The Impact of Organizational Culture on Organizational Performance: An Overview

Abstract

Nowadays, organizations work in an environment where unexpected changes are commonplace. In such an environment, to achieve high organizational performance, they have to employ relevant strategies. Adopting the best possible organizational culture is one of these measures to achieve the desired target. If a strong and positive organizational culture is in place, the organization can achieve its short and long-term objectives more efficiently. This study empirically analyses the impact of the organizational culture on organizational performance, dealing with the sub-dimension of culture: mission, consistency, involvement, and adaptability. Performance elements include financial and market performance. The proposed research model and the hypotheses were tested by the data collected from 415 employees in different sectors in Istanbul through online questionnaires. The findings reveal that organizational culture has a significant impact on organizational performance. In this regard, this study offers leaders and managers practical advice on building a strong organizational culture to achieve higher organizational performance.