Organizational Culture and Patterns of Information Processing : The Case of Small and Medium-Sized Enterprises

Organizational culture represents the best available "lubricant" that permits small and medium-sized enterprises (SMEs) to function smoothly and effectively. Information and the way it is collected, processed and used by the business is more and more critical decisive in an ever-changing environment. This might be especially the case in small and medium-sized firms. Information search and processing represents important determinants of performance and signifies critical key success factors for SMEs in their growing process. This study examines four cultural categories: clan, adhocracy, hierarchy and market-driven and their impact on patterns of information processing of SMEs. From a random sample of SMEs, Results from a random sample of 242 SMEs indicate that culture has a significant impact on various dimensions of information processing such as information search scope, formality, flexibility as well as organizational responsiveness. The study highlights the importance of maintaining appropriate organizational culture and matching it with the external environment.(Publication abstract)