Manager’s report: organizational culture & strategy association

Abstract

Purpose

Strategy and organizational culture are indispensable for success within a business. Both behavioral scientists and practitioners have shown keen interest in understanding the association between culture and strategy; however, no strong consensus has been formed about this relationship. This paper aims to shed light on this relationship by answering the following questions: Is organizational culture separable from its strategies? Is there an association between organizational culture and strategy?

Design/methodology/approach

Using a sample of 496 service managers, this study empirically examines the relationship between culture and strategy. Due to the nature of the data, cross-tabulation research method was used for analysis and to check the association between organizational culture and strategy.

Findings

Results indicate that successful firms with a bureaucratic and innovative culture may demonstrate any of the four examined strategies (command, rational, transactive and generative). The results also suggest that successful firms with a supportive culture will likely use a transactive or generative strategy. Overall, the results found that all four strategies are associated with each of the three corporate cultures, except for the supportive culture-command strategy and supportive culture-rational strategy dyads.

Originality/value

There are diverse views about the organizational culture-strategy relationship; however, no strong consensus has been formed about this relationship. Using managerial data collected from service industry, this study examines the relationship between three organizational cultures, namely, bureaucratic, supportive and innovative, and four different types of strategies, namely, specially command, rational, transactive and generative.

Citation

Thakur, R., Hale, D. and AlSaleh, D. (2018), "Manager’s report: organizational culture & strategy association", Foresight, Vol. 20 No. 4, pp. 375-392. https://doi.org/10.1108/FS-02-2018-0015