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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.
SCIMA record nr: 258725
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