Corporate culture and financial performance: A study of corporate culture and its relationship to the financial performance of an organization.

摘要

For the last few years, many empirical research and case studies suggest that there is a relationship between the financial performance of an organization and its corporate culture. As a result, many companies, regardless of their size, have been competing to capture the highest financial return by improving their organizational culture.; The two fold purpose of this study was to investigate whether there is a positive relationship between organizational culture and the financial performance of an organization, and to determine extent to which three dimensions of corporate culture (organizational climate, supervisory leadership, and peer relations) are positively related to one another within divisions and to the headquarters. This study did a comparison of organizational culture both at divisional and headquarter levels, and then analyzed the organizational culture in relation to the financial performance of each division and then collectively.; The instrument used to assess the organizational cultures was Survey of Organizations (SOO-2000) by Taylor and Bowers (1972). The organizational culture variables were identified as: organizational climate, supervisory leadership, and peer relations. To measure the financial performance of the divisions and the organization, this researcher used the standard financial ratio, Return on Sales (ROS). Eight hypotheses were developed: Hypotheses One through Three were to analyze the relationship between organizational culture elements at the divisional level; Hypothesis Four analyzed the relationship between organizational culture and ROS at the divisional level; Hypotheses Five through Seven analyzed the correlation between organizational culture variables within the divisions and the headquarters; and finally, Hypothesis Eight analyzed the relationship between the organizational culture and ROS of the organization.; The result revealed that while there is a relationship between organizational culture variables at divisional levels, there are no relationship between organizational culture and ROS.