The role of corporate culture, market orientation and organisational commitment in organisational performance

Abstract

Purpose– The purpose of this paper is to propose a conceptual framework that explores the relationships among the following constructs: corporate/organisational culture, market orientation, organisational commitment and organisational performance in non-profit organisations.Design/methodology/approach– In line with previous studies in the field, a quantitative research design was adopted. The data collection was performed through a mail survey of a sample of Portuguese non-profit organisations operating in the area of health. Structural equation modelling was used as a means to analyse the hypothesised relationships.Findings– Results have shown that organisational culture impacts on organisational performance. Concerning the market orientation consequences, the study results suggest that higher levels of market orientation result in both high levels of organisational commitment and organisational performance. Results also suggest that organisational commitment does not affect performance in a very significant way.Research limitations/implications– The study was restricted to non-profit organisations, particularly those operating in the area of health and used cross-sectional data to test the research model and hypotheses. Whilst these findings remain valid, they cannot be used for universal generalisations. This study has significant theoretical and practical implications.Practical implications– Practitioners and researchers agree that organisational culture may lead to different performance results, although little attention has been given to this issue. The study is useful for understanding organisational culture, market orientation, organisational commitment and organisational performance in non-profit organisations.Originality/value– This paper offers original findings through simultaneously examining the relationships between organisational culture, market orientation, organisational commitment and organisational performance in the context of non-profit organisations. The findings add weight to the recent emphasis on business-oriented approaches as a lever for improving performance in non-profit organisations.