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Journal of the Academy of Marketing Science

, Volume 39, Issue 4, pp 555–573 | Cite as

The impact of product market strategy-organizational culture fit on business performance

  • Larry Yarbrough
  • Neil A. Morgan
  • Douglas W. Vorhies
Article

Abstract

Drawing on the organization theory literature concerning configuration theory, competing values theory, and fit assessment methodologies, we examine the existence and performance impact of product market strategy–organization culture fit. Specifically, we assess the relationship among three important elements of a firm’s product market strategy and the four cultural orientations that comprise the competing values theory of organizational culture using primary and secondary data from the US trucking industry. Using two different conceptualizations and operationalizations of fit, our results provide the first empirical support for the existence of interrelationships among product market strategy decisions and organizational culture orientations consistent with configuration theory conceptualizations of product market strategy–organizational culture fit. We also find support for theorized but previously untested relationships between product market strategy–organizational culture fit and firms’ customer satisfaction and cash-flow return on assets (CFROA) performance. Since product market strategy is heavily reliant on the input of marketers, and organizational culture has long been recognized as having an important impact on marketing-related decision making, these findings have important implications for marketing strategy research and practice.

Keywords

Marketing strategy Product market strategy Organizational culture Strategy-culture fit Customer satisfaction Financial performance 

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Copyright information

© Academy of Marketing Science 2010

Authors and Affiliations

  • Larry Yarbrough
    • 1
  • Neil A. Morgan
    • 2
  • Douglas W. Vorhies
    • 3
  1. 1.Supply Chain Management Research CenterUniversity of ArkansasFayettevilleUSA
  2. 2.Kelley School of BusinessIndiana UniversityBloomingtonUSA
  3. 3.School of Business AdministrationUniversity of MississippiUniversityUSA

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