Culture and Business Performance of Microenterprises in the Ancash Region – Peru

Abstract

Many scholars and practitioners in the fields of business and management have recently published theoretical and empirical studies on the subject of business culture and its impact on its growth and effectiveness; yet, there has been a dearth of research on the topic of how organizational culture affects productivity. Moreover, there are hardly any theoretical or empirical research that examines these two concepts within the context of a micro-enterprise. This chapter uses a sample of 279 Ancash Region microenterprises to investigate the effect of local entrepreneurial culture on businesses’ overall performance. Among the four types of entrepreneurial cultures studied, only the Hierarchical culture was shown to have no effect on the degree of performance of the microenterprises. There is evidence of a significant causal relationship between the variables studied, the coefficient of determination was; business performance (r² = 0.796), with an SRMR of 0.037, the confirmatory model is relevant within its range of accuracy, while market culture has the greatest impact on business performance.

Citation

Barrutia-Montoya, N., Ramirez-Asis, E., Mukthar, K.P.J., Huerta-Soto, M., Concepción-Lázaro, R. and Villanueva-Calderón, J. (2024), "Culture and Business Performance of Microenterprises in the Ancash Region – Peru", Hamdan, A., Alareeni, B. and Khamis, R. (Ed.) Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application (Studies in Managerial and Financial Accounting, Vol. 36), Emerald Publishing Limited, Leeds, pp. 229-239. https://doi.org/10.1108/S1479-351220240000036021