Proceedings of the 54th International Academic Virtual Conference, Prague

THE IMPACT OF ORGANIZATIONAL CULTURE ON FIRM PERFORMANCE: ORGANIZATIONAL CULTURE AS A MAGIC WAND OR SILENT KILLER?

NEBOJŠA JANIĆIJEVIĆ

Abstract:

The paper analyses the impact of organizational culture on company performances. The theoretical basis that organizational culture impacts company performance has been found in the fact that company’s organizational culture as part of its intellectual capital determines its ability to build core competence and thereby gain competitive advantage on the market. The review of research made in the field so far shows that this impact exists, but it is lower in intensity than it has intuitively been presumed. Also, since organizational culture and performance are in themselves highly complex, multidimensional variables, hence their relation is also multilayered, multidimensional, and complex. Numerous methodological shortcomings in the research of organizational culture, performance and their relationship, however, put doubt on some of the research results.

Keywords: Organizational culture, Performance, Company, Intellectual capital, Resource theory, Research methodology

DOI: 10.20472/IAC.2020.054.013

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