The Link Between Organizational Elements, Perceived External Prestige and Performance

Abstract

In this study, organizations' external prestige as perceived by members of the top management team (ie perceived external prestige, PEP) was examined in relation to organizational culture, organizational communication, industrial relations, and financial performance in 73 high-tech firms. The results indicate that organizational culture augments industrial relations climate and organizational communication. Whereas organizational communication augments neither industrial relations climate nor PEP, industrial relations climate affects PEP. The latter has a positive reciprocal relationship with a firm's financial performance (return on sales).