The strength of corporate cutlture and the reliability of firm performance
By: Sorensen, Jesper B.
Material type:
ArticlePublisher: 2002Description: p.70-91.Subject(s): Management
In:
Administrative Science QuarterlySummary: Prevailing research claims that strong corporate cultures improve firm performance by facilitating internal behavioral consistency. This paper addresses an unexamined implication of this argument by analyzing the effect of strong corporate cultures on the variability of firm performance. This relationship depends on how strong cultures affect organizational learning in response to internal and external change. I hypothesize that strong-culture firms excel at incremental change but encounter difficulties in more volatile environments. Results of analyses of a sample of firms from a broad variety of industries show that in relatively stable environments, strong cultural firms have more reliable (less variable) performance. In volatile engironments, however, the reliability benefits of strong cultures disappear. - Reproduced.
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | Volume no: 47, Issue no: 1 | Available | AR53357 |
Prevailing research claims that strong corporate cultures improve firm performance by facilitating internal behavioral consistency. This paper addresses an unexamined implication of this argument by analyzing the effect of strong corporate cultures on the variability of firm performance. This relationship depends on how strong cultures affect organizational learning in response to internal and external change. I hypothesize that strong-culture firms excel at incremental change but encounter difficulties in more volatile environments. Results of analyses of a sample of firms from a broad variety of industries show that in relatively stable environments, strong cultural firms have more reliable (less variable) performance. In volatile engironments, however, the reliability benefits of strong cultures disappear. - Reproduced.
There are no comments for this item.