Author: | Flamholtz, E. Kannan-Narasimhan, R. |
Title: | Differential impact of cultural elements on financial performance |
Journal: | European Management Journal
2005 : FEB, VOL 23:1, p. 50-64 |
Index terms: | Corporate culture Organizational culture Financial performance Performance appraisal Statistical methods Models |
Language: | eng |
Abstract: | This research provides empirical evidence that some elements of an organization's culture have a differential impact on the financial performance (hereafter as: fin-perf.) of a firm. Tested is a proposed 5-factor cultural model, and it is determined that there are actually six factors (here as: f./fs.) of corporate culture. Four of the fs. identified (i.e. customer focus, corporate citizenship, performance standards, and identification) were found to be directly influencing the fin-perf. of the firm. Two other fs., that is, human resource practices and organizational communication, had a significant influence on the primary cultural factors, although not directly correlated with the fin-perf. of the firm. |
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