Management and Development Process

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Entrepreneurship has become undeniably important in today’s economy. In ever-increasing researches undertaken in entrepreneurial area, more and more emphasis is being put on injecting entrepreneurial spirit in organizational infrastructures and harmonizing the organizations to business environment. Entrepreneurial orientation is a much ignored sub-field of entrepreneurship. This research mainly tries to study the effect of organizational culture as a series of beliefs, ideas and values in common among the members of organizations on the entrepreneurial orientation in Bank Karafarin. This article claims that organizational culture influences entrepreneurial orientation in the Bank Karafarin. Denison model was used to measure the organizational culture of the bank. The elements of the independent variable were work involvement, adaptation, conformability and mission. Meanwhile Dess & Lumpkin model was employed to measure the dependent variable, i.e. entrepreneurial orientation. The latter model evaluated seeking independence, innovation, initiation, challenge, and risk-taking as the indicators of entrepreneurial orientation. The results of the investigations demonstrated that the main hypothesis of the research, i.e. the effectiveness of organizational culture on entrepreneurial orientation, was proved to be right. In the mean time, the minor hypotheses of the study, i.e. work involvement, adaptation, conformability and mission were proved to be effective on entrepreneurial orientation as well. Finally, the study indicates that the ruling culture in Bank Karafrin is a mission culture.

Keywords: Organizational Culture, Entrepreneurship, Entrepreneurial Orientation, Denison Model, Dess & Lumpkin Model

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