The impact of strong and balanced organizational cultures on firm performance

The impact of strong and balanced organizational cultures on firm performance PurposeThis study aims to investigate the relationship between organizational culture and performance. It concerns the aspects of culture related to culture strength and unbalance and its impact on introvert and extrovert firm performance, controlling for business environment and size.Design/methodology/approachBased on the competing values model (CVM), culture strength is measured as the intensity of the culture values driving the company. The cultural unbalance is measured by the sum of absolute deviations of organizational members’ culture perceptions across the four archetypes (adhocracy, clan, hierarchy and market) imposed by CVM from the individual “average” shared cultural value. Evidence is drawn upon a sample of 1,305 employees of 114 Greek firms.FindingsThe findings indicate a strong positive relationship between culture strength and internal performance (innovation competence and human relations) as well as firm outcomes (profitability, growth and reputational assets). On the contrary, culture unbalance exerts a negative influence to market position, growth and innovation competence.Practical implicationsUnderstanding the nature of the association between culture strength, unbalance and firm performance would enable academics and practitioners to reflect critically on the core culture values which shape employee involvement and formulate leaders’ quality improvement decisions and actions, so as to achieve sustainable competitive advantage at the organizational level.Originality/valueThis research provides supporting empirical evidence for the culture–performance link by identifying the principle culture value characteristics (strength and unbalance), which exert both direct and interaction effects on the introvert and extrovert aspects of firm performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Quality and Service Sciences Emerald Publishing

The impact of strong and balanced organizational cultures on firm performance

Loading next page...
 
/lp/emerald-publishing/the-impact-of-strong-and-balanced-organizational-cultures-on-firm-UlSmoljzau
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1756-669X
DOI
10.1108/IJQSS-09-2016-0065
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study aims to investigate the relationship between organizational culture and performance. It concerns the aspects of culture related to culture strength and unbalance and its impact on introvert and extrovert firm performance, controlling for business environment and size.Design/methodology/approachBased on the competing values model (CVM), culture strength is measured as the intensity of the culture values driving the company. The cultural unbalance is measured by the sum of absolute deviations of organizational members’ culture perceptions across the four archetypes (adhocracy, clan, hierarchy and market) imposed by CVM from the individual “average” shared cultural value. Evidence is drawn upon a sample of 1,305 employees of 114 Greek firms.FindingsThe findings indicate a strong positive relationship between culture strength and internal performance (innovation competence and human relations) as well as firm outcomes (profitability, growth and reputational assets). On the contrary, culture unbalance exerts a negative influence to market position, growth and innovation competence.Practical implicationsUnderstanding the nature of the association between culture strength, unbalance and firm performance would enable academics and practitioners to reflect critically on the core culture values which shape employee involvement and formulate leaders’ quality improvement decisions and actions, so as to achieve sustainable competitive advantage at the organizational level.Originality/valueThis research provides supporting empirical evidence for the culture–performance link by identifying the principle culture value characteristics (strength and unbalance), which exert both direct and interaction effects on the introvert and extrovert aspects of firm performance.

Journal

International Journal of Quality and Service SciencesEmerald Publishing

Published: Mar 19, 2018

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month