The relationship of tightness-looseness dimension of organizational culture, financial performance and entrepreneural orientation: An aplication in Borsa İstanbul companies

The thesis study was carried out in order to reveal the interaction of tightness/looseness dimension, which is a dimension of culture, with objective financial performance outputs and entrepreneurial orientation at the organizational level. Within the scope of the study, the tightness tendency and entrepreneurship tendencies of the organization were also examined. In this model, the relationship between the tendency of tightness and entrepreneurship orientation with the structure of organizations in Turkey on the basis of cultural perspective and their financial performance has been investigated at each dimension level. The research was conducted on the companies traded on Borsa Istanbul between 2015 and 2019. Within the scope of the research, the validity analysis of the tightness/looseness and entrepreneurial orientation scales obtained based on the literature was made by applying the Structural Equation Model (SEM) confirmatory factor analysis and goodness of fit indices results were determined to be at acceptabl evalues. The coefficient of Cronbach Alpha for all scales and sub-dimensions used in the study was also calculated, and the reliability values of the scales were found to be sufficient. Within the scope of the study, sub-hypotheses including the main hypotheses and related sub-dimensions were also created by taking into account the literature information. The return on equity ratio of these companies between 2015 and 2019 was used as the determinant of financial performance. Totally 1.111 individual and 56 organization level data which subjected to the standardization process were obtained by taking average of this financial data and individual surveys. The observed variables after the standardization process were transformed into the path analysis in SEM. In line with the established model; the relationship between the tightness feature of the organization and the return on equity was examined, also the mediating effect of all dimensions of entrepreneurship orientation in this relationship was examined. As a result, although the tightness feature of the organization does not have a direct effect on financial performance, it has been observed that it has an indirect effect through the entrepreneurial orientation. It has been also determined that the tightness feature has an effect on each sub-dimension of the entrepreneurial orientation. Additionally, it has been observed that Borsa İstanbul's companies that contribute significantly to the Turkish economy tend to be tightness.