The impact of organizational climate and strategic fit on firm performance

The impact of organizational climate and strategic fit on firm performance A firm's organizational climate—its degree of trust, morale, conflict, rewards equity, leader credibility, resistance to change, and scapegoating—helps determine its success. Likewise, organizational strategy—the firm's commitment to capital investment, innovation, quality, and the like—has also been found to be an important determinant of firm performance. However, prior work has most often explored the impact of climate and strategy separately, and not in tandem. In our study, we develop a measure of organizational climate comprised of tension, resistance to change, and conflict, and go on to show that at least for some pairings of a firm's climate and its strategy, there is a negative effect on return on assets (ROA). © 2004 Wiley Periodicals, Inc. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Human Resource Management Wiley

The impact of organizational climate and strategic fit on firm performance

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Publisher
Wiley
Copyright
© 2004 Wiley Periodicals, Inc.
ISSN
0090-4848
eISSN
1099-050X
DOI
10.1002/hrm.20003
Publisher site
See Article on Publisher Site

Abstract

A firm's organizational climate—its degree of trust, morale, conflict, rewards equity, leader credibility, resistance to change, and scapegoating—helps determine its success. Likewise, organizational strategy—the firm's commitment to capital investment, innovation, quality, and the like—has also been found to be an important determinant of firm performance. However, prior work has most often explored the impact of climate and strategy separately, and not in tandem. In our study, we develop a measure of organizational climate comprised of tension, resistance to change, and conflict, and go on to show that at least for some pairings of a firm's climate and its strategy, there is a negative effect on return on assets (ROA). © 2004 Wiley Periodicals, Inc.

Journal

Human Resource ManagementWiley

Published: Mar 1, 2004

References

  • Strategy, innovation and performance
    Nicholson, Nicholson; Rees, Rees; Brooks‐Rooney, Brooks‐Rooney

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