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Flexible but stable: the mediated influence of an organization’s culture on performance

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Abstract

In this study, we identify the relationships between a strong and balanced organizational culture, and its effects on overall employee attitudes, organizational competencies, and organizational performance. We define a strong and balanced organizational culture as one that rates highly in terms of both flexibility and stability, and we hypothesized its effects on organizational performance, further predicting that these effects are mediated by overall employee attitudes and organizational competencies. Data were collected through the Korea Research Institute for Vocational Educational & Training’s panel survey of 2013, based on 3530 employees and 1167 managers from 163 companies. Our analyses suggest that a strong and balanced organizational culture has a significant positive relationship with organizational performance, and that this effect is mediated by employee attitudes and organizational competencies. Our findings underscore the importance for managers of cultivating a culture that concurrently balances the twin goals of internal- and external-oriented flexibility and stability.

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  1. Chosun University, 309 Pilmun-Daero, Dong-Gu, Gwangju, 61452, Republic of Korea

    Yong-Sun Chang & Jian Hui Guo

  2. Mohammed Bin Salman College of Business and Entrepreneurship, 7082-BayLaSun-Juman St. Unit No. 1, King Abdullah Economic City, 23964-2522, Kingdom of Saudi Arabia

    Joel M. Evans

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Chang, YS., Guo, J.H. & Evans, J.M. Flexible but stable: the mediated influence of an organization’s culture on performance. Asian Bus Manage 22, 463–492 (2023). https://doi.org/10.1057/s41291-021-00174-y

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