The Organizational Culture and Organizational Performance of The Construction Industry in Jiangsu

Abstract

This study aims to explore the impact of organizational culture on the performance of companies in the construction industry. By collecting survey data from 402 construction firms and employing statistical analysis methods, the paper examined the relationship between different types of organizational culture and firm performance. The results indicate significant correlations between four distinct types of organizational culture – clan culture, adhocracy culture, market culture, and hierarchy culture – and firm performance. Clan culture is closely related to teamwork and shared objectives, adhocracy culture is associated with innovation and a spirit of risk taking, market culture emphasizes competition and customer satisfaction, while hierarchy culture focuses on power distribution and organizational structure clarity. Furthermore, factors such as company size, employee age, and educational background were found to influence this relationship. The study also reveals the reciprocal relationship between organizational culture and firm performance. The findings suggest that enhancing firm performance may be achieved by shaping a culture that fits the paper examined needs. Therefore, construction industry enterprises can actively improve and guide their organizational culture by encouraging collaboration, innovation, customer orientation, and clarifying roles and organizational structure, thus enhancing their performance. However, this requires active involvement from leadership teams and strategic planning to ensure the success of cultural transformations. In conclusion, this research offers key insights for construction industry companies striving for excellence in performance. By understanding how different cultural types impact performance, organizational leaders can make better strategic decisions and management practices to maintain a competitive edge in a competitive market environment.