The Effects of Competitive Intensity and Organizational Culture on the Relationship Between Strategic Entrepreneurship and Employee Retention: A Case Study of Knowledge-Based and Technology Firms Located in the Aras Growth Center

Abstract

This study aimed to examine the moderating roles of competitive intensity and organizational culture in the relationship between strategic entrepreneurship and employee retention among knowledge-based and technology firms located in the Aras Growth Center. This applied study employed a descriptive cross-sectional survey design. The statistical population consisted of senior managers from 39 knowledge-based and technology firms operating in the Aras Growth Center. Because of the limited population size, all eligible firms were included through a census sampling approach. Data were collected using the standardized strategic entrepreneurship, employee retention, and competitive intensity questionnaire developed by Schulze and Dada and the organizational culture questionnaire developed by Grunert. Content validity was evaluated by academic experts, while construct validity was examined through confirmatory factor analysis. Cronbach’s alpha coefficients and composite reliability indices were used to assess internal consistency. The proposed conceptual model and research hypotheses were tested using partial least squares structural equation modeling and the bootstrapping procedure. The structural model demonstrated that competitive intensity had a positive and statistically significant moderating effect on the relationship between strategic entrepreneurship and employee retention (β=0.174, t=2.018, p<0.05). Organizational culture also positively and significantly moderated the relationship between strategic entrepreneurship and employee retention (β=0.169, t=2.448, p<0.05). Accordingly, both research hypotheses were supported. The coefficient of determination for employee retention was 0.807, indicating that the variables included in the model explained 80.7% of the variance in employee retention. Furthermore, the Q² value of 0.462 demonstrated that the structural model possessed satisfactory predictive relevance. Strategic entrepreneurship contributes more strongly to employee retention when firms operate under intense competitive conditions and maintain a supportive, participative, flexible, and innovation-oriented organizational culture. Managers of knowledge-based and technology firms should therefore complement entrepreneurial strategies with an enabling organizational culture, employee empowerment, agile decision-making structures, and human resource practices aligned with competitive environmental demands.