Organizational Culture and Corporate Performance in the Ecuadorian Environment

Ana Belén Tulcanaza-Prieto,Carlos Artieda,Iliana E. Aguilar-Rodríguez

doi:10.3390/admsci11040132

Ana Belén Tulcanaza-Prieto, Carlos Artieda + Show 1 more

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https://doi.org/10.3390/admsci11040132

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Journal: Administrative Sciences	Publication Date: Nov 12, 2021
Citations: 13	License type: CC BY 4.0

Affiliation: Universidad de Las Américas

Abstract

This study examines how organizational culture influences corporate performance in the Ecuadorian service sector. The study employs four organizational culture features and twelve concepts for corporate performance using a self-designed online questionnaire, which were supplied to postgraduate students from academic programs at Universidad de Las Americas (UDLA) in Quito, Ecuador. The respondents were working as managers or employees in small Ecuadorian service firms. The operational items of the questionnaire to measure organizational culture and corporate performance were designed using the Denison model. The findings reveal a statistically positive relationship between organizational culture and firm performance. Moreover, involvement, adaptability, consistency, and mission affect the non-financial performance of the Ecuadorian service sector. Involvement is the critical determinant of the influence of organizational culture on corporate performance, while training shows the strongest association with organizational culture. This study provides a perspective on long-term organizational strategies, vision, and performance. Future research should include the characteristics of the studied firms to increase the effectiveness of the proposed model.

Highlights

Organizational culture is viewed as the basis of knowledge management
This study analyzed the relationship between organizational culture and corporate performance in a sample of service firms from Ecuador, using an online questionnaire with concepts from the Denison model (1990) and Triguero et al (2012) to measure the components of organizational culture and corporate performance, respectively
The findings revealed that corporate performance is positively affected by organizational culture in Ecuadorian service firms

Summary

Introduction

Organizational culture is viewed as the basis of knowledge management It considers employees as the most vital asset of a firm because they directly contact customers and competitors. Cameron and Quinn (2006) argued that organizational culture is the main characteristic that distinguishes successful companies (Cameron and Quinn 2006), and when a firm shows a high level of culture, its organizational performance increases (Denison 1990; Kirkman et al 2016; Oberföll et al 2018; Schein 1988). Denison’s model (1990) is based on the attitudes of employees It suggests that an organization’s culture reflects cultural traits and administrative behaviors based on the beliefs and assumptions of the organization and its environment (Denison 1990). The study analyzed the firm’s non-financial performance, including selection, training, evaluation, job stability, and others that have not been studied deeply in the Ecuadorian context

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