Dominican University

What Matters More? The Impact of Industry and Organizational Factors on Organizational Culture

What Matters More? The Impact of Industry and Organizational Factors on Organizational Culture Chaudhry, Anjali Yuan, Ling (Takeda Pharmaceuticals North America, Inc.) Hu, Jia (University of Notre Dame) Cooke, Robert A. (University of Illinois at Chicago) 2016-07-20T17:08:31Z 2016-07-20T17:08:31Z 2016
dc.identifier.other en_US
dc.description.abstract Purpose – Writings on organizational culture suggest that cultural values and norms are influenced by factors at the organizational, industry, and societal levels. While the effects of societal and organizational factors have been researched extensively, those of industry factors have not received commensurate attention. The purpose of this paper is to investigate the relative importance of industry vs organizational variables in explaining the cultural norms reported by individuals within organizations. Design/methodology/approach – The effects of two industry characteristics, (growth rate and research and development intensity) and two sets of organizational factors (leadership behaviors and human resource practices) on the strength of constructive, passive/defensive, and aggressive/defensive organizational cultural norms were investigated. Findings – Results of hierarchical linear modeling analysis of survey data from 3,245 respondents in 424 organizations in 12 different industries revealed significant between-organization variation but no significant between-industry variation in the three types of cultural norms measured. Furthermore, while industry-level factors were unrelated to culture, significant variance in the culture measures was explained by leadership behaviors and human resource practices (use of rewards and fairness of performance appraisal). Research limitations/implications – The strength of cultural norms and expectations within an organization evolve in response to attributes specific to the organization and do not necessarily reflect industry characteristics. The results indicate that organizations using surveys to assess their cultures may learn as much (if not more) by comparing their feedback to data on organizations across a spectrum of industries as opposed to organizations exclusively in their own industry. Originality/value – Most of the frameworks developed to examine and describe the cultures of organizations delineate specific dimensions or types that are assumed to be relevant to all organizations regardless of the industries within which they operate. The purpose of this paper was to explore the validity of this assumption by investigating the relative impact of industry and organizational factors on organizational culture. en_US
dc.subject.other Organizational culture en_US
dc.subject.other Human resources en_US
dc.subject.other Leadership en_US
dc.subject.other Industry growth rate en_US
dc.subject.other R&D intensity en_US
dc.title What Matters More? The Impact of Industry and Organizational Factors on Organizational Culture en_US
dc.description.version Article originally published in Management Decision 54(3), 2016, p. 570-588. en_US

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