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Corporate culture: its value as a resource for competitive advantage
Abstract
Purpose
The purpose of this research study is to investigate the application of the resource‐based view to a construct of organizational culture, doing so in the context of the generic models of business strategy.
Design/methodology/approach
The original research underlying this paper was an empirical study of 311 organizational sub‐units, comprising over 2,600 individual respondents. The measures consisted of two data collection instruments: a valid and reliable survey instrument (the Organizational Culture Inventory; OCI), and an Executive Manager Interview form designed for this research project.
Findings
Although the author has all of the research results in terms of statistical results, for the practitioner readership of this journal, the results are restated the results in conceptual, not statistical, terms. The findings included that adaptive, flexible (technically “constructive” cultures) appear to be positively related to desirable outcomes (including quality of the firm's products and services), regardless of the type of strategy deployed.
Research limitations/implications
The results suggest that to become a high‐performance organization, key members need to understand their business strategy and create an adaptive, flexible, constructive culture that will facilitate the implementation of the business strategy.
Originality/value
This research fills a void in the area of empirical studies testing the linkage between business strategy and organizational culture.
... Also, the strong culture is likely to last more during the change process and replacement of employees (Kotter & Hesket, 1992). Culture is an internal resource and should link the organization's internal resources and capabilities with its external opportunities and threats (Klein, 2011), and more efficient this linkage better results are expected. Therefore, it is demanded by management the establishment of a strong organizational culture. ...
... Particular types of organizational culture are fit better in specific conditions. Thus, a more innovative culture that rewards risk-taking, creativity, and innovation is ideal in organizations that emphasize innovation and new product development (operated in new technologies sector) (Klein, 2011), while the hierarchy culture mainly dominates in public organizations (Saif, 2017). ...
... According to Hoffman and Klepper (2000), organizational culture is amorphous, difficult to measure and quantify. However, variations in the organization's capabilities and resources included in corporate culture may impact performance differentiations across companies (Klein, 2011). Finally, Heskett (2012) pointed out that the contribution of organizational culture to corporate performance is 'substantial and quantifiable' and can add for 20-30% on this compared with 'culturally unremarkable competitors'. ...
Organizational culture is a critical issue in the practical and academic side of business management. An efficient organizational culture is closely related to the firm's quick response to internal and external challenges and positively contributes to its operational and financial performance. Scholars proposed some generic types of organizational culture that provide a valuable framework for management to identify their cultures and adapt to the more appropriate and efficient ones for their case. This particular chapter presents the primary studies that propose generic organizational culture types, criticizing and discussing them. The study highlights the essential commonalities of the various theories. There are cases where more than one generic type exists within a firm, operating in benefit or detriment of organization performance. Other important business issues related to organizational cultures, such as the impact of the national cultures, the appropriate leadership, and motivation, are also presented in this chapter. The current study can benefit academic scholars and professionals by providing new knowledge and valuable insights into the importance of organizational culture and the cultural transformation for enabling operational excellence in a multicultural business context.
... Organizational culture can be a unique strategy for organizations to take advantage of their competitors (Stinnett, 2001). A successful organization relies on prudent strategy to achieve its set objectives and growth (Klein, 2011). An organizational strategy is formulated on organizational culture (Gibson, Ivancevich & Donnelly, 1997) and every organizational strategy implemented has a culture that supports it (Lizelle, 2001). ...
... An organization's strategic plan often reflects its core beliefs, cultural traits and managerial values (Naranjo-Valencia et al., 2011) as they dwell in management's strategic thinking and can response to external forces. Organizational culture influences strategy formulation and implementation, however, a prolonged use of certain strategies may have influence on organizational culture by either strengthening or completely changing the existing culture (Klein, 2011). Management frequently encourages integration of culture and strategy in innovative strategy implementation so as to achieve the objective of the new strategy (Baird et al., 2007). ...
... The ambition of a well planned organizational strategy is to find better ways of using resources and capabilities to ensure that the organization has the ability to create value and improve returns to its stakeholders (Seyed et al, 2012). Even Google, Apple, and Facebook, the prosperous and highperforming organizations need to continuously change the way they operate over time so that they can go with the challenges (Klein, 2011). The ability of organizations to adapt a variety of organizational culture and constantly support expatriate managers adjust to the economic, political, and cultural values of the countries in which they positioned is another form of global challenges (Johnson, 2019) that confront organizations in today's business environment. ...
This study establishes the relationship between organizational culture and organizational strategy. It also seeks to find out how a successful organization relies on its culture as a strategy to survive unstable economic conditions. In this paper, pragmatic articles on organizational culture and organizational strategy were exclusively reviewed. Authors of previous studies defined organizational culture as beliefs, assumptions and values of an organization while an organizational strategy is all about the actions an organization takes to achieve long-term goals. The literature explicitly confirmed that these two concepts are linked and had worked successfully for organizations. The review found that organizational strategy begins with a summary of the organization's beliefs, norms and values, and that organizational culture and strategy are intertwined. The study further confirmed that organizational culture could be considered as an organizational strategy because both serve the same purpose. The outcome of the study shows that organizational culture in itself is a unique strategy for organizational development. The results suggest that an organization maintains its culture as a strategy to gain a competitive advantage over its competitors.
... The culture model we take on centers on a task-people distinction and an openness-to-change resistance-to-change one [Klein (2011);Xenikou and Furnham (1996)], which is especially relevant in the dynamic circumstances characteristic of project-based work. The model we adopt classi¯es the behavioral expectations this study emphases into constructive and defensive culture features [Ashkanasy et al. (2000)]. ...
... We focused in this study on the more noticeable level of culture, the pattern of behavioral expectations, owing to proof in the culture research that this level of culture most directly in°uences performance outcomes [Klein (2011)]. The expectations related to the constructive culture, incorporate more than just cooperative expectations highlighted in former culture investigations [O'Reilly et al. (2014)]. ...
... A constructive culture which raises members' backing up behaviors can be formed in several ways. First, project managers can successfully prolong a constructive project culture by behaving in ways that are consistent with it [Klein (2011)]. Project managers who expect members to assist their co-workers have to make obvious they are prepared to do so themselves. ...
The changing project environment does not allow to detail or estimate all desired employee behaviors. We contend that to increase project outcomes, it is valuable for managers to create a context in which project members willingly help colleagues perform their tasks, beyond what is required. The current study’s objectives are to investigate whether these project members’ backing up behaviors influence success and can be brought about by project culture. We support the model utilizing 219 project members (project participants) in 69 projects, from various industries in the USA. Results imply a plunge in members’ backing up behaviors can indicate project failure. Owed to restrictions facing project managers, in terms of control over compensation and employee availability, results imply that project culture is a useful substitute lever to manage members’ backing up behaviors, which in due course can propel project success. Practical implications for managing backing up behaviors in order to augment project success are provided.
... The corporate culture, defined as a system of shared values and norms (O'Reilly & Chatman, 1996), is unique to each organization, implicit in nature, and develops gradually over time (Klein, 2011). It plays a critical role in shaping firm operations by enhancing internal coordination, aligning goals, and mitigating agency conflicts (Graham et al., 2022;Sørensen, 2002). ...
... An organization has complete control over its corporate culture, which can provide a sustainable competitive advantage (Klein, 2011). A good organizational culture complements formal control procedures such as corporate governance, performance appraisal, and conventional operational frameworks (O'Reilly & Chatman, 1996), improving internal coordination, control, and goal alignment. ...
This study investigates the relationship between corporate culture and debt maturity structure. Utilizing a text‐based measure of corporate culture derived from a cutting‐edge machine learning approach, we uncover a strong positive link between corporate culture and short‐term debt usage. We further find that this relationship is particularly pronounced for firms with high information asymmetry and heightened financing constraints. We conduct several sensitivity analyses that confirm the robustness of our findings. Overall, the findings enhance our understanding of how corporate culture influences corporate financing decisions.
... oc is a system of assumptions, beliefs, values, norms and attitudes expressed through symbols (Klein, 2011), understood by the workforce and nurtured, maintained and developed by the organization (Matkó & takács, 2017). each oc background has unique and distinct features. ...
... After the oc factor, cA is a factor that has a positive and significant impact on op. this result is supported by most previous studies (Kuo et al., 2017;Mentzer et al., 2000;Morgan et al., 2004;rose et al., 2009, 2011). An organization with a cA is an organization that can have one or more advantages over its competitors, such as lower prices, higher quality, higher reliability, and shorter delivery times, etc. these capabilities will enhance the op (Mentzer et al., 2000). ...
Our article examines the influence of organizational culture (OC), strategic vision development (SVD) and competitive advantage (CA) on organizational performance (OP) in small and medium-sized enterprises (SMEs) in Vietnam. 224 questionnaires were emailed to business managers and department managers in SMEs - who volunteered to participate in the study. The questionnaire was built to collect experts’ opinions through direct interviews regarding content, presentation and language. We use structural equation modelling (SEM) techniques with the help of SPSS and AMOS software to conduct research. We find that businesses with high CA will have higher OP than other businesses. Our findings also show OC’s direct, positive, and indirect (through CA) impact on OP. The test results also confirm the direct influence of SVD on OP, but it is not statistically significant. The present study contributes to the general knowledge with empirical evidence on the relationship between OC, SVD, CA, and OP. Its findings show the importance of building OC, designing SVD, and improving CA to enhance SMEs’ performance. Furthermore, our analysis suggests future research opportunities on this relationship.
... The corporate culture, defined as a system of shared values and norms (O'Reilly and Chatman, 1996), is unique to each organization, implicit in nature, and develops gradually over time (Klein, 2011). It plays a critical role in shaping firm operations by enhancing internal coordination, aligning goals, and mitigating agency conflicts (Graham et al., 2022;Sørensen, 2002). ...
... An organization has complete control over its corporate culture, which can provide a sustainable competitive advantage (Klein, 2011). A good organizational culture complements formal control procedures such as corporate governance, performance appraisal, and conventional operational frameworks (O'Reilly and Chatman, 1996), improving internal coordination, control, and goal alignment. ...
This study investigates the relationship between corporate culture and debt maturity structure. Utilizing a text-based measure of corporate culture derived from a cutting-edge machine learning approach, we uncover a strong positive link between corporate culture and short-term debt usage. We further find that this relationship is particularly pronounced for firms with high information asymmetry and heightened financing constraints. We conduct several sensitivity analyses that confirm the robustness of our findings. Overall, the findings enhance our understanding of how corporate culture influences corporate financing decisions.
... Thus, many different organizational cultures are likely to exist within even the most homogenous of national cultures. A very comprehensive explanation of the construct has been made by Klein (2011) as "culture is created and disseminated through multiple mechanisms; including job design, leadership styles, human resources practices, the distribution of power, etc." (p. 26). ...
... According to Klein (2011), "this unique feature of culture is what is inimitable, such that one firm cannot copy all the dimensions of another's culture. You can't reverse engineer a corporation culture like you can in i-Pod" (p. ...
... They recommended to examine the effects of culture on individuals, as individuals are the means to achieve the ends. For consistency in organizations there must be satisfied, motivated and performance with less stress workforce To have a satisfied, motivated, less stressed performing workforce and also there is consistency among amongst its structure, system, people, culture and good fit with the strategy (Klein, 2011). ...
... The results are consistent with earlier studies (Trice, & Beyer, 1993;Millett, 2000;Goñi-Legaz, & Ollo-López, 2017). Every organization has different culture and at-times employees find it difficult to adopt the new culture and they tend to quit their jobs (Klein, 2011). Therefore, H3 is accepted. ...
The aim of study is to carry out an analysis of determinants of employee’s job turnover in banking sector. Further possible impacts on society and policy formulation are discussed at the end. Empiric witness has been evaluated across three major determinants i.e., job involvement, organizational culture and compensation with employee’s job turnover. For analysis, the data was collected through a questionnaire from a sample of 200 bank employees (male n = 119 and female n = 81) out of the population of 2600 employees of three most of the banks of Pakistan as Habib Bank Limited, Allied Bank Limited and Askari Bank Limited. The classification has been done on the basis of the financial worth of the banks and the number of employees. The results confirm that the selected factors do have an impact on employee job turnover but other factors do matter. Out of these three factors job involvement had a negative impact on employee retention whereas the organizational culture and compensation had positive impacts on the turnover of employees. The study is beneficial for employees and banks simultaneously. Policy implications are discussed in this paper.
... Specifically, Barney claimed that firm resources include all assets, capabilities, organizational processes, attributes, information, knowledge, etc., controlled by a firm that enable it to conceive of and implement strategies that improve its efficiency [22]. Scholars such as Fiol [26], Klein [27], and Kayworth and Leidner [28] argue that corporate culture is also an essential part of firm resources. This study builds on the resource-based view to explore how corporate culture, an intangible firm resource, can bring SMEs a competitive advantage (sustainability in this study). ...
... Culture is an intangible resource for a company [26][27][28], but resources do not necessarily provide a competitive advantage. Clearly, corporate culture does not always meet all of the VRIN guidelines [22]; consequently, it cannot directly bring a competitive advantage to the company [51]. ...
Sustainable development is a significant issue facing small- and medium-sized enterprises (SMEs). Drawing on the literature of corporate sustainable development and the resource-based view, this study aims to examine how corporate flexibility and control culture influence sustainable performance by triggering innovation capabilities and investigate the moderating role of leadership style (i.e., transformational and transactional). The 186 matched questionnaire data from managers and employees in Chinese SMEs reveal that the flexibility and control culture are positively and negatively related to innovation capability, respectively, and that the latter mediates their influence on sustainable performance. Moreover, transformational leadership positively (negatively) moderates the relationship between flexibility (control) culture and innovation capability, while transactional leadership positively moderates the relationship between control culture and innovation capability. This study enriches the theoretical literature on corporate sustainable performance and provides management insights into how SMEs could survive and achieve sustained growth through corporate culture.
... Corporate culture is also an intangible asset that creates sustained competitive advantage as Graham et al. (2017) found that 92 percent of senior executives believe that corporate culture is one of the top three drivers of firm value. Klein (2011) report that corporate culture, specially adaptive and flexible culture, leads to desired firm outcomes. Moreover, corporate culture can also contribute toward sustaining a competitive advantage as it is very difficult to imitate as postulated by the VRIO framework of the resource-based theory (Kim Jean Lee and Yu, 2004). ...
... We expect that companies that feature in the "Best Companies to Work For" list will outperform the market in general because of the findings in the previous studies that better corporate culture leads to better firm outcomes (for instance, Klein, 2011;Kim Jean Lee and Yu, 2004). And all firm outcomes must ultimately lead to increased firm value in the long run. ...
Purpose
The purpose of this paper is to investigate the stock market performance of companies featured in the survey “Best Companies to Work For” as a proxy for corporate culture.
Design/methodology/approach
The authors employed the portfolio formation and event study methods from finance to examine the linkage between corporate culture and future stocks returns. The lists of India’s best place to work for by Great Place to Work® Institute and Business Today ( BT ), India’s leading business magazine, form the primary surrogate for a great corporate culture. The authors compared the stock market performance of the culture portfolio vis-à-vis market index, in addition to using Carhart’s (1997) four-factor model.
Findings
A portfolio of Indian firms that featured in the “Best Companies to Work For” by Great Place to Work© Institute and BT magazine provides a higher return than the market index Sensex both on an ordinary return and on a risk-adjusted basis. The four-factor α s of the value-weighted culture portfolios are significant, implying that these portfolios have provided abnormal returns during the sample period. Moreover, the findings suggest a positive drift in the abnormal returns after inclusion in the “Best Companies to Work For” list.
Research limitations/implications
The results are largely in conformity with the prediction of the theory that states that corporate culture is an economic asset for a firm that increases its value.
Practical implications
From an investor’s point of view, the study indicates that investment in “Best Companies to Work For” is a better alternative than passive index investing.
Originality/value
This study fills the empirical void in the relationship between corporate culture and stock market performance in the Indian context.
... Organizational and collaborative culture that contains positive values, assumptions and beliefs that promote a spirit of cooperation, create collective strength and bring outstanding results to organization can be conceptualized as VRIN resources (Dalpiaz et al., 2010;Klein, 2011;Le et al., 2020) for firms to pursue important organizational outcomes such as innovation performance. Regarding KBV, Grant (1996) pointed out that knowledge is the most fundamental strategic resource of firms. ...
Purpose
This paper aims to investigate the influence of collaborative culture and knowledge sharing on innovation performance via moderating role absorptive capacity.
Design/methodology/approach
This paper used structural equation modeling to examine the level of how collaborative culture and knowledge sharing impact on innovation performance using data collected from 271 Vietnamese firms.
Findings
The research findings show knowledge sharing mediates the relationship between collaborative culture and innovation performance. It highlights the moderating role of absorptive capacity in fostering the effects of tacit and explicit knowledge sharing on innovation performance.
Research limitations/implications
Further research should examine the potential moderating effects of absorptive capacity in the knowledge management–innovation relationship to bring deeper understanding on the role of knowledge resource and innovation.
Practical implications
This paper offers leaders a deeper understanding of the necessary factors and conditions to promote innovation performance in their firms.
Originality/value
This paper significantly contributes to theoretical and practical initiatives of innovation by highlighting the antecedent roles of collaborative culture, the mediating role of knowledge sharing and moderating role of absorptive capacity.
... Selain kesenjangan tersebut, fakta bahwa posisi reputasi perusahaan dan budaya perusahaan sebagai sumber daya tidak berwujud (Fiol, 1991;González Sánchez & Morales de Vega, 2018;Grant, 1991;Kayworth & Leidner, 2004;Klein, 2011) menimbulkan permasalahan baru. Penelitian dari Zhang et al. (2017) serta Wang & Huang (2022) menjelaskan bahwa sumber daya ataupun aset tidak berwujud tidak bisa secara langsung memberi keuntungan bagi perusahaan, sehingga beberapa peneliti menyarankan untuk perlunya mengintegrasikannya dengan sumber daya yang lain yang membuat sumber daya ataupun aset tersebut dapat berkembang dan meningkatkan keunggulan kompetitif perusahaan. ...
This study aims to analyze and provide empirical evidence regarding the role of sustainability commitment in mediating the influence of corporate reputation and culture on the quality of sustainability reports. This research is quantitative based, and the data is taken from companies listed on the Indonesia Stock Exchange on the IDX30 index from 2020 to 2023. The sample was determined using purposive sampling, and 54 samples were obtained, which were analyzed using PLS-SEM. The results show that sustainability commitment can fully mediate the relationship between reputation and the quality of sustainability reports. Meanwhile, sustainability commitment partially mediates the relationship between culture and the quality of sustainability reports. These results provide implications that the existence of a sustainability commitment can help a company's reputation support the quality of sustainability reports and encourage a corporate culture that can maximize the quality of sustainability reports.
... cultural values and norms guide organizational members, impacting everyday decisions, actions, and interactions, even for those who do not personally share the dominant values and norms, as deviation is penalized (sackmann, 2021). this cultural influence extends to various aspects of management and organizational functioning, affecting institutional approaches (Baird et al., 2007;Klein, 2011), employee performance (Deem et al., 2010;elifneh & embilo, 2023;noora et al., 2021), reward systems (chen, 2010), transfer of organizational knowledge (alavi et al., 2005), better outcomes (Pagan & Malo, 2021;Platis et al., 2015), organizational leadership (Wilderom et al., 2000), institutional structure (Yarbrough et al., 2011), and job satisfaction (Mali et al., 2022;Meng & Berger, 2019;tran, 2021). Job satisfaction is a complex and subjective attitude that reflects an individual's cognitive, emotional, and evaluative responses to their work (luthans, 2005). ...
This study aimed to examine the influence of organizational culture on job satisfaction among trainers in technical and vocational education and training (TVET) colleges in Addis Ababa City Administration. Utilizing a cross-sectional survey design, a sample of 230 trainers was selected from two colleges through simple random sampling. Standardized questionnaires were employed to collect data on organizational culture and job satisfaction, which underwent analysis using statistical techniques, including frequency, percentage, mean and standard deviation, Spearman’s rho correlation, Mann-Whitney U test, and multiple regression analysis with SPSS version 23. The findings revealed that adhocracy was the dominant cultural type in TVET colleges, and trainers expressed satisfaction with their jobs in both institutions. Furthermore, the study identified that organizational culture types explained 30% of trainers’ job satisfaction, with market culture emerging as the sole significant and positive predictor of job satisfaction in the area (0.74). Additionally, a weak to moderate positive correlation was observed between organizational culture and trainers’ job satisfaction. Notably, a statistically significant difference was noted between male and female trainers regarding job satisfaction. Consequently, the study recommends prioritizing efforts to enhance market culture to sustain trainers’ job satisfaction.
... In this way, it influences most of the hard and soft components of management and organisation. Extensive empirical research has documented that organisational culture affects strategy (Klein 2011), performance control (Deem et al. 2010), organisational structure (Ranson, Hinings & Greenwood 1980), compensation systems (Chen, 2010), performance appraisal (Henri, 2006), organisational learning (Alavi, Kayworth & Leidner 2005;), leadership (Giberson et al. 2009), job satisfaction (Lund 2003), and organisational performance (Wilderom, Glunk & Maslowski 2000). ...
The paper analyses the mechanism, that is, the way in which organisational culture impacts corporate entrepreneurship. Additionally, the paper analyses the direction of this impact, that is, the assumptions, values, and norms through which culture creates a positive context for corporate entrepreneurship. Corporate entrepreneurship, broadly defined as entrepreneurship within organisations, becomes a prerequisite for the organisations’ survival and development in the era of globalisation, and radical technology and market changes. Organisational culture as a system of assumptions, values, and norms shared by employees and managers significantly determines their opinions and behaviour. The paper demonstrates that organisational culture impacts corporate entrepreneurship by shaping the employees and managers’ interpretative schemes through its assumptions and values. Thus, organisational culture impacts employees and managers’ behaviour in everyday work, and thereby the extent to which this behaviour will be entrepreneurial. We applied the fragmented and integrated approaches in identifying the cultural assumptions, values, and norms through which organisational culture positively impacts corporate entrepreneurship. The fragmented approach showed that organisational culture positively impacts corporate entrepreneurship if it highly values innovations and changes, people development, open and intensive interactions and communications, the autonomy of employees and loose control, identification with the company, focus on work, and openness towards the environment. The integrated approach showed that the following culture types positively impact corporate entrepreneurship: adhocracy culture in Quinn and Cameron’s classification, and constructive culture in Human Synergetics’ classification.
... According to a study by Klein (2011) on organization culture's value as a resource tool for competitive edge of the firm in attaining high performance, the study demonstrated that the culture of the organization could determine the selection of strategic implementation process and perceptions in the firm. The external -116 -| P a g e : Reviewed Journal International of Business Management. ...
Performance is a very broad concept and entails both financial and non-financial measures. The purpose of this study was to assess the relationship between organizational culture and Performance of Pharmaceutical Manufacturing firms in Kenya. The specific objectives of the study were to determine the relationship between organizational structure, reputation and firm’s performance. The findings of this study were valuable to the managers of the Pharmaceutical manufacturing sector, researchers and academicians in providing knowledge on organizational culture implementation on firm performance especially in the context of developing economies. The research used descriptive survey design. Data collected was both qualitative and quantitative. The target population comprised of managers in all the 19 Pharmaceutical manufacturing firms listed by the Pharmaceutical Society of Kenya (PSK, 2016). A sample of 209 was selected. This included one manager from each department who was identified as being directly related to strategy implementation. 19 firms and 209 mangers formed the sample size. The researcher used questionnaires to collect data. Once data was collected, it was coded and analyzed using SPSS version 21 where multiple regressions was used to show the relationship between independent and dependent variables of the study.
... La cultura forma parte del negocio de la empresa ya que ayuda a la gente a realizar bien su trabajo (Whiteley, Price y Palmer, 2013); por eso, es importante que dicha cultura sea coherente con la marca, con los valores corporativos así como con aquellos valores que determinan las subculturas existentes dentro de la organización (De Chernatorny, Cottam, 2008). Como señala Klein (2011), las empresas que desean ser competitivas necesitan entender su negocio y su sector, aplicar dicho conocimiento al desarrollo de una estrategia apropiada y, posteriormente, crear una cultura adaptada que ayude a implementar la estrategia fijada. ...
... distintos valores, normas y creencias que comparten las personas de una determina sociedad, así como en los colaboradores de una determina empresa, donde la cultura ayuda a que los integrantes de una organización piensen, sientan y se comporten. Para la creación de la cultura se debe tener en cuenta los valores, rituales y ritos, héroes y redes de comunicación Con respecto al impacto que genera la cultura organizacional para el efectivo y eficiente trabajo para mejorar el desempeño de las organizaciones; la cultura organizacional repercute en los procesos, resultados y relaciones dentro de una empresa(Neagu & Nicula, 2012); las organizaciones inteligentes giran alrededor de su cultura organizacional; analizar la cultura organizacional de los trabajadores genera una gran cantidad de aportaciones en lo material como en el servicio, con el propósito de ayudar a resolver principalmente las necesidades humanas (Patlan, 2013); indicó que dentro de sus funciones de la cultura organizacional debe generar compromiso , sentido de identidad, estabilidad y una adecuada guía del comportamiento de los colaboradores, permitiéndole obtener el rendimiento que se desea dentro una organización(Cheung, et al., 2012).Las organizaciones deben administrar su cultura estratégicamente, implementando adecuadas normas que sean correctamente adaptables, constructivas y flexibles, muy independiente de la estrategia que se desea implementar(Klein, 2011).Santana & Cabrera (2007), determinaron tres características que ayudan para el mejor desenvolvimiento de la cultura organizacional y son: es única en cada organización, es persistente por los significados y creencias compartidas por los colaboradores dentro de una organización; y no es sencilla de cambiar.Para tener una adecuada medición de la cultura organizacional se presentan tres perspectivas: cuantitativo, cualitativo y mixto que es una mezcla de lo cuantitativo y lo cualitativo. En el cuantitativo se aplican herramientas para obtener la validez de las pruebas psicométricas, dando a conocer los aspectos que no se lograron observar como las creencias, actitudes, valores, etc., de manera objetiva. ...
The literature review was carried out on articles published between the years 2000 and 2020, on the subject of organizational culture, in different countries, organizations and universities, it shows the interest and recognition of its value and consideration in the work of organizations of all kinds Organizations with educational purposes are not exempt. In this sense, it constitutes a contribution to the field of knowledge that is built from the revision of the definitions and the contributions of the different researchers, both of the organizational culture and an instrument to measure the culture used worldwide. Upon completion, the organizational culture is defined with a broader and more transcendental vision and its measurement.
... In addition, there is evidence that OC strengthens the growth of an organization (Miroshnik, 2013) and contributes to the achievement of sustainable competitive advantage (Barney & Hesterly, 2019;Cameron & Quinn, 2011). Consequently, it can be used with respect to one's competitors (Klein, 2011) in an innovative market (Oyemomi et al., 2019). ...
Knowledge-Intensive Firms are a relevant research and practice field because there is much interest in factors promoting their competitiveness. Scholarly literature has noted that organizational culture is a resource is related to the achievement of competitive advantages. Nevertheless, organizational culture at Knowledge-Intensive Firms, has been scarcely analyzed regarding how it is configured and what effects it has. To explain how organizational culture at HarvestPlus, as a Knowledge-Intensive Firm, becomes a distinctive competency, a qualitative study case study design was developed. The results indicate that the predominant culture is adhocratic, it has evolved according to the different HarvestPlus phases and is a sustainable distinctive competence due to it is valuable, difficult to imitate and therefore unique. This research will be useful for scholars and practitioners of this type of organization to understand the usefulness of coordinating and integrating the organizational culture, to leadership behaviors, human resources practices and strategic alliances management, to create strategic resources, as HarvestPlus has done.
... Organizational culture is an important factor affecting the organization's behavior toward its external environment (Daher, 2016;Flatt & Kowalczyk, 2000). It can be a valuable resource that provides a competitive advantage (Klein, 2011). Organizational culture is defined as "a set of assumptions, values, norms, symbols, and artefacts within the organisation, which convey meaning to employees regarding what is expected and shape individual and group behaviour" (Martin & Siehl, 1983). ...
As perceived by company employees, luxury culture is best understood by collecting and analyzing anonymous genuine current or past employee‐generated comments (EGCs) about their experience of specific work culture, without fear of retaliation by using digital platforms. This paper focuses on luxury culture, including organizational culture, founder culture, and country‐of‐origin culture. It examines the employee‐perception of organizational culture in the case of L'Oréal, a luxury cosmetics company, by analyzing EGCs collected from a digital platform. This study demonstrates that sentiment analysis methodology is a valuable technique in understanding how employees' perceptions of luxury companies' cultures and significantly that changes happening in luxury brands' dynamic organizational cultures may well be known relatively early by analyzing the EGCs. This study adds a new factor to the luxury organizational culture called “digital culture,” in addition to the previously identified cultural determinants, including collective, emotional, historical, symbolic, dynamic, and diffuse dimensions.
... Kinerja adalah sebuah tampilan keadaan secara utuh atas perusahaan selama periode waktu tertentu, merupakan hasil atau prestasi yang dipengaruhi oleh kegiatan operasional perusahaan dalam memanfaatkan sumber-sumber daya yang dimiliki menurut [25], [26]. Penelitian Klein telah membuktikan bahwa suatu lingkungan kerja yang menyenangkan sangat penting untuk mendorong tingkat kinerja karyawan yang paling produktif [27]. Dalam interaksi sehari-hari, antara atasan dan bawahan, berbagai asumsi dan harapan lain muncul. ...
Penelitian ini dilakukan dengan tujuan untuk mengetahui peran pelatihan, keterikatan kerja terhadap kinerja pegawai pada pegawai pada Industri Penyediaan Jasa Telekomunikasi yang berdomisili di wilayah Jabodetabek. Variabel bebasnya adalah pelatihan, keterikatan kerja, sedangkan variabel terikatnya adalah kinerja pegawai. Populasi dalam penelitian ini adalah karyawan yang berdomisili di wilayah Jabodetabek yang bekerja di perusahaan jasa telekomunikasi. Jumlah sampel yang terdapat dalam penelitian ini adalah 200 responden. Teknik pengambilan sampel yang terdapat dalam penelitian ini menggunakan metode non probability sampling dengan teknik purposive sampling, pengujian instrumen data menggunakan uji validitas dan uji reliabilitas. Metode yang digunakan dalam penelitian ini adalah Structural Equation Modeling (SEM). Berdasarkan penelitian ini ditemukan bahwa pelatihan berpengaruh positif dan signifikan terhadap kinerja karyawan. Selanjutnya pelatihan berpengaruh positif dan signifikan terhadap work engagement. Kemudian work engagement berpengaruh positif dan signifikan terhadap kinerja karyawan. Kata kunci : Pelatihan, Keterlibatan Kerja, Kinerja Karyawan.
... Much scholarly attention has been devoted to organizational culture, which has been identified as a critical factor for organizational effectiveness [22,92], competitive advantage [7,13,52], strategy [2,51], and the successful response to a challenging environment [10,31,55]. We discuss two views of culture that dominate the study of organizational culture: the collective meaning perspective and the toolkit perspective. ...
Digitalization has fundamentally changed organizational structures and processes and affects how people interact with each other, thereby impacting organizational culture. Given the pervasiveness of digitalization today, it is useful to study its profound effects on organizational culture through new theoretical lenses. In this paper, we offer a fresh perspective on organizational culture in the digital world. We accomplish this by integrating two competing perspectives and then leveraging the new perspective to identify digital cultural resources and propose a conceptualization of digital culture. We frame our conceptualization around the cultural resources for digitalization and describe four digital culture archetypes.
... Barrett notes that culture is the "essence, DNA, the present and future" (p. 6) of his organization. Though culture is believed to be passed on from one generation to the other, some researchers (Klein, 2011;Finnan, 2000) argue that the culture of an organization is subject to change and should attune to altering times. Thus, a periodic review of an organization's cultural profile, which reflects the aspirations of its workforce, is needed to provide awareness and envisage a clear direction. ...
The pretest-only survey design using the Organizational Culture Assessment Instrument was administered to 96 staff members of Gedu College of Business Studies, Royal University of Bhutan. The result shows the presence of market culture in the college, indicating competition as the key aspect driving the daily functioning of the college. In addition, individual development seems to be a priority for each staff member. On the other hand, the analysis reveals that clan culture is indicated as the preferred culture. Employees look forward to working in teams founded on loyalty and trust. In view of these findings, it is intelligible for the management to shift towards clan-oriented culture as desired by its employees to fulfil its vision of value-driven business education institute.
... Therefore, contextual factors such as organisational culture and external environment, including national culture, should be specifically addressed in PM system. Notwithstanding that, organisational culture features prominently in the literature as an explanatory construct for behaviour and design, and a feature promoted within management control systems (Aggarwal & Bhargava, 2009;Carroll, 2008;Davis & Shrader, 2007;Klein, 2011;Kotter & Heskett, 1992;Linstead, 2009;O'Regan & Ghobadian, 2004;Witte, 2012;Hofstede et al., 2010;Trompenaars & Hampden-Turner, 2012;Schein, 2010). Ferreira and Otley (2009) take the view that organisational culture as one of the contingent variables 'that might explain why certain patterns of control are more or less effective' (pp. ...
This chapter provides an overview of performance management transcending across cultures. As an extension of business management control systems, there is a tendency to seek efficacy of PM systems through to controls on uniformity, delivery and efficiencies of practice, which leaves a significant proportion of practitioners (managers and subordinates) dissatisfied with performance management (PM) systems as ‘something done to people’.
... The Body Shop is working fairly with the farmers and supplies to help the communities through the Community Trade Program to ensure that all the products are made up of 100% vegetables and plants and forever being firmly against animal testing. Strong corporate culture associated with business performance can build a significant competitive advantage (Denison, 1984;Kotter & Heskett, 2008;Eccles, Ioannou, & Serafeim, 2014;Barney, 1986;Sadri & Lees, 2001;Klein, 2011). This has shown that The Body Shop practice a strong corporate culture which can be turned into the motivation of employees and leading to low turnover as well as high emotional bonding with the brand among the customers. ...
Body Shop is a well-known cruelty-free cosmetics brand company. This research paper explores how Body Shop is running the campaign 'forever against animal testing' and raising its voice for banning animal testing in cosmetics. The Body Shop has been advocating for animal rights since 1989. Qualitative analysis techniques have been used in this research paper and information is obtained through a questioner focused on convenient sampling. We have discovered in our research that most consumers do not want to purchase goods which are created by harming animals. In manufacturing cosmetics, we say companies must use alternative artificial testing like Body Shop.
... Through its influence on the decisions, actions, and interactions of managers and employees, organizational culture also impacts different aspects of management and organization. Extensive empirical research has documented that organizational culture affects strategy (Klein 2011;Yarbrough, Morgan, Vorhies 2011;Baird, Harrison, Reeve 2007), performance control (Deem et al. 2010), organizational structure (Ranson, Hinings, The aim of this paper is to explain the way in which organizational culture impacts company performance and to present the results of the existing research into this topic. Therefore, the theoretical framework of the organizational culture's impact on performance will be presented first; it will be followed by a presentation of the basic knowledge on the relations between culture and organizational performance reached by researchers thus far. ...
... Bowen & Ostroff , 2004;Ulrich & LaFasto, 1995) tentang peranan budaya organisasi sebagai pemboleh ubah pengantara dalam hubungan antara PSM dengan prestasi organisasi. Hasil kajian ini juga konsisten dengan keputusan kajian oleh Klein (2011), Lau dan Ngo (2004, serta Molineux (2013) yang menunjukkan bahawa amalan PSM boleh membawa kepada pembentukan budaya organisasi. Dapatan ini mengukuhkan lagi kefahaman tentang peranan PSM dalam membentuk budaya organisasi, dan seterusnya budaya yang dibentuk memberi kesan terhadap kecemerlangan prestasi organisasi. ...
Kajian ini menyelidik hubungan antara pengurusan sumber manusia (PSM), budaya organisasi dan prestasi organisasi menerusi pemodelan persamaan struktur. Kajian ini berasaskan reka bentuk tinjauan dan bersifat keratan rentas. Sebanyak 137 soal selidik dikutip daripada organisasi pembuatan di Malaysia dan digunakan dalam analisis statistik. Amalan PSM termasuk pengambilan pekerja, penilaian prestasi, latihan dan pembangunan, ganjaran berasaskan prestasi, pengurusan kerjaya, perkongsian maklumat, dan jaminan pekerjaan. Pemboleh ubah budaya organisasi meliputi penglibatan, koordinasi dan integrasi, komunikasi terbuka, kepercayaan, penambahbaikan, dan kerjasama. Sementara pemboleh ubah prestasi organisasi merangkumi kadar pertumbuhan jualan, hasilan operasi dan hasilan sumber manusia. Hampir 57 peratus daripada varians dalam konstruk budaya organisasi dapat diterangkan oleh konstruk PSM. Sementara kedua-dua konstruk PSM dan budaya organisasi dapat menerangkan kira-kira 68 peratus varians dalam konstruk prestasi organisasi. Model persamaan struktur menunjukkan budaya organisasi berperanan sebagai pengantara dalam hubungan antara PSM dengan prestasi organisasi. Kata kunci: Pengurusan sumber manusia, budaya organisasi, prestasi organisasi, LISREL.
... Job as a lecturer with psychological contract will improve HR strategy through organizational culture, which supports the research conducted by Richard, McMillan-Capehart, Bhuian, & Taylor (2009) which reveals that organizational culture plays an important role in forming psychological contracts. Research conducted by Klein (2011) about the alignment between the right HR strategy and organizational culture can help organizations create value and generate income. Silva & Weerasinghe (2016) showed the results that HR strategy has an effect on psychological contracts, in which it acts as the main component of psychological contracts starting from the recruitment and selection process to the creation of performance management, work termination, and retirement. ...
... Results show that respondents overall believe that the management of organisation culture is critical for implementation of strategy (M=3.878) and organisation culture also enhances implementation of strategy in the organisation (M=3.642). This findings concur with Klein (2011) who noted that the culture of an organisation is a way of attaining competitive advantage, it was found that the norms in a culture have a tendency of fairly and consistently influencing quality regardless of the strategy that is adopted by the company. ...
The paper aims to investigate the relationship between organisational structure and strategy implementation in oil marketing companies. The study attempts to ascertain the perceptions of the employees regarding the impact of organisational structure on strategy implementation using four organisational variables: hierarchical levels, organisational communication, decision making structures and organisational culture. Based on a sample of 148 respondents working in Kenyan oil marketing companies, the study found that hierarchical levels, organisational communication, decision making structures and organisational culture have a certain influence on strategy implementation. By considering the influence of communication, decision-making, and organisational culture, this study attempts to explore the ways in which organisational structure influences strategy implementation in Kenyan oil marketing companies.
... Penelitian empiris terkini yang sudah dilakukan para ahli dan para akademisi cenderung menunjukkan strategi organisasi dan budaya organisasi memiliki hubungan interdependensi dan keduanya saling mempengaruhi secara timbal balik. (Klein A, 2011). ...
Strategi organisasi dan budaya organisasi adalah dua konsep yang paling mendasar di dalam ilmu manajemen. Berbagai penelitian sudah dilakukan dan secara secara empiris hasil dari setiap penelitian itu pada umumnya membuktikan bahwa strategi organisasi dan budaya organisasi memiliki hubungan yang sangat penting dan memberikan keuntungan bagi organisasi. Strategi Organisasi dan Budaya Organisasi memiliki hubungan yang saling melengkapi dan timbal balik dalam upaya organisasi untuk untuk mencapai tujuannya. Budaya organisasi sangat mempengaruhi proses perumusan strategi organisasi, mulai dari formulasi strategi sampai kepada implementasi strategi tersebut. Implementasi strategi organisasi akan mencapai hasil yang optimal, efektif dan efisien apabila difasilitasi dan diperkuat dan oleh tumbuhnya budaya organisasi yang baik dan kuat pula.
Business organisations operate within a perpetually dynamic environment amid the complexities of globalisation and technological advancements. This study investigates the prevailing organisational cultures: clan, market, hierarchy, and adhocracy—among medium-sized construction contractors in Malaysia and examines their influence on strategic implementation challenges. Organisational culture is crucial for sustaining a competitive advantage; however, misalignment with strategic execution can lead to organisational failure. The findings indicate that the sampled organisations exhibit characteristics of all four cultural types. Nevertheless, market culture is notably recognised for enhancing competitiveness within the Malaysian construction industry. This study, however, is limited by its focus on medium-sized contractors, which may not represent the broader industry dynamics. Future research could explore how these findings apply across different sizes and types of organisations within the sector.
The aim of this paper is to explore mutual causality of organizational culture and power in organizations. Based on the knowledge of the content and nature of organizational culture, as well as of the sources and forms of power in organizations, the paper hypothesizes about the nature and direction of their mutual influence. The main finding of the paper is that culture legitimizes power, while power instrumentalizes culture within organization. The analysis starts with two types of power in organizations: resource and interpretative. Resource power is based on the control over the scarce resources, while interpretive power is based on the control over the interpretative schemes, and thereby also over the organization members’ perception, interpretation, and concluding. The conclusion of the paper is that organizational culture influences the power in the organization by means of legitimising the critical resources controlled the superior individuals and groups in the organization who thereby gain resource power. On the one hand, which resource will be perceived as critical, it depends on the collective assumptions, values, norms, and attitudes (that compose the organizational culture’s content), and this also determines which individual and group will have the power based on the control over that resource. On the other hand, the power instrumentalizes the culture by having the superior individuals and groups impose certain assumptions, values, norms, and attitudes to the organization members in order to create interpretative power. Thereby, powerful individuals and groups use the culture as the means to gaining power. Through the process of perpetuation of power, the mutual causality between organizational culture and power in the organization is being even more intensified.
Using survey and archival data, we investigate the relations between organizational culture and revenue-raising strategies of diversification and concentration in not-for-profit organizations (NFPs). We find that both a respect for people culture and a stability culture positively influence diversification, while an outcome orientation culture positively influences concentration. An innovation culture is not associated with either strategy. We confirm prior findings that governance factors of board size and gender diversity influence NFPs’ revenue strategies, and extend this research by incorporating board expertise, finding business expertise is positively associated with revenue concentration, whereas legal expertise is positively associated with diversification.
JEL Classification: L31 Nonprofit Institutions
Purpose
Exploiting an innovative measure of corporate culture based on machine learning and earnings conference calls, this study aims to investigate how corporate culture is influenced by hostile takeover threats. To sidestep endogeneity, this study uses a unique measure of takeover vulnerability principally based on the staggered implementation of state legislations, which are plausibly exogenous.
Design/methodology/approach
In addition to the standard regression analysis, this study also executes a variety of other empirical tests such as propensity score matching, entropy balancing and an instrumental variable analysis, to demonstrate that the results are robust. The final sample includes 27,663 firm-year observations from 4,092 distinct companies from 2001 to 2014.
Findings
This study documents that more takeover exposure weakens corporate culture considerably, consistent with the managerial myopia hypothesis. Threatened by the takeover risk, managers tend to behave myopically and are less likely to make long-term investments that promote strong corporate culture in the long run. Additional analysis focusing on a culture of innovation, which is especially vulnerable to managerial myopia, produces similar evidence.
Originality/value
To the best of the authors’ knowledge, this study is the first to explore the effect of takeover susceptibility on corporate culture using a distinctive metric of corporate culture based on textual analysis.
Corporate social responsibility (CSR) challenges the conventional wisdom of profit-centric hospitality operations. This study offers a comprehensive assessment of CSR within the hospitality industry (HCSR), a field characterized by richness yet fragmentation. We conducted a thorough review using bibliometric and thematic content analyses of 765 peer-reviewed articles in English. Our analysis reveals three key research themes: firm-level HCSR research, employee-level HCSR research, and customer-level HCSR research. The firm-level HCSR research delves into four distinct subthemes: HCSR dimensions and forms, HCSR predictors, the interrelation between HCSR and corporate financial performance (CFP), as well as the interplay of HCSR and COVID-19 context. Employee-level and customer-level HCSR research concentrates on elucidating the impact of HCSR on individual in-role and extra-role behaviors, as well as its impact on the quality of relationships between individuals and hospitality firms. Our work contributes to a comprehensive understanding of the HCSR landscape and complements market-focused strategies in hospitality operations.
Penelitian ini bertujuan untuk menguji pengaruh budaya organisasi terhadap keterlibatan karyawan dalam organisasi. Metode penelitian yang digunakan adalah survey kuesioner kepada 500 responden yang merupakan karyawan dari perusahaan manufaktur asal Taiwan yang bergerak di bidang produksi sparepart mobil. Analisis data menggunakan Analisis Proses Bersyarat ( Conditional Process Analysis) by Danrew F. Hayes menggunakan aplikasi IBM SPSS Statistics 25 untuk menguji hubungan antara variabel variabel tersebut. Hasil penelitian menunjukkan bahwa budaya organisasi berpengaruh positif terhadap keterlibatan karyawan, kepercayaan organisasi memberikan mediasi parsial antara pengaruh budaya organisasi terhadap keterlibatan karyawan. Selain itu juga pemberdayaan psikologis tidak memperkuat atau meperlemah (memoderasi) antara pengaruh budaya organisasi terhadap keterlibatan karyawan. Implikasi manajerial dan saran untuk penelitian selanjutnya juga dibahas.
This is a book about strategic management, which is based on the research works of the author. The book has more than 1,000 cited references. The readers i.e. students, research scholars, business decision makers, government policy makers, will be introduced to a unique “MOST” framework of strategic management that exploits the different views and ideologies of strategies, as organized inventories of cognition, in the strategic analysis or research processes, in order to arrive at strategic choices and a robust business model for winning in the marketplace. Four empirical research examples are illustrated. Both the undergraduate and post-graduate students of business majors would benefit significantly from this comprehensive compendium of strategy formation and management knowledge.
The book is arranged in sixteen chapters. Chapter 1 is the introduction. Chapter 2 presents various nature and characteristics of strategy and introduces the “MOST” model to strategic management. Chapter 3 provides some theoretical positions of the “MOST” model. Chapter 4 discusses the various “Ps” nature of strategy, including introducing a P-based strategic management framework. The detailed skeleton of the “MOST” is covered in Chapter 5. Chapter 6 overviews some important strategy tools. In Chapter 7, different nature of strategic choice is presented. Chapter 8 provides the evaluation criteria for assessing the strategic choice. Chapter 9 presents various elements of strategy implementation. Chapter 10 covers business model, including a subsection of CBT (Community-based Tourism) which is the research of the author and colleague Dr. Busaba Sitikarn. Chapter 12 overviews the research method for strategy formulation. Chapters 13-16 present four empirical research reports in various aspects of strategic management. In essence, The “MOST” model is an example of the “systemic” approach to strategic management. The word “systemic” is linked to “systems”, which is premised on a philosophy that no idea can be fully understood until it is incorporated into an organized field of knowledge. Thus, the “MOST” model is an effort made to arrive at an organized body of knowledge, which has been vastly neglected in the extant literature. The overall systemic configuration of the “MOST” strategic management model is shown in the following conceptual framework.
Operatively and tactically, being “systemic” in nature embeds and embodies a learning-centric driving force in play. Operatively, continuous performance improvement – a key success attribute often associated with world class practice and management – has been concluded to be achievable only when an organization monitors its progress constantly, based on measured facts, depicting the “MOST” model in continuous feedback loop system. Otherwise, organizational performance would be created at random. The tactical domain concerns the subtleties of the complex relationships of relevant variables embedded in the system of strategic measurement, and the roles the variables could play in ensuring reliability and accountability. This depends on the daily reproduction of performance expectations as depicted in the single-loop learning mechanism, and also depends on the ability to learn beyond the confines of the present knowledge profiles of the organization. Tactical insight, therefore, provides a rich explanation for performance measurement and strategic management systems.
A research-oriented, also known as organizational intelligence development, approach to strategic formulation is emphasized in this book. According to Rumelhart and Norman (1981), real learning involves accretion, or the encoding of new information in terms of existing schemata, restructuring of schema, schema creation and the process whereby new schemata are created, tuning or schema evolution, or the modification and refinement of a schema as a result of using it in different situations (Shuell, p. 91), leading to introducing a research-oriented approach to strategic management in this book.
On similar counts, Johnson (2011) studies how active learners learn better than passive learners when they are subjected to a context that is meaningfulness, which is facilitated by the diversified views and ideologies of strategy discussed in Chapter 2. The “MOST” model is a platform of a meta-communication of firms. The “reflexive” nature of organizations and the social world leads to the concept of treating strategic management as a meta-communication, and thus, to succeed in the meta-communication, the “MOST” model establishes an effective communication process to relate between the organization and the environments. Whether inductive or deductive in the research approach to strategy formations, managers use mental representations that mirror the reality, as perceived through the senses (Barnes, 1984) or some statistical instrument and phenomenological structure of understanding (Tan, 2016), to interpret external environmental information (Feeney and Handley, 2006) as well as internal and socio-psychological information (Tan, 2016). In other words, in the view of cognitive science, strategists’ cognition mediates between the external environmental and their responses to environmental stimuli (Moors and De Houver, 2006; Karakaya and Yannopoulos, 2010), as shown in the “MOST” model of strategic management.
The purpose of this study was to examine the Effect of Strategic Planning and Budgeting and Resources Based View on Organizational Performance Mediated by Organizational Commitments on Army Unit Title in Land Border Areas. The methodology used in this study is hypothetical testing causality using cross sectional, hypothesis testing is a method of decision making that is based on data analysis of controlled and uncontrolled experiments on the Army Unit Title in the Border Area. The population numbered 465 people with a sample of 160 respondents. Data collection using questionnaires and data analysis techniques using Path Analysis and PLS. The model proposed in this study shows the direct and indirect effects of Strategic Planning and Budgeting and Resources Based View on Organizational Performance Mediated by Organizational Commitment. Future research must study other variables that influence the influence of Organizational Performance such as job satisfaction, leadership style and organizational culture. This research shows that Strategic Planning and Budgeting and Resources Based View and Organizational Commitment affect Organizational Performance both directly and indirectly. This research is a useful tool to improve Organizational Performance through enhancing Strategic Planning and Budgeting and Resources Based View and Organizational Commitments. This research model refines the overall understanding that there are direct and indirect effects of Strategic Planning and Budgeting and Resources Based View on Organizational Performance mediated by Organizational Commitment.
Bu çalışmanın amacı, rekabetçi kültür ile bilgi paylaşımının açık inovasyon üzerindeki etkisini incelemek ve açık inovasyonun firma performansı ile ilişkini araştırmaktadır. Araştırma kapsamında, İstanbul ve Kocaeli’nde faaliyet gösteren firmalarda çalışan 274 orta ve üst düzey yöneticiden anket yoluyla veri toplanmıştır. Araştırma sonuçlarına göre, rekabetçi kültür ile açık inovasyonun negatif ilişkili olduğu, bilgi paylaşımı ile açık inovasyonun ise pozitif ilişkili olduğu saptanmıştır. Ayrıca açık inovasyon ile firma performansının pozitif ilişkili olduğu bulunmuştur. Bu bulgular tartışılmış, araştırmacılara ve yöneticilere öneriler sunulmuştur. Böylece araştırma sonuçlarının hem teorik hem de pratik katkılar sunması hedeflenmiştir.
This study aims to determine the effect of organizational culture, organizational commitment to the performance of cooperatives in supporting the economy in West Java. With a total sample of 369 cooperative units in West Java. In addition, the method used is descriptive and verification, with purposive cluster sampling technique and proportional sampling. Primary data collection using a questionnaire equipped with secondary data from cooperatives in West Java, BPS and the Ministry of Cooperatives and SMEs. Data analysis was carried out through structural equation modeling (SEM) with Linear Structural Relations (LISREL) software. The results showed that organizational culture, organizational commitment significantly influence cooperative performance in a positive direction, meaning that if the organizational culture is strong and organizational commitment is strong, then the cooperative's performance will be good. This is a positive contribution to the gross regional domestic product (PDRB) in supporting the economy in West Java.
Purpose
The purpose of this paper is to examine the impact of organizational culture on strategic planning and the role of leadership effectiveness in the association between organizational culture and strategic planning in Indian nonprofit organizations (NPOs).
Design/methodology/approach
Data were collected from 441 respondents using a structured questionnaire. Common method bias was addressed through the use of multiple surveys. Structural equation modeling was used to process the data.
Findings
Advice-seeking interactions, collaborative culture and an error management culture positively impacted the creation and conceptualization of strategic plans in Indian NPOs. An error aversion culture did not significantly impact the creation and conceptualization of strategic plans. Leadership effectiveness moderated the relationship between “advice-seeking interactions” and the “creation and conceptualization” of the strategic plan, a “collaborative culture” and the “creation and conceptualization” of the strategic plan and an “error management culture” and the “creation and conceptualization” of the strategic plan.
Originality/value
Strategic management literature on the determinants of the creation and conceptualization of strategic plans is scant. Further, it does not include the influence of cultural constructs such as advice-seeking interaction (ASI), collaborative culture (CC), error management culture (EMC), error aversion culture (EAC) on the creation and conceptualization of strategic plans. This study extends the debate on the culture–strategy nexus to help practitioners understand the importance of organizational culture (advice-seeking interaction, collaborative culture, error management culture, error aversion culture) in creating strategic plans.
This research intends to know position of market growth in higher education, especially Sekolah Tinggi, based on market share, using BCG metrics. Unit analysis is all private higher educations in Kopertis III – DKI Jakarta, consisting of University, Sekolah Tinggi, Institute, and Academics. The object of analysis is the numberof new student admission. Method of data collection in this paper is field research including observation and literature research method. The secondary data used in this study is data from Kopertis region III. Based on the results of the study, it is obtained Sekolah Tinggi for the academic year 2008 and 2009 is in quadrant III (Cash Cow).
Modern business conditions are characterized by an increasingly more dynamic and turbulent environment, due to that, the biggest challenge for organizations is how to transform the existing organizational culture in the direction of an organization that learns and adapts quickly to changes in the business environment. Changes in the Serbian financial market often lead to changes in the ownership structures of banks, which caused larger or smaller changes in their strategic orientations. The aim of this paper is to clarify the dependence between strategies and organizational cultures of banks, as two crucial concepts in the management of financial institutions, all based on practical knowledge. The paper will use the case study method on the case of bank A. The usefulness of this paper is based on the fact that the presented knowledge will provide insight to the employees of bank A and other participants in the Serbian financial market about the importance of activities that contribute to creating and maintaining adequate organizational culture within the banking system. Also, this paper can be useful for all legal entities that operate within other business activities.
This Research aimed at determining the role of (VRIO) analysis on the sustainability of competitive advantage apply in Iraqi Organizations. For this purpose the researcher has depended on the processes of (VRIO) analysis (VALUABLE (V), RARE (R), COSTLY TO IMITATE (I) and ORGANIZED TO CAPTURE VALUE (O)) according to (Rothaermel,2015:104). The dimensions of sustainability of competitive advantage (Durability, Imitability) that have been used are according to (Wheelen&Hunger,2012:164). Men clothing factory in Najaf has been chosen to verify this Research via a questionnaire used (30) individuals of the managers of the company , in addition to personal interviews. The Spearman connection factor , and the (t) test to recognize the identity of this relation, and the (F) test to determine the identity of the regression equation , also the (R²) has been used to explain the degree of the influence of the independent variable in the dependent variable . Some of the most important conclusions the study arrived at are that (VRIO) analysis have a significant impact in the growth and competition of organizations through building capability , competences of the company that help in building and sustainability of competitive advantage and achieve Organizational Excellence. The study has been concluded with a number of recommendations ,some of which are :
Focus on practice (VRIO) analysis in the factory more broadly in light of Iraq environment exposed to the threat of foreign products.
Consolidating the factory's resources and capabilities on all levels in a way that competitors find difficult to surpass.
Keeping a high level of skills and knowledge , and increasing the staff's expertise in a way that achieve a competitive advantage to the factory.
Purpose: This study examines the effects of nine dimensions of organisational culture (uncertainty avoidance; gender egalitarianism; assertiveness; institutional collectivism; in-group collectivism; humane, future and achievement orientation; and power distance) on the dimensions of strategy execution (information sharing, leadership, rewards, performance, structure, employee commitment and coordination) within a fast-moving consumer goods (FMCG) company.Design: A survey questionnaire covering demographics, organisational culture and strategy execution was distributed electronically. Following assessment of reliability and validity of the 281 completed questionnaires, Pearson correlation and a canonical correlation analyses were conducted using the nine dimensions of culture as predictors of strategy execution variables, to evaluate the multivariate shared relationship between the two variable sets.Findings: The findings indicate that the dimensions of organisational culture have a variation of strong, medium and weak associations with the dimensions of strategy execution. Achievement orientation was found to have the highest effect on strategy execution dimensions and the future planning orientation the second highest.Research limitations/implications: The major limitation was that the population was represented by one large organisation in the South African FMCG industry, thereby excluding other companies in this country and the results may not necessarily be generalised to other populations. Future studies could include more industries and countries.Practical implications: This study provides evidence that company management must place considerable emphasis on developing organisational culture dimensions that have a positive impact on strategy execution.Originality/value: The study reveals that achievement and future planning orientated cultures have a significant influence on strategy execution.
This study is steered towards furnishing managers with managerial effectiveness feat in the Nigeria Banking Sector through the introduction and application of a sound corporate culture. Quasi-experimental and cross sectional survey techniques, structured questionnaire on a five point Likert Scale, Spearman's Rank Order Correlation Coefficient through Statistical Package Social Sciences, and census technique were all used. The influence of corporate culture was measured using process and result oriented philosophies on goal attainment and customer satisfaction to ascertain managerial effectiveness considering innovative technology in the Nigeria Banking Sector in Nigeria. The response rate is at 94%, and conclusion drawn.
Um Geschäftsstrategien weiterentwickeln zu können, diesmal unter Berücksichtigung der strategischen Grundsätze und Logiken, ist das 4-Stufen-Modell entworfen worden. Die vier Stufen dieses „Strategy Dashboards“ sollen sicherstellen, dass alle notwendigen Schritte durchlaufen werden. Im Gegensatz zu einem möglichen ersten Eindruck wird dabei die Absicht verfolgt, schnell auf den Punkt zu kommen. Um dies zu erreichen, werden in vier Stufen ausschließlich robuste strategische Instrumente eingesetzt. Tatsächlich werden einige eher abstrakt erscheinende Themen durch die Anwendung strategischer Instrumente anfassbar, begreifbar. So ist die Portfolio-Technik ein bilanzierendes Instrument, indem sie Kennzahlen aufeinander bezieht und so eine größere Klarheit zustande bringt als dies bei Excel-Tabellen möglich ist.
This paper critically examines available theoretical models which have been derived from statistically established patterns of association between contextual and organizational variables. These models offer an interpretation of organizational structure as a product of primarily economic constraints which contextual variables are assumed to impose. It is argued that available models in fact attempt to explain organization at one remove by ignoring the essentially political process, whereby power-holders within organizations decide upon courses of strategic action. This `strategic choice' typically includes not only the establishment of structural forms but also the manipulation of environmental features and the choice of relevant performance standards. A theoretical re-orientation of this kind away from functional imperatives and towards a recognition of political action is developed and illustrated in the main body of the paper.
Normative aspects of organization culture, the distribution and total amount of control, employee performance and perceived quality of service were investigated in a cross-sectional study (n = 823) involving subjects from 159 organizations. A model integrating these constructs is presented, followed by an empirical investigation of hypothesized linkages. Significant relationships were found between organization culture and control distribution, culture and total amount of control, culture and service quality, culture and employee performance, and total control and service quality. Contemporary organizations are making substantial financial and human resource investments in training in problem analysis and problem solving techniques, within the context of Total Quality Management (TQM) programs and, in some cases, culture change efforts (Beer, Eisenstat, & Spector, 1990). These investments are being made in the belief, rooted partly in the "human relations management" movement (Fayol, 1946; Likert, 1961; McGregor, 1960), that the participation and involvement of all hierarchical levels will result in higher product/service quality and, subsequently, improved organization performance.
Organizational culture—the shared beliefs and values guiding the thinking and behavioral styles of members—traditionally has been assessed by qualitative methods. However, quantitative approaches such as culture surveys offer important advantages for both cross-sectional organizational research and data-based cultural change programs. The Organizational Culture Inventory, an instrument designed for such uses, profiles the culture of organizations and their subunits in terms of behavioral norms and expectations. Following a review of concepts relevant to culture (e.g., dominant cultures, subcultures, cultural direction, and intensity), this article presents the theoretical framework underlying the culture inventory. Data provided by members of diverse organizations are used to show that there is agreement within organizations, and significant differences across organizations, with respect to the norms and expectations measured by the inventory. At the same time, subcultural differences within organizations are shown to occur across hierarchical levels. Supplementary data on preferred norms indicate that members of different organizations agree that the ideal cultures for their firms would promote achievement-oriented, affiliative, humanistic, and self-actualizing thinking and behavioral styles. The implications of these findings are discussed for the use of the Organizational Culture Inventory in the context of research and change programs.
Organizational adaptation is a topic that has received only limited and fragmented theoretical treatment. Any attempt to examine organizational adaptation is difficult, since the process is highly complex and changeable. The proposed theoretical framework deals with alternative ways in which organizations define their product-market domains (strategy) and construct mechanisms (structures and processes) to pursue these strategies. The framework is based on interpretation of existing literature and continuing studies in four industries (college textbook publishing, electronics, food processing, and health care).
In this adaptation of their book 'Competing for the Future,' the authors urge senior managers to look toward the future and ponder their ability to shape their companies in the years and decades to come. If the future is not occupying senior managers, what is? Restructuring and reengineering. Since change is inevitable, managers must decide whether it will happen in a crisis atmosphere or in a calm and considered manner, with foresight about the future of the industry. Too often, profound thinking about the future occurs only when present success has been eroded. To get ahead of the industry change curve, senior managers must recognize that the real focus for their companies is the chance to compete for the future.
The field of strategic human resource management (SHRM) has been criticized for lacking a solid theoretical foundation. This article documents that, contrary to this criticism, the SHRM literature draws on three dominant modes of theorizing: universalistic, contingency, and configurational perspectives, Seven key strategic human resource practices are identified and used to develop theoretical arguments consistent with each perspective, The results demonstrate that each perspective can be used to structure theoretical arguments that explain significant levels of variation in financial performance.
The experiences of 3 electronics companies with different corporate strategies (defending, prospecting, and analyzing) illustrate how the amount of emphasis on particular human resources functions must be dictated by the organization's basic strategy. These functions include recruitment, selection, and placement; staff planning; training and development; performance appraisal; and compensation. The role of human resources departments within the larger organization is discussed. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The Organizational Culture Inventory (R. A. Cooke and J. C. Lafferty, 1983) measures 12 sets of shared behavioral expectations associated with 3 types of cultures: constructive, passive-defensive, and aggressive-defensive. These cultural norms are hypothesized to influence thinking and behavior, motivation and performance, and satisfaction and stress of organizational members. Tests of 3 types of reliability and 2 types of validity on data provided by approximately 4,890 Ss indicate that the inventory is dependable for assessing normative aspects of culture. Obtained alpha coefficients support internal consistency; tests for interrater agreement show that significant variance in individuals' responses is explained by their organizational membership; and tests for differences across time show temporal consistency. Factor analysis provides general support for construct validity. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This study advances a nascent perspective in the strategic management literature: a focus on the beneficial effects of competition among firms in an industry. Such a perspective supplements the traditional view of competition as firm rivalry. The overall purpose of the study is to provide a theoretical foundation for the study of the mutual gains associated with industry competition. Because of its importance to several different organizational theories, the concept of variety is examined as a potential source of interfirm benefits. The influence of variety is observed in 12 industries, four each from the growth, mature, and decline stages of the life cycle. In each life-cycle stage, two of the industries have substantial amounts of foreign competition while the other two do not. The study's results support two broad conclusions. First, industry variety and performance are positively related, suggesting that interfirm benefits are most feasible in industries characterized by diversity among firms' competitive strategies. Second, as industries move through the life cycle, variety decreases, implying that both strategists and policymakers need to consider the impact on aggregate variety when evaluating prescriptions for the revitalization of declining industries. Implications of these findings are derived for researchers, practitioners, and policymakers.
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must conceive of itself as a portfolios of competencies, instead of a portfolio of strategic business units (SBUs). The latter limit the ability of firms to exploit their technological capabilities; they are often dependent on external resources. The real source of advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies, which will allow individual businesses to adapt to emerging opportunities. Cultivating core competencies does not mean outspending rivals on RD (2) they significantly contribute to the customer benefits of the end-product; and (3) they should be difficult for competitors to imitate. Cultivating core competencies also means benefiting from alliances and establishing competencies that are evolving in existing businesses. The tangible links between core competencies and end products are core products, which embody one or more core competencies. Companies must maximize their world manufacturing share in core products. Global leadership is won by core competence, core products, and end products; global brands are built by proliferating products out of core competencies. Firms must avoid the tyranny of the SBU, the costs of which are (1) under investment in developing core competencies and core products, (2) imprisoned resources, and (3) bounded innovation. Top management must add value to a firm by developing strategic architecture, which will avoid fragmenting core competencies, establish objectives for competence building, make resource allocation priorities transparent and consistent, ensure competencies are corporate resources, reward competence carriers (personnel who embody core competencies), and focus strategy at the corporate level. A firm must be conceived of as a hierarchy of core competences, core products, and market-focused business units. Obsession with competence building will mark the global winners of the 1990s. (TNM)
The concept of shared organizational values and its impact upon successful marketing strategy implementation are discussed.
The need to measure the degree to which values within the organization are shared is stressed. A method to quantitatively
measure the degree of value congruency and the strength of value consistency is proposed. An exploratory, empirical study
is presented in which organization values are measured and found to impact upon strategy implementation.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable overtime this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage—value, rareness, imitability, and substitutability—are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.ABSTRACT FROM AUTHOR
Three attributes that a firm's culture must have to generate sustained competitive advantages are isolated. Previous findings suggest that the cultures of some firms have these attributes; thus, these cultures are a source of such advantages. The normative implications of the analysis are discussed. Firms that do not have the required cultures cannot engage in activities that will modify their cultures and generate sustained superior financial performance because their modified cultures typically will be neither rare nor imperfectly imitable. Firms that have cultures with the required attributes can obtain sustained superior financial performance from their cultures.
âBooks and articles come and go, endlessly. But a few do stick, and this book is such a one. Organizational Strategy, Structure, and Process broke fresh ground in the understanding of strategy at a time when thinking about strategy was still in its early days, and it has not been displaced since.â âDavid J. Hickson, Emeritus Professor of International Management & Organization, University of Bradford School of Management Originally published in 1978, Organizational Strategy, Structure, and Process became an instant classic, as it bridged the formerly separate fields of strategic management and organizational behavior. In this Stanford Business Classics reissue, noted strategy scholar Donald Hambrick provides a new introduction that describes the bookâs contribution to the field of organization studies. Miles and Snow also contribute new introductory material to update the bookâs central concepts and themes. Organizational Strategy, Structure, and Process focuses on how organizations adapt to their environments. The book introduced a theoretical framework composed of a dynamic adaptive cycle and an empirically based strategy typology showing four different types of adaptation. This framework helped to define subsequent research by other scholars on important topics such as configurational analysis, organizational fit, strategic human resource management, and multi-firm network organizations.
Thesis (PH. D. in Business Administration)--University of Illinois at Chicago, 2003. Vita. Includes bibliographical references (leaves 146-158).
Organizational Culture Inventory
- R.A Cooke
- J.C. Lafferty
Strategic context and organizational climate
- W E Joyce
- J W Slocum