Browse > Article
http://dx.doi.org/10.13106/jafeb.2022.vol9.no8.0135

Systematic Evaluation Effects of Culture on the Effectiveness of Small and Medium Firms in Tra Vinh of Vietnam: With AHP and Regression  

HUYNH, Quang Linh (Faculty of Business Administration, Ho Chi Minh City University of Food Industry)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.8, 2022 , pp. 135-144 More about this Journal
Abstract
Organizational culture has been recognized as a determinant of corporate Effectiveness. Cultural components could affect corporate Effectiveness to different extents. However, it seems that none of the previous studies have evaluated and compared these influential extents of cultural components. The current research applies analytic hierarchy processes to assess and rate the significance extents that, cultural components play in resulting in corporate Effectiveness. Then, the current work utilizes regression analyses to re-evaluate the significance extents for the robustness of analytic hierarchy processes. The findings indicate that clan culture is the most vital component in explaining corporate Effectiveness. In contrast, adhocracy culture is the least important component in affecting corporate Effectiveness. Market culture is a cultural component that is ranked the second in determining corporate Effectiveness, and next is hierarchy culture which is the third. The findings are in support of the positive influences of clan, market, and adhocracy cultures on corporate Effectiveness; whereas it found the negative impact of hierarchy culture on corporate Effectiveness.
Keywords
Cultural Component; Effectiveness; Analytic Hierarchy Process;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
연도 인용수 순위
1 Gordon, G. G., & Ditomaso, N. (1992). Predicting corporate performance from organizational culture. Journal of Management Studies, 29(6), 783-798. https://doi.org/10.1111/j.1467-6486.1992.tb00689.x   DOI
2 Iivari, J., & Iivari, N. (2011). The relationship between organizational culture and the deployment of agile methods. Information and Software Technology, 53(5), 509-520. https://doi.org/10.1016/j.infsof.2010.10.008   DOI
3 Kwarteng, A., & Aveh, F. (2018). An empirical examination of organizational culture on accounting information system and corporate performance: Evidence from a developing country perspective. Meditari Accountancy Research, 26(4), 675-698. https://doi.org/10.1108/MEDAR-01-2018-0264   DOI
4 Luca, M. M. M., Parente, P. H. N., Silva, E. M. S., & Sousa, R. R. (2018). The effect of creative corporate culture and intangibility on the performance of foreign firms trade on the NYSE. Innovation and Management Review, 15(4), 356-372. https://doi.org/10.1108/INMR-07-2018-0049   DOI
5 Mulugeta, A. (2020). The effect of organizational culture on employees' performance in public service organization of Dire Dawa administration. Developing Country Studies, 10(5), 16-25.
6 Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. Journal of Asian Finance, Economics, and Business, 7(8), 577-588. https://doi.org/10.13106/jafeb.2020.vol7.no8.577   DOI
7 Waterman, R. H., & Peters, T. J. (1982). In search of excellence: Lessons from America's best-run companies. NY: Harper & Row.
8 Stevens, S. S. (1946). On the theory of scales of measurement. Science, 103(2684), 677-680. https://doi.org/10.1126/science.103.2684.677   DOI
9 Kim, S., Lee, J., & K. Yu. (2004). Corporate culture and organizational performance. Journal of Managerial Psychology, 19(4), 340, 359.
10 Jacobs, R., Mannion, R., Davies, H. T., Harrison, S., Konteh, F., & Walshe, K. (2013). The relationship between organizational culture and performance in acute hospitals. Social Science and Medicine, 76(1), 115-125. https://doi.org/10.1016/j.socscimed.2012.10.014   DOI
11 Krefting, L. A., & Frost, P. J. (1985). Untangling webs, surfing waves, and wildcatting: A multiple-metaphor perspective on managing culture. In P. J. Frost, L. F. Moore, M. R. Louis, C. C. Lundberg & J. Martin (Eds.), Organization culture (pp. 61-111). NJ: SAGE.
12 Leithy, W. E. (2017). Organizational culture and organizational performance. International Journal of Economics and Management Sciences, 06(4), 1-10. https://doi.org/10.4172/2162-6359.1000442   DOI
13 Marcoulides, G. A., & Heck, R. H. (1993). Organizational culture and performance: Proposing and testing a model. Organization Science, 4(2), 209-225. https://doi.org/10.1287/orsc.4.2.209   DOI
14 Mousavi, S. A., Hosseni, S. Y., & Hassanpour, N. (2015). On the effects of organizational culture on organizational performance: An Iranian experience in State bank branches. Iranian Journal of Management Studies, 8(1), 97-116.
15 Ogbonna, E. (1993). Managing organizational culture: Fantasy or reality? Human Resource Management Journal, 3(2), 42-54.   DOI
16 Huynh, Q. L. (2020). Mediation of human resource management in the linkage between performance and culture in an emerging economy. Problems and Perspectives in Management, 18(3), 438-451. https://doi.org/10.21511/ppm.18(3).2020.36   DOI
17 Bernasconi, M., Choirat, C., & Seri, R. (2010). The analytic hierarchy process and the theory of measurement. Management Science, 56(4), 699-711. https://doi.org/10.1287/mnsc.1090.1123   DOI
18 Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. NY: John Wiley & Sons.
19 De Hilal, A. V. G., Wetzel, U., & Ferreira, V. (2009). Organizational culture and performance: A Brazilian case. Management Research News, 32(2), 99-119.   DOI
20 Fekete, H., & Bocskei, E. (2011). Cultural waves in company performance. Research Journal of Economics, Business, and ICT, 3, 38-42.
21 Kim, T., & Chang, J. (2019). Organizational culture and performance: A macro-level longitudinal study. Leadership and Organization Development Journal, 40(1), 65-84. https://doi.org/10.1108/LODJ-08-2018-0291   DOI
22 Yusoff, W. F. W. (2011). Organizational culture and its impact on firm performance: A case study of Malaysian public listed companies. In International Conference on Management (ICM), Penang, Malaysia (pp. 124-136).
23 Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir, L. (2012). Impact of organizational culture on organizational performance: An overview. Interdisciplinary Journal of Contemporary Research in Business, 3(9), 975-985.
24 Wilkins, A. L., & Ouchi, W. G. (1983). Efficient cultures: Exploring the relationship between culture and organizational performance. Administrative Science Quarterly, 28(3), 468-481. https://doi.org/10.2307/2392253   DOI
25 Worley, C. G., & Lawler, E. E. (2010). Agility and organization design. Organizational Dynamics, 39(2), 194-204. https://doi.org/10.1016/j.orgdyn.2010.01.006   DOI
26 Yesil, S., & Kaya, A. (2013). The effect of organizational culture on firm financial performance: Evidence from a developing country. Procedia - Social and Behavioral Sciences, 81, 428-437. https://doi.org/10.1016/j.sbspro.2013.06.455   DOI
27 Yildiz, E. (2014). A study on the relationship between organizational culture and organizational performance and a model suggestion. International Journal of Research in Business and Social Science, 3(4), 52-67. https://doi.org/10.20525/ijrbs.v3i4.117   DOI
28 Zhang, M., Li, H., & Wei, J. (2008). Examining the relationship between organizational culture and performance: The perspectives of consistency and balance. Frontiers of Business Research in China, 2(2), 256-276. https://doi.org/10.1007/s11782-008-0015-6   DOI
29 Soelton, M., Noermijati, N., Rohman, F., & Mugiono, M. (2021). Conceptualizing the role of organizational performance in Indonesia. Journal of Asian Finance, Economics, and Business, 8(6), 1151-1160. https://doi.org/10.13106/jafeb.2021.vol8.no6.1151   DOI
30 Crocitto, M., & Youssef, M. (2003). The human side of organizational agility. Industrial Management and Data Systems, 103(6), 388-397. https://doi.org/10.1108/02635570310479963   DOI
31 Denison, D. R. (1990). Corporate and corporate Effectiveness. NY: Wiley.
32 Diana, I. N., Supriyanto, A. S., Ekowati, V. M., & Ertanto, A. H. (2021). Factor influencing employee performance: The role of organizational culture. Journal of Asian Finance, Economics, and Business, 8(2), 545-553. https://doi.org/10.13106/jafeb.2021.vol8.no2.0545   DOI
33 Felipe, C. M., Roldan, J. L., & Leal-Rodriguez, A. L. (2017). Impact of organizational culture values on organizational agility. Sustainability, 9(12), 2354. https://doi.org/10.3390/su9122354   DOI
34 Acar, A. Z., & Acar, P. (2014). Organizational culture types and their effects on organizational performance in Turkish hospitals. EMAJ: Emerging Markets Journal, 3(3), 18-31. https://doi.org/10.5195/EMAJ.2014.47   DOI
35 Agbejule, A. (2011). Organizational culture and performance: The role of the management accounting system. Journal of Applied Accounting Research, 12(1), 74-89. https://doi.org/10.1108/09675421111130621   DOI
36 Al Mamun, C., & Hasan, M. (2017). Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view. Problems and Perspectives in Management, 15(1), 63-71. https://doi.org/10.21511/ppm.15(1).2017.06   DOI
37 Ali, H. S. H., Said, R. M., Abdullah, A., & Daud, Z. M. (2017). The impact of organizational culture on corporate financial performance: A review. International Journal of Economics, Commerce and Management, 6(8), 585-597.
38 Ogbonna, E., & Harris, L. C. (2000). Leadership style, organizational culture, and performance: Empirical evidence of UK companies. International Journal of Human Resource Management, 11(4), 766-788. https://doi.org/10.1080/09585190050075114   DOI
39 Lee, M., & Kim, H. (2017). Exploring the organizational culture's moderating role of effects of Corporate Social Responsibility (CSR) on firm performance: Focused on corporate contributions in Korea. Sustainability, 9(10), 1883. https://doi.org/10.3390/su9101883   DOI