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Organizational Culture And Company Performance: A Competing Values Perspective In The Context Of The Croatian Ict Sector

Author

Listed:
  • Dijana Mecev

    (Polytechnic Sibenik)

  • Dragana Grubisic

    (Faculty of Economics Split)

Abstract

The study aimed to examine the relationship between organizational culture and company performance. For research purposes, organizational culture is differentiated according to a typology based on the Competing Values Framework. The empirical research was conducted in 21 medium and large enterprises of the ICT sector in the Croatian economy. A total of 647 respondents were surveyed in these companies. Research results have shown that organizational culture is an essential determinant of the identity and capabilities of medium and large enterprises because statistically significant difference in business performance among enterprises has been found with respect to their dominant organizational culture type. Additionally, enterprises with dominant hierarchy culture have been found to have the lowest level of business success in their sector. Although it was hypothesized that enterprises with dominant market culture would be the most successful, the research has shown that enterprises with dominant adhocracy culture are the most successful in their sector. Implications of the results obtained are clear. Enterprises seeking to be more successful need to be externally oriented and flexible in their business activities.

Suggested Citation

  • Dijana Mecev & Dragana Grubisic, 2020. "Organizational Culture And Company Performance: A Competing Values Perspective In The Context Of The Croatian Ict Sector," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 29(2), pages 327-346, december.
    • Handle: RePEc:avo:emipdu:v:29:y:2020:i:2:p:327-346
    DOI: 10.17818/EMIP/2020/2.1
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    More about this item

    Keywords

    organizational culture; company performance; Competing Values Framework;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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