Effects of organizational culture and organizational resilience over subcontractor riskiness

Abstract

Purpose – The central goal of this research is to understand the effects of organizational culture and organizational resilience over the riskiness versus non-riskiness categorization of subcontractors. The paper aims to discuss these issues. Design/methodology/approach – This study utilizes multiple sources of data collected in two different time setting. At time one, data were collected from the subcontractors (n=50) of a leading services providing company in Turkey. In order to validate these findings, second wave of data collection was followed one year later. This time, the data were collected from the subcontractors (n=59) of another services providing company in Turkey. Cluster approach was applied. Findings – Results from the cluster analyses revealed interesting insights. Subcontractors that were characterized by high-performance orientation, high uncertainty avoidance and high future orientation were categorized as non-risky. Therefore, the hypotheses found support. Furthermore, in terms of the organizational resilience dimensions, subcontractors having high structural reliance, organizational capability and processual continuity were also categorized as non-risky. The validation study carried out with different subcontractors also revealed the same patterns of findings. Research limitations/implications – This study revealed that organizational culture and organizational resilience carry critical implications during the subcontractor selection process. Focal companies that seek to expand their work with subcontractors should seek cultural fit and resilience. Originality/value – This study is the first study to examine the effects of organizational culture and organizational resilience over subcontractor riskiness in the same framework. Furthermore, data were collected from different sources, in two different times and using different approaches.