Organizational Culture and Business Performance: An Empirical Study

International Journal of Economics and Management Studies
© 2019 by SSRG - IJEMS Journal
Volume 6 Issue 6
Year of Publication : 2019
Authors : Yasas L. Pathiranage
How to Cite?

Yasas L. Pathiranage, "Organizational Culture and Business Performance: An Empirical Study," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 6, pp. 1-12, 2019. Crossref,


The objective of this article is to demonstrate conceptualization, measurement and examine various dimensions of organizational culture on business performance. The review begins with an examination of literature in the field of organizational culture and business performance. This literature review includes syntheses of the relevant literature concerning the role of organizational culture in enhancing business performance and productivity, which results the business excellence in the organization. The literature review comprises various published sources on the role of organizational culture, such as journals, periodicals, seminal books, and other published materials. After analysis of wide literature, it is found that organizational culture has deep impact on the variety of organizations process, employees and its performance. This also describes the different dimensions of organizational culture. Empirical evidences further show that lack of cultural integration among member companies is a primary cause of the corporate group failure. More research can be done in this area to understand the nature and ability of the culture in manipulating performance of the organization. Managers and leaders are recommended to develop the strong organizational culture in order to improve the overall performance of the employees and organizations.


Business Performance, Organizational Culture, Organizational Excellence.


[1] Abusa, F., & Gibson, P. (2013). TQM implementation in developing countries. Benchmarking: An International Journal, 20, 693-711.
[2] Andish, H. A., Yousefipour, M., Shahsavaripour, H., & Ghorbanipour, A. (2013). Organizational culture and its impact in organizations. Interdisciplinary Journal of Contemporary Research in Business, 5, 1126-1130.
[3] Berg, P., & Wilderom, C. (2012). A longitudinal study of the effects of charismatic leadership and organizational culture on objective and perceived corporate performance. The Leadership Quarterly, 23, 835-848.
[4] Bolboli, S., & Reiche, M. (2013). A model for sustainable business excellence: Implementation and the roadmap. The TQM Journal, 25, 331-346.
[5] Brown, A. (2013). Managing challenges in sustaining business excellence. International Journal of Quality & Reliability Management, 30, 461-475.
[6] Busse, R. (2014). Corporate culture, organizational change, and meaning at work: Linking human resources with business ethics. Human Systems Management, 33, 47-50.
[7] Cao, Z., Huo, B., Li, Y., & Zhao, X. (2015). The impact of organizational culture on supply chain integration: A contingency and configuration approach. Supply Chain Management, 20, 24-41.
[8] Chatman, J., Caldwell, D., O’Reilly, C., & Doerr, B. (2014). Parsing organizational culture: How the norm for adaptability influences the relationship between culture consensus and financial performance in high-technology firms. Journal of Organizational Behavior, 35, 785-808.
[9] Childress, J. R. (2013). Leverage: The CEO's guide to corporate culture [Kindle Edition version]. Retrieved from
[10] Cian, L., & Cervai, S. (2014). Under the reputation umbrella: An integrative and multidisciplinary review for corporate image, projected image, construed image, organizational identity, and organizational culture. Corporate Communications, 19, 182-199.
[11] Coad, A., & Guenther, C. (2013). Diversification patterns and survival as firms mature. Small Business Economics, 41, 633-649.
[12] Denison, D. R. (1990). Corporate culture and organizational effectiveness. New York, NY: Wiley.
[13] Dissanayaka, D.M.R., Wasthantha, S.L.N., & Jinadasa, M. (2016). The Role of Organizational Creativity towards Innovations: A Conceptual Review on Services Sector Research Directions. 3rd International Conference on Social Sciences. Research Centre for Social Sciences, Faculty of Social Sciences, University of Kelaniya, Sri Lanka. 249p. DOI: 10.13140/RG.2.2.32852.81287
[14] Dissanayake, D.M.R., & Weerasiri, R.A.S. (2017). The Impact of Perceived Effectiveness of Celebrity Endorsement on Perceived Brand Personality. Journal of Accounting & Marketing, J Account Mark 6: 244.6: 244. DOI: 10.4172/2168-9601.1000244
[15] Eaton, D., & Kilby, G. (2015). Does your organizational culture support your business strategy? Journal for Quality and Participation, 37(4), 4-7.
[16] Engelen, A., Flatten, T., Thalmann, J., & Brettel, M. (2014). The effect of organizational culture on entrepreneurial
orientation: A comparison between Germany and Thailand. Journal of Small Business Management, 52, 732-752.
[17] Fiordelisi, F., & Ricci, O. (2014). Corporate culture and CEO turnover. Journal of Corporate Finance, 28, 66-82.
[18] Flamholtz, E., & Randle, Y. (2011). Corporate culture: The ultimate strategic asset. Stanford, CA: Stanford University Press.
[19] Flamholtz, E., & Randle, Y. (2012). Corporate culture, business models, competitive advantage, strategic assets, and the bottom line. Journal of Human Resource Costing & Accounting, 16, 76-94.
[20] Fusch, G. E., & Gillespie, R. C. (2012). A practical approach to performance interventions and analysis: 50 models for building a high-performance culture. Upper Saddle River, NJ: FT Press.
[21] Gibbs, C. (2012). Corporate citizenship and corporate environmental performance. Crime, Law, and Social Change, 57, 345-372.
[22] Givens, R. (2012). The study of the relationship between organizational culture and organizational performance in non-profit religious organizations. International Journal of Organization Theory and Behavior, 15, 239-263.
[23] Green, T. J. (2012). TQM and organizational culture: How do they link? Total Quality Management & Business Excellence, 23, 141-157.
[24] Hacker, S. K. (2015). Leading cultural transformation. The Journal for Quality and Participation, 37(4), 13-16.
[25] Harper, M., & Cole, P. (2012). Member checking: Can benefits be gained similar to group therapy? The Qualitative Report, 17, 510-517.
[26] Han, H. (2012). The relationship among corporate culture, strategic orientation, and financial performance. Cornell Hospitality Quarterly, 53, 207-219.
[27] Hartnell, C., Ou, A., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: A meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96, 677-694.
[28] Inabinett, J., & Ballaro, J. (2014). Developing an organization by predicting employee retention by matching corporate culture with employee's values: A correlation study. Organization Development Journal, 32(1), 55-74.
[29] Jofreh, M., & Masoumi, E. (2013). Diagnosing organizational culture: An empirical investigation. Management Science Letters, 3, 2461-2466.
[30] Kahandawaarachchi, L.K.K., Dissanayake, D.M.R., & Maitra, R. (2016). Role of Relative Agency of Consumers in Brand Building: Conceptual Review for Marketing Implications and Future Studies, Sri Lanka. Journal of Marketing, 2, 31-53.
[31] Kaliannan, M., & Ponnusamy, V. (2014). Apple was sweeter when Steve Jobs held sway: Company illustrates contrasting attitudes to organizational change. Human Resource Management International Digest, 22(4), 25-28.
[32] Klimas, P. (2016). Organizational culture and competition: An exploratory study of the features, models and role in the polish aviation industry. Industrial Marketing Management, 53, 91-102.
[33] Kohtamaki, M., Thorgren, S., & Wincent, J. (2016). Organizational identity and behaviors in strategic networks. Journal of Business & Industrial Marketing, 31, 36-46.
[34] Kotrba, L., Gillespie, M., Schmidt, A., Smerek, R., Ritchie, S., et al. (2012). Do consistent corporate cultures have better business performance? Exploring the interaction effects. Human Relations, 65, 241-262.
[35] Kotter, J. P., & Heskett, J. L. (1992). Corporate culture and performance. New York, NY: Kotter Associates.
[36] Linnenluecke, M., & Griffiths, A. (2010). Corporate sustainability and organizational culture. Journal of World Business, 45, 357-366.
[37] Melo, T. (2012). Determinants of corporate social performance: The influence of organizational culture, management tenure, and financial performance. Social Responsibility Journal, 8, 33-47.
[38] Miguel, P. C. (2015). Receiving a national quality award three times: Recognition of excellence in quality and performance. The TQM Journal, 27, 63-78.
[39] Monzavia, B., Mirabib, V., & Jamshidic, A., (2013). Evaluating the effect of organization culture on the successful execution of strategies: Case study of Payam-e-Noor university. Management Science Letters, 3, 2059-2070.
[40] Mousavi, S., Hosseini, S., & Hassanpour, N. (2015). On the effects of organizational culture on organizational performance: An Iranian experience in state bank branches. Iranian Journal of Management Studies, 8, 97-116.
[41] Murphy, P. J., Cooke, R. A., & Lopez, Y. (2013). Firm culture and performance: Intensity's effects and limits. Management Decision, 51, 661-679.
[42] Nguyen, N., & Aoyama, A. (2014). Achieving efficient technology transfer through a specific corporate culture facilitated by management practices. The Journal of High Technology Management Research, 25, 108-122.
[43] Nongo, E., & Ikyanyon, D. (2012). The influence of corporate culture on employee commitment to the organization. International Journal of Business and Management, 7(22), 21-28.
[44] Nwibere, B. (2013). The influence of corporate culture on managerial leadership style: The Nigerian experience. International Journal of Business and Public Administration, 10, 166-187.
[45] O’Connor, T., & Byrne, J. (2015). Governance and the corporate life-cycle. International Journal of Managerial Finance, 11, 1-23.
[46] O’Reilly, C., Caldwell, D., Chatman, J., & Doerr, B. (2014). The promise and problems of organizational culture: CEO personality, culture, and firm performance. Group & Organization Management, 39, 595-625.
[47] Ortega-Parra, A., & Sastre-Castillo, M., (2013). Impact of perceived corporate culture on organizational commitment. Management Decision, 51, 1071-1083.
[48] Pinho, J., Rodrigues, A., & Dibb, S. (2014). The role of corporate culture, market orientation, and organizational commitment in organizational performance. Journal of Management Development, 33, 374-398.
[49] Rao, M. (2016). Collaborate to build effective teams to achieve organizational excellence and effectiveness. Industrial and Commercial Training, 48, 24-28.
[50] Raza, H., Anjum, M., Shamsi, A., & Zia, A. (2014). The impact of culture on the perception of employees and organizational productivity in pharmaceutical industries in Karachi. Interdisciplinary Journal of Contemporary Research in Business, 5, 385-400.
[51] Schein, E. H. (2010). Organizational culture and leadership (4th ed.). San Francisco, CA: Jossey-Bass.
[52] Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual Review of Psychology, 64, 361-388.
[53] Senaji, T., Metwally, E., Sejjaaka, S., Puplampu, B., Michaud, J., et al. (2014). Lead ‐leadership effectiveness, motivation, and culture in Africa: Lessons from Egypt, Ghana, Kenya, Nigeria, and Uganda. Canadian Journal of Administrative Sciences, 31, 228-244.
[54] Shahzad, F., Luqman, R., Khan, A., & Shabbir, L. (2012). Impact of organizational culture on organizational performance: An overview. Interdisciplinary Journal of Contemporary Research in Business, 3, 975-985.
[55] Sharma, G., & Good, D. (2013). The work of middle managers: Sense making and sense giving for creating positive social change. The Journal of Applied Behavioral Science, 49, 95-122.
[56] Shim, W., & Steers, R. (2012). Symmetric and asymmetric leadership cultures: A comparative study of leadership and organizational culture at Hyundai and Toyota. Journal of World Business, 47, 581-591.
[57] Simoneaux, S., & Stroud, C. (2014). A strong corporate culture is key to success. Journal of Pension Benefits, 22(1), 51-53.
[58] Sinha, N., Garg, A., Dhingra, S., & Dhall, N. (2016). Mapping the linkage between organizational culture and TQM. Benchmarking, 23, 208-235.
[59] Sok, J., Blomme, R., & Tromp, D. (2014). Positive and negative spillover from work to home: The role of organizational culture and supportive arrangements. British Journal of Management, 25, 456-472.
[60] Toma, S., & Marinescu, P. (2013). Steve Jobs and modern leadership. Manager, 17, 260-269.
[61] Uddin, M., Luva, R., & Hossian, S. (2013). Impact of organizational culture on employee performance and productivity: A case study of telecommunication sector in Bangladesh. International Journal of Business and Management, 8(2), 63-77.
[62] Unger, B., Rank, J., & Gemunden, H. (2014). Corporate innovation culture and dimensions of project portfolio success: The moderating role of national culture. Project Management Journal, 45(6), 38-57.
[63] Veiseh, S., Mohammadi, E., Pirzadian, M., & Sharafi, V. (2014). The relation between transformational leadership and organizational culture. Journal of Business Studies Quarterly, 5, 113-124.
[64] Viegas-Pires, M. (2013). Multiple levels of culture and post m&a integration: A suggested theoretical framework. Thunderbird International Business Review, 55, 357-370.
[65] Weber, Y., & Tarba, S. (2012). Mergers and acquisitions process: The use of corporate culture analysis. Cross Cultural Management, 19, 288-303.
[66] Wiewiora, A., Murphy, G., Trigunarsyah, B., & Brown, K. (2014). Interactions between organizational culture, trustworthiness, and mechanisms for inter-project knowledge sharing. Project Management Journal, 45(2), 48-65.
[67] Yirdaw, A. (2014). The role of governance in quality of education in private higher education institutions: Ethiopia as a case study (Doctoral dissertation).
AUTHOR Yasas L. Pathiranage, BSc Eng (Hons), MSc CPM, DCSE, GICE (UK), Aff.M.ASCE, AMIE (SL) is a Doctoral Student in Faculty of Graduate Studies, University of Kelaniya. He has been employed in the industry as an Engineering / Management Professional and Visiting Lecturer since 2000. Presently, he is serving as the CEO of Bitumix (Private) Limited.