Entrepreneurial Organizational Culture During a Pandemic in a Labour-Intensive Industry: The Mediating Role of Fear of COVID-19, Psychological Distress, and Job Satisfaction in Turnover Intention

Ivona Mileva; Marjan Bojadjiev; Miodraga Stefanovska Petkovska

doi:10.7595/management.fon.2021.0038

Ivona Mileva University American College Skopje, Republic of North Macedonia http://orcid.org/0000-0001-5460-9346
Marjan Bojadjiev University American College Skopje, Republic of North Macedonia http://orcid.org/0000-0001-8647-0617
Miodraga Stefanovska Petkovska University American College Skopje, Republic of North Macedonia http://orcid.org/0000-0002-2253-9387

DOI: https://doi.org/10.7595/management.fon.2021.0038

Abstract

Motivation and idea: Entrepreneurial culture has been considered to have a significant positive relation with the organizational growth and self-efficacy. However, the success of entrepreneurial culture has been challenged by the COVID-19 pandemic and its influence on the well-being of employees who work in labour-intensive industries. More specifically, the level of stress among these workers is increased and that can result in physical and mental health issues, resulting in low mood and motivation, anxiety, depression, burnout, suicidal thoughts, etc. This may ultimately influence the turnover intention in these industries. Research goal: This paper investigates whether a relationship exists between entrepreneurial organizational culture and turnover intention. The goal of this study is to explore the relationship between entrepreneurial organizational culture and turnover intention in labour-intensive industries with a focus on the mediating role of fear of COVID-19, psychological distress and job satisfaction in turnover intention. Data: Quantitative research on 408 respondents has been conducted, whose results can serve as a reference for designing adequate human resource policies in labour-intensive industries. Findings: This study shows that Covid-19 challenged not only economic and financial sustainability, but also the physical and mental well-being of the people. It shows that the organizations that foster an entrepreneurial culture assist people in reducing stress, resulting in members of those organizations experiencing less tension and fear, which is an important part of one's health at such a chaotic time. Contribution: The paper is the first of its kind study and it expands existing research related to organizational culture during the pandemic, thus formulating practical suggestions to future leaders. This study has important implications for practitioners. Although no similar studies exist within the labour-intensive businesses, the analysis of these aspects will enable the leaders to assess and strengthen their connections to the company and to determine which segments of their organizational culture need to be improved so that employees should be happier and more satisfied.

Author Biographies

Ivona Mileva, University American College Skopje, Republic of North Macedonia

Ivona Mileva, MSc, PhDc., is a Teaching Assistant, Chief Academic Officer and Head of Business Administration and Economics Department at the School of Business Economics and Management, University American College Skopje. She graduated on the topic of luxury management and, currently, she enrolled in doctoral studies program in a focus of organizational behaviour field, specifically on the topic of organizational culture. Ivona Mileva, MSc, has been part of the Leadership Summit Ambassador Program, organized by People to People at the Harvard University and lately she has been awarded a certificate in Entrepreneurship from the Harvard Business School. Her academic research is focused on the area of organizational behaviour and management fields with a focus on organizational culture, leadership and motivation. She has attended a large number of conferences and co-authored academic articles both, domestically and internationally.

Marjan Bojadjiev, University American College Skopje, Republic of North Macedonia

Marjan I. Bojadjiev, PhD is a Provost and a full professor at the University American Collage Skopje since the year 2010. Previously, he has worked as CEO of the Macedonian Savings House from 1996 to 1999 and as CEO of the third largest bank in Macedonia from 1999 to 2004. Prof. Bojadjiev has served as manager of several companies in Macedonia, as a board member in professional organizations and as a moderator in conferences on national Macedonian energy and investment policies. He has completed his doctoral studies at the Ss. Cyril and Methodius University – Skopje. He earned his Specialization degree in International Business Management at the University of Trieste. He has a Master of Science degree in Banking Marketing. Prof. Bojadjiev has completed executive education courses at Harvard Business School in 2008 and 2009.

Miodraga Stefanovska Petkovska, University American College Skopje, Republic of North Macedonia

Miodraga Stefanovska – Petkovska, MBA, PhD, is an Associate Professor at the School of Political Sciences and Psychology and School of Business Administration and Management, University American College Skopje. She graduated on the topic of individual and economic determinants of retirement and was awarded an honorary Masters degree in business administration on her research on well-being among ageing workforce. She spent part of her doctoral studies at Staffordshire University, United Kingdom as a scholar of the Open Society Institute on the topic of economic trust and cooperation among religious and ethnic minorities. She obtained a doctoral degree in social sciences and gender issues on the topic of discrimination and disparities in health care. Dr. Stefanovska-Petkovska has been awarded a certificate in Statistics for health research from the Oxford University. Her academic research is focused on the area of medical sociology and sociology of health, with special emphasis on the intersection of employment and health, health literacy and self-efficacy. She has co-authored books and academic articles domestically and internationally and has been a mentor/co-mentor of over 20 master theses. She has also been an NGO activist for more than 15 years in the field of HIV/AIDS/STI prevention and management with special focus on vulnerable groups and she has participated, designed and coordinated numerous national and international projects on these issues.