THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND FIRM PERFORMANCE: A STUDY IN VIETNAM
Vol. 130 No. 5B (2021), Original Article
Vol. 130 No. 5B (2021)

THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND FIRM PERFORMANCE: A STUDY IN VIETNAM

Original Article
https://doi.org/10.26459/hueunijed.v129i5A.5961
Published 2021-05-04
Nguyen Thi Thuy Hang
Pham Van Dong University
Nguyen Hiep
The University of Danang
Nguyen Phuc Nguyen
University of Economics, The University of Danang
Hoang Trong Hung
Hue University, University of Economics
PDF

Keywords

culture
firm performance
leadership
enterprises.

Abstract

The literature on organizational culture constantly reinforces the notion that organizational culture is necessary for firm performance. Nevertheless, limited studies have been conducted in Vietnam. This study aims to examine the relationship between the components of organizational culture and firm performance. Primary data was collected through questionnaires from 982 employees in Vietnamese enterprises. Multiple regression was used to test the proposed model. The results show that consistency and involvement were the highest influencing factors of firm performance, while adaptability was the lowest. Thus, managers and leaders are recommended to develop a strong culture in the organization to improve their firm performance.

https://doi.org/10.26459/hueunijed.v129i5A.5961
PDF

References

  1. Cuong O. Q., Danh V. T., Lien H. H., Ha N. N., & Anh N. P. T. (2016), Identify the constituent elements of corporate culture in Vietnam Export Import Commercial Joint-Stock bank -
  2. Can Tho Branch, Can Tho University Journal of Science, 42, 31. https://doi.org/10.22144/ctu.jvn.2016.031.
  3. Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014), The Measurements of Firm Performance’s Dimensions, Asian Journal of Finance & Accounting, 6(1), 24. https://doi.org/10.5296/ajfa.v6i1.4761.
  4. Alzharani, A. M., Che-Ahmad, A., & Aljaaidi, K. S. (2012), Factors associated with firm performance: Impirical evidence from the Kingdom of Saudi Arabia, 4(2), 8.
  5. Denison, D. R., & Mishra, A. K. (1995), Toward a Theory of Organizational Culture and Effectiveness, Organization Science, 6(2), 204–223, https://doi.org/10.1287/orsc.6.2.204.
  6. ElKordy, M. (2013), Transformational Leadership and Organizational Culture as Predictors of Employees Attitudinal Outcomes, Business Management Dynamics, 3(5), 15–26.
  7. Fey, C. F., & Denison, D. R. (2003), Organizational Culture and Effectiveness: Can American Theory Be Applied in Russia? The William Davidson Institute The University of Michigan Business School, 45.
  8. Murphy, P. J., Cooke, R. A., & Lopez, Y. (2013), Firm culture and performance: Intensity’s effects and limits, Management Decision, 51(3), 661–679. https://doi.org/10.1108/00251741311309715.
  9. Nguyen, L., & Watanabe, T. (2017), The Impact of Project Organizational Culture on the Performance of Construction Projects, Sustainability, 9(5), 781. https://doi.org/10.3390/su9050781.
  10. Roldán, I. G., & Bray, R. G. R. (2009), Similarties and differences existing in cultural profiles of colombian organization of higher and lower performance. E La Facultad de Ciencias Económicas de La Universidad Militar Nueva Granada, Revfac.Cienc.Econ, XVII(1), 9–24.
  11. Santos, J. B., & Brito, L. A. L. (2012), Toward a subjective measurement model for firm performance, BAR - Brazilian Administration Review, 9(spe), 95–117. https://doi.org/10.1590/S1807-76922012000500007.
  12. Sosiawani, I., Ramli, A. B., Mustafa, M. B., & Yusoff, R. Z. B. (2015), Strategic Planning and Firm Performance: A Proposed Framework, 7.
  13. Sun, S. (2008), Organizational Culture and Its Themes, International Journal of Business and Management, 3(12), 137–141.
  14. Uddin, M. J., Luva, R. H., & Hossain, S. M. M. (2012), Impact of Organizational Culture on Employee Performance and Productivity: A Case Study of Telecommunication Sector in Bangladesh, International Journal of Business and Management, 8(2), https://doi.org/10.5539/ijbm.v8n2p63.
  15. Venkatraman, N., & Vasudevan Ramanujam (1986), Measurement of business economic performance: An examination of method convergence, The Academy of Management Review, 11(4), 42.
  16. Wei, L., Jun Liu, & Neil C. Herndon. (2011), SHRM and product innovation: Testing the moderating effects of organizational culture and structure in Chinese firms, The International Journal of Human Resource Management, 22(1), 19–33.
  17. Vo Thi Quy. (2018), Organizational Culture and Firm Performance – A Comparative Study between Local and Foreign Companies Located in Ho Chi Minh City, International Journal of Scientific Research and Innovative Technology, 5(2), 45–53.
  18. Wang, F.-J., Chich-Jen, S., & Mei-Ling, T. (2010), Effect of leadership style on organizational performance as viewed from human resource management strategy, African Journal of Business Management, 4(18), 3924–3936.
  19. Truong Thi Huong Xuan, Nguyen Dang Hao, Nguyen Tai Phuc (2019), Organizational culture of enterprises in Thua Thien Hue province with Denison model, Hue University Journal of Science: Economics and Development, 128(5C), 45–54.
  20. Yilmaz, C., & Ergun, E. (2008), Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy, Journal of World Business, 43(3), 290–306. https://doi.org/10.1016/j.jwb.2008.03.019.
  21. Zakari, M., Poku, K., & Owusu-Ansah, W. (2013), Organizational Culture and Organisational Performance: Empirical Evidence from the Banking Industry in Ghana, 3(1), 13.
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright (c) 2021 Array