Does Organizational Culture Matter in Managerial Role and High-Performance Achievement? Lessons from Nigeria SMEs

Abstract

Managerial role and organizational performance has long been highlighted by previous researchers, but majority of the researches was conducted in developed economies. Relatively small firms in developing economies are under research as the legal institutional framework and strategic markets are not well developed. Our aim is to examine how managers influence high performance achievement among small firms, and how their role is being strengthened by organizational culture. A sample of 250 managers in small- and medium-scale enterprises (SMEs) was used. The hypothesis was tested through multiple and hierarchical regression analysis. Result showed that managerial role has direct and indirect influence on high performance achievement among small firms. The study recommended that managerial practical knowledge or skills has a stronger influence on high performance achievement if the institutional environments of small firms permit managers to explore the resources generated by their experience and skills. This suggests that managerial resources alone cannot contribute to high performance achievement without strong and supportive organizational culture. SMEs should focus on building market related competitive capability in an effort to capture the emerging market prospects in these economies.