Corporate culture as a tool for competitive advantage of small and medium enterprises in Uganda: a case study of the Tourism and Hospitality Sector

Abstract

The aim of the study was to investigate the role of corporate culture on the

competitive advantage of Small and Medium Enterprises (SMEs) in Uganda. A cross- sectional survey design was employed to collect data from 112 tourism and hospitality

organizations in western part of Uganda. Out of 112, ninety-six (96) firms were maintained for investigation. This study engaged both managers and employees as respondents. Reliability of all the variables was tested using Cronbach’s alpha (α) for inter-item consistency reliability and specifically for corporate culture was established to be at α=0.92. The analysis of results confirmed that corporate culture positively influenced competitive advantage of SMEs by 12.4%. The corporate cultural norms that had significant influence on competitive advantage were found to be mission (β=0.329, sig=0.006) and involvement (β= 0.208, sig=0.042) norms. Consistency (β=0.120, sig=0.467 and adaptability (β=0.120, sig=0.181) norms were found to be insignificant contributors to competitive advantage of SMEs. The study recommends that management uplifts the engagement of employees in decision making. Particular attention should be paid to the strategic planning process. The study was restricted to the tourism and hospitality sector. Therefore, future studies should conduct studies in other sectors besides Tourism and Hospitality sector.