Organizational culture and performance: a Brazilian case

Abstract

PurposeThe purpose of this research project is to focus on the acquisition of a Brazilian state owned energy distribution company by a Spanish conglomerate during the privatization process. It aims to verify if the performance indicators implemented by the acquiring company during the post‐acquisition phase were compatible with the organizational culture (OC) dimensions identified by Hofstede et al. It tries to identify if the values and practices fostered by the company transformation plan (such as democratic management, results orientation and focus on people) were in agreement with the organizational identified culture dimensions.Design/methodology/approachThe methodology used in this study is based on a research design that combined quantitative research with a qualitative exploratory procedure.FindingsResearch results indicate the existence of substantial OC differences, as perceived by managers and by the bulk of employees, as shown by the existence of two OC clusters. Moreover, results also suggest the need of improving the coherence between performance indicators and the OC dimensions.Originality/valueEmerging markets are the growth engines of the world economy. There is increasing evidence that cultural incompatibility is the single largest cause of lack of projected performance, departure of key executives and time‐consuming conflicts in the consolidation of business.