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The importance of culture for enterprise dynamics: the role of type and strength of culture

Author

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  • Mojca Duh
  • Jernej Belak
  • Borut Milfelner

Abstract

Nowadays, enterprises can gain and sustain a competitive advantage in hypercompetitive environments for only a limited period of time. In order to be able to do that, enterprises must be dynamic. Even though – several authors suggest a positive association between organisational culture and the enterprise’s dynamic – we are still lacking the empirical support for such assertion. Therefore, we empirically tested the association between the type and strength of culture and the level of enterprises’ dynamics. Since organisational culture and the enterprises’ dynamics are both a complex phenomenon, we applied a case study approach combined with quantitative methods. The research indicates that the adhocracy culture type positively influences the level of enterprises’ dynamics. Regarding the strength of culture, our research results show that positive effects of strong culture exceed the eventual negative effects of such culture and positively influence the level of enterprises’ dynamics.

Suggested Citation

  • Mojca Duh & Jernej Belak & Borut Milfelner, 2016. "The importance of culture for enterprise dynamics: the role of type and strength of culture," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 29(1), pages 263-285, January.
    • Handle: RePEc:taf:reroxx:v:29:y:2016:i:1:p:263-285
    DOI: 10.1080/1331677X.2016.1168038
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