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Effects of External Funding on the Work Environment of Self-Funded Firms

The work environment in organizations has been associated with a number of factors that contribute to both their success and sustainability. Many researchers have identified the role, influence or the connection between the work environment and these factors such as productivity and creativity. However, it seems that business owners do not take their organization’s work environment into consideration when making major business decisions such as acquiring external funding.

The purpose of this study is to explore the impact of acquiring external funding on the different social factors influencing the work environment for self-funded firms. We have conducted a multiple case study in which we collected data through conducting interviews with eight employees from five different organizations located in the Middle East region.

We analyzed the gathered data based on a theoretical model that connects eleven work environment dimensions with three aspects that are accompanied by acquiring external funding, which are: the changes in management and goals, financial resources and new networks and contacts.

As a result, we concluded that the changes in management and goals have the most complex effect on work environment when compared to the other two aspects. In addition, we explored how would these aspects affect the work environment, either directly or indirectly, and found that the individual level changes in the work environment are mostly affected indirectly since the employees do not tend to attribute such changes to external funding directly.

Finally, according to our results, it doesn’t seem that having the same funding type would trigger similar changes in the work environment. On the other hand, having a similar funding objective by the financing party would trigger more similarities especially when it comes to the changes in management and goals.
Source: Jönköping University
Authors: Alhosaini, Mohamad Rami | Abduldaiem, Abdulwareih

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