The effect of tightness-looseness dimension of organizations on the organization trust, corporate entrepreneurship and firm performance: A study on the pioneer industrial enterprises of Turkey

The purpose of this study is to discuss the possible effects and results of tightness-looseness dimension in an organizational context and determine the effect of this dimension on the organizational trust, corporate entrepreneurship and firm performance. It is also aimed to find out the relationship of tightness-looseness dimension with some variables like capital structure, sector, market size, management philosophy and number of employees. Creating a cultural profile of Turkey in the context of tightness-looseness dimension can be another purpose of this study. This study is carried out with Turkey's First and Second Top 500 Industrial Enterprises that are announced annually by Istanbul Chamber of Industry. With the aim of confirming the validity of factorial structure of the tightness–looseness, organizational trust, corporate entrepreneurship and firm performance scales and their dimensions used in this study, Structural Equation Model is used and factorial structures are confirmed. Cronbach Alpha values of all the scales and their dimensions used in this study are calculated and reliability values of the scales are obtained. To be able to present the relationship between the basic hypotheses and multivariate factors clearly and comment on them thoroughly, sub- hypotheses are created and tested. It has been tried to determine whether there is a relationship between tightness–looseness, which is handled as an exterior variable, and demographic variables of participant organizations and white collar workers. In order to analyse the basic and sub-hypotheses, Pearson's correlation and simple linear regression analyses have been used. In order to find answer to the sub-questions, T-test for binary variables and ANOVA for categorical variables are used. With the aim of finding which group has a statistical effect, Tukey HSD test is used. As a result of the analysis which was carried out for determining the relationship between tightness–looseness in organizations and organizational trust, corporate entrepreneurship and firm performance, "The hypothesis of Ha: There is a relationship between tightness-looseness dimension and organizational trust, corporate entrepreneurship and firm performance" and "The hypothesis of Hb: The dimension of tightness-looseness has an effect on organizational trust, corporate entrepreneurship and firm performance" are accepted as main hypotheses. Accordingly, it is determined that in the organizational context tightness-looseness dimension has an effect on the firms' organizational trust perceptions, corporate entrepreneurship and firm performance. Moreover, with the analyses aiming to build up a cultural profile of largest companies of Turkey, it is understood that these largest companies which take the pulse of economy and shape it have a high degree of looseness. Anahtar kelimeler: Tightness-looseness, organizational trust, corporate entrepreneurship, firm performance