MAKERERE UNIVERSITY BUSINESS SCHOOL

ORGANIZATIONAL CULTURE, MARKET KNOWLEDGE AND ORGANIZATIONAL

PERFORMANCE OF SMALL FOREIGN-OWNED SOLAR ENERGY FIRMS IN

UGANDA

BY CHEN

TONG
2014/HD10/2680X
[email protected]
+256750776881

A DISSERTATION SUBMITTED TO MAKERERE UNIVERISTY IN PARTIAL

FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTERS OF INTERNATIONAL BUSINESS
OF MAKERERE UNIVERSITY

AUGUST, 2016

PLAN A
 DECLARATION

I Chen Tong, declare that this dissertation is my original work and has never been submitted for

any academic award in any university or institution of higher learning.

Signed……………………………… Date…………………………………
CHEN TONG
2014./HD10.2680x

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 APPROVAL

This dissertation has been written under my close supervision and is now being submitted for the
award of the Degree of Master’s Degree in International Business, with my approval as the
University Supervisor.

Signature………………………. Date: ………………………….

DR. JOTHAM MBIITO BYARUGABA

Signature……………………… Date: ………………………...

DR: TIMOTHY ESEMU

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 DEDICATION

This dissertation is dedicated to my mother who encouraged me and offered financial assistance

may God bless you abundantly.

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 ACKNOWLEDGEMENT

I would like to acknowledge the efforts of different individuals who made numerous contributions
towards the completion of this work. First and foremost, I would like to extend my sincere
appreciation to my supervisors Dr. Timothy Esemu and Dr. Jotham Mbiito Byarugaba, for their
invaluable time, guidance and encouragement that enabled me to complete this research in time
may God reward you. To my friends Monica Kamau, Collins Kipchumba Sang, Hani Abdulkadir,
Shafie Abdi Rashid Ali for the moral support and help rendered during the two years. Thank you
for the encouragement, material support and understanding during this time. You will always be
treasured in my life you made the course worth pursuing. To my parent, and husband, thank you
for your love, untiring and immeasurable moral support may the almighty God bless you. Finally,
to the Almighty God, who gave me life and energy to pursue this degree. Thank you for your
blessings.

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List of Tables
Table 1: Cronbach Alphas Reliability Coefficients ............................................................................ 19
Table 2: Detailed Frequency table ...................................................................................................... 21
Table 3: Descriptive Statistics ............................................................................................................ 22
Table 4 Pearson Bivariate Correlation Analysis ................................................................................ 23
Table 5: Simple Regression analysis .................................................................................................. 24

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 Contents
DECLARATION ................................................................................................................................... i
APPROVAL ......................................................................................................................................... ii
DEDICATION..................................................................................................................................... iii
ACKNOWLEDGEMENT ................................................................................................................... iv
List of Tables ........................................................................................................................................ v
Abstract ................................................................................................................................................ ix
CHAPTER ONE ................................................................................................................................... 1
INTRODUCTION ................................................................................................................................ 1
1.1 Background of the study ................................................................................................................. 1
1.2 Statement of the Problem................................................................................................................ 3
1.3 Purpose of Study............................................................................................................................. 3
1.4 Objective of the Study .................................................................................................................... 3
1.5 Research Questions......................................................................................................................... 4
1.6 Scope of the Study .......................................................................................................................... 4
1.7 Significance of the Study................................................................................................................ 4
1.8 Conceptual Framework................................................................................................................... 5
1.9 Chapter Summary and Conclusion ................................................................................................. 5
CHAPTER TWO .................................................................................................................................. 6
LITERATURE REVIEW ..................................................................................................................... 6
2.0 Introduction..................................................................................................................................... 6
2.1 Organizational culture .................................................................................................................... 6
2.1.1 Beliefs .......................................................................................................................................... 6
2.1.2 Shared values ............................................................................................................................... 7
2.1.3 Time management ....................................................................................................................... 8
2.2 Market knowledge .......................................................................................................................... 8
2.2.1 Customer needs............................................................................................................................ 9
2.2.2 Awareness of customer needs...................................................................................................... 9
2.2.3 Policy ........................................................................................................................................... 9
2.2.4 Competition ............................................................................................................................... 10
2.3 Organizational performance ......................................................................................................... 10

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2.3.1 Sales Growth.............................................................................................................................. 11
2.3.2 Market share .............................................................................................................................. 12
2.4 Organizational culture and organizational performance............................................................... 12
2.5 Organizational culture and market knowledge ............................................................................. 13
2.6 Market knowledge and organizational performance .................................................................... 14
2.7 Chapter summary.......................................................................................................................... 15
CHAPTER THREE ............................................................................................................................ 17
RESEARCH METHODOLOGY ....................................................................................................... 17
3.1 Introduction................................................................................................................................... 17
3.2 Research design ............................................................................................................................ 17
3.3 Population of the study ................................................................................................................. 17
3.4 Sampling size and sampling procedure ........................................................................................ 17
3.5 Data sources and collection instrument ........................................................................................ 18
3.6 Measurement of study variables ................................................................................................... 18
3.7 Reliability of the instrument ......................................................................................................... 19
3.8 Validity of the instrument ............................................................................................................. 19
3.8 Data analysis ................................................................................................................................. 19
3.9 Ethical considerations ................................................................................................................... 19
3.10 Limitations of the study .............................................................................................................. 20
CHAPTER FOUR .............................................................................................................................. 21
PRESENTATION AND INTERPRETAION OF FINDINGS........................................................... 21
4.1 Introduction................................................................................................................................... 21
4.1.1 Sample Characteristics............................................................................................................... 21
4.2 Correlation Analysis ..................................................................................................................... 23
4.2.1 Correlation analysis between Organization culture and Organization Performance ................. 23
4.2.2 Correlation analysis between Organization Culture and Market Knowledge ........................... 23
4.2.3 Correlation analysis between Market Knowledge and Organization Performance ................... 23
CHAPTER FIVE ................................................................................................................................ 26
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ................................................... 26
5.0 Introduction................................................................................................................................... 26
5.1 Discussion of Findings ................................................................................................................. 26
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5.1.1 Organizational culture and organizational performance............................................................ 26
5.1.2 Organizational culture and market knowledge .......................................................................... 27
5.1.3 The relationship between Market knowledge and organizational performance ........................ 27
5.1.4 The effect of organization culture and market knowledge on organization performance ......... 27
5.2 Conclusion(s) ................................................................................................................................ 28
5.3 Recommendations......................................................................................................................... 29
5.3.1 Organization culture and organization performance ................................................................. 29
5.3.2 Market knowledge and organization performance .................................................................... 29
5.1.3 Organization culture and market knowledge ............................................................................. 29
5.1.4 The effect of Organization culture, Market knowledge’s on organization performance .......... 30
5.4 Areas for Further Research ........................................................................................................... 30

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 Abstract

This research was carried out to investigate the relationship between organizational culture, market
knowledge and organizational performance of small foreign-owned solar energy companies in
Uganda. The objectives of the study were to establish the relationship between organizational
culture and organizational performance of small foreign-owned solar energy firms in Uganda, to
analyze the relationship between organizational culture and market knowledge of small foreign-
owned solar energy firms in Uganda, to establish the relationship between market knowledge and
organizational performance of small foreign-owned solar energy firms in Uganda and to establish
the effect of market knowledge and organizational culture on organizational performance of small
foreign-owned solar energy firms in Uganda. Convenience and purposive sampling techniques
were used to select the sample.

A sample of 108 respondents was analyzed and based on descriptive cross-sectional survey
approach analysis was done using frequency distribution, correlations and regression analysis. The
data was analyzed using Statistical Package for Social Sciences version 20. The regression results
indicated that Market knowledge had more predictive power .843 indicating that it explains 84.3%
of organization performance, while organization culture has .121. indicating it explained 12.1% of
organization culture.

The findings indicated a positive and significant relationship between the organizational culture
and organizational performance signifying that any positive change in organization culture
improve organization performance. The findings also revealed a positive and significant
relationship between organization culture and market knowledge and also the findings revealed a
positive relationship and significant relationship between market knowledge and organization
performance. In general organization culture and market knowledge when utilized in solar business
improves organization performance.

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 CHAPTER ONE

INTRODUCTION

This chapter contains the background of the study, statement of the problem, purpose of the study,
objectives of the study, research questions, scope of the study, significance of the study, and the
conceptual framework.

1.1 Background of the study

Increasing globalization requires more interaction among people from diverse cultures, beliefs,
and backgrounds than ever before (Mazur, 2010). People no longer live and work in an insular
marketplace; they are now part of a worldwide economy with competition coming from nearly
every continent. For this reason, organizations need differences to become more creative and open
to change. As consumers are demanding for energy solar companies need to fill the void that
exists in the market because the cost for modern hydroelectric power is high and for this same
reason the companies need to perform and compete in a dynamic consumer sensitive market.
Therefore, maximizing and capitalizing on workplace differences has become an important issue
for management today (Arredondo, 2004). Since managing differences remains a significant
organizational challenge, managers must learn the managerial skills needed in a multicultural
work environment. Supervisors and managers must be prepared to teach themselves and others
within their organizations to value multicultural differences in both associates and customers so
that everyone is treated with dignity (Earley & Mosakowski, 2011).
Organizational culture is considered to be shared values, beliefs and assumptions that exist among
employees within a company that help to guide and coordinate behavior. Moreover, the core
values of an organization will reflect the member behavior and organizational practices
(Macintosh & Doherty, 2010). It is assumed that both individuals and organizations will be more
effective when the values of the person and organization are congruent (Shin & Holland, 2004).
Congruence of values of the organization and the person is likely to lead to job satisfaction
Managing and valuing differences is a key component of effective people management, which
can improve workplace productivity. Unmanaged differences in the workplace might become an
obstacle for achieving organizational goals. Therefore, differences can be perceived as a “double -
edged sword” (Rijamampianina & Carmichael. 2012).
There have been so many changes in the cultural make-up of organizations that it becomes
imperative for leaders and supervisors to understand cultural differences and how it can affect
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their organization (Tajfel & Turner, 2008). Organizational culture has been defined as “the
representation, in one social system, of people with distinctly different group affiliations of
cultural significance. Researchers have gone further to define differences in primary and
secondary dimensions. Primary dimensions being age, ethnicity, gender, physical
abilities/qualities, race, and sexual/affection orientation. The primary dimensions “shape our basic
self-image as well as our fundamental world view.” Additionally, they have the most impact on
groups in the workplace and society. The secondary dimensions include educational background,
geographic location, income, marital status, religious beliefs and work experience. These impact
our “self-esteem and self-definition.” These dimensions are not exact—there are times when the
secondary dimensions will have as much impact as the primary dimensions (Tsui, Egan. &
O’Reilly, 2012) and as such there is need for organizations to clearly understand culture and
incorporate the concept in the company as it can lead to job satisfaction. Marketing knowledge
usefulness has been the object of increasing concern within the discipline. Numerous
shortcomings of its various aspects have been identified, elaborated and accompanied with
sophisticated solutions (Bartels, 2012). According to Glazer (2013), further progress in this
direction is potentially much greater in a case of acceptance of the user perspective approach. In
relation to the behavior of a marketing manager, simple acceptability-affordability-availability
awareness concept is presented. It redirects our attention to the manager’s point of view and serves
as an illustration of highly desirable more complex works. Proposed development leads to the
creation and integration of behavior models specific to each group of marketing knowledge
stakeholders: managers, students, academics and society (Gummesson, 2000). Furthermore,
organizational performance has also been linked to competitive advantage (Kamukama, Ahiauzu,
& Ntayi, 2011). Competitive advantage is widely conceptualized as a situation in which a firm
earns a higher rate of economic rents than the average competitor (Kamukama et al., 2011).
Foreign-owned company managers therefore need to understand how to develop strategies for
promoting culture differences and acquiring sufficient market knowledge and know how they
impact organizational performance. The question that comes to the fore is that; does
organizational culture and market knowledge influence organizational performance.

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1.2 Statement of the Problem

Despite the significance of small foreign-owned solar energy companies to the economic
development of Uganda, such businesses continue to have low organizational performance. This
could perhaps explain why most of the businesses fail to live to celebrate their first birthday.
According to the Ministry of finance Media report (2014), it has been noted that the organizational
performance is still poor with reductions in solar equipment sales, reduction in profits, and
reduction in customers. There is insufficient knowledge about what may explain this
phenomenon. Whereas, existing literature suggests factors such as organizational culture and
market knowledge may be some of the contributing factors, we know little about the same in
small foreign-owned solar energy companies in Uganda. This study will investigate this
mismatch.

1.3 Purpose of Study

The study seeks to examine the relationship between organizational culture, market knowledge
and organizational performance of small foreign-owned solar energy companies in Uganda.

1.4 Objective of the Study

1. To analyze the relationship between organizational culture and organizational

performance of small foreign-owned solar energy firms in Uganda.
2. To analyze the relationship between organizational culture and market knowledge of small
foreign-owned solar energy firms in Uganda.
3. To analyze the relationship between market knowledge and organizational performance
of small foreign-owned solar energy firms in Uganda.
4. To establish the predictive potential of market knowledge and organizational culture on
organizational performance of small foreign-owned solar energy firms in Uganda

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1.5 Research Questions

1. What is the relationship between organizational culture and organizational performance

of small foreign-owned solar energy firms in Uganda?
2. What is the relationship between organizational culture and market knowledge of small
foreign-owned solar energy firms in Uganda?
3. What is the relationship between market knowledge and organizational performance of
small foreign-owned solar energy firms in Uganda?
4. What is the predictive potential of market knowledge and organizational culture on
organizational performance of small foreign-owned solar energy firms in Uganda?

1.6 Scope of the Study

• Subject scope: The study looked at organizational culture, market knowledge and
organizational performance in small foreign-owned solar energy firms in Uganda.
• Geographical scope: The research was carried out at various small foreign-owned solar
energy firms in Kampala.
• Time scope: The study covered the period between February 2016 - September 2016.

1.7 Significance of the Study

Cultural difference are the differences that exist among people because of their racial or ethnic
backgrounds, languages, dress and traditions. This study will be useful to a number of
stakeholders like;
1. The study contributes to the current limited literature on culture differences and market
knowledge in the country, in order to strengthen the effectiveness of organization
performance in small foreign-owned solar energy companies.
2. The managers of solar energy companies who are always accountable to various
stakeholders. Using the findings from this study, they may improve on their approach by
imbedding good culture differences measures and market knowledge in their operations.
3. To the academicians who may use this research as a reference in their respective fields
of study.

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1.8 Conceptual Framework
The conceptual framework for the study is given in Figure 1 below
Figure 1.1: Conceptual Framework
Organization Culture Market Knowledge Organization Performance

 Beliefs  Customer needs  Sales

 Times  Awareness of  Market Share
Management customer
 Shared Values  Policy
 Competition

Source: Literature Review; Macintosh & Doherty (2010); Sekiguchi (2004); Organ,
Podsakoff, & MacKenzie, (2006).

The model shows the relationship between organizational culture, market knowledge and
Organization Performance. It is derived from the research model developed Organ, Podsakoff, &
MacKenzie, (2006) based on the Measurement theory based on perceptual measures of
performance; two different stimulus items were used: “Performance,” “Sales Growth and Market
share. These two items were included on the questionnaire to get questions that reflect the range
of performance indicators that might be tapped via perceptual data. Macintosh & Doherty (2010)
state that organization culture influences beliefs, shared values and time management. Satisfaction
is one of the shared values and thus influenced by organizational culture. Sekiguchi (2004) argues
that there is evidence that Market knowledge is an important determinant of long term
consequences for customer needs, awareness of customer needs, policy and Competition. Organ,
Podsakoff, & MacKenzie, (2006) explain that predictors of organizational performance include
Sales Growth and Market share.
1.9 Chapter Summary and Conclusion

In conclusion therefore the chapter tries to explain what constitutes organization culture and
market knowledge and how small foreign-owned solar companies are able to cope with the
changing dynamics of the market and what challenges the companies face in the market
environment they operate in. The chapter looks at the problems the companies are facing in order
to effectively perform better in terms of sales and market share.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
This chapter presents review of the literature from studies carried out by different authors on
organizational culture, market knowledge and organizational performance. The chapter is
structure as follows.

2.1 Organizational culture

Organizational culture has been identified as an important aspect of organizational behavior and
as a concept that is useful to understand how organizations function (Liu, Liu & Hu, 2010).
Organizational culture is defined as shared values, beliefs and assumption that exist among
employees within a company that help guide and coordinate behavior (Foon, Leong, & Osman,
2010). The core values of an organization reflect the behavior of members and organizational
practices (Macintosh & Doherty, 2010). Organizational culture is the way things are done in an
organization, employee behavioral expectations are shaped and norms. The values and beliefs that
emerge from negotiations and practices among group members become a source of reference for
what is deemed acceptable or unacceptable in an organization in terms of right and wrong
behavior (Silverthorne, 2004).
Organizational culture in several national cultures found that values and organizational practices
need to be integrated in the demographic variables such as age and gender; they impact the degree
of person organizational fit (Silverthorne, 2004).
According to Balthazar and Porter (2006) culture is characterized as the glue that holds an
organization together. Organizational culture can influence how people set personal and
professional goals, perform tasks and administer resources to achieve objectives. Thus the way
people make decisions and perceive, feel and act are some of the behaviors affected by
organizational culture (Lok & Crawford, 2003).
2.1.1 Beliefs
According to Schwitzgebel (2006), Belief is the state of mind in which a person thinks something
to be the case, with or without there being empirical evidence to prove that something is the case
with factual certainty. In other words, belief is when someone thinks something is reality, true,
when they have no absolute verified foundation for their certainty of the truth or realness of
something.
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2.1.2 Shared values
McShane and Glinow (2011) argue that Values are enduring and evaluative beliefs that act as a
direction to the preferences for outcomes or courses of action in a variety of situations. Values in
essence inform the participant what is good or bad, right or wrong. Values become shared when
a particular group of people for example in a work unit or entire organization exercise
commonality in promoting a given set of values, such as taking risk, tolerance, or being
entrepreneurial. In another contribution, Needle (2004) had earlier noted that a culture is built by
collective values, beliefs and principles of organizational members. Thus shared values are key
part of the organizational culture.
This therefore is a pointer that shared value take long to build and again endure for a long time as
culture is. Thus once shared values has been built, they become part of identifying organizational
members. This view also shows that shared values can be learned or unlearned over time.
Gupta (2009) considers shared values as the behaviors that are highly valued and rewarded in an
organization. The author also argued that the true values can only be tested within the
organization, through the employees, in relation to their collective opinion about the experience
of the values. Therefore, the widely demonstrated behaviors by the majority of an organization
are a key indicator of the learned values that are considered as appropriate.
Martin’s (2013) contribution is that shared values can enhance or inhibit organizational
operations. Values according to the scholar, limits the cooperation that organizational members
can have while collective values enhance sharing. On the other hand, the shared values that tilt
towards teamwork and collectiveness can be instrumental in facilitating tasks and operations that
require plurality of attention. Shared values perspective focuses on the need to incorporate an
ideology of Humanism where human interests, values, and dignity, freedom of thinking and
tolerance and respect toward other organizations are central (Simpson, 2012). This is emphasized
throughout the different social set up including even at workplace.
Such values are also encouraged in current organization though the degrees to which they are
promoted differ. Holistic personhood is the realization that apart from being employees, members
of the organization are appreciated for their other roles such as being parents, members of a
society, and other membership (Simpson, 2012). As a shared value, members of organization
respect others and are willing to make it possible for others to fulfil their different roles without
unnecessary difficult.

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2.1.3 Time management
According to the Oxford Advanced Learner’s Dictionary time is defined as a period either long
or short, during which you do something or something happens while management is defined as
the act or skill of dealing with people or situations in a successful way. Time management is the
ability to plan and control how you spend the hours in your day to effectively accomplish your
goals. Poor time management can be related to procrastination, as well as problems with self-
control. Skills involved in managing your time include planning for the future, setting goals,
prioritizing tasks, and monitoring where your time actually goes (Beaumont, 2013). Time is an
essential resource every manager needs to achieve the goals and objectives of an organization. It
is so delicate that it cannot be saved but can only be spent and once misused it can never be
regained. Every manager is looking for ways to improve time management. Whether it is the
management of an organization looking for business improvement or an individual looking for
ways to better spend their time, time management is important to both.

2.2 Market knowledge

It is widely agreed that in today´s competitive business environment, the proprietary knowledge,
which distinguishes a company from another, has become a key factor for success (Harden,2002).
Yet, organizations only use a fraction of the knowledge they possess. The world is entering a
knowledge society in which knowledge is the main capital. The knowledge-based view of the
firm holds that knowledge is the key resource for creating, enhancing, and maintaining the
economic benefits. Today, knowledge and strategic knowledge as a valuable resource for the
company’s first strategic resources in the 21 st century. Researchers and scientists are trying to find
out how to effectively collect and manage the knowledge resources in order to be used as a
competitive advantage.
Market knowledge creation, dissemination, and its storage can strengthen distribution channels,
marketing, marketing research, improving products or services, promotion and pricing. In order
to understand market knowledge, we look at the various measure of market knowledge and they
are as follows;

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2.2.1 Customer needs
According to Tony (2013), the success of every company is dependent on its ability to create
products and services that address unmet customer needs. Despite this fact, in over 95 percent of
all companies, marketing and development managers don’t agree on what a customer “need” even
is. More specifically, they do not agree on what characteristics a customer need statement should
possess, what information it should contain, its purpose, and how it should be structured. The first
step in becoming a customer-centric organization is agreeing on a customer needs definition.
Over the past two decades, we have worked to overcome this fundamental problem by
inventing the “perfect” customer need statement. Our work is grounded in the fundamental
belief that people buy products and services to get a “job” done. Looking at markets
through a jobs-to be-done lens, we’ve discovered that a customer need is defined as a
uniquely structured statement that describes how a customer measures success when
getting a job done. We call these statements “desired outcomes”. These statements, often
totaling more than 100 for a given job, describe the precise dimensions along which
customers potentially seek to get the job done better (Ulwick, 2012)
2.2.2 Awareness of customer needs
The recent economic slowdown has forced more companies to place a greater emphasis on
maintaining their existing customer base while struggling to expand market share. While customer
satisfaction has always been a key component of success, companies must now ensure that all
employees are fully aware of the importance of providing unparalleled customer service.
Customer Service Awareness is designed to reinforce positive customer service habits while
minimizing negative behaviors that may erode customer confidence (Schwartz, 2012).
2.2.3 Policy
A policy is a deliberate system of principles to guide decisions and achieve rational outcomes
(Greenberg, 2013). A policy is a statement of intent, and is implemented as a procedure or protocol.
Policies are generally adopted by the Board of or senior governance body within an organization
whereas procedures or protocols would be developed and adopted by senior executive officers.
Policies can assist in both subjective and objective decision making. Marketing and advertising
policies that involves customer targeting, policies concerning market research and policies on
customer privacy as more companies battle for customers, customer privacy is a major issue that
firms have to deal with in a dynamic environment. Policies to assist in subjective decision making

9
would usually assist senior management with decisions that must consider the relative merits of a
number of factors before making decisions and as a result are often hard to objectively test e.g. work-
life balance policy (Lowi, 2011).
2.2.4 Competition
Identify and developing sustainable competitive advantage could be considered one of the most
critical activities for a business venture. The process can often be challenging to the typical small
business owner as the process can often be both difficult and time consuming. Developing
competitive advantage can be especially demanding for small and new emerging business
operating in industries where many other businesses already compete. Unfortunately, some new
entrepreneurs lack an understanding of the process and/or fail to recognize the importance of
developing sustainable competitive advantage of their business venture.
In some instances, new business venture neglect securing a market position where business could
have reasonable chance for success. In some case a business will struggle to compete with bigger
competitors while focusing on prices, while other business believes that the key to business
success is to open their business and customers will rush to purchase their products and services.
According to Winner, (2004), developing competitive advantage centers on three key
components. The author states that first competitive advantage must be able to generate customer
value. Customer value can be defined by the customer in terms of lower price
2.3 Organizational performance
In today’s dynamic and rapidly changing workplace and globalized economy development of
organizational performance is associated with the development of personal performance, skills
knowledge and experience (Covey, 1989; Covey, 2004; Jones et al., 2000). However, the ability
to maintain high performance and productivity in organization sis a key challenge facing
management today. Organizations have an important role in our daily lives and therefore,
successful organizations represent a key ingredient for developing nations. Thus, many
economists consider organizations and institutions similar to an engine in determining the
economic, social and political progress (Seashore, 2007). Continuous performance is the focus of
any organization because only through performance organizations are able to grow and progress.
Thus, organizational performance is one of the most important variables in the management
research and arguably the most important indicator of the organizational performance.

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Although the concept of organizational performance is very common in the academic literature,
its definition is difficult because of its many meanings. For this reason, there isn’t a universally
accepted definition of this concept. In the '50s organizational performance was defined as the
extent to which organizations, viewed as a social system fulfilled their objectives (Georgopoulos
and Tannenbaum, 2009: p. 535).
In general, the concept of organizational performance is based upon the idea that an organization is
the voluntary association of productive assets, including human, physical, and capital resources, for
the purpose of achieving a shared purpose (Alchian & Demsetz, 1972; Barney, 2001; Jensen &
Meckling, 1976; Simon, 1976). Those providing the assets will only commit them to the organization
so long as they are satisfied with the value they receive in exchange, relative to alternative uses of the
assets. As a consequence, the essence of performance is the creation of value. So long as the value
created by the use of the contributed assets is equal to or greater than the value expected by those
contributing the assets, the assets will continue to be made available to the organization and the
organization will continue to exist. Therefore, value creation, as defined by the resource provider, is
the essential overall performance criteria for any organization. How that value is created is the essence
of most, thus, organizational theories that followed supported the idea of an organization that achieves
its performance objectives based on the constraints imposed by the limited resources (Lusthaus and
Adrien, 2008).
2.3.1 Sales Growth
According to Ho (2014) financial measures refer to observable accounting indicators such as
profitability, sales and market share growth, whereas operational measures refer to intermediate
results that should lead to economic success such as customer satisfaction, firm’s image or
reputation and new product success (Gonzalez- Benito et al. 2009). The second perspective is
whether it impacts the viability of the firm in the short term versus medium and long term.
Profitability is seen as short term indicator (Geringer et al.1998; Kang& Montoya 2014), whereas
market response (sales growth and market share growth), market position value i.e. customer
satisfaction, firm’s image/ reputation and new product success reveal insights about medium to
long term viability.

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2.3.2 Market share
Finally, firm performance can be viewed in terms of Market share, and adaptability (Walker &
Reukert 2007) whereby effectiveness measures look to quantify market success such as sales and
market growth, customer satisfaction and firms image. (Menguc et al 2007), efficiency measures
look at resources required to achieve market effectiveness e.g. return on investment, profitability.
Adaptability measures look at the firm’s ability to respond to changes and opportunities in the
external environment such as new product success (Gonzalez- Benito et al 2009).
2.4 Organizational culture and organizational performance
Culture is a universal phenomenon as there is no society in history without a culture. But culture
varies from one society to another. Studies of formal organizations in both Western and non-
Western societies have shown the implications of varying cultures for ‘organiz ational operations
and performance’. Organizations operating in different cultural contexts have become
increasingly sensitive to the potential impact of the culture of a host country on organizational
performance. (Brown 2013, and Hofstede 2009). According to Forehand and von Gilmer (2009),
organizational development depends on analysis and identification of the factors that conclude
the effectiveness of the organization. Organizations and managers are willing to get employees
commitment, which leads to improved productivity. Management would like to introduce
employees with norm, values and objectives of the organization which is importance to
understand the organizational culture. It is the responsibility of the management to introduce the
organizational culture to its employees that will assist the employees to get familiar with the
system of organization. Management must try to always keep learning environment in the
organization. Proper understanding of organizational culture should lead towards improvement
of employee’s performance. As per organizational development is concerned, employee’s
performance is considered as a back bone for the industry, so organization’s wants to get the
loyalty of their employees towards organization (Kotter and Heskett (2012).
The complete knowledge and awareness of organizational culture should help to improve the
ability to examine the behavior of organization which assists to manage and lead (Brooks, 2006).
Pettigrew (2009) was used the term “organizational culture” first time in the academic literature
for his study in the journal of “Administrative Science Quarterly”. It is necessary for the
management to identify the norms and values of the organization of the employees. It should be

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noted that culture of the organization should be developed in a way as to improve the style of
employee’s performance and continuously develop the quality awareness.
The claim that organizational culture is attached to performance is initiated on the apparent role
that culture can play in caused competitive advantage. Rousseau (2006) studied to overcome some
of the limitations in measuring the culture of organization. At the end the results show that there
are no positive correlations between culture and employee’s performance. After critically
reviewed the methodologies and findings of recent researches, it is assumed that there is a link
between culture and performance (Lim, 2005).
Theorists also argue that sustainable competitive advantage arises from the formation of
organizational competencies which are both superior and incorrectly imitable by competitors
(Saa-Pe’re and Garcia-Falcon, 2002). Practitioners and academics suggested that the performance
of an organization is dependent on the degree to which the values of the culture are
comprehensively shared (Denison, 1990).
2.5 Organizational culture and market knowledge
Public and non-profit organization are increasingly committed to introducing deep changes
associated with the growth of contract-based services, improving service quality standards
towards users, introducing efficient and effective mechanisms of management (Macedo and
Pinho, 2006; Rodrigues and Pinho, 2010). In this context, the adoption of business-oriented
approaches in organizations is recognized as a critical factor, with organizational culture and
market knowledge potentially playing a pivotal role in influencing organizational outcomes. The
phenomenon of organizational culture is established as a dominant concept in organizational
theory and other fields of organizational research (Harris and Ogbonna, 2002). According to
O’Reilly (2009) organizational culture refers to how well an organization meets customer
requirements and the extent to which organizational members “fit” within a particular
organization. It has been defined as “the pattern of shared values and beliefs that help
organizations understand organizational functioning and thus provide them with norms for
behavior in the organization” (Deshpande and Webster, 2008). Market orientation, a related but
distinct construct (Denison 2009; Farley et al. 2008), has for the past few decades dominated the
marketing theory and practice. The market orientation construct, which is considered to reflect
the implementation of the marketing concept (Kohli and Jaworski, 2009), can either be viewed
from a behavioral (Kirca et al., 2005) or from a cultural perspective (Homburg and Pflesser 2000).

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Although some researchers view market orientation as an aspect of organizational culture
(Homburg and Pflesser 2000), or as a culture within the firm, others regard it as a separate
construct (Farley et al., 2008). In this study, market orientation is not considered as a type of
culture, but rather as a pattern of behaviors which exists in varying degrees within organizational
types (McClure, 2010). Despite increased research interest in this construct, there is no clear
agreement about its definition and measurement among researchers and practitioners (Deshpande
and Webster 2009).
However, there is consensus that this complex and broad construct is the critical element that
management can use to shape strategic direction, particularly in circumstances requiring a rapid
response to external pressures (Smircich 2003; Appiah-Adu and Blankson 2008).
2.6 Market knowledge and organizational performance
The globalization of economy and a more demanding market with a high level of market demand
are pushing the firms, mainly the small and medium-sized enterprises (SMEs), to re-structure
their business strategies in order to update them to the current market demand. Similarly, different
firms are considering Market knowledge as a strategy that allows them to improve their level of
competition (Audretsch and Thurik, 2000; 2001; 2004) because knowledge is considered as an
essential element to obtain a higher level of competitiveness and innovation in organizations
(Corso et al., 2003; Chirico, 2008). For this reason, SMEs have to improve their business skills
in order to manage more efficiently the knowledge generated by their employees so they can adapt
faster to the external and internal changes that will allow them to apply innovation activities and,
as a consequence, improve their economic fringes (Teece et al., 1997; Eisenhardt and Martin,
2000).
The transformation of the current society from an industry-based economy to a Market knowledge
and innovation-based economy is changing the design and implementation of business strategies
and the nature of the competition among the organizations which are mainly enterprises (SMEs).
They struggle to survive in a market which is more demanding and competitive, so they see
knowledge management as one of the most effective strategies that may help to enable the
innovation activities into the businesses. In recent years, an increasing number of studies have
focused on the concept of “Market knowledge "with the aim of understanding the effect of Market
knowledge on organizational performance (Greenley 1995; Kohli and Jaworski 1990; Narver and
Slater 1990; Slater and Narver 1994a). Market knowledge fundamentally establishes tenets of

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organizational behavior with respect to a firm's business constituents (customers, competitors,
internal functions), which unequivocally make an impact on organizational performance. In line
with this reasoning, researchers have pursued extensively an understanding of the link between
Market knowledge and performance, investigating a direct causal link (Narver and Slater 1990;
Ruekert 1992), a moderated relationship (Day and Wensley 1988; Diamantopoulos and Hart
1993; Greenley 1995; Jaworski and Kohli 1993; Slater and Narver 1994a), and even the roles of
market orientation's antecedents (Jaworski and Kohli 1993).
In this sense, the current environment of business is changing rapidly from an industrial-based to
a knowledge-based (Drucker, 1994; Van de Ven, 2004; Lu et al., 2008) by means of two essential
elements. On one hand, we have the globalization of economy (Lu et al., 2008) while on the other
hand we have fast technological changes (Santos et al., 2004; Peng, 2006). Basically, the swift
development of information technologies and the use of internet in most firms facilitate the
interaction with clients, suppliers and consumers (Chen, 1997) which produce important changes
in the nature of the organizations. Thus, this new business environment is requiring from SMEs
to build and improve their skills based on a specialization of knowledge and innovation in order
to improve their productivity and provide products that are more adequate to their consumer than
the ones provided by their competition (Lu et al., 2008). As a result of these changes, most
managers are implementing new strategies for the creation, development and retention of
knowledge generated by employees which allow the survival and development of such SMEs.
Then, the knowledge management is present in the current literature as one of the most important
elements that enable the design and implementation of innovation activities as an integral part of
the business strategies of the firms (Hitt et al., 1998; Lee & Grewal, 2004; Miller et al., 2007).
2.7 Chapter summary
Culture and market knowledge is being investigated to impact miscellany of organizational
performance. Organizational culture has a deep impact on the performance of employees that can
cause to improve the productivity and enhance the organizational performance (Gallagher, 2008).
Results of these studies mostly show positive association between strong culture, market
knowledge and performance improvement. On the basis of this study we can conclude that
organizational culture and market knowledge has a positive impact on the employee’s job
performance.

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According to the study of Gallagher (2008), performance of the employees caused for the increase
in net profit of the organization. Positive development is easier to achieve when everyone is on a
common path in the organization. It is viewed in this particular study that strong organizational
culture is very helpful for the new employees in order to get the competitive advantage under the
particular conditions.

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction
This chapter looks at practical procedures carried out during this study. It gives details of the
research design, area of study, study population, nature of sample, sampling procedure, data
collection instruments and procedures, and data analysis techniques that was applied. It gives the
framework within which data was collected, analyzed and presented.
3.2 Research design
The study used a descriptive cross-sectional survey approach where data was collected at a
particular point in time. This kind of research design is preplanned and structured, and is typically
based on a large sample (Churchill & Iacobacci, 2004). It describes specific characteristics of the
study variables, and generates data that allows for relationships or associations between two
variables to be identified (Sekaran, 2000). Considering the nature of the study objectives, a cross
sectional survey design was found suitable to gather quantitative data and make statistical
predictions and correlations of factors associated with culture differences, market knowledge,
competitive advantage and organizational performance of small foreign-owned solar energy
companies in Uganda.
3.3 Population of the study
The study population comprises of approximately of 150 small solar energy companies in Uganda
(UBOS register, 2012).
3.4 Sampling size and sampling procedure
The sample size was determined using (Krejice & Morgan, 2010) table. Basing on a population
of 150 enterprises, the sample size thus was 108 enterprises. The unit of inquiry was therefore
involving employees/managers or owners of selected small solar energy foreign-owned
companies in Kampala and the unit of analysis was the small solar energy foreign-owned
companies in Kampala. The enterprises were selected using convenience sampling and purposive
sampling techniques for HR managers. Convenience sampling was targeting participants who are
readily available and agree to participate in a study (Latham, 2007). Purposive sampling was
targeting only small foreign-owned companies in Kampala. The researcher visited different
enterprises around Kampala and select the manager who would be readily available and agree to

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participate in the study. The choice of this method was used because it will minimize bias in the
findings.
3.5 Data sources and collection instrument
Primary data: Primary data was obtained through the use of self-administered questionnaires
to respondents following systematic and established academic procedures, as suggested by
(Nunnally and Bernstein, 1994). The questionnaires were used for the collection of data from
respondents.
Secondary data: Secondary data was obtained through the already existing firms’ literature
and any other literature from business reports and journals.
3.6 Measurement of study variables
The global variables in this study will be culture differences and market knowledge as predictors
of organizational performance. These were measured using scales developed and tested by
previous scholars. Specifically:
• Organizational Culture
Issues examined here were limited to the capture of customers or customer base over time.
This study adopted the tool developed by Muhamed (2012). The author measures
organizational Culture differences in terms of Beliefs, Shared values and Time management.
• Market knowledge
The item questions will capture the customer needs, awareness of customer needs, User
condition, policy and competition. As such, this study adopted and modified a tool developed
by Babirye (2011).
• Organization performance
Organization performance was conceptualised as Sales growth and Market share. This study
used the scales modified by Kawooya (2014).

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Table 1: Cronbach Alphas Reliability Coefficients
Variables Cronbach Alpha
Organization Culture .691
Market Knowledge .702
Organization Performance .675
Source: Primary Data

3.7 Reliability of the instrument

Reliability of the scale was conducted using the Cronbach Alpha reliability coefficient. The
application of the Cronbach Alpha Reliability Co-efficient was used to test the internal
consistency of the measurement scales and a Cronbach alpha of 0.6 was taken as adequate. Any
items that did not measure the same construct were removed from the analysis.

3.8 Validity of the instrument

Validity of the instrument was obtained by talking to experts both academicians and practitioners
in the field of the study variables. These was required to comment on the relevance of the
questions/items in the instrument using the Content Validity Index (CVI).

Valid statements on questionnaire × 100

Total statements on the questionnaire

Validity of the instrument is valid when ≥0.5

3.8 Data analysis

Data from the field was processed through compiling, sorting, editing and coding to have the
required quality, accuracy and completeness. It was then entered and analyzed according to the
research questions using the Statistical Package for Social Science (SPSS) version 20.
Specifically, descriptive analysis was performed to provide results on descriptive data. Pearson
correlation was employed to determine the associations between the study variables while a
simple regression analysis was employed to determine the extent of variance explained by the
predictors

3.9 Ethical considerations

The researcher assured that confidentiality in the course of data collection from the respondent
was paramount. Here the researcher was careful not to go off what key informants and other
several participants said. Anonymity of respondents by not disclosing their identities was to be

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employed to protect third parties or pseudo names. The information collected was used strictly
for learning purposes.
3.10 Limitations of the study
1. Respondents withholding information due to fear of being victimized but however, the
researcher will assure them that the information would be kept confidential.
2. Unwillingness of respondents to fill questionnaires. The researcher will ensure
consistency in contacting the respondents and make sure reminders to be sent to them to
fill the questionnaires.
3. Respondents having a view of not obtaining any direct benefit from the research results.
However, the researcher will assure them that they would benefit in the long run when the
pertinent issues are raised to management and acted upon.

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 CHAPTER FOUR

PRESENTATION AND INTERPRETAION OF FINDINGS

4.1 Introduction

This chapter presents and explains the results of data analysis. It includes both the descriptive and
inferential statistics. Results were obtained using the following; Frequency, Correlation analysis
and regression analysis tests. This section is guided by the following objectives:
1. To analyze the relationship between organizational culture and organizational
performance of small foreign-owned solar energy firms in Uganda.
2. To analyze the relationship between organizational culture and market knowledge of small
foreign-owned solar energy firms in Uganda.
3. To analyze the relationship between market knowledge and organizational performance
of small foreign-owned solar energy firms in Uganda.
4. To establish the predictive potential of market knowledge and organizational culture on
organizational performance of small foreign-owned solar energy firms in Uganda
4.1.1 Sample Characteristics
Table 2:Detailed Frequency table
Age Bracket
Frequency Valid Percent Cumulative Percent
Valid Below 25 31 28.7 28.7
26-35 14 13.0 41.7
36-45 26 24.1 65.7
45 and above 37 34.3 100.0
Educational Level
Frequency Valid Percent Cumulative Percent
Valid Certificate 2 1.9 1.9
Diploma 5 4.6 6.5
Degree 90 83.3 89.8
Masters 10 9.3 99.1
PhD 1 .9 100.0
Professional training

Frequency Valid Percent Cumulative Percent

Valid none 2 1.9 1.9
Business 30 27.8 29.6
Entrepreneurship 52 48.1 77.8
Management 1 .9 78.7
Accountancy 2 1.9 80.6
Marketing 19 17.6 98.1
Others 2 1.9 100.0

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 Period in business
Frequency Valid Percent Cumulative Percent
Valid 3-5 33 30.6 30.6
6-10 24 22.2 52.8
11-15 51 47.2 100.0
Total 108

Source: Analysis of primary data

The results indicated by the sample characteristics showed that most respondents were above 45
years of age with 34.3%, whereas most respondents had attained at least a Degree 83.3%.
Entrepreneurship was the most sought out profession in the companies with around 48.1% and
lastly most respondents had been in the business for around 11-15 years with 47.2%
Table 3: Descriptive Statistics
Descriptive Statistics
Minimum Maximum Mean Std. Deviation
Organization culture 3.41 5.00 4.0959 .34390
Beliefs 3.00 5.00 3.9365 .46684
Values 2.20 5.00 4.1111 .66940
Time 3.20 5.00 4.3037 .40324
Market knowledge 3.33 5.00 4.2500 .34768
Customer Needs 2.75 5.00 3.8866 .53432
Awareness 2.25 5.00 4.2245 .61612
Policy 2.50 5.00 4.4954 .49054
Competition 3.00 5.00 4.4414 .46212
Organization Performance 3.07 5.00 4.1401 .38443
Sales Growth 2.78 5.00 3.9671 .53303
Market Share 2.00 5.00 4.3997 .49971
Organization Culture (Beliefs, Values, Time)
Market Knowledge (Customer Needs, Awareness, Policy, Competition)
Organization Performance (Sales Growth, Market Share)
Source: Analysis of Primary Data

The results on descriptive statistics indicated that most respondents agreed with the statements on
organization culture with a mean of 4.0959. On analyzing the measures of organization culture
the results indicated that most respondents had agreed with statements regarding beliefs=3.936,
values=4.1111, and Time=4.3037 respectively. Whereas the results on market knowledge
indicated that most of the respondents had agreed with the statements with a mean of 4.2500,
except for customer needs, all the other measures of market knowledge were in the strongly agree
range of the scores. Finally, respondents also were in agreement with the statements on
organization culture with a mean of 4.1401. The standard deviation with the range of .34 to .66

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indicated that the results were not far apart from the mean. In general, most of the respondents
agreed to the statements in the questionnaire.
4.2 Correlation Analysis
This section provides analysis of study results in accordance with the research
objectives/questions. The results from the correlations were examined using Pearson correlation
coefficient (r). The study variables examined were Organization Culture, Market Knowledge and
organization performance.
Table 4 Pearson Bivariate Correlation Analysis

Variables 1 2 3
Organization Culture (1) 1
Market Knowledge (2) 422** 1
Organization performance (3) 477** 894** 1
** Correlation is significant at the 0.01 level (2-Tailed)
Source: Analysis of Primary Data
4.2.1 Correlation analysis between Organization culture and Organization Performance
The results in Table 5 indicate a positive and significant relationship between organization culture
and organization performance. (r = .477**, p < 0.01). This results implies that as the organization
instills and streamlines it organization culture to employees the performance within the company
would improve.
4.2.2 Correlation analysis between Organization Culture and Market Knowledge
The results in table 5 also indicate a positive and strong relationship between organization culture
and market knowledge. The Pearson correlation coefficient (r= .422, P < 0.01) is significant. This
means that changes in organizational culture, such as Beliefs, Shared Values and Time
Management may lead to changes in the market knowledge. In that as the organization culture
gets adopted by the employees’ market knowledge also improves in that new ideas and knowledge
are transferred from management to the employees. Therefore, implying that organization culture
has a bearing on market knowledge.
4.2.3 Correlation analysis between Market Knowledge and Organization Performance
Results revealed a positive and statistically significant relationship between market knowledge
and organizational performance (r = .894, p < 0.01). This means that positive changes in market
knowledge are associated with positive changes in organizational performance. Then foreign

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solar companies need to ensure that they know customer needs, consumer awareness and
formulate good policies in order to improve organization performance. Therefore, as the
organization equips itself with knowledge they put themselves in a better situation that its
competitors as they are able to make few mistakes thus improving on their competitive advantage.
Knowledge is a key resource for growth and an antecedent for firms as it improves organization
performance.
4.3 Regression Analysis
Table 5: Simple Regression analysis
MODEL SUMMARY
Model R R Adjusted R Square Std. Error of Change Statistics
Square the Estimate R Square F Change Sig. F Change
Change
1 .900a .811 .807 .16884 .811 224.847 .000
a. Predictors: (Constant), MARKET KNOWLEDGE, ORGANIZATION CULTURE

ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression 12.820 2 6.410 224.847 .000b
Residual 2.993 105 .029
Total 15.813 107
a. Dependent Variable: ORGANIZATION PERFORMANCE
b. Predictors: (Constant), MARKET KNOWLEDGE, ORGANIZATION CULTURE

COEFFICIENTS
Standardized
Unstandardized Coefficients Coefficients
Std.
Model B Error Beta t Sig.
1 ORGANIZATI .135 .052 .121 2.581 .011
ON CULTURE
MARKET .932 .052 .843 17.992 .000
KNOWLEDGE
a. Dependent Variable: ORGANIZATION PERFORMANCE

Source: Analysis of Primary Data

The results of the simple regression analysis indicated that Organizational Culture and market
knowledge explain (adjusted R-Square = 80.7%) of the variance in organization performance.
From Table 6, the depicted R-Square value of 0.811 indicates that the sample used explained
81.1% of the variance in the organization performance. This means that 18.9% of the variance is
explained by other factors in the study environment.

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The Anova results indicated that the model was statistically significant F = 224.847, < 0.05. By
analyzing the Beta coefficients, it was noted that Market knowledge was a better predictor of the
variance in organization performance with a (Beta = .843, p = <.05) implying that it explains
84.3% of Organization Performance while Organization Culture explained less of the variance
(Beta =.121, p = <.05). This signified that organization culture explained about 12.1% of the
variance in organization performance. This implies that solar companies need to emphasize
market knowledge in their operations given its high predictive powers. It also means that there is
need of improvement in organization culture so that there is an improvement in the variance
explained by these variables as depicted in the conceptual model.

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 CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

This research study was aimed at analyzing the relationship between organizational culture,
market knowledge and organizational performance of small solar energy foreign-owned
companies in Uganda. In this chapter, the discussion of the findings in chapter four is presented
in relation to the research questions/objectives of the study. The chapter is divided into three
sections; the first section discusses the relationships between research objectives and answers the
research questions, the second section presents the recommendations and lastly, the third section
presents the conclusion and areas for further research.
5.1 Discussion of Findings

5.1.1 Organizational culture and organizational performance

Findings from the correlation analysis confirm a significant positive relationship between the
organizational culture and organizational performance. This implies that the more aligned the
organisational culture of the employees the more they are likely to become inclined towards the
organizational performance. In addition, as employees adopt the organization culture that is
beliefs, values and norms they become more inclined to improve organization performance.
This is in line with Forehand and von Gilmer (2009), view that organizational performance
depends on analysis and identification of the factors that conclude the effectiveness of the
organization. Organizations and managers are willing to improve employee’s commitment, which
leads to improved performance. Management would like to introduce employees with norm,
values and objectives of the organization which is importance to understand the organizational
culture. It is the responsibility of the management to introduce the organizational culture to its
employees that will assist the employees to get familiar with the system of organization. The
author further postulates that management should try to always keep a learning environment in
the organization as the proper understanding of organizational culture could lead towards
improvement of employee’s performance and hence improvement in the overall organization
performance. The findings are in line with (Brooks, 2006) view that the knowledge and awareness
of organizational culture leads to organization performance. In addition to the above, Pettigrew
(2009) postulates that the identification of the norms and values of the organization could be
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developed in a way as to improve the style of employee’s performance and continuousl y develop
the quality of awareness and in the long run improve on the organizations performance.

5.1.2 Organizational culture and market knowledge

Statistical results indicate that there is a significant relationship between organizational culture
and market knowledge. This implies that the changes in organizational culture, such as Beliefs,
Shared Values and Time Management may lead changes in the market knowledge. Different
operating environments for business have different cultures, the findings imply that as the
organization culture gets adopted through observing changes in values, time, beliefs and norms
and reacting effectively and rapidly to such changes the organization eventually acquires
knowledge and therefore improve on their competitive advantage. Lopze, Peon & Ordas, (2005)
observes that through better knowledge and understanding of the changing market environment
Market knowledge helps firms develop strategies that improve their services and products
offering and increases their value to customers.

5.1.3 The relationship between Market knowledge and organizational performance

Statistical results indicate that there is a significant relationship between Market knowledge and
organizational performance. This implies that positive changes in Customer Need, Awareness of
Customer, Policies and Competition are associated with positive changes in organizational
performance. The findings are in line with Lu et al., (2008) observation that new business
environment requires SMEs to build and improve their skills based on specialization of
knowledge and innovation in order to improve their performance and to provide products that are
more adequate to their consumer than the ones provided by their competition. In addition to the
above Naver & Slater, (1990) agree that market knowledge has a direct causal effect on
organizational performance in a way that as a firm acquires knowledge in its business operations
which is a key antecedent for competitive advantage a firm would be in a better position to
compete with others.

5.1.4 The effect of organization culture and market knowledge on organization performance

The findings revealed that organizational culture and market knowledge explains about 81.1% of
the variance in organization performance whereas 18.9% of the variance in organization
performance was due to other factors. Although when the variables were analyzed individually
the findings revealed that market knowledge contributes more to the variance than organization
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culture with 84.3% and 12.1% respectively. Both variables were statistically significant. Harden,
(2002) postulates that the knowledge-based view of the firm holds that knowledge is the key
resource for creating, enhancing, and maintaining the economic benefits. That implies that firms
that acquire knowledge are in a better position to perform that those firms that do not equip
themselves with knowledge. Similarly, the accumulation of market knowledge for external ties
also fosters a deep sense of market dynamics, which enables the frim to identify industry trends
and new market opportunities, enhancing its performance (Dougherty et al., 2000; Verganti
2009).

5.2 Conclusion(s)

The findings on organizational culture and organization performance have been found to be
significantly related to and therefore organizations should focus on having Organization Culture
being embraced by the employees in form of Beliefs, Shared Values and Time Management and
look out for various ways of improving on their organization performance in terms of sales and
market share.
In addition, the findings on organization culture and market knowledge imply that organizations
administration should ensure favorable working environment in their respective organizations
which would help in unlocking employees extra role behaviors such as courtesy and
responsiveness if they are to improve on their job productivity and cope with the changing and
challenging world, all of which influence their performance.
The findings on Market knowledge and organization performance imply that employees need to
improve on their market knowledge in terms of knowing Customer Needs, Awareness of
Customer, Policies and Competition in order to ensure the effective organization Performance.
Market knowledge equips firms with intangible assets that could ensure their survival in a rapidly
changing environment and thus ensure that they have and are in a better competitive position.
On the findings on the effect of organization culture, market knowledge on organization
performance, small solar companies need to ensure that they learn what customers require in order
to be able to satisfy their needs in a dynamic and changing environment and to also implement
and solidify organization culture and both variables indicated that when improved they eventually
lead to better organization performance.

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5.3 Recommendations

The aim of this study was to investigate the relationship between organizational culture, market
knowledge and organizational performance in solar energy foreign owned firms and
subsequently, the following recommendations were made:
5.3.1 Organization culture and organization performance
In establishing whether organizational cultures were related to organization performance results
revealed a positive relationship between organizational cultures and organization performance
basing on the evaluation done by the employees. The researcher therefore recommended that
organizations should profile Beliefs, Shared Values and Time Management for all the employees
and update these culture profiles from time to time so as to enable them know what knowledge,
skills, and other attributes that are required of their employees to perform.
5.3.2 Market knowledge and organization performance
Results revealed a positive relationship between market knowledge and organizational
performance basing on the evaluation done by the employees. The researcher therefore
recommended that organizations should profile Customer Needs, Awareness of Customer,
Policies and Competition in the market from time to time so as to enable them know what
knowledge, skills, and other attributes that are required of their employees. The Market
Knowledge should not be simply shelved by organizations but be used in making major decisions
concerning the quality of products required for them to achieve excellence as organizations.
5.1.3 Organization culture and market knowledge
In establishing whether organizational culture was related to market knowledge in organizations,
statistical results indicated that there was a significant connection between organizational culture
and market knowledge. This implies that the changes in organizational culture, such as Beliefs,
Shared Values and Time Management may lead changes in the market knowledge. Different
operating environments for business have different cultures, the findings imply that as the
organization culture gets adopted through observing changes in values, time, beliefs and norms
and reacting effectively and rapidly to such changes the organization eventually acquires
knowledge and therefore improve on their competitive advantage.

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5.1.4 The effect of Organization culture, Market knowledge’s on organization performance
It is from this that the researcher recommended that organizations employees be empowered with
the knowledge so as to understand what they expect from their customers which would in turn
help them to evaluate their performance objectively. This will not only help the employees keep
track of the quality of service they are receiving from their supervisors but also make them more
involved in the organization performance.

5.4 Areas for Further Research

Findings have shown that both organizational culture and market knowledge contribute only
80.7% to the organizational performance in small solar energy foreign owned companies,
meaning that other factors contribute 18.9%. Therefore, further studies need to be carried out to
investigate other factors in addition to organizational culture and market knowledge that lead to
organization Performance. More so, further research needs to be done to find out whether Market
knowledge and organizational culture lead to organizational performance at all business levels.

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 APPENDIX I
FINANCIAL BUDGET

Items/activity Quantity Unit cost Amount (Ushs)

Transport costs (fuel) - - 300,000/=
Telephone Expenditure 5 Airtime Cards 10,000/= 50,000/=
Data entry and analysis - - 500,000/=
Stationery 2Reams 10,000/= 100,000/=
Internet 1600 minutes 30/= 48,000/=
Typing and printing - - 200,000/=
Research Assistants 400,000/=
Binding Final booklets 10,000/=@ 40,000/=
Miscellaneous - - 200,000/=
Total 1,838,000 /=

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 MAKERERE UNIVERSITY

A QUESTIONNAIRE ON ORGANIZATIONAL CULTURE, MARKET

KNOWLEDGEAND ORGANIZATIONAL PERFORMANCE OF SMALL
SOLAR FOREIGN-OWNED COMPANIES IN UGANDA.

Please kindly spare some of your valuable time and respond to the following. The questionnaire items
are about a study on “organizational culture, market knowledge and organizational performance of
solar foreign owned companies in Uganda. The researcher has selected you to participate in this study
because you interface with customers. Results of this study will be treated as confidential and only
used for research purposes. Your participation is voluntary and your name may not be required.

SECTION A: PERSONAL INFORMATION

In this section, kindly tick the response that most describes you.

1. What is your gender category and Nationality

Male Female Foreigner Ugandan

2. What age bracket do you belong?

Below 25 26-35 36-45 45 and above
3. What is your marital status?
Single Married Divorced Widowed Other
4. (a) what is your academic qualification?
Primary Post O’ Level A’ Level Diploma Degree Postgraduate
School Primary Degree
(b) What professional training do you have?
None Business Entrepreneurship Management Accountancy Marketing Others
5. How long have you been in this business?
3-5 years 6-10 years 11-15 years 16-20 years above 20 years

6. How many employees have worked for you for at least 2 years?
2-3 4-6 7-10 11 and above
7. Title of respondent (Select one)
Owner Co-owner Supervisor/ Manager Worker

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SECTION B:

The statements below best describe culture diversity of solar foreign owned solar companies in
Uganda; kindly tick the appropriate response that applies to you.

ORGANIZATIONAL CULTURE

Please respond to the following statements by indicating the extent to which you agree or disagree
as per the given choices

Strongly Disagree1 Disagree 2 Not Sure 3 Agree 4 Strongly Agree 5

ORGANIZATIONAL CULTURE 1 2 3 4 5
A BELIEFS
1 In this organization, procedures and rules are regularly reviewed and
discussed
2 When an employee presents a new way/ process of doing things, they are
praised by management
3 Implementing new ideas here is so easy that people with good ideas do not
quit
4 When I take a risk and fail it does not hurt my career in the organization
5 If I made a mistake, I would not lose my organization entitlements
6 We often want to try out something new to take risks but to do so carefully
7 The organization regularly tries out new forms of structure and ways of
organizing
B SHARED VALUES
8 I believe in the organizational values of encouraging new ideas
9 Information is widely shared in this organization
10 I do participate in social activities with others in the organization
11 Share information with other groups only when It benefits your work group.
12 We pay attention to the powerful effects that our norms have on our
performance.
C TIME MANAGEMENT
13 I have set up a regular plan for my work activities.
14 In our organization employees value time management
15 In our organization assignments are done early so that employees have time
to do a good job
16 I plan ahead so I can be flexible about putting in extra hours if I have a lot
of work to do.
17 I regularly use a day planner to plan my activities.

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SECTION C: MARKET KNOWLEDGE
Please respond to the following statements by indicating the extent to which you agree or disagree
as per the given choices

MARKET KNOWLEDGE 1 2 3 4 5
A CUSTOMER NEEDS
1 Our solar products are tailored towards customers’ needs and preferences
2 We communicate information about our successful and unsuccessful
customer experiences to our customers
3 We carry out survey about customer preferences
4 Our organization understands how everyone in the firm can contribute to
creating customer value
B AWARENESS OF CUSTOMERS
5 Customer needs warrant appropriate research reaction
6 Our Firms creates conditions for processing, interpreting and using market
trends and events.
7 Our organizations carryout market orientation to improve performance
8 Our firm manages knowledge resources and creates knowledge in relation
to market needs and requirements
POLICY
9 We have a published regulatory policy promoting government wide
regulatory reform
10 We make reforms periodically to boost competition and performance of
our company
11 We have a body responsible for competition policy
12 The government periodically publishes a list of primary laws to be
prepared, modified or reformed
COMPETITION
13 We have various competitors in the market of solar equipment’s
14 We provide quality products to win over customers
15 Competition for our products is high on the market

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SECTION D: Organization performance
Please respond to the following statements by indicating the extent to which you agree or disagree
as per the given choices
ORGANIZATION PERFORMANCE 1 2 3 4 5

A SALES GROWTH
1 Our sales turnover has steadily declined over the years
2 The volume of sales the business has increased for the last 5 years.
3 We have registered a higher Degree of expansion of our business from its
earlier initial size.
4 In the last 5 years, our business has introduced products or services that were
new or improved to the market.
5 Our sales have improved over time.
6 We get a lot of adverts from our clients.
7 We have registered many clients this year.
8 We have registered high sales growth rates over time.
9 We incur less cost on selling and distribution.
C. MARKET SHARE
10 Our products are on high demand in this region
11 The growth rate of our business has been registered overtime.
12 Our business’ market share has increased for the last 5 years
13 The volumes of assets attained have increased for the last 5years.
14 The firm’s Equity has grown over the years.
15 The profit margin has grown over the years.

THANKS SO MUCH FOR YOUR TIME

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