Organizational culture and performance: a macro-level longitudinal study

2019 ◽  
Vol 40 (1) ◽  
pp. 65-84 ◽  
Author(s):  
Taesung Kim ◽  
Jihyun Chang

Purpose The purpose of this paper is to take a series of snapshots of perceived organizational culture over time, analyze the longitudinal pattern of its change, examine the relationship between organizational culture and organizational performance and verify if the relationship remains consistent, regardless of the flow of time. Design/methodology/approach Competing values framework and balanced scorecard are employed to look at organizational culture and its link with organizational performance; the panel data with more than 400 Korean firms from three biennial waves (2011, 2013 and 2015) are analyzed for a macro-level longitudinal examination. Findings Findings include that clan and market cultures were more prevalent than adhocracy and hierarchy cultures, and clan culture significantly decreased over time (H1); adhocracy, clan and market cultures had a consistently positive relationship with all the performance variables over the years and demonstrated a stronger impact in that order (H2). Research limitations/implications The results call for continued research on organizational culture in a longitudinal and cross-sectional nature, and a more comprehensive culture framework for today’s organizations. Practical implications Suggestions include that leaders should engage in bilateral communications and network building for successful organization development and change, and take a comprehensive, long-range approach in conducting cultural assessments. Originality/value The current study addresses a lack of empirical support and a single organization, point-of-time perspective in organizational culture research by examining organizational culture and performance with a macro-level longitudinal approach.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Shea ◽  
Syed Aktharsha Usman ◽  
Sengottuvel Arivalagan ◽  
Satyanarayana Parayitam

Purpose The purpose of this study is to empirically examine knowledge management (KM) practices as a moderator in the relationship between organizational culture and performance. The effect of four types of organizational culture on organizational performance was studied. In addition to direct effects, most importantly, KM practices as a moderator in strengthening the culture-performance relationship were empirically examined. Design/methodology/approach A carefully crafted survey instrument was distributed and data was collected from 1,255 respondents from 10 information technology companies in India. After checking the psychometric properties of the instrument, this paper performs hierarchical regression to test hypotheses. Findings The results reveal that: cooperative culture, innovative culture, consistent culture and effectiveness culture were all positively and significantly related to organizational performance; KM practices were positively and significantly related to organizational performance, KM practices moderate the relationship between various dimensions of organizational culture and organizational performance. Research limitations/implications As with any survey-based research, the present study suffers from the problems associated with self-report measures. These are common method bias and social desirability bias. However, this study attempts to minimize these limitations by following appropriate statistical techniques. Practical implications This study contributes to both practicing managers and the literature on KM and organizational culture. The study suggests that managers use KM practices, which are all-pervasive and very important for improving organizational performance. The results highlight the importance of implementing KM practices in organizations. Originality/value This study provides new insights into the importance of KM practices in achieving sustained competitive advantage by achieving organizational effectiveness. To the knowledge, the importance of KM practices is underemphasized in organizational culture research.


2018 ◽  
Vol 25 (8) ◽  
pp. 3180-3205 ◽  
Author(s):  
Neven Androwis ◽  
Rateb J. Sweis ◽  
Ali Tarhini ◽  
Alireza Moarefi ◽  
Mahmood Hosseini Amiri

Purpose The purpose of this paper is to investigate the relationship between total quality management practices and the organizational performance in the Jordanian construction chemicals companies. Design/methodology/approach In this research, ten constructs were used to measure TQM practices, whereas six constructs were used to measure the organizational performance. A total of 160 questionnaires were distributed to 28 companies. Of these 131 questionnaires were completed and used for the analysis, representing a response rate of 81.9 percent. Findings Analysis has shown that TQM practices positively affect the organizational performance, with a significant value for top management commitment, customer focus, supplier management, process control and continuous improvement. Research limitations/implications Results were based on perceptual data provided by participants working in different sectors of the organization, which may not provide a clear picture. It would be appropriate to consider collecting information from several stakeholders such as customers and suppliers. Willingness of respondents and delivering data within time were a big challenge though efforts were made to guarantee the confidentiality of the respondents. Practical implications Results from this research points out that TQM is considered as a key-contributing factor to firm’s survival. It also provides empirical support that TQM implementation in manufacturing organizations contributes to the performance and survival of such organizations. This research also provides an understanding of the dynamic role of TQM practices that would help managers pay attention to the fundamental practices that have a direct impact on the firms’ performance. This will help the organizations to dedicate efforts and allocate resources to get the best long-term outcomes and to figure out their strengths and weaknesses to develop and implement a new strategy to enhance their competitive position. Originality/value Construction sector in Jordan is a competitive sector. Therefore, quality in such industry is vital. Many companies in Jordan have much interest in implementing TQM practices. However, research efforts related to this field are rare. No research papers investigating the relationship between TQM practices and performance in Jordanian construction chemicals companies have been found. This research, therefore, seeks to examine the relationship between TQM practices and the construction chemicals firms’ performance in Jordan.


2016 ◽  
Vol 38 (4) ◽  
pp. 578-595 ◽  
Author(s):  
Shatha M. Obeidat ◽  
Rebecca Mitchell ◽  
Mark Bray

Purpose – The purpose of this paper is to better understand the relationship between high-performance work practices (HPWP) and organizational performance through a multi-dimensional model of the relationship between HPWP and performance, which conceptualizes HPWP according to the ability, motivation and opportunity (AMO) framework. HPWP are conceptualized as HR practices capable of enhancing the AMO of employees to contribute to organizational performance. Design/methodology/approach – Data were collected from 118 Jordanian firms operating in the financial and manufacturing sectors. A questionnaire completed by the HR director in each firm assessed HPWP adoption and their influence on organizational performance. Findings – The findings generate support for the link between HPWP and organizational performance and confirm the utility of the AMO model for conceptualizing HPWP and their impact on organizational performance. Research limitations/implications – While this study relies on cross-sectional data, it confirms the utility of the AMO framework as an appropriate conceptual basis for HPWP and provides substantial support for the relevance of HPWP in increasing organizational performance. Originality/value – The findings provide a basis for more consistent empirical investigation and better theory building for HPWP, and also provide a more robust basis for practical prescription. The empirical contribution is also significant as one of the few studies to investigate the link between HPWP and organizational performance in the Middle East.


2018 ◽  
Vol 25 (1) ◽  
pp. 47-64 ◽  
Author(s):  
Vanessa Pires ◽  
Guilherme Trez

Purpose The purpose of this paper is to discuss the different approaches to the corporate reputation construct, in order to identify a comprehensive definition that can be used for measurement purposes, gaps identified by previous literature identified. Design/methodology/approach This is a theoretical essay. The authors analyzed studies that involve the relationship between corporate reputation and organizational performance, and the attributes of national and international corporate reputation ratings. Findings The authors identified a more comprehensive definition for the reputation construct, and indicated courses for the construct’s measurement, by considering: the judgment by the stakeholders (internal, suppliers, clients and the financial market); periodical evaluations under different organizational perspectives; attention to theoretical assumptions, among other aspects. Research limitations/implications The study is a theoretical paper that presents that the research field has many definitions that cannot be used interchangeably. It indicated how the reputation construct should be operationalized for measurement purposes. This study presented a reflection on the relationship between corporate reputation and performance, showing that it is not a settled topic in the academy. Practical implications The study advances the understanding of the reputation construct measurement, considering the adopted definition and the discussion of the attributes of the main ratings on corporate reputation. The adoption of a measurement method that takes into account the definition used in this study and the features of the methodologies discussed will improve the corporate reputation assessment. Social implications Literature indicates that a good corporate reputation can affect organizational performance and the inverse relationship is also true. As a social implication, it is extremely relevant to improve the understanding the definition and measurement methods of this construct. Originality/value This study discusses one of the most important intangible resources for organizations, contributing to the understanding of the difference between the market value and the book value of public companies. Besides it should be considered that there is one lack of a definition directly related to the measurement of the reputation construct in the literature, a gap in which this study contributes.


2014 ◽  
Vol 18 (1) ◽  
pp. 22-35 ◽  
Author(s):  
Domenico Celenza ◽  
Fabrizio Rossi

Purpose – The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in market value and the variations in VAIC on the other hand. Design/methodology/approach – Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis was divided into two stages. In the first stage, eight models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second stage, six other models were tested, considering as an independent variable the variations in VAIC and the variations in profitability indicators. Findings – The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in the analysis of equity performance. Originality/value – This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective.


Author(s):  
Rabia Imran ◽  
Raghad Ezzeldin Aldaas

PurposeThe current research is aimed at exploring entrepreneurial leadership (EL) as a mediator in perceived organizational support (POS) and organizational performance (OP) relationship. Furthermore, it also examined the impact of POS and entrepreneurial leadership on the performance of an organization.Design/methodology/approachA purposively selected sample of 216 respondents from the SME sector of Oman was chosen for the study.FindingsThe results revealed that POS and entrepreneurial leadership positively and significantly have an effect on organizational performance. Moreover, the hypothesized role of entrepreneurial leadership as a mediator between POS and OP relationship was also supported.Research limitations/implicationsIn spite of the novelty of the research, it was limited due to a few reasons. First, the research design is cross-sectional. Second, the research only focused SME sector. This research only focused on entrepreneurial leadership as a mediator, whereas, other mediators could have been explored as well.Originality/valueThe research on POS and organizational performance relationship is still in its exploration stage. Past research indicate that POS has an effect on different outcomes within an organization, including its performance. However, still, the research on the entrepreneurial leadership process is quite scarce. The current research will explore it in the context of Oman, where there is a dire need to establish SME sector performance. The unique combination between POS, entrepreneurial leadership and performance in the SME sector of Oman marks the novelty of the current research. This study contributes to the SME’s literature and it is among the pioneer studies exploring the mediating role of entrepreneurial leadership in the relationship between POS and OP.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ginevra Gravili ◽  
Francesco Manta ◽  
Concetta Lucia Cristofaro ◽  
Rocco Reina ◽  
Pierluigi Toma

PurposeThe aim of this paper is to analyze and measure the effects of intellectual capital (IC), i.e. human capital (HC), relational capital (RC) and structural capital (SC), on healthcare industry organizational performance and understanding the role of data analytics and big data (BD) in healthcare value creation (Wang et al., 2018). Through the assessment of determined variables specific for each component of IC, the paper identifies the guidelines and suggests propositions for a more efficient response in terms of services provided to citizens and, specifically, patients, as well as predicting effective strategies to improve the care management efficiency in terms of cost reduction.Design/methodology/approachThe study has a twofold approach: in the first part, the authors operated a systematic review of the academic literature aiming to enquire the relationship between IC, big data analytics (BDA) and healthcare system, which were also the descriptors employed. In the second part, the authors built an econometric model analyzed through panel data analysis, studying the relationship between IC, namely human, relational and structural capital indicators, and the performance of healthcare system in terms of performance. The study has been conducted on a sample of 28 European countries, notwithstanding the belonging to specific international or supranational bodies, between 2011 and 2016.FindingsThe paper proposes a data-driven model that presents new approach to IC assessment, extendable to other economic sectors beyond healthcare. It shows the existence of a positive impact (turning into a mathematical inverse relationship) of the human, relational and structural capital on the performance indicator, while the physical assets (i.e. the available beds in hospitals on total population) positively mediates the relationship, turning into a negative impact of non-IC related inputs on healthcare performance. The result is relevant in terms of managerial implications, enhancing the opportunity to highlight the crucial role of IC in the healthcare sector.Research limitations/implicationsThe relationship between IC indicators and performance could be employed in other sectors, disseminating new approaches in academic research. Through the establishment of a relationship between IC factors and performance, the authors implemented an approach in which healthcare organizations are active participants in their economic and social value creation. This challenges the views of knowledge sharing deeply held inside organizations by creating “new value” developed through a more collaborative and permeated approach in terms of knowledge spillovers. A limitation is given by a fragmented policymaking process which carries out different results in each country.Practical implicationsThe analysis provides interesting implications on multiple perspectives. The novelty of the study provides interesting implications for managers, practitioners and governmental bodies. A more efficient healthcare system could provide better results in terms of cost minimization and reduction of hospitalization period. Moreover, dissemination of new scientific knowledge and drivers of specialization enhances best practices sharing in the healthcare sector. On the other hand, an improvement in preventive medicine practices could help in reducing the overload of demand for curative treatments, on the perspective of sharply decreasing the avoidable deaths rate and improving societal standards.Originality/valueThe authors provide a new holistic framework on the relationship between IC, BDA and organizational performance in healthcare organizations through a systematic review approach and an empirical panel analysis at a multinational level, which is quite a novelty regarding the healthcare. There is little research focussed on healthcare industries' organizational performance, and, specifically, most of the research on IC in healthcare delivered results in terms of theoretical contribution and qualitative analyzes. The authors even contributed to analyze the healthcare industry in the light of the possible existence of synergies and networks among countries.


2015 ◽  
Vol 36 (7) ◽  
pp. 1012-1033 ◽  
Author(s):  
Anastasia A. Katou

Purpose – The purpose of this paper is to investigate the impact of human resource management (HRM) systems (expressed by content, process and climate) on organizational performance through the mediating role of psychological contracts (expressed by employer and employee promises fulfilment). Design/methodology/approach – The study examines theoretical relationships in the Greek context, based on structural equation modelling (SEM) estimation, using a sample of employees from both private and public sector organizations. Findings – The study finds that the impact of HRM content on organizational performance is less strong compared to its impact through HRM process. Additionally, the study finds that psychological contract partially and positively mediates the HRM – performance relationship, where the impact of HRM on organizational performance through employee promises fulfilment is stronger than that through employer promises fulfilment. Research limitations/implications – The study does not allow for appropriately investigating dynamic causal inferences due to the cross-sectional nature of data. Additionally, considering that Greece is experiencing a severe economic and financial crisis, the findings from this unique context may not generalize across borders. Practical implications – For improving organizational performance, managers and decision makers should make their HRM systems more visible, understandable, legitimate and relevant. At the same time they should make HRM systems more instrumental, valid and consistent of HR messages. Originality/value – Investigations into the relationship between HRM systems and organizational performance have become increasingly common. Nevertheless, empirical studies that measure the influence of HRM systems, which integrate both content and process, on organizational performance are still rare. This paper partially fills this gap.


2018 ◽  
Vol 41 (1) ◽  
pp. 29-45 ◽  
Author(s):  
Phuong Tran Huy ◽  
Kiyoshi Takahashi

Purpose This study aims to verify the entire process of psychological contract breach (PCB). It investigates organizational variables such as organizational performance, previous employee performance, participative performance appraisal systems and leader power as the antecedents of perceived unfulfilled promises. It then examines whether perceived failure to fulfill contracts leads to the perception of PCB, and the possible moderating impacts of perceived self-fulfillment and individual differences on the relationship. Design/methodology/approach The current study uses cross-sectional design. Data have been collected from 364 full-time employees who enrolled in evening MBA courses in Vietnamese universities. Multiple regression and moderation analyses were used. Findings Participative performance appraisal, past performance, perception of leader’s power and overall organizational performance influenced perceived failure to fulfill promises, which contributed to contract breach. Furthermore, perceived self-fulfillment, equity sensitivity and self-esteem moderated the relationship between perceived failure to fulfill promises and PCB. Research limitations/implications The limitations of the study include a sampling technique which only focuses on MBA students, and cross-sectional research design. Practical implications The study confirms the role of individual traits in the PCB development. Vietnamese companies should collect information concerning employees’ personalities to focus on fulfilling promises that matter most to each type of employees. Originality/value The study distinguishes between perception of unmet promises and PCB. Furthermore, the moderating impacts of perceived self-fulfillment on the relationship between unmet promises and breach were examined.


2015 ◽  
Vol 27 (5) ◽  
pp. 503-518 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Mohsen Kalantari

Purpose – The purpose of this paper is threefold, first to investigate if ISO 9001 certified companies in an Iranian province (Kermanshah) perform better than non-certified ISO 9001. Second, what is the main motivation of the manufacturing companies of Kermanshah province on obtaining ISO 9001 certification, i.e., internal or external motivations. And finally, if ISO 9001 certified companies with high scores of internal motivations, show better levels of performance in comparison with certified companies obtaining low scores of internal motivations. Design/methodology/approach – A survey questionnaire was distributed to the 350 companies with ISO 9000 certification, and a total of 287 usable responses were returned. Using a structural equation model, this study empirically examines the relationship between ISO 9000 implementation and firm performance, and the moderating role of firm motivation on organizational performance. Findings – The results demonstrate that ISO 9001 certified companies show better organizational performance than non-certified ISO 9001 companies and internal motivations play more important role on obtaining ISO 9001 certificate than external motivations. Also ISO 9001 certified companies with high scores of internal motivations show better levels of performance than those ISO 9001 certified companies with low scores of internal motivations. Research limitations/implications – The sample is restricted to only a single region and manufacturing, so it would be strongly recommended that data be gathered from various parts of Iran including both manufacturing and service industries. As in this study the data gathered were cross-sectional, it is recommended in order to gain deeper understanding of the cause-and-effect relationship among the variables data to be gathered longitudinally. Originality/value – This study represents a first attempt to construct a conceptual framework that integrates the motivations behind implementing ISO 9000 certification, and ISO 9000 performance in the context of Iran and gives a particular focus on the Iran manufacturing companies.


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