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EXECUTIVE SUMMARY
This study focuses on the impact that organizational culture has on driving strategic innovation in Egyptian Micro, Small and Medium Enterprises (M/SMEs). Organizational culture constitutes an integral intangible resource that defines the organizational fabric of these enterprises, which calls for better understanding of the dimensions of the support culture that can influence and enhance innovation and hence improve performance and the growth of M/SMEs in the Egyptian economy. Much research has been done in this area in western countries, which has prompted the researchers to examine the impact of Middle Eastern cultural dimensions on strategic innovation in M/SMEs. This study looks at how different cultural dimensions, as categorized by Hofstede's cultural framework, influence the strategic innovation of M/SMEs in Egypt. A single cross sectional descriptive design was used; a purposive sample of 110 employees in micro, small and medium enterprises in Egypt was drawn from top managers, middle managers and non-managerial levels. Data was collected through a questionnaire that was adapted from existing scales, which was then used as a data collection tool in a bigger research project investigating variables that affect strategic innovation in M/SMES in Egypt. Results show that equality, prediction and positive work relationships are drivers of strategic innovation in Egyptian M/SMEs.
Keywords: Organizational Culture, Innovation, M/SMEs, Egypt
INTRODUCTION
Micro, small and medium sized enterprises are considered to be an integral part of the Egyptian economy, no doubt since they constitute a large percentage of the private sector establishments in Egypt, at 75%, and they employ 75% of the workforce (Al Said, El Said, & Zaki, 2014). It is thus essential to understand all the factors that enhance their growth. There is no unified definition for M/SMEs in Egypt. This paper depends on the definition of M/SMEs according to the number of employees, as shown in Table 1, included in the Ministry of Finance's "Profile of M/SMEs in Egypt" Update Report submitted by the Environmental Quality International in October 2005.
M/SMEs in Egypt have reportedly faced hurdles that have impeded their development, despite the many attempts of governmental and non-governmental institutions to solve them. A major hurdle that has been reported is the lack of information available about these enterprises, as well as lack of information accessible to these...