The Role of Entrepreneurial Orientation as a Mediator in the Relationship Between Organizational Culture and Performance: an Empirical Study in Eastern Province Hotels and Tourism Companies – Saudi Arabia

Document Type : Original Article

Authors

1 Associated Professor, Management Department, College of Business Administration, King Faisal University, Al-Hassa 31982, Saudi Arabia

2 Assistant Professor, Department of Tourism Studies, Faculty of Tourism and Hotel Management, Suez Canal University, Ismailia 41522, Egypt

3 Department of Management, College of Business Administration, King Faisal University, 380 Al-Ahsaa, Saudi Arabia

4 Tourism Studies Department, Faculty of Tourism and Hotels Management, Helwan University, Cairo, Egypt

Abstract

The purpose of this study is to examine the effects of organizational culture (OC) on the performance of small and medium-size tourism enterprises in Saudi through the mediating role of entrepreneurial orientation's dimensions. The study uses empirical data gathered from 400 usable replies from managers in small- and medium-sized hotels and travel agents in the Eastern Province of Saudi Arabia.  Two main data analysis techniques were employed: descriptive data analysis to investigate the respondent's characteristics, and structural equation modeling (SEM) using Smart PLS 3 to assess the causal relationship between the research variables. The findings indicate the direct positive significant and causal relationship between OC and entrepreneurship orientation dimensions, moreover, entrepreneurship orientation dimensions (innovation, proactivity, risk-taking) were found to fully mediate the relationship between OC and performance. Finally, these results provide several recommendations for scholars and practitioners to adopt the entrepreneurship dimension (innovation, proactivity, risk-taking) not only to deliver excellent customer service but also to expect and meet customer requirements before competitors can do. The results as well highlight great attention to startups initiation and implement new ideas whatever the risk.

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