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Determining the impact of entrepreneurial orientation and organizational

culture on job satisfaction, organizational commitment, and employee’s
performance

Article  in  South Asian Journal of Business Studies · September 2019

DOI: 10.1108/SAJBS-12-2018-0142

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SAJBS
8,3 Determining the impact of
entrepreneurial orientation
and organizational culture
266 on job satisfaction,
Received 16 December 2018
Revised 4 April 2019
organizational commitment, and
3 June 2019
19 July 2019
Accepted 25 July 2019
employee’s performance
Bahadur Ali Soomro
Area Study Center, Far East and Southeast Asia,
University of Sindh, Jamshoro, Pakistan, and
Naimatullah Shah
Department of Public Administration,
University of Sindh, Jamshoro, Pakistan and
College of Business Administration,
Al Yamamah University, Riyadh, Saudi Arabia

Abstract
Purpose – The purpose of this paper is to investigate the impact of entrepreneurial orientation and
organizational culture on job satisfaction, organizational commitment and employee’s performance.
Design/methodology/approach – This is a quantitative approach, which is based on cross-sectional data.
In total, 326 usable cases are processed to infer the results through the structural equation model.
Findings – The results revealed a positive and significant impact of organizational commitment, job
satisfaction and organizational culture on employee’s performance. An entrepreneurial orientation has a
positive and significant impact on organizational commitment. Job satisfaction is impacted by organizational
commitment, while organizational culture is influenced by job satisfaction. On the other hand, entrepreneurial
orientation has a non-significant impact on employee’s performance.
Practical implications – Employers may shape the organizational culture and boost the general level of job
satisfaction of their employees. Further, the study enriches the organizational behavior literature by
recognizing and empirically validating the impact of entrepreneurial orientation and organizational culture on
job satisfaction, organizational commitment, and employee’s performance in the small and medium
enterprises sector of Pakistan.
Originality/value – The findings of the current study may help in creating a better understanding of job
satisfaction and delineating its association with organizational culture.
Keywords Entrepreneurial orientation, Job satisfaction, Organizational culture,
Organizational commitment, Employee’s performance
Paper type Research paper

South Asian Journal of Business
Studies
Vol. 8 No. 3, 2019
pp. 266-282
© Emerald Publishing Limited
2398-628X
DOI 10.1108/SAJBS-12-2018-0142
1. Introduction
The multidimensional and multilevel nature of the concept of performance is often
overlooked (Hult et al., 2008). However, in the present world, employee performance is
widely recognized as the product of capability and motivation, which are used to motivate
employees to bring out the best output from them (Moorhead and Griffin, 1998). To achieve
organizational output, organizational commitment also serves as a leading factor (Meyer
et al., 1993). Meanwhile, such individual attitudes and behaviors show a strong inclination to
bring a creative and innovative change through seeking new ventures as well as avenues
(Miller et al., 1982). Thus, willingness indicates an “entrepreneurial orientation.” Alongside
entrepreneurial orientation, which will increase the output of organizations, the culture Determinants
factor is also an important consideration (Ankrah et al., 2005). Organizations become of employee’s
capable of evaluating and recognizing their own culture and the possible significance of performance
their specific orientations. Organizational culture includes collective values and basic
expectations, which are established in organizational “practices”. These practices of the
organizations include rituals, behavioral norms, symbols, rules, language, routines, stories,
as well as power building, among others (Hofstede, 1997; Mullins, 2005). 267
As a result, numerous studies proved that employees’ performance is enhanced through
employee satisfaction (Lavelle et al., 2010; Panagiotakopoulos, 2013). Nevertheless, only a
few studies have been conducted that examine the impact of entrepreneurial orientation and
organization culture on job satisfaction, organizational commitment and employee
performance (Obeng and Ugboro, 2003; Freund, 2005; Chang and Choi, 2007; Chen et al.,
2007; Panagiotakopoulos, 2013). Managing employees’ performance has always been a
challenging task for managers in organizations. To deal with such business circumstances
the employees’ ability is a key element for the profit and effective performance of the
organization (Baard et al., 2014). In the perception of Stanton and Pham (2014), a highly
skilled and high-performing workforce increase the awareness of employee performance
management and a desire to improve competitiveness.
In the context of multinational enterprises (MNEs), high-performance work systems have
a significant and positive impact on employee effectiveness. Unfortunately, their effects on
employee skills and development, as well as organizational financial performance are far
less vibrant (Demirbag et al., 2014).
The small and medium enterprises (SMEs) are facing huge challenges in terms of employee
satisfaction, organizational commitment and enhancement of organizational performance
globally, particularly in developing economies (Farooq et al., 2015). However, there has been
little research focused on this issue in Pakistan, even though SMEs are regarded as an engine
of growth for developing economies (Abrar-ul-haq, 2015; Soomro et al., 2019). With this as its
background, the present study attempts to explore the influence of entrepreneurial orientation
and organizational culture on job satisfaction, organizational commitment and employee’s
performance in the SME sector of Pakistan. The contribution of the current study may
provide guidelines for managers and organization owners to enhance employees’ performance
by making them committed, satisfied and focused by developing a cohesive as well as
conducive culture of the organization.

2. Literature review and hypotheses development

Productions with entrepreneurial orientation are associated with the ability to discover new
market opportunities (Wiklund and Shepherd, 2003). According to Lumpkin and Dess (2001)
and Kreiser et al. (2002), entrepreneurial orientation affects the performance of a firm. The
demographic factors, such as education, experience, gender, race, parental occupation, age and
goals of entrepreneurs have a positive and significant impact on performance (Cooper and
Gimeno-Gascon, 1992). Factors such as behavioral commitment and communication fully
mediate the relationship between the exporter’s customer orientation and the customer’s
payment capability (Alteren and Tudoran, 2016). In the perception of Fadda (2018),
pro-activeness, autonomy and innovativeness are significantly correlated with tourism firms’
performance except for competitiveness and risk-taking. In a similar vein, Cho and Lee (2018)
strongly recommended that entrepreneurial orientation and innovative progressiveness have
a positive influence on non-financial business performance. A risk-taking propensity has
neither a positive nor negative impact on the performance of either financial or non-financial
business. In Indonesia, employee motivation, leadership style and discipline regarding
employee performance are correlated with each other (Pawirosumarto et al., 2017). The
national culture has a moderating role in the relationship between job characteristics and job
SAJBS satisfaction (Hauff et al., 2015), which provides empirical evidence that questions the universal
8,3 applicability of job satisfaction theories across different cultures or a cross-national context. In
an online study conducted by Schulz et al. (2017) among frontline employees, the outcomes of
the study’s survey proved external marketing orientation, subjective well-being, and internal
marketing to be significant predictors of affective organizational commitment. According to
Baard et al. (2014), employees’ ability is a requirement for an effective performance to deal
268 with volatile work circumstances, for instance changes in one’s core job assignment,
technological transformations, restructuring of the organization and so on. However,
industrial psychologists have mentioned non-job components, such as organizational
citizenship behavior or contextual performance, which refers to voluntary actions by
employees (Bateman and Organ, 1983) that benefit employers intangibly. Similarly, the study
of Kwon and Banks (2004) found a strong relationship between job meaningfulness and
organizational commitment. The task factor was noted as a reliable forecaster of
professional commitment. Furthermore, the size of the organization and gender affect
organizational commitment. Internal auditor certification also indicates a positive impact on
professional commitment. A unified sustainability-oriented organizational culture is a
significant assumption that makes the organizations as strong through stable cultural change
(Linnenluecke and Griffiths, 2010).
Similarly to the other factors of organization, over the years, organizational culture has
been retained as a consideration (Goodenough, 1971). It is regarded as a system of knowledge
as well as standards that an employee acquires by observing and evaluating the
organizational environment. After that, Uttal (1983) highlighted culture as “a system of shared
values (what is important) and beliefs (how things work) that interact with an organization’s
people, organizational structures and control systems to produce behavioral norms.” Among
Finnish exporting firms, those qualified as true born-globals had a better export performance
and entrepreneurial orientation than apparently born-globals (born-international)
(Kuivalainen et al., 2007). With regard to China, Liu et al. (2014) revealed that the
relationship between business environmental commitment and sustainable performance could
be moderated positively by the level of employee training. In Vietnamese enterprises, there is
an increasing awareness that employee performance management and a desire to improve
competitiveness are due to the development of a highly skilled and high-performing workforce
(Stanton and Pham, 2014). In Turkey’s MNEs, the usage of high-performance work systems
has a significant positive impact on employee effectiveness. However, their effects on
employee skills and development, and organizational financial performance are far less clear
(Demirbag et al., 2014). According to Bellou (2010), enthusiasm for the job, fairness,
opportunities for personal growth and good reputation are correlated with satisfaction.
Conversely, aggressiveness appears to restrain job satisfaction − moreover, the cultural
values, the age and the gender of employees influence the way that the organizational values
affect their job satisfaction. In the views of Glisson and Durick (1988), one worker
characteristic, education, was found to be a significant predictor of commitment, while no
worker characteristics predicted job satisfaction. The research by Rodríguez-Escudero et al.
(2010) suggested that role conflict and role ambiguity are negatively related to team job
satisfaction. However, authors show a lack of association between pressure for performance
and job satisfaction. The findings of a study by Engelen et al. (2015) underlined that
regardless of national setting, four transformational behaviors – articulating a vision,
providing an appropriate model, having high-performance expectations, and showing
supportive leader behavior − positively affect the relationship between entrepreneurial
orientation and firm performance. More recently, Hsu and Lawler (2019) strongly
recommended that at the job level of high task complexity, gender diversity contributes to
organizational performance. Although at the job level of low task complexity, gender diversity
does not lead to improved performance.
 As a result, the above literature suggests a positive and significant correlation between Determinants
entrepreneurial orientation, organizational culture, job satisfaction, organizational of employee’s
commitment and employee’s performance. However, the relationships have usually been performance
confirmed in developed economies, including those of the USA, Canada and the UK, rather
than in the developing contexts (Bellou, 2010; Radipere, 2014; Fadda, 2018; Cho and Lee,
2018), where organizations are facing significant challenges of employee commitment and
job satisfaction in order to attain organizational performance (Suliman and Kathairi, 2012; 269
Karuhanga and Werner, 2013). Realizing the significance of this, we proposed a conceptual
model to examine the effect of entrepreneurial orientation and organizational culture on job
satisfaction, organizational commitment, and employee’s performance (Figure 1) among the
employees of SMEs in Pakistan.

2.1 Entrepreneurial orientation and employee’s performance

The relationship between entrepreneurial orientation and the employee’s performance was
focused on less due to the reasonable relationship between the structures of the company,
management style as well as employees’ performance (Tzokas et al., 2001). However, the
dimensions of entrepreneurial orientation exclusively influence the employee performance
(Lumpkin and Dess, 1996). First, creativity brings innovation. Such a portion of change
introduces new products and services that carry new developments and competition.
Ultimately, these initiatives improve the performance of organizations or ventures. Second,
a proactive attitude in new markets makes charge higher prices than competitive markets
(Zahra and Covin, 1995). Third, the competition enhances the company’s desire that affects
directly to competitors for increasing market circumstances. Henceforth, competitive
aggressiveness and proactive attitude are linked to performance in different ways. Fourth,
risk-taking tends to perform speculatively in the emerging markets that have been
recognized. The risk strategy is a factor that develops a positive and significant association
between performance and risk-taking. According to Isa (2011), technological and
organizational innovation are the best predictors for improving performance.
Similarly, Wang (2008) stated the idea of entrepreneurship orientation, as being a
fundamental component of the success of each business. De Clercq et al. (2010) strongly
recommended that higher levels of organizational commitment would strengthen the

Entrepreneurial
orientation
H2 H1

Organizational
commitment
H3

H4 Employee’s
performance
H6
Job
satisfaction

H5
Figure 1.
Organizational H7 Conceptual model
culture of the study
SAJBS association between entrepreneurial orientation and performance. Supporting this, Murphy
8,3 and Callaway (2004) proposed that emotional commitment and entrepreneurial ventures
might lead to higher persistence as well as better performance. Therefore, the previous
literature offers a clear picture of a direct impact made by entrepreneurial orientation on the
firm’s performance. With such pieces of evidence, we proposed that:
H1. Entrepreneurial orientation has a positive and significant impact on employee’s
270 performance.

2.2 Entrepreneurial orientation and organizational commitment

The features of entrepreneurship can be recognized through behaviors as well as values.
These features are associated with organization’s high risk and commitment (Kuriloff et al.,
1993). According to Simon et al. (2011), commitment may impart benefits to firms,
overcoming the problems connected with entrepreneurial orientation. Lumpkin and Dess
(1996) proposed that entrepreneurial orientation among individuals and organizations can
be developed through market share, sales and commitment. However, satisfaction among
investors comes through entrepreneurial practices. From the above explanation the
following hypothesis was developed:
H2. Entrepreneurial orientation has a positive and significant impact on organizational
commitment.

2.3 Organizational commitment and employee’s performance

The theory of Meyer and Allen (1991) highlighted that employees who dedicate themselves
enthusiastically to the success of the organization will clearly improve their performance.
Supporting the same argument, Greenberg and Baron (1993) revealed that employees who
have a high organizational commitment and are more creative and steadier employees, will
lead the organization toward becoming a more profitable one. Highly committed individuals
crucially achieve the organizational goals: individuals with a low organizational
commitment pay little attention to the organizational goals and are more concerned with
gratifying personal interests than those of the organization (Luthans, 2003). Robbins (2001)
suggests that employees with high commitment toward the organization will take the side of
the organization that has employed them.
As a result, the literature provides evidence that organizational commitment has a
positive influence on the organizational and/or the employee’s performance (Sumarno, 2005;
De Clercq et al., 2010; Engelberg et al., 2011; Widyaningrum, 2011). Hence, the following
hypothesis is formulated from such a relationship:
H3. Organizational commitment has a positive and significant impact on employee’s
performance.

2.4 Organizational commitment and job satisfaction

The job satisfaction and organizational commitment factors are linked to each other.
According to Norris and Niebuhr (1983), job satisfaction points to an effective response to
the environment in which to work, although organizational commitment is a more constant
and more extended factor than job satisfaction. Even if employees may, albeit for a short
time, become unsatisfied with their work/labor, nevertheless, they remain committed to the
organization during the task. As Gregson (1992) suggested, satisfaction is a symbol of the
starting of someone’s commitment to their organization. Similarly, these findings were
supported by Luthans (2003) who stated that if employees are rewarded with job
satisfaction, then a good commitment can be developed toward the respective organization.
The studies of Richard et al. (2008) and Valaei and Rezaei (2016) have confirmed the Determinants
positive association between job satisfaction and organizational commitment. Based of employee’s
on positive evidence between organizational commitment and job satisfaction, we proposed performance
the following hypothesis:
H4. Organizational commitment has a positive and significant impact on job satisfaction.

271
2.5 Organizational culture and job satisfaction
An organizational culture belongs to the leading organizational values. These values are
maintained and developed by individuals within the organization who guide organizational
policies on the management of the employees (Schein, 1992). However, researchers like
Robbins and Coulter (1999) and Robbins (2003) argued that the organizational culture is
mostly the same as the existing rules within an organization. The members of the
organization accept these rules. In the same assumption, Robbins and Judge (2007) proposed
that the employees have a subjective perception on the entire organization, which is
grounded in objective factors, including the importance of work structures, an emphasis on
outcomes, the stress on people, teams and aggressiveness as well steadiness in the
organization. Both the good and bad insights would then have an impact on employee job
satisfaction which has, in fact, an effect on the growing strength of the organizational
culture. Most of the studies in this domain confirmed a positive and significant influence
of organizational culture on job satisfaction (Sabri et al., 2011; Shah et al., 2011;
Bigliardi et al., 2012; Ilham, 2018). Therefore, we proposed that:
H5. Organizational culture has a positive and significant impact on job satisfaction.

2.6 Job satisfaction and employee’s performance

For some few years, there has been a strong belief of companies’ managers that employees
satisfied with their job give a higher performance than unsatisfied employees (Okta et al.,
2015). In the perception of Gomes (2000), job satisfaction enhances the job performance
and the size of the company. In addition, it also reduces the chances of a high turnover and
absenteeism among the employees. In other words, employee satisfaction has a positive
and significant impact on the performance of employees (Sarmiento et al., 2007;
Pushpakumari, 2008; Dizgah et al., 2012). Therefore, we proposed that:
H6. Job satisfaction has a positive and significant impact on employee’s performance.

2.7 Organizational culture and employee’s performance

Among medical professionals, organizational culture and the employee’s performance were
found to be related with each other (Widyaningrum, 2011). Similarly, Gupta (2011), Han and
Verma (2012) and Chaterina and Intan (2012) found the same (positive) associations between
organizational culture and employees’ performance. Moreover, the factors of cultural
dimension practice such as uncertainty avoidance, future orientation, gender and power
distance, egalitarianism, and human orientation have a strong correlation with employee’s
performance (Gupta, 2011). Through an empirical study, Bhatti (2012) investigated the
influence of corporate culture on the employee’s performance as well as organizational
productivity. The outcomes of the study underlined that corporate culture positively and
significantly affects the employee’s performance. Numerous studies have highlighted the
same findings, i.e. that organizational culture has a positive and significant impact on an
employee’s performance (Ojo, 2009; Ehtesham et al., 2011; Ahmad, 2012). As a result,
organizational culture plays as a catalyst role in enhancing employee performance.
Organizational culture must be obligatory for all members and employees of the
SAJBS organization, as that will inspire consistency among the members of the organization.
8,3 In addition, it will boost group efficiency, commitment and the overall performance
of employees. In view of such importance, we proposed the following hypothesis:
H7. Organizational culture has a positive and significant impact on employee’s performance.

272 3. Methods
3.1 Approach and context of the study
This is a descriptive study in which a deductive approach was adequately employed. In the
relevant literature, the majority of the researchers, like Bellou (2010), Suliman and Kathairi
(2012), Karuhanga and Werner (2013), Radipere (2014); Fadda (2018) and Cho and Lee (2018)
applied the same strategy to achieve the required objectives.
We selected the employees of SMEs of Pakistan as targeted respondents. There are a few
logical reasons behind the selection of such a subject first, in any economy, SMEs are
famous for being the backbone of economic development (Soomro et al., 2019). Second, they
contribute more than 90 per cent of Pakistan’s business worldwide (GRI, 2011). Third, SMEs
play a substantial role in the stability of the economy in Pakistan through enriching
individuals’ lifestyles and improving social status (Rohra and Panhwar, 2009; Ahmed et al.,
2010; SMEDA, 2010). However, in spite of fantastic their growth and contributions,
Pakistani SMEs are facing numerous challenges in terms of organizational performance
commitment as well as corporate culture.

3.2 Data collection and sampling

The data were collected from the employees of SMEs of Pakistan through a survey
questionnaire. We employed a simple random technique to reduce the chances of unequal
opportunities to take part in the study. “It is an unbiased random selection and are
presentative sample are important is drawing conclusions from the results of a study.
Remember that one of the goals of research is to be able to make conclusions pertaining to
the population from the results obtained from a sample. Due to the representativeness of a
sample obtained by simple random sampling, it is reasonable to make generalizations
from the results of the sample back to the population” (Sharma, 2017, p. 750). We carefully
followed the ethics of the research by assuring and satisfying our respondents about the
use of their responses, which were voluntarily based. Initially, we shared the aim and
objectives of the study. The instructions were conveyed accurately regarding the
completing of the survey. Besides, the respondents were not bound to take part in
the study or at any time and stage; they were free to withdraw as well as to refuse
answering the questionnaire.
In total, we distributed 600 questionnaires through the mail service and personal visits
throughout Pakistan. In return, 332 questionnaires were received back with a response rate
of 55 per cent. After applying the tests of data cleaning and screening, we finally proceeded
with 326 valid cases for the final estimation of the hypotheses.

3.3 Survey instrument and validation

The survey instrument (questionnaire) was completely adapted from the literature. Before
launching it for large samples, we conducted a pilot study to ensure the reliability and
validity of the instrument (Tabachnick and Fidell, 2007). The reliability (internal
consistency) among the items was assessed through Cronbach’s α reliability and factor
loadings. As a result, the internal consistency was 0.816, which was good. The rotated factor
matrix ( factor loading) also showed the relationship of the items with their respective
factors (Hair et al., 2006). In addition, the questionnaire was sent to three university
professors (Hardesty and Bearden, 2004) in order to confirm its validity and/or its’ physical Determinants
appearance, the relevancy of items, connectivity and for the clarification of the language and of employee’s
themes. In consequence, a reliable and valid questionnaire launched for collecting a large performance
number of samples.

3.4 Measures
Entrepreneurial orientation. The study employed ten items to measure an entrepreneurial 273
orientation. The sample items of the scale were “Generating new products” and “Courage to
enter the new market.” The items were adapted from the study by Okta et al. (2015). All the
items were assessed through a five-point Likert scale, ranging from “strongly agree” to
“disagree strongly.”
Organizational culture. In total, 13 items were employed to assess this factor. The sample
items of the scale were “The emphasis on work achievement” and “having high trust in each
other” – these items were adapted from the study by Okta et al. (2015). We employed a five-
point Likert scale for assessing the items. The options of the scale were “strongly agree ¼ 1”
to “strongly disagree ¼ 5.”
Job satisfaction. Job satisfaction was assessed through a five-point Likert scale ranging
from “strongly agree ¼ 1” to “strongly disagree ¼ 5.” The number of items was 13 and these
were adapted from Okta et al. (2015). The sample items were “Work in accordance with one’s
ability” and “Enjoying the current work.”
Organizational commitment. This factor was explored through six items and adapted
from the related study by Okta et al. (2015). The sample items of the scale were “Choosing to
work in the company” and “Emotionally attached to the company.” The items were explored
with an application of a five-point Likert scale (“strongly agree” to “strongly disagree”).
Employee’s performance. This factor was assessed on ten items and adapted from Okta
et al. (2015). The sample items of the scale were “In accordance with the quality standard”
and “Exceeding quality standard.” These items were analyzed through a five-point Likert
scale (“strongly agree ¼ 1” to “strongly disagree ¼ 5”).

4. Data analysis and results

4.1 Demography
The respondents’ demographic profile reveals a majority of males (64 percent or n ¼ 210)
compared to females (35 percent or n ¼ 116). 188 respondents (55 percent) were aged
between 21 and 30 years old. While only ten respondents (3 percent) were over 40 years of
age, interestingly we observed a good number (n ¼ 86) of respondents were below 20 years
old. Similarly, 72 percent (n ¼ 236) of employees were permanently employed, and
27 percent (n ¼ 90) were non-permanent or contract-based employees. Finally, 60 percent
(n ¼ 198) responded as having experience/tenure of work for one to three years, while
11 percent had experience of over six years of work (Table I).

4.2 Hypotheses confirmation

Before estimating the outcomes of the hypotheses, we conducted the model fit indices to
observe the fitness of the data with a model. As a result, we found all model fit indices
(GFI; NFI; RMSEA, etc.) (see caption in Figure 2) in an absolute fitness/good fitness
of the model with available data (Marsh and Hocevar, 1985; Kline, 2005; Hair et al., 2006;
Cheung and Chan, 2009).
In addition, we employed structural equation modeling due to its’ proper analytical
strategy (Hayes et al., 2017) and estimation of components of the model simultaneously
(Pek and Hoyle, 2016). With regard to H1, the results showed that (SE ¼ 0.024; CR ¼ 1.061;
p⩾ 0.01) (Table II and Figure 2). Thus, H1 was not supported. Similarly, the impact of
SAJBS Category Frequency Percent
8,3
Gender
Male 210 64.41
Female 116 35.59
Total 326 100.0

274 Age
o 20 years 86 26.39
21–30 years 182 55.83
31–40 years 48 14.72
W 40 years 10 3.06
Total 326 100.0
Employment status
Permanent 236 72.40
Non-permanent 90 27.60
Total 326 100.0
Work tenure
1–3 years 198 60.74
4–6 years 92 28.22
Table I. W 6 years 36 11.04
Respondents’ profile Total 326 100.0

entrepreneurial orientation on organizational commitment (H2) (SE ¼ 0.044; CR ¼ 4.682;

p ⩽ 0.01) (Table II and Figure 2) was positive and significant. Therefore, H2 was accepted.
With regard to H3, the outcomes of SEM (SE ¼ 0.040; CR ¼ 5.240; p ⩽ 0.01) (Table II and
Figure 2) highlighted a positive and significant association between organizational
commitment and employee’s performance. Therefore, H3 was accepted. H4 (SE ¼ 0.037;
CR ¼ 6.845; p ⩽ 0.01) (Table II and Figure 2) was supported. A relationship between job
satisfaction and organizational culture (SE ¼ 0.049; CR ¼ 7.249; p ⩽ 0.01) (Table II and
Figure 2) was positive and significant. Therefore, H5 was supported by the data.
With regard to H6 and H7, the results showed H6 ¼ SE ¼ 0.039; CR ¼ 4.710; p ⩽ 0.01 and
H7 ¼ SE ¼ 0.038; CR ¼ 5.890; p ⩽ 0.01 (Table II and Figure 2) showing a positive and
significant impact of job satisfaction and organizational culture on employee’s performance.
Therefore, H6 and H7 were also supported.

5. Discussion and conclusion

The purpose of the study was to examine the impact of factors such as entrepreneurial
orientation and organizational culture on job satisfaction, organizational commitment and
employee’s performance. To obtain such a purpose, we developed a conceptual framework
from the literature. Based on this context, a model and hypotheses were generated. The
study employed a deductive approach on the basis of cross-sectional data. The data were
collected through a survey questionnaire. We correctly followed the ethical protocols in
terms of respondents’ privacy and confidentiality.
The results of SEM show a non-significant association (H1 not supported) between
entrepreneurial orientation and employee’s performance. Such non-significant findings are
supported by various scholars, such as Slater and Narver (2000), Lee et al. (2001) and Frank
et al. (2010) who found a weak association between such variables. However, a study by Rauch
et al. (2009) explored a moderate association between entrepreneurial orientation and
employee’s performance. On the other hand, the former strategy, as well as entrepreneurship
research, recommended that the entrepreneurship orientation factor is positively and
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significantly associated with the performance of the firm (Lumpkin and Dess, 1996;
Rauch et al., 2009). In our perception, the employees become unable to generate and find new
products, new markets, and distribution channels to compete and enhance organizational
performance. In addition, they are not prepared to take the risk to avail themselves of the
opportunities of the business. In developing positive linkages, factors such as
SAJBS transformational behaviors − articulating a vision, providing an appropriate model, having
8,3 high-performance expectations and showing supportive leader behavior − may exist among
the respondents because such factors have a good reputation and positively affect the
relationship between entrepreneurial orientation and firm performance (Engelen et al., 2015).
On the other hand, the study found a significant impact of entrepreneurial orientation on of
organizational culture (H2 supported). These outcomes are also in line with numerous past
276 studies, including those of Simon et al. (2011), Lumpkin and Dess (1996), and Okta et al. (2015)
who found similar findings. Our findings may highlight that respondents are committed to
benefit and overcome the organizational problem through entrepreneurial orientation or by
generating new products, ideas and distribution channels without bearing any of the risk
(Simon et al., 2011). However, it may be possible that the respondents may support the reward
system due to a positive affiliation with the organizational culture (Wright, 2010).
The significant and positive impact of organizational commitment on job satisfaction (H4) is
in accordance with the previous literature (Valaei and Rezaei, 2016; Singh and Onahring, 2019).
The consistency in results indicates that the employees of SMEs are more committed and
satisfied with the organizations for whom they work. Such an association also reflects a
positive sign toward the success of the firms (Gregson, 1992). Furthermore, the results found a
positive and significant impact of organizational commitment, job satisfaction and
organizational culture on employee’s performance (H3, H6 and H7). These findings also
concur with many field studies, such as those of Meyer and Allen (1991), Greenberg and Baron
(1993), Pushpakumari (2008), Ojo (2009), Ehtesham et al. (2011), Widyaningrum (2011),
Engelberg et al. (2011), Dizgah et al. (2012), Ahmad (2012) and Okta et al. (2015). These findings
reflect the dedication of employees to making organizations successful, and the high
organizational commitment among the respondents shows the creativity and steadiness makes
an organization a profitable and prosperous one. The satisfaction of the respondents enhances
job performance as well as the size of the company. Among such employees the chances of a
high turnover are reduced (Okta et al., 2015). Two factors such as role ambiguity and role
conflict may not be available because they are not favorable for the teamwork and job
satisfaction (Rodríguez-Escudero et al., 2010). They may be a lack of association between
pressure on performance and job satisfaction. In the last, the positive significance between
organizational culture and the employee’s performance emphasizes that organizational culture
inspires consistency among members of the organization. Undoubtedly, it may boost group
efficiency, commitment, and the overall performance of employees. Organizational culture, as
well as a sustainability-oriented organizational culture, are significant assumptions that make
the organization strong and stable through cultural change (Linnenluecke and Griffiths, 2010).
The job level of high task complexity and gender diversity contribute to organizational
performance. A low level of such constructs at the job level does not lead to improved
performance (Hsu and Lawler, 2019).
In conclusion, the overall findings of the study reveal that there is a positive and
significant effect of organizational commitment, job satisfaction and organizational culture

H. No. Dependent variables Path Independent variables Estimate SE CR p

1 Employee’s performance ← Entrepreneurial orientation 0.025 0.024 1.061 0.289

2 Organizational commitment ← Entrepreneurial orientation 0.208 0.044 4.682 ***
3 Employee’s performance ← Organizational commitment 0.172 0.040 5.240 ***
4 Job satisfaction ← Organizational commitment 0.161 0.037 6.845 ***
5 Organizational culture ← Job satisfaction 0.218 0.049 7.249 ***
Table II. 6 Employee’s performance ← Job satisfaction 0.122 0.039 4.710 ***
SEM estimation of 7 Employee’s performance ← Organizational culture 0.132 0.038 5.890 ***
the hypotheses Notes: SE, Standard error; CR, Critical ratio; p, significance level. ***p o0.05
on employee’s performance. A positive and significant impact of entrepreneurial orientation Determinants
was also pointed out by the study. Moreover, organizational commitment significantly of employee’s
predicts job satisfaction while job satisfaction has a positive association with organizational performance
culture. On the other hand, a non-significant impact of entrepreneurial orientation on
employee’s performance was also suggested by the findings.

6. Implications, limitations and future research 277

Due to changing economic situation in developing countries, employee’s behavior has the
great importance to the job and organization. Managing employees’ goals could be possible
by enhancing commitment, satisfaction and orientation. The study may provide a guideline
for company owners and organizational heads for the development of commitment,
satisfaction and orientation by providing an excellent organizational culture, which may
enhance the production and profit of the organization. The study further suggests that
entrepreneurial directions may be developed to improve on new products and markets for
the sake of organizational performance and prosperity. Lastly, the study may further
deepen and increase the generalizability of the results, particular for a developing context.
The study offers new evidence of confirmation the model in a developing context. Thus, it
may enrich the validations and freshness of the relationships.
The study is limited to respondents as employees (permanent and non-permanent) of
SMEs only. We did not distinguish or classify the owners of the SMEs. This study is limited
to the application of only quantitative and cross-sectional data. Therefore, a single data
collection strategy may create some reliability and validity issues. We only collected the
responses from the employees of SMEs through random sampling. Finally, no any related
theory was applied in the present study.
In the future, more longitudinal studies are needed to examine such associations
further. The employee’s performance may be explored in other sectors (government and
private). Lastly, a mixed method approach may be employed to investigate the authentic
and valid outcomes.

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About the authors

Bahadur Ali Soomro received PhD Degree from the Area Study Centre, Far East and Southeast Asia,
University of Sindh, Jamhsoro, Pakistan. He is currently working as Visiting Faculty and Research Fellow
at Area Study Centre (FESEA). His areas of interest are economics, entrepreneurship, management and
economy of the South Asian region. His research work has been published in journals such as Journal of
Enterprise Information Management, Education + Training, Academy of Entrepreneurship Journal,
International Journal of Entrepreneurship, World Journal of Entrepreneurship, Management and
Sustainable Development. Bahadur Ali Soomro is the corresponding author and can be contacted at:
bahadur.ali@scholars.usindh.edu.pk
Naimatullah Shah received PhD Degree from Brunel Business School, Brunel University, UK. He is
currently working as Professor, College of Business Administration, Al Yamamah University, Riyadh,
Saudi Arabia. His research work has been previously published in many journals such as Journal of
Business Research ( JBR), Journal of Enterprise Information Management ( JEIM), International Journal
of Business Innovation and Research (IJBIR), International Strategic Management Review (ISMR), etc.
His primary research interests include employee commitment to the organization and career, employee
readiness for change and social relationships in the workplace. His current research focuses on
entrepreneurship, organizational justice, social exchanges, ethical behavior and personality traits.

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