Influence of organizational culture on company performance

The lack of organizational effort to access cultural compatibility or fit prior to the engagement of firms has contributed to the failure of several mergers and acquisition. A Korean public listed company with manufacturing plants in Malaysia and New Zealand found that the performances of the newly...

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Main Authors: Mohd Yusuff, Rosnah, Abdul Rashid, Ahmad Busu, Zulkifli, Norzima
Format: Conference or Workshop Item
Published: 2008
Subjects:
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author Mohd Yusuff, Rosnah
Abdul Rashid, Ahmad Busu
Zulkifli, Norzima
author_facet Mohd Yusuff, Rosnah
Abdul Rashid, Ahmad Busu
Zulkifli, Norzima
author_sort Mohd Yusuff, Rosnah
collection UPM
description The lack of organizational effort to access cultural compatibility or fit prior to the engagement of firms has contributed to the failure of several mergers and acquisition. A Korean public listed company with manufacturing plants in Malaysia and New Zealand found that the performances of the newly acquired plants were significantly lower than the manufacturing plants in Korea. In this study, the influence of national culture on organizational culture and the effect on the organizational performance was conducted on 6 manufacturing plants in Korea (2), Malaysia (3) and New Zealand (1). Hofstede's culture dimensions were used to determine culture diversity between the manufacturing plants. The values survey module was used to calculate the index scores on five dimensions of national value system as components of national cultures:power distance, individualism, masculinity, uncertainty avoidance and long term orientation. The model of culture fit assesses the dimension of socio-cultural environment, internal work culture and HRM practices. The resulting multiple regression analysis showed that there are cultural diversities between the manufacturing plants and national culture does influence organizational performance. The result also showed that a dimension of internal work culture does influence organizational performance.
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spelling upm.eprints-107182015-01-26T03:26:35Z http://psasir.upm.edu.my/id/eprint/10718/ Influence of organizational culture on company performance Mohd Yusuff, Rosnah Abdul Rashid, Ahmad Busu Zulkifli, Norzima The lack of organizational effort to access cultural compatibility or fit prior to the engagement of firms has contributed to the failure of several mergers and acquisition. A Korean public listed company with manufacturing plants in Malaysia and New Zealand found that the performances of the newly acquired plants were significantly lower than the manufacturing plants in Korea. In this study, the influence of national culture on organizational culture and the effect on the organizational performance was conducted on 6 manufacturing plants in Korea (2), Malaysia (3) and New Zealand (1). Hofstede's culture dimensions were used to determine culture diversity between the manufacturing plants. The values survey module was used to calculate the index scores on five dimensions of national value system as components of national cultures:power distance, individualism, masculinity, uncertainty avoidance and long term orientation. The model of culture fit assesses the dimension of socio-cultural environment, internal work culture and HRM practices. The resulting multiple regression analysis showed that there are cultural diversities between the manufacturing plants and national culture does influence organizational performance. The result also showed that a dimension of internal work culture does influence organizational performance. 2008-11 Conference or Workshop Item NonPeerReviewed Mohd Yusuff, Rosnah and Abdul Rashid, Ahmad Busu and Zulkifli, Norzima (2008) Influence of organizational culture on company performance. In: 9th Global Congress on Manufacturing and Management (GCMM 2008), 12-14 Nov. 2008, Gold Coast, Australia. . Culture Performance
spellingShingle Culture
Performance
Mohd Yusuff, Rosnah
Abdul Rashid, Ahmad Busu
Zulkifli, Norzima
Influence of organizational culture on company performance
title Influence of organizational culture on company performance
title_full Influence of organizational culture on company performance
title_fullStr Influence of organizational culture on company performance
title_full_unstemmed Influence of organizational culture on company performance
title_short Influence of organizational culture on company performance
title_sort influence of organizational culture on company performance
topic Culture
Performance
work_keys_str_mv AT mohdyusuffrosnah influenceoforganizationalcultureoncompanyperformance
AT abdulrashidahmadbusu influenceoforganizationalcultureoncompanyperformance
AT zulkiflinorzima influenceoforganizationalcultureoncompanyperformance