The Effect of Organizational Culture on Firm Financial Performance: Evidence from a Developing Country

Abstract

Literature on organizational culture constantly reinforces the notion that organisational culture is necessary for effective functioning and performance of the organisations. Although numerous studies have been conducted to explore the relationship between organisational culture and performance, empirical findings seem to be mixed and inconclusive. This article attempts to further investigate the role of organisational culture on firm financial performance. Research hypotheses are developed from the related literatures and tested through the data collected from managers of the firms in Gaziantep in Turkey. Data is analysed via SPSS program using the regression analyses. The results show that organisational culture dimensions have no effect on firm financial performance. Considering the limitations of the current study, the findings need to be evaluated with caution. Discussions and implications of the results are provided in the conclusion part of the study. (C) 2013 The Authors. Published by Elsevier Ltd. Selection and peer review under the responsibility of Prof. Dr. Andreea Iluzia Iacob.