![]() Firm culture also includes company values, rules, and conduct with customers, business partners, suppliers, and stakeholders thus, employees are conscious of their firm’s values and rules of conduct during their business activities ( Nadanyiova and Durana 2019).įundamentally, Denison ( 1990) showed that cultural and administrative behavior arises from the beliefs and assumptions of the firm and its environment ( Denison 1990), which are related to firm performance ( Denison and Mishra 1995). Similarly, a firm’s culture is the key to preserving its competitive advantage, which also integrates innovation, teamwork, response to the market, and the satisfaction of customers ( Nazariana et al. Therefore, organizational culture arises from the habitual practices shared by an organization’s members ( De Mooij and Hofstede 2011). Organizational culture is grounded in common practices, where employees adopt behaviors according to the symbols, heroes, and rituals that the firm represents, such as changes in the productivity and satisfaction of workers ( Rossi et al. 2010), showing that organizational culture communicates the identity of the firm’s members ( Cheung et al. Furthermore, it involves the collective mental programming of the members of a firm because it analyzes the members’ identity as an integral, historical, and social phenomenon, which reflects the history of the firm ( Hofstede et al. 1991 Schein 1988), including customs, norms, rules, symbols, ideologies, beliefs, rituals, and myths ( Gallivan and Srite 2005 Lee et al. Organizational culture is defined as the set of differentiated elements between organizations ( Hofstede 1983 O’Reilly et al. The study analyzed the firm’s non-financial performance, including selection, training, evaluation, job stability, and others that have not been studied deeply in the Ecuadorian context. Denison ( 2003) proposed financial indicators as measures of organizational performance, while current research includes non-financial indicators as proxies for non-financial firm performance ( Triguero et al. Therefore, each firm must establish its own cultural characteristics to achieve a specific performance ( Denison and Mishra 1995). Denison and Mishra ( 1995) demonstrated that the relationship between organizational culture and firm performance depends on effectiveness measures. It suggests that an organization’s culture reflects cultural traits and administrative behaviors based on the beliefs and assumptions of the organization and its environment ( Denison 1990). ![]() Denison’s model (1990) is based on the attitudes of employees. Previous studies developed different models of organizational culture. Future research should include the characteristics of the studied firms to increase the effectiveness of the proposed model. This study provides a perspective on long-term organizational strategies, vision, and performance. Involvement is the critical determinant of the influence of organizational culture on corporate performance, while training shows the strongest association with organizational culture. Moreover, involvement, adaptability, consistency, and mission affect the non-financial performance of the Ecuadorian service sector. The findings reveal a statistically positive relationship between organizational culture and firm performance. The operational items of the questionnaire to measure organizational culture and corporate performance were designed using the Denison model. The respondents were working as managers or employees in small Ecuadorian service firms. ![]() The study employs four organizational culture features and twelve concepts for corporate performance using a self-designed online questionnaire, which were supplied to postgraduate students from academic programs at Universidad de Las Americas (UDLA) in Quito, Ecuador. This study examines how organizational culture influences corporate performance in the Ecuadorian service sector.
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