The Effect of Organizational Culture on Entrepreneurial Orientation: A Comparison between Germany and Thailand

Prior research has emphasized the positive impact of a firm's entrepreneurial orientation on its performance. An unanswered question concerns what organizational antecedents and drivers foster entrepreneurial orientation. Based on a sample of 643 German and Thai companies, this study analyzes how organizational culture influences a firm's entrepreneurial orientation and how this relationship is influenced by national culture. Results show that an organizational culture that is an adhocracy is most effective in advancing entrepreneurial orientation, especially in national cultures that are characterized by strong individualism and low power distance, whereas a hierarchical organizational culture is generally a barrier to entrepreneurial orientation.