Do consistent corporate cultures have better business performance? Exploring the interaction effects

Abstract

Past research has shown a close connection between organizational culture and effectiveness, but nearly all of this research has examined the direct effects of culture on performance outcomes. In contrast, this article examines the idea that the effects of cultural consistency on organizational performance may differ depending on the levels of other culture traits. Data from 88,879 individuals in 137 public companies using the Denison Organizational Culture Survey were paired with three objective measures of Downloaded from 242 Human Relations 65 (2) organizational performance and used to examine the interaction effects of consistency with mission, adaptability, and involvement. Consistency shows a significant positive interaction with all three traits in predicting market-to-book ratios and sales growth. Firms that are both consistent and adaptable, for example, are high performers. In contrast, the results show a significant negative interaction when predicting return on assets. The implications of these results are discussed with respect to future culture and effectiveness research.

Bibliometric analysis of organisational culture using CiteSpace

“…The relationship between firm performance and organisational culture was further improved by Denison and Gillespie (e.g. Boyce et al 2015;Kotrba et al 2012). Huhtala and Feldt discussed organisational culture from an ethical aspect and highlighted the perceptions of ethical organisational culture affecting management style and the well-being of leaders (e.g.…”

Duality in Diversity: Cultural Heterogeneity, Language, and Firm Performance

“…Sørensen (2002), for example, theorizes that the negative effects of cultural heterogeneity on firm performance will attenuate in volatile contexts, which ought to favor firms with a greater capacity for adaptation; however, he finds inconsistent support for this contention. Similarly, Kotrba et al (2012) report that the relationship between cultural heterogeneity and firm performance is contingent on various other cultural attributes and varies by performance indicator (e.g., market-to-book ratio versus return on assets), while Burt et al (2000) identify additional network-based market contingencies of strong cultures.…”

“…Sørensen (2002), for example, theorizes that the negative effects of cultural heterogeneity on firm performance will attenuate in volatile contexts, which ought to favor firms with a greater capacity for adaptation; however, he finds inconsistent support for this contention. Similarly, Kotrba et al (2012) report that the relationship between cultural heterogeneity and firm performance is contingent on various other cultural attributes and varies by performance indicator (e.g., market-to-book ratio versus return on assets), while Burt et al (2000) identify additional network-based market contingencies of strong cultures.We argue that these mixed empirical findings in part reflect a theoretical shortcoming-the assumption that cultural heterogeneity is unidimensional and arises predominantly from dissimilarities between people. The positive effects of heterogeneity on creativity and problem-solving, for example, are often assumed to emerge from the combination of disparate beliefs that are otherwise distributed across individuals (Page, 2007).…”

Budaya Perusahaan Dan Kinerja Karyawan Transportasi Udara

“…Budaya perusahaan memiliki visi jelas yang dikomunikasikan dari manajemen puncak untuk semua anggota organisasi. Semua anggota sangat dihargai dan nilai-nilai dapat berubah dengan cepat jika diperlukan sehingga hubungan antara budaya perusahaan dan kinerja sebagai kombinas unik yang diperlukan untuk mencapai dan memengaruhi tingkat kinerja yang tinggi di berbagai kinerja kompetitif dalam lingkungan ekonomi global saat ini (Asree et al, 2010;Sorensen, 2002;Kotrba et al, 2011;Shieh et al, 2009).…”

“…Sedangkan budaya perusahaan yang memiliki hubungan dengan kinerja keuangan memiliki dampak yang signifikan terhadap kinerja ekonomi jangka panjang perusahaan (Kotter dan Heskett, 1992 dalam Kotrba et al, 2011;Minkov dan Hofstede, 2011). Budaya ini menekankan semua konstituen manajerial kunci (pelanggan, pemegang saham, dan karyawan), (konsensual, kewirausahaan, birokrasi, dan kompetitif) dan kepemimpinan dari manajer di semua tingkatan, memainkan peran penting dalam mempromosikan kinerja keuangan.…”