Assessing the relationship between organizational culture and strategic decision-making through the mediating effect of the dynamic environment in the Jordanian ICT industry
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DOIhttp://dx.doi.org/10.21511/ppm.22(4).2024.30
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Article InfoVolume 22 2024, Issue #4, pp. 397-413
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The need for organizations to remain flexible is crucial. This study aims to assess the way organizational culture, dynamic environments, and strategic choices can be related in the case of the Jordanian ICT industry with emphasis on the mediating effect of the dynamic environment. The paper employed a questionnaire sent to 256 employees from several ICT companies involved in strategic decision-making and planning. The analyses showed that organizational culture significantly affects strategic decision-making, with the dynamic environment serving as an important mediator. More precisely, it explained 50.6% of the variance in decision-making (R² = 0.506) and 52.2% of the variance in perceptions about the dynamic environment (R² = 0.522). Thus, consistency (p = 0.007) and adaptability (p = 0.006) emerged as critical cultural dimensions that enhance effective strategic decision-making. Additionally, the prominent effect of the dynamic environment on decision-making was identified (p = 0.000). Therefore, Jordan’s ICT companies can enhance their strategic decision-making and gain a competitive advantage in a sustainable manner by focusing on organizational culture with priorities on consistency and adaptability. This kind of culture ensures better alignment with strategies and quick responses to market or technological changes, contributing to long-term business sustainability.
Acknowledgment
Acknowledgments are expressed to Middle East University, Amman, Jordan, for the financial support to cover this article’s publishing fee.
- Keywords
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JEL Classification (Paper profile tab)L20, M14, M10, D70
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References50
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Tables10
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Figures1
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- Figure 1. Research model
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- Table 1. Cronbach’s alpha
- Table 2. Demographics
- Table 3. Descriptive statistics for organizational culture
- Table 4. Descriptive statistics for strategic decision-making
- Table 5. Descriptive statistics for the dynamic environment
- Table 6. Results of testing Ho1
- Table 7. Results of testing Ho2
- Table 8. Results of testing Ho3
- Table 9. Model fit for Ho4
- Table 10. Coefficients of direct and indirect effects for Ho4
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