Organizational culture as a discriminating variable of export activities

Abstract

PurposeThe paper's purpose is to identify the differences in organizational culture between exporting and non‐exporting firms.Design/methodology/approachA binary logit model is used to test organizational cultural differences in four different types; market culture, ad hocracy culture, clan culture, and hierarchy cultures. A univariate t‐test is also used to determine mean differences in organizational culture of exporting and non‐exporting firms.FindingsNon‐exporting firms tend to be more customer‐driven and competitively oriented (market culture) than exporting firms. However, they are found to be more internally oriented (clan culture) than exporters. There are no significant differences for ad hocracy and hierarchy cultures.Research limitations/implicationsFirst, the study omits the effects of industry conditions in the firm's cultural orientation. Hence, industry factors need to be studied in relation to exports and organizational culture. Second, organizational culture may play a facilitating rather than predictive role in international expansion since managerial attitudes and characteristics can shape the vision of organizations. It is recommended that future research examine the relationships between managerial characteristics and organizational culture and how this relationship affects the firm's export decisions. Finally, a further classification of non‐exporting companies into interested and not‐interested firms is suggested to further the current literature.Originality/valueThe paper may help interested non‐exporters undertake an organizational change to align their organizational culture with the dynamics of international business so that they can become exporters.