The Role of Organizational Culture in Shaping Performance Outcomes Pre and Post-Crisis: A Comparative Study in SMEs

Abstract

The impact of organizational culture on SMEs is investigated in this study in both pre crisis and post crisis settings. Four essential components of organizational culture, involvement, consistency, mission, and adaptability, and their effects on SMEs' performance are examined. Limited research on culture and performance of SMEs in the Sri Lankan context makes this analysis crucial, especially considering the challenges posed by the COVID 19 crisis. The study utilized convenient sampling for surveying 160 SME owners in Kurunegala district through a structured questionnaire distributed via a Google form and physical visits. Inferential and descriptive statistics with a 5% level of significance were used in the data analysis. In order to achieve sustainable development and success, the research emphasizes the importance of SMEs' organizational cultures, stressing the value of better internal value systems, happy work environments, and employee satisfaction. Findings reveal that in the pre crisis context, involvement, consistency, and mission significantly impact the performance of SMEs, while adaptability does not make a significant impact. However, in the post crisis context, mission and adaptability demonstrate a significant impact, while involvement and consistency are not declared as determinants of performance.