This study aims to identify the prevailing type of culture and its relationship with performance in SMEs operating in Pakistan. Using competing value framework, the cultural profile and dominant characteristics of SMEs are identified and investigated to ascertain their implied relationship with organizational performance on the basis of certain self-assessment variables. For this purpose, primary data was collected form SME employees through a self-administered survey questionnaire. The results revealed that ‘hierarchy’ culture is the prevailing type of culture and a statistically significant relationship exists between organizational culture and performance among the sampled SMEs. The study concludes with certain important insinuations for theory and practice especially concerned with SMEs.