Evaluating the role of organizational culture and management commitment in driving organizational transparency among Ghanaian SMEs

Godfrey Adda; Baba Blonch Adombilla; Michael Yipake Banseh; Ebenezer Malcalm; Esther Asiedu; Mustapha Torobo Seidu

doi:10.51867/scimundi.5.2.26

Authors

Godfrey Adda
gadda@bolgatu.edu.gh
Bolgatanga Technical University, Ghana https://orcid.org/0000-0002-9118-0750
Baba Blonch Adombilla Bolgatanga Technical University, Ghana https://orcid.org/0009-0006-4971-2369
Michael Yipake Banseh CK Tedam University of Technology and Applied Sciences, Ghana https://orcid.org/0000-0003-0993-0725
Ebenezer Malcalm Ghana Communication Technology University, Ghana https://orcid.org/0000-0001-6442-5188
Esther Asiedu Ghana Communication Technology University, Ghana https://orcid.org/0000-0002-4352-1282
Mustapha Torobo Seidu Bolgatanga Technical University, Ghana https://orcid.org/0009-0000-1922-6534

Keywords:

Ghana SMEs, Management Commitment, Organizational Culture, Organizational Transparency, Structural Equation Modelling

Abstract

This paper sought to find out how Organizational Culture (OC) and Management Commitment (MC) influence Organizational Transparency (OT) among Small and Micro Enterprises [SMEs] in Ghana. Situated on organizational culture theory and transformational leadership theory, a cross-sectional design and a quantitative research approach were utilized for the study. The total target population comprised 488 registered SMEs with owners and top managers as key respondents. Out of a total of 421 SMEs approached, using convenience sampling, 354 valid responses were obtained. Also, data were collected using a structured questionnaire with standardized measurement scales scored on a five-point Likert scale. Data were analyzed through Partial Least Squares Structural Equation Modelling (PLS-SEM) version 4.1.0.7 with 5,000 bootstrap subsamples. The findings revealed that management commitment significantly influenced transparency, with both ethical leadership of top management and provision of resources leading to extremely high outcomes of transparency. The findings further showed that management commitment played a moderating role between culture and transparency by creating a synergistic effect whereby transparency was substantially amplified when both elements worked together. The study concludes that transparency is an internalized organizational value requiring simultaneous attention to both cultural development and leadership commitment. The study recommends that SME leaders deliberately nurture cultural values promoting openness and trust while demonstrating visible commitment through resource allocation and ethical behavior. Interventions should address cultural transformation and leadership commitment simultaneously, as neither dimension alone suffices for establishing sustained organizational transparency. This dual approach is essential for enhancing organizational governance and stakeholder trust in Ghanaian SMEs.

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