The match between efficiency/flexibility strategy and organisational culture

Abstract

A mismatch between efficiency/flexibility strategy and organisational culture results in production inefficiency within the firm, whereas a proper match leads to superior performance. This study tries to find out the proper match between them by investigating their joint effect on firm performance. Based on the data of 212 Chinese firms, this research finds that the proper organisational culture for efficiency strategy is characterised by individualism, high power distance, and low uncertainty avoidance, whereas the proper culture for flexibility strategy has the characteristics of collectivism, low power distance, and high uncertainty avoidance.

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