Relationship between Organizational Culture and Strategy Implementation: Typologies and Dimensions

Abstract

Introduction Now days, no organization can go on its mission and last in world of competition without maintaining a strong advantageous culture. The study on effects of organizational culture was started in 1980s, today is matching itself with new human values and styles of development which have brought new era in enterprises. Perez Lopez et. al. (2004) believes there is a consensus on idea that organizations making effort to introduce a culture which encourages communication among their members and motivates employees to question fundamental beliefs will achieve a favorable working atmosphere. The pervasiveness of an organization's culture requires that management recognize underlying dimensions of their corporate culture and its impact on employee-related variables such as satisfaction, commitment, cohesion, strategy implementation, performance, among others (Daulatrum B. Lund, 2003). Many studies have tried to prepare some conceptual models and test effect of organizational culture (Daulatrum B. Lund, 2003; Mehta and R. Krishnan, 2004; Zabid and Sambasivan, 2004; Navanjo-Valencia et. al., 2011). A noticeable influence of a powerful culture clears up on subject of strategy implementation. As well as formulation of a strategy seems critical, its execution should be considered vital. Only organizations which implement almost all their strategy achieve good records on profitability. However, only a few studied implicitly effect of culture on strategy implementation (SakuMantere, 2000; Van Der Maas, 2008). Therefore, with importance of culture as a unifying and encouraging factor, it has to be considered in implementation process. Thus, it is a must to measure which kinds of cultures will help organization implement its strategic objectives. Also, it is necessary to find out effects of culture's components on strategy implementation. Considering literature and role of modern social and personal values, we estimate organizations validating flexibility versus stability and adaptability versus refusal gain more advantages out of their cultures through implementation process. This will help managers and decision-makers build up a productive environment for personnel consequently promote outputs in strategy implementation with higher degrees of productivity. In order to classify organizational cultures, Cameron and Quinn (1999) proposed a model of four-type cultures. Using this typology, we are able to clarify relations between different cultures and strategy implementation. The present study first reviews literature. Then, we empirically examine relationship between organizational culture types and strategy implementation. We also investigate amount of influence for each type on implementation dimensions. Another beneficial investigation is held to clarify components of organization' s culture on strategy implementation. Finally, we prepare some fruitful discussions. Literal Review Organizational Culture The researches on subject of organizational culture and its effect on other organizational variables became widespread during 1980s. Lund (2003) alludes to fact that the 1980s witnessed a surge in popularity to examine concept of organizational culture as managers became increasingly aware of ways that an organizational culture can affect employees and organizations. Between 1983 and 1986 most of leading journals within field have dedicated special issues to this topic (Alvesson, 1990) and brought up many definitions for this notable issue. Organizational culture is defined as assumptions, and values that members of a group share about rules of conduct, leadership styles, administrative procedures, ritual, and customs (Schein, 1990, 1992, 1995; Mintzberg, 1990; Mehta and Krishnan, 2004). Also, it has been mentioned the shared philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms(Kilmann et. …

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