinking and entrepreneurial opportunity that arose from the
processes in large companies than in the past was inappropriateness or technical knowledge is
emphasized and researchers have focused their available in the market. Using these proportions,
attention on how to instill entrepreneurial entrepreneurial organizations can achieve
administrative structure of large companies entrepreneurial profits. Corporate entrepreneurial

*Corresponding author: Malikeh Beheshtifar


Management Department, Rafsanjan Branch, Islamic AZAD University, Iran.
E-Mail: M.beheshtifar@yahoo.com

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Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

orientation is a strategy that involves recreating and the creativity, talent and mental strength and
products, processes, services, strategies, and even performance experts such organizations,
the whole organization (Hayton, 2005). Corporate decentralization will appear transparent. Yet
entrepreneurship is the process through which another aspect of the content, especially as
organizations are realizing the opportunities and technology and focus on the surface, so that the
the production of innovative ways to create value impact is much larger than the size of the
added are settled (Samad Aghaie, 1999). In this organization or takes advantage of the experienced
study, CE is the order of the entrepreneurship professionals and networking technology have to
within the organization. Entrepreneurship and be commensurate with the issue of delegation and
economic activity in terms of what the company is decentralization, it is more meaningful. If
called periodically that isn’t without obstacles and employees are required to meet the special risks
problem. Several restrictions towards related to the decentralization of authority is less,
entrepreneurship in companies there are, however, will provide more (Zare Mehrjerdi et al, 2010).
many of these barriers and their unintended
Organizational culture: Organizational culture
consequences and feedbacks from the traditional
represents a collection of values, beliefs and norms
management techniques considered. In some
that the organization has in common with the
cases, these barriers are so destructive that people
workers. Characteristics of entrepreneurial
prefer to avoid the entrepreneurial behavior of the
organizations are Flexibility or entrepreneurial
firm (Ahmadpour Daryani, 2004). Major obstacles
culture, through the flexibility and strategic focus
in the entrepreneurial process, including the
to the external environment and strive to make our
following:
customers' needs. In this culture, norms, and
Complexity: If the organization is a convolution in beliefs that are approved by the signal in the
the horizontal plane (the number of jobs and tasks) environment that can be identified and interpreted
or in the vertical plane (number of managerial and according to it, the appropriate response or
positions) and organizational communication, is behavior indicated that went. Such an organization
more regular and formal, greatly reduces the must be in new projects, react quickly And the
possibility of group interaction, and this makes the ability to restructure and to perform a new task,
organization's goal for his Entrepreneurship (Zare set it to take a new behavior (Zare Mehrjerdi et al,
Mehrjerdi et al, 2010). 2010). A community foundation promoting
entrepreneurial culture can provide suitable and
Recognition: In situations where the organization
conducive to growth and development, especially
is highly formalized, people do not have freedom,
in organizations to create jobs. Stimulate
do not have the flexibility to accept and tolerate
entrepreneurship through the creation of all-round
different behaviors on the part of employees will
development of society and the promotion of
be lost. In these circumstances, the learning will
social values and the production of wealth, it
play a role in performance improvement plans and
allows more investment in all aspects of culture. It
the employee will lose the desire to learn, while
is obvious that the penetration depth of the
the entrepreneur, learning, flexibility and
entrepreneurial culture, all related subcultures: the
acceptance of risk the organization is a guiding
culture, the culture of collaboration and teamwork,
principle in other words, the entrepreneur can be
creativity and innovation culture, the culture of
interpreted in terms that accepting that risk,
working capital, particularly venture capital,
decision-making and judgment, and in doing good
building courage and risk-taking culture and
to their members give permission to use their
society formed (Golestan Hashemi, 2003). On the
creativity for individual issue (Zare Mehrjerdi et
other hand the influence of culture on
al, 2010).
entrepreneurial processes and phenomena, the
Focus: Entrepreneurial organizations in the cross also has entrepreneurship is essentially a
decision-making authority should be delegated to decisive role in the culture of entrepreneurship is a
units and individuals to be at the right time, the key element of our culture. For example, when
right to design and implement, the focus is lost

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Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

inventions like the telegraph and electric light on the structure and organizational culture and
bulb... organizational entrepreneurship in order to
improve performance and achieve organizational
With the mass production stage entrepreneurial
goals, especially in complex and dynamic
activities and public use were radically impact the
environment of today is very important.
way of life and have led to new forms of
civilization (Golestan Hashemi, 2003). In general,
the relationship between entrepreneurship and
RESEARCH FRAMEWORK
culture are two sides of the debate. On the one
hand, the result of entrepreneurship impact on In this study, organizational structure and
society. On the other hand, the entrepreneurial corporate culture as predictor variables and CE as
process and culture that influenced the culture and criterion variables are examined. The
the basics can make the basic changes. Any organizational structure of entrepreneurial
organization culture and structure are inflexible; to behavior (explore opportunities to facilitate
establish cooperation and unity during the crisis opportunities to pursue opportunities) encourages
can be confusing, while that allows organizations basic elements necessary for successful
to establish relationships between the informal and entrepreneurial organization. As Bourglman
flexible, especially in its structure can be expected, pointed out that, management mechanism has a
and growth factors positively and effectively to structural variety. The key to creating an
encourage creativity and innovation entrepreneurial structure can contain several
(entrepreneurship) in your organization to create. essential factors that are including promoting
Accordingly, appropriate organizational structure culture and right environment. An entrepreneurial
and organizational culture are being considered as environment that helps to promote and facilitate
well as the goals of facilitating and strengthening opportunities as well as the motivation of the
entrepreneurship in organizations, while this employees to raise in order to make optimal use of
could be due to the growth and development of opportunities exist within an ideology (an
the country. Therefore, these results it is important, ideology that employees can be committed to it
in emphasizing the importance of and get out of the way social capital). This requires
entrepreneurship, entrepreneurship and an organizational philosophy that the orientation
community organizations were developing a of the individuals involved, the operational level
strong engine. What becomes of vital importance, communication and innovation. The importance of
and to clear up the engine for the development of communication focus, commitment and
entrepreneurship. Start the engine is enough to reciprocity, the structure creates an entrepreneurial
clear but to continue to fuel its activities should support. It is here that the structure of power and
always be prepared for the conditions they work control and facilitate the application of
perfect. Organizations need to be flexible enough entrepreneurial innovation occurs within an
to cater for all possible conditions. Creating a organization (Akhealth and Nak, 1998). According
culture of entrepreneurship helps organizations to to Robbins (1943) proposed a model for assessing
achieve the flexibility and also helps to have an the organizational structure of the model is based
idea of the condition and should be on the following components:
institutionalized in the organization helps Complexity: About separation shows within the
creativity. So, we can increase the efficiency of CE organization. The allocation of radicalism, the
requires an appropriate organizational structure division of labor refers to the number of levels in
and culture. Organizational culture and readiness the hierarchy. And the limits that are
to accept change if the structure does not have the geographically dispersed organizational units
flexibility, cooperation, interaction between make it clear. The complexity is a relative term and
departments and this is the lowest level of is divided into three forms: Horizontal, vertical
entrepreneurship is reduced. With understanding and geographical distribution (Robins, translated
the importance of this issue, which seems to focus by Alvani and Danaie Fard, 2008):

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Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

Recognition: To the extent that the orientation of have the opposite view) and joined the activities of
an employee, the rules, regulations and procedures the organization are well coordinated.
rests (Robins, translated by Alvani and Danaie Organizations with such attributes, strong and
Fard, 2008). distinct culture and have enough influence
employee behavior. It features the three
Focus: Refers to where there is centralized
fundamental values of the index, is a measure of
decision-making authority (Robins, translated by
harmony and cohesion (Dennison et al, 2000).
Alvani and Danaie Fard, 2008). As organizations
are affected by the size and technology of the Mission: Perhaps the most important feature is the
enterprise culture are also affected. Mik believed in mission of organizational culture. Organizations
corporate culture shared beliefs and norms of that do not know where they are and what existing
behavior that lies within and observed that the condition usually go astray. Successful
relationship between organizational culture and organizations have a clear understanding of the
organizational structure are interdependent (Tib, goals and direction, so that organizational goals
1994). If there is cultural and should be considered and objectives and define the strategic vision of the
for analysis, it should be clear dimensions that can organization are drawn (Dennison et al, 2000).
be defined and measured (Robins, translated by However, Des and lamp Kane (1669), the
Alvani and Danaie Fard, 2008). For dimensions entrepreneurial element in the 5 factors are
Denison organizational culture model (2000) is summarized:
used. Components of this model include:
Innovation: Willing to apply new ideas, new
Engaging in work (Partnership): Effective experiences, new technical processes and
organizations could be enabled the right people, procedures and creative processes that lead to new
the working group are based upon and extend the products and services (Des, Lamp Kane, 1996).
capabilities of human resources at all levels.
Risk appetite: Resources where the risk is lower
Committed to their organizations and feel their
and it is more (Des, Lamp Kane, 1996).
members as parts of the body that involved in the
decisions and the decisions that affect their work Influence behavior (action-oriented): In this
and the work they are linked directly with the context, culture is defined as: Attempt to anticipate
organization's goals. It features three indicators of the problems, needs or changes in the future. A
empowerment, team building and development; prospect is looking forward to it for research and
usability is measured (Dennison et al, 2000). innovation, the key factor to be considered (Des,
Lamp Kane, 1996).
Versatility: Organizations that are well integrated
are difficult to change. The integration of internal Offensive strategy based on the competition:
and external adaptability can be of advantage to Challenging for the competition, and the
take into account. Compatible organizations are opportunity to improve survival and
driven by our customers, who are risk takers; they organizational life (Des, Lamp Kane, 1996).
are reminded of their mistakes and have the Independence: The ability to provide opportunities
capacity and experience to bring about change. to the lack of focus on the company's decisions
They are continually improving the organization's (Des, Lamp Kane, 1996). After identifying the
ability to value for customers. These organizations variables, relationships between variables are
usually are experiencing sales growth and examined. Three-dimensional structure influences
increased market share. It features three indicators on the corporate entrepreneurship is as follows:
of change; customer orientation and organizational
learning are measured (Dennison et al, 2000). Complexity: If the horizontal level (number of jobs
and tasks) or the vertical (number of managerial
Compatibility: Research has shown that positions) and the complexity of organizational
organizations that are most effective, stable and communication is regular and more formal, greatly
consistent staff behavior emanates from reducing the possibility of advance beyond the
fundamental values. Leaders and followers are group interaction and the organization far from
skilled at reaching agreement (even when they

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Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

making their entrepreneurial goals. Research and organizational culture were identified as
conducted in the negative relationship between the factors affecting the development of
structure and complexity of corporate entrepreneurship. They found that the presence of
entrepreneurship (Samad Aghaie, 1999). entrepreneurial behavior, structure, facilitate
entrepreneurship by increasing positive function.
Recognition: In the absence of a high degree of
Research also shows that when the environment is
recognition, the people have no freedom. Do not
dynamic and turbulent that competition for
have the flexibility of acceptable and unacceptable
survival, it tends to become entrepreneurs will
behaviors on the part of the employees are away.
embrace the organic structures (Morris et al, 2007).
In this context, the role of learning and
However, many of the cultural features of
performance improvement plans, so employees
organizational culture on entrepreneurial behavior
will lose the desire to learn. While the
influences have been the subject of many
entrepreneur, learning, flexibility and tolerance of
theoretical and experimental investigations. For
risk are core principles of the organization. In
example, Cornwall and Perlman (1990) have
other words, the condition can be considered as an
discussed issues such as emotional commitment,
entrepreneur while accepting that risk, decision-
high attention to detail, structure and processes,
making and good judgment are delegated to other
and the desire to want to earn the respect of
members and in doing the permission to use their
colleagues, are associated with an entrepreneurial.
individual creativity issue. It is possible that when
Timmons (1990) is of the opinion that things such
the guidelines, circulars and operational standards
as being well organized, highly committed to work
to be reduced as much as possible and be given the
and willing to accept responsibility for its
opportunity to update staff skills. However, the
consequences, and tend to use high standards are
relationship between entrepreneurship and
the characteristics of entrepreneurial. Hornsby,
recognize the inverse relationship (Samad Aghaie,
Kuratko, and Zahra (2002) found that cultures that
1999).
support the management (the willingness of
Focus: Entrepreneurial organizations in the managers to facilitate and support entrepreneurial
decision-making authority should be delegated to behavior, including the innovative ideas and
units and individuals to be at the right time, the resources to pursue them) And the autonomy of
right to design and implement, the focus is lost labor (the willingness of managers to tolerate
and the creativity, talent and mental strength and failure, provide decision-making latitude and
performance experts such organizations, freedom from supervision and delegation of
decentralization will appear transparent. Yet authority and responsibility) to enhance
another aspect of the content, especially as entrepreneurial behavior of middle managers
technology and focus on the surface, so that the (Ireland et al, translated by Farahzadi, 2009). So
impact is much larger than the size of the when senior managers due to its strategic vision
organization or takes advantage of the experienced for its research work, the cultural features that
professionals and networking technology have to contribute to the cultural norms of entrepreneurial
be commensurate with the issue of delegation and support organizations are created. Also, a number
decentralization, it is more meaningful. If of researchers, including Gordon, Beterhalfill and
employees are required to meet the special risks Labinz for ten organizational culture indicators
related to the decentralization of authority is less, (later) noted the following: Individual creativity,
will provide more (Samad Aghaie, 1999). Heil risk-taking - Leadership - Integrity - Management
(2003) in a study of eight organizations in South Support - Controls - Identity - Reward system - a
Africa, organizational structure, organizational compromise with conflict phenomenon and
reward systems and incentives, management and communication model of organizational structures
organizational culture were identified as factors (Bordbar et al, 2008). As stated in the
affecting the development of entrepreneurship. communication pattern of the organizational
The structure of the CE, One of the important structure of the degree of organizational
researches is Covin & Slevin (1190). Management communication hierarchy needs to be formalized,

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Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

and your proof of that is the organizational • There is a relationship between organizational
structure and organizational culture and structure and amount of corporate
relationships. Now we examine the relationship of entrepreneurship of executive in Birjand city.
each variable with the mediator variables:
• There is a relationship between organizational
According to studies by Faray, we can say that
culture and amount of corporate entrepreneurship
maybe the best time jobs, late 20s to early forties,
of executive in Birjand city.
because at this age the balance between basic and
necessary experience on the one hand and family Secondary hypotheses
responsibilities on the other hand is created. Of • There is a relationship between focus and
course, there are exceptions. Some young females amount of corporate entrepreneurship of executive
aged 50 to 60 years and some of his work and will in Birjand city.
start to be successful (Ahmadpour Daryani, 2004).
One of the topics of interest to the researchers was • There is a relationship between recognition and
whether individuals, entrepreneurs are born or corporate entrepreneurship of executive in Birjand
being through education, become entrepreneurs. It city.
will reveal the importance of education. • There is a relationship between complexity and
Brockhouse and Nord (1979) found that when corporate entrepreneurship of executive in Birjand
comparing the level of education of entrepreneurs city.
and managers below the level of entrepreneurship
education administrators. Average years of • There is a relationship between engaging in
education of entrepreneurs 57/13 years, while the work and corporate entrepreneurship of executive
average for administrators 74/15 years. Managers in Birjand city.
of higher education may be able to get a better job • There is a relationship between adaptability and
satisfying. amount of corporate entrepreneurship of executive
It should be noted that education entrepreneurs in in Birjand city.
this study, further studies are normal people. But • There is a relationship between adaptability and
the latest study by Cox and Cooper (1988) study, it amount of corporate entrepreneurship of executive
was shown that 68 percent had a bachelor's degree in Birjand city.
and successful managers, While only 21% of
• There is a relationship between corporate
successful entrepreneurs, have a college education
entrepreneurship mediating variables (age,
(Ahmadpour Daryani, 2004). Hisrich expresses the
gender, work experience, and education) of
relationship between entrepreneurship and
executive in Birjand city.
gender: Women entrepreneurs are more inclined
than men to work in their groups and weaker self.
Their individual capacities rather than commercial MATERIALS AND METHODS
success of the organization or ideology are less The choice of method depends on the research
important. However, features such as the desire to objectives and the nature of the research topic and
succeed, determination, courage, independence has job opportunities. Thus, according to the
and compassion, there is no difference between subject and purpose of the study was a descriptive
men and women entrepreneurs, in addition, no and correlational method. All 58 employees in the
differences between men and women willing to administration of the survey of 3885 people make
risk taking entrepreneurs have not seen (Hisrich, up in Birjand city that Cochran formula based on
1984). Structure associated with each intermediate sample size of 250 is obtained, which should be
variable depends on the perception and views of proportional to size sampling of all government
the community that this issue is outside the scope agencies to be. In this study, questionnaires were
of our discussion. According to the study used to collect the necessary data. The first
variables, the following hypotheses are developed: questionnaire to measure organizational structure
Main hypotheses that consists of 23 questions, the second
questionnaire included 53 questions, which are

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Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

measures of organizational culture. The third 20-11 years and 32 (1/13%) and the remainder is
questionnaire containing 48 questions is a measure 30-21 years of experience. In addition, 6 of the
of corporate entrepreneurship. Tables for one to participants did not specify their employment
three questions related to the three dimensions of status. 26 (4/10) of respondents were younger than
organizational structure and organizational culture 25 years, 142 patients (0/58%), 35-26, 55 (4/22%)
indicate the CE: and 45-36 years and 22 patients (0/9%) remaining
over 46 years of age. The participants at the 5
Insert Table 1,2 and 3 here
patients who did not specify their age. Describe
In organizational culture questionnaire, questions the organizational structure variables showed
23 and 28 are reverse questions. In CE moderate to complex variable 2 (a low score) and
questionnaire, questions 45 and 47 are reverse Middle recognize variable equal to 4 (high scores)
questions. The organizational structure and variable-focus median of 3 (moderate scores).
questionnaire, only for questions 13 and 16, and Describe the organizational structure variables
not too low, they have the most points. In order to showed moderate to complex variable 2 (a low
determine the reliability of the questionnaire score) and middle and recognize variable equal to
related to the organizational culture, 4 (high scores) and the focus is shifting to Asia 3
organizational structure and corporate (average scores). How to build this variable is
entrepreneurship re-test was used, the reliability of composed of 23 multiple choice questions 5.
the questionnaire structure with 7252/0, Changing the corporate culture is characterized by
organizational culture and the reliability of the calculating the sum score of all questions
questionnaire 9659/0 and the reliability of the organizational culture questionnaire and to
questionnaire CE 8394/0 was approved. This describe the five category scores vary very low,
paper describes the data collected for statistical low, medium, high and very high were divided.
indicators such as frequency, frequencies, From the 250 subjects studied, 3 (2/1 percent)
descriptive statistics and various statistical tables believe that organizational culture is very low
and graphs have been used. To determine the grade, 31 (4/12%) were low, 108 (2/43%)
correlation between variables, organizational moderate, 92 (8/36 percent) high, and 16 (4/6
culture, organizational structure, and CE Pearson percent) believe that the corporate culture is too
test, Kendall's tau and Spearman with scatter plot high. In total, 108 patients (2/43 percent) believe
to determine the relationship between two the positive organizational culture (high and very
variables, Chi-square test to determine the high). How to build this variable is composed of 53
relationship between nominal (categorical), multiple choice questions 5. Equal to the mean
coefficient of determination, multiple regressions observed (73/172), middle (500/173), equal
to examine the relationship between the criterion fashion (00/173), SD (86/32), skewness equal to
variable and predictor variables is used. It should (33/0- ), elongation (33/0), most (00/253),
be noted that the data collected were analyzed respectively (00/65) and domain scores (265-53)
using SPSS software. has been observed. According to analysis, the data
center is changing the corporate culture of
engagement in work, consistency (stability and
RESULTS integrity), and median variables adapt mission
Demographic data (demographic) showed that 94 (mission) equal 3 (average scores). Variable is a CE
patients (6/37) of the respondents were women score is derived by calculating the sum score of all
and 156 (4/62 percent) make up the remaining items of inventory CE and to describe the five
men. Education, 39 (9/15 percent) and a lower category scores vary very low, low, medium, high
degree, 172 (9/69 per cent) and BA 35 (2/14 and very high were divided. From the 250 subjects
percent) are above the rest of MS. In addition, 4 of studied, 6 (4/2 percent) believe the CE low, 147
the respondents did not specify their educational (8/58%) moderate, 91 (4/36 percent) high and 4
status. 145 patients (4/59%) of the respondents patients (4/2 percent) believe CE score is too high.
worked less than 10 years, 67 patients (5/27%) and In total, 97 patients (8/38%) believe the positive

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Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

CE (high and very high). How to build this the necessity entrepreneurship. In fact, the
variable is composed of 48 multiple choice establishment of new organizations,
questions 5. Equal to the mean observed (80/160), entrepreneurial thinking, and it is inevitable, and
moderate (50/159), equal fashion (00/162), SD business insights and capabilities that the birth and
(63/19), weakness equal to (44/0), elongation death of the organization. Develop and strengthen
(56/1) most (00/232), respectively (00/90) and the entrepreneurial spirit in the organization is
domain scores (240-48) has been observed. required to provide suitable substrates for the
According to the data analysis center for organizational culture, organizational structure,
entrepreneurship variable, independent variable and organization is good. Entrepreneurial
equal moderate risk and 3 (average scores). organizational structure (discovered by chance,
Median and range of variables affecting innovation looking for opportunities) encourages basic
and aggressive strategy is based on competition elements necessary for successful entrepreneurial
and median variable equal to 4 (high scores). The organization. Bourglman as it refers to, in
results of the research hypotheses are as follows: managing diverse structural mechanisms that
Analysis of the data shows that the correlation good management can manipulate it with the
coefficient test, Pearson and Spearman between thought that a dominant strategy at the operational
two variables, organizational culture and the level and inter-institutional actors affect. The key
degree of CE, respectively, 354/0, 267/0, with p- to creating an entrepreneurial organization can
values (significant), respectively, with 000/0 000/0 encompass several key factors including culture is
and smaller than the significance level, therefore, correct. An entrepreneurial culture that helps to
the assumption of no relationship is rejected and promote and facilitate opportunities as well as the
consequently between organizational culture and motivation of the employees to raise in order to
organizational entrepreneurship executive of make optimal use of opportunities exist within an
Birjand city, there is a significant relationship. The ideology (an ideology that employees can be
coefficient of determination between two variables committed to it and get out of the way social
is equal to 125/0 (125/0 =), or a 5/12% variance capital). This requires an organizational
between the two variables is common (5/12 philosophy that the orientation of the individuals
changes the corporate culture of entrepreneurship involved, the operational level communication and
is justified). Other results showed that there was innovation. The importance of communication
no significant relationship between concentration focus, commitment and reciprocity, the structure
and rate of entrepreneurship, and international creates an entrepreneurial support. It is here that
recognition of CE and the direct relationship exists the structure of power and control and facilitate
between the complexity and the level of the application of entrepreneurial innovation
entrepreneurship, there is no significant occurs within an organization (Akhealth and Nak,
relationship and also between each of the 1998: 3). On the other hand, according to that
dimensions of organizational culture of organizational culture shapes the behavior of
entrepreneurship, there is a direct and significant members of both employees and managers at
relationship (Table 4). various levels that can change and strategic
direction to the organization's ability to
Insert Table 4 and 5 here
dramatically affect, without having an effective
DISCUSSION AND CONCLUSIONS organizational culture cannot be expected that
entrepreneurial activity (Heydari et al, 2011).
According to studies it can be concluded that Therefore, for the purpose of this research is to
corporate entrepreneurship is today regarded as introduce entrepreneurship and enterprise in
one of the tools they develop. Because there are terms of its components, intellectual, and
people to be successful entrepreneurs in the administrative barriers as possible to open it. All
context of creating and as mentioned previously, the results obtained in this study will examine the
due to the rapid rise of new competitors and make evidence and arguments of experts in the field.
sense of distrust of traditional management Between organizational culture and organizational
practices in the organization, the organization felt level entrepreneurial executive in Birjand city,

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Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

there was a significant positive relationship. The justification: According to the Iranian people,
obtained results can be interpreted as CE in unfortunately, most organizations are seeking to
Birjand city, the executive is dependent on shirk responsibility tend to get everything should
organizational culture within the organization, and ready without the least in the field of search
namely the variability of CE by the variables Perhaps the same can be said if these people are
(organizational culture) will be explained. In given the freedom and independence comes down
general we can say that the corporate culture of an to creativity and innovation. Therefore, managers
organization is better entrepreneurial situation of organizations with a range per person and the
better. Studies support this conclusion is as rules, regulations, instructions and letters obliged
follows. Champion and colleagues (2009) Research them to do things that are entrusted to them that
on the relationship between organizational culture the same pressure and operating regulations is to
and organizational entrepreneurship in 148 non- promote entrepreneurship (Pressure purpose of
faculty employees of martyr Beheshti University the organization is for example, if the agency
has been studied, the results showed that there is a determines that anyone will achieve the expected
significant relationship between organizational level, he will be considered for financial reward,
culture and organizational entrepreneurship. The people will have to perform assigned tasks
focus of the CE devices running Birjand city, there efficiently). The research by Albert Karyoana and
is no significant relationship. Focus on the colleagues (1998) focused on the impact of export
relationship between entrepreneurship and companies were recognized on entrepreneurship;
enterprise is a positive relationship between found that high levels of entrepreneurship are
entrepreneurial orientation and organizational positively recognized. But Reza Zadeh’s research
structure is decentralized. Because there is the high as the relationship between organizational
concentration of entrepreneurs in organizations, structure and organizational entrepreneurship in
these organizations need to respond quickly to the Social Security Organization in Tehran, came to
environmental changes and customer demands the conclusion that the negative relationship
show. Hence most of the decisions taken at lower between entrepreneurship and enterprise, there is
levels of decision-making authority are delegated recognition that this is inconsistent with the results
to departments and individuals. According to the (Farrokh, 2001). The complexity of CE devices
findings, it may be justified to conclude that: operating in Birjand city, there is no significant
According to that organizations and individuals relationship. The research by Safari et al (1387) as
who have not had sufficient training in some units the relationship between organizational structure
in the background are the responsibility and thus and entrepreneurship experts in Iran Physical
do not have enough information, this is your Education Organization study, it was shown that
reason that managers prefer to focus their there is no significant relationship between
decisions and the decisions referred to other complexity and CE. This is consistent with our
relevant units to avoid. The recognition and results. So expect the separation of horizontal,
enforcement of CE devices in Birjand city, there is vertical and geographical entrepreneurship in
a significant positive relationship. Research has organizations is more reduced. Between work and
shown that more people more freedom to choose getting involved in the CE devices running in
their own activities related to the performance of Birjand city, there is a positive and significant
its activities will be greater. The organizations that relationship. Increase employee participation in
are characterized by their lack of focus and lack of the decision-making capability of developing, in
formal regulation are relatively more important this connection, creativity and innovation in
than innovation. In fact, the organization is organizations to be more entrepreneurial as well as
expected to be fewer regulations and instructions the organization grows. The consistency (stability
and people have more freedom and creativity to and integrity), and levels of CE devices operating
entrepreneurship rises and turns. However, unlike in Birjand city, there was a significant positive
the results obtained in this study can be postulate relationship. Organizations are forced to survive in
is consistent with the postulate that the lack of today's turbulent environment, evolve and adapt

27
Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

to changing environmental conditions, it is minimum degree of CE must be high. The results


therefore necessary to carry out entrepreneurship showed that this is nothing but in the case of 2 or
and the creation of new methods and techniques in employees are not excluded from the entrusted
the environment to prove its existence. According responsibilities in the field do not have the
to the research Askarian (2009), a study of the necessary expertise or what employees have
relationship between organizational culture and learned at university level and is now the only
organizational entrepreneurship among university state in the implementation of information theory
staff of Lorestan city has been shown that the are incapable. The experience of the staff and their
integrity of enterprise and entrepreneurship, there views about corporate culture in Birjand city
is a significant positive relationship. Therefore, we executive, there is no significant relationship. A
expected to increase the integrity, number of researchers have reported that
entrepreneurship rates rise. Between adaptability industrial entrepreneurs who started their
and entrepreneurship in Birjand city, executive, business, they have previous experience. Previous
and there is a significant positive relationship. The work experience in a particular direction of
research done by Hossein Pour and Zareie (2010) economic activity is positively correlated with
in an entrepreneurial role, career advice and job success. High correlation between previous
creation, It was shown that a positive relationship experience and success should not be surprising,
between corporate entrepreneurship, adaptability because Cooper's own research found that over
and compliance with significant job there. So we 97% of new companies that are active in the fields
can say that increasing the adaptability of of high technology, had at least one founder who
organizations CE increases. The mission of the CE previously worked in the same industry and
devices operating in Birjand city, there was a almost 85 percent of the new company have goods
significant positive relationship. The magnitude of or services that have been the original founders of
the organizations goals and visions are more previous technical experience is used. Hence, the
specific and organizations know where to go and majority of new entrepreneurs, whether successful
what their current status, entrepreneurship and or unsuccessful in their industry, have had
innovation in the organization to achieve its previous experience (Ahmadpour Daryani, 2004:
mission and goals will be more and more 106). In research by Safari et al in 2008 as a link
organizations are scrambling to show themselves. between organizational structure and innovation
Between employees and their view of experts in Iran Physical Education Organization, it
entrepreneurship education in Birjand city was shown that no significant relationship
executive, there is no significant relationship. between years of service and innovation staff
Hornady and Tycan (1979) found that many (Shariati Far, 2012). Employees between age and
successful entrepreneurs feel that the youth of attitudes toward entrepreneurship executive in
today, education is less important for Birjand city, there is no significant relationship.
entrepreneurs. However, due to the high growth That cannot be a good age to start an activity to be
technology and fierce competition, education is determined conclusively. In studies conducted by
very important (Shariati Far, 2012). Vesper (1982) Frey 88% of employees aged 20 to 50 years and 65
believes that the probability of failure is higher percent of them had started to work between age
education, to entrepreneurs, those who have 20 to 40 years were investigated. Sousbayer that
experience but no degree. The second groups of for people who are less than 25 years, the
entrepreneurs who are likely to defeat them even education and military service, including factors
more than the first category are those who have that the number of entrepreneurs decreases after
been trained but not experienced. On the contrary, 60 years due to reduced energy and other physical
those entrepreneurs who are experienced and limitations of the number of entrepreneurs is
trained conduct the most lucrative activities reduced (Ahmadpour Daryani, 2004: 112-111).
(Ahmadpour Daryani, 2004: 110). Results showed Between sex workers and their views about the CE
that more than half of the respondents have a devices running the city of Birjand, there is no
bachelor's degree (8/68) are. Accordingly, it can be significant relationship. In research by Safari et al
expected that most of the employees have a (2008) as the relationship between organizational

28
Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

structure and innovation experts in Iran Physical Cavin JJ, Kuratko D (2009) The concept of
Education Organization, indicated there was no entrepreneurship, translated by Seyed Hadi
significant relationship between sex workers and Farahzadi, Google website, p. 18
innovation.
Dess GG, Lumpkin GT (1996) Clarifying the
entrepreneurial orientation construct and linking it
RESEARCH SUGGESTIONS to performance, academy of management Review,
Role in developing and promoting a culture of 21(1): 135-172.
entrepreneurship, encouraging the spirit of Denison D (2000) Organizational culture: can it be
teamwork among employees, stability and a key lever for driving organizational chang?
integrity, adaptability and mission objectives with International institute for management
an emphasis on innovation, risk-taking, freedom, development, denison@imd. Chapter2. 10
influence behavior and aggressive strategies based
on competition as a factor to be considered. The Denison D et al (2000) Diagnosing organizational
decision to operate in decentralized organizations culture: a model and method, working paper,
international for management development, 4: 67
those employees to participate in decision-making
will strengthen the entrepreneurial spirit and Echols AE, Neck CP (1998) The Impact of
innovation in organizations. This culture has behaviors and Structure on corporate
become prevalent in organizations that give more entrepreneurial success, Journal of managerial
autonomy to employees and terms remove more psychology, 2.
stubborn entrepreneurial organizations is
Farrokh M (2001) What do entrepreneurs,
expected, and employees should take advantage of
managers, technical and administrative messages
this opportunity, therefore, necessary measures
magazine, 2: 98
should be considered in this context.
Golestan Hashemi M (2003) Principles of
Encouraging innovation and creativity: Core of
Entrepreneurial Science, Isfahan University Jihad,
entrepreneurship, creativity and innovation in
pp 92-89
organizations is a bottom-up process. CE occurs
only when employees have a lower level of Hayton G (2002) promoting corporate
innovation. But only when the employee is entrepreneurship through human resource
required to provide and encourage innovation and Management practices: A Review of empirical
entrepreneurship will be updated. Provide research, human resource management review, 15:
appropriate in-service training, and continuing to 21
diversify and enhance job skills. Hossein D, Zare VS (2013) Model CE
(Administration cooperative study of Tehran
province), Journal of Cooperatives, XXI(4): 173
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Heydari H et al (2011) The relationship between
Ahmadpour Daryani, M (2004) Entrepreneurship:
organizational culture and organizational
definitions, theories and models, Tehran, Pardis
components of entrepreneurship, innovation and
Publishing Company, Seventh Edition, p. 109-20.
creativity in the journal Science, 1(3): 154
Asgarian M (2009). The concept of organizational
Robbins AP (2008) Fundamentals of
culture, Journal of Human Development, Police,
Organizational Behavior, translated by Seyed
24: 109
Mohammad Erabi and Ali Parsaeian , Tehran,
Bordbar Gh et al (2010) The relationship between cultural studies, published in the twentieth
organizational culture and labor productivity in
Soltani Tirani F (1999) Institutional innovations in
the insurance industry, insurance industry,
the organization, the Institute for Cultural Services
Journal, 4: 91
Resa Publishing - Printing, p 10

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Shariati Far, F (2012) The relationship between


organizational structure and organizational culture
and entrepreneurial executive in Birjand city,
public administration master's thesis, University of
Rafsanjan branch
Samad Aghaeie, J (1991) Entrepreneurs
Organization, Tehran, Public Administration
Training Center Press, first edition, pp 115-9
Tayeb M (1994) Organizations and national
culture: Methodology considered, organization
studies, 15: 426
Zare Mehrjardi et al (2010) (WLAN management)
concepts, strategies and models, Journal of
ingenuity in science, 1: 82-81

30
Entrepreneurship and Innovation Management Journal
ISSN: 2310-0079
Volume: 1, Issue: 1, Pages: 19-32

APPENDIX

Table 1: ratings and grading dimensions of organizational structure

Questions Scale scores


Components Unit scores
number Very little Low Average High Very much
Complexity 1 to 7 12-7 18-13 23-19 29-24 35-30 35-7
Formality 8 to 14 12-7 18-13 23-19 29-24 35-30 35-7
Centralization 15 to 23 15-9 23-16 30-24 38-31 45-39 45-9

Table 2: ratings and grading dimensions of organizational culture

Questions Scale scores


Components Unit scores
number Very little Low Average High Very much
Engaging in
1 to 14 24-14 36-25 47-37 59-48 70-60 70-14
work
Compatibility 15 to 29 26-15 38-27 51-39 63-52 75-64 75-15
Adaptability 30 to 40 17-10 25-18 34-26 42-35 50-43 50-10
Mission 41 to 53 22-13 33-23 44-34 55-45 65-56 65-13

Table 3: ratings and grading dimensions of corporate entrepreneurship


Questions Scale scores
Components Unit scores
number Very little Low Average High Very much
Innovation 1 to 11 19-11 28-20 37-29 46-38 55-47 55-11
Risk 12 to 21 17-10 25-18 34-26 42-35 50-43 50-10
Action-oriented 22 to 32 19-11 28-20 37-29 46-38 55-47 55-11
Strategy 33 to 42 17-10 25-18 34-26 42-35 50-43 50-10
Independence 43 to 48 10-6 15-11 20-16 25-21 30-26 30-6

Table 4: Pearson and Spearman correlation test of the relationship between organizational culture and organizational
entrepreneurship
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
Organization n n p determinati
nt r nt r p
al Culture coefficient coefficient on
0/453 0/000 050 0/067 0/000 050 Ok Direct 0/505
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
Centralizatio n n p determinati
nt r nt r p
n coefficient coefficient on
-0/095 0/539 050 -0/554 0/074 050 No - 0/0083
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
n n p determinati
Formality nt r nt r p
coefficient coefficient on
0/550 0/056 050 0/508 0/034 050 Ok Direct 0/004
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Relationshi Type of Coefficient

31
Relationship between Organizational Structure and Culture Beheshtifar & Shariatifar

Correlatio Correlatio p Relationshi of


Significa Numbe Significa Numbe
n n p determinati
Complexity nt r nt r
coefficient coefficient on
-0/050 0/535 050 -0/045 0/585 050 No - 0/0007
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
Engaging in n n p determinati
nt r nt r p
work coefficient coefficient on
0/075 0/000 050 0/050 0/005 050 Ok Direct 0/0744
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
Compatibilit n n p determinati
nt r nt r p
y coefficient coefficient on
0/070 0/000 050 0/0007 0/005 050 Ok Direct 0/0735
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
n n p determinati
Adaptability nt r nt r p
coefficient coefficient on
0/309 0/000 050 0/085 0/000 050 Ok Direct 0/567
Variable Amount of Corporate Entrepreneurship
Test Pearson Spearman Coefficient
Type of
Correlatio Correlatio Relationshi of
Significa Numbe Significa Numbe Relationshi
n n p determinati
Mission nt r nt r p
coefficient coefficient on
0/458 0/000 050 0/068 0/000 050 Ok Direct 0/5080

Table 5: Table of regression coefficients


Not standardized coefficients Standardized
P-value
(typical) coefficients
Model T-statistics (significance
B
Std.Error Beta level)
Constant
782/157 404/9 779/16 000/0
amount
1 Complexity 241/0- 340/0 044/0- 708/0- 480/0
Recognition 989/0 300/0 222/0 292/3 001/0
Centralization 662/0 261/0 172/0- 535/2- 012/0

Constant
155/154 877/7 571/19 000/0
amount
2
Recognition 984/0 300/0 221/0 280/3 001/0
Centralization 684/0 259/0 178/0- 638/2- 009/0
Dependent variable: Corporate Entrepreneurship

32

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