The Impact of Organizational Culture on Corporate Performance: A Study

This doctoral dissertation, conducted at Walden University, investigates the impact of organizational culture on corporate performance within a corporate group in Ethiopia. Using the Denison organizational culture model, the study employed a qualitative, exploratory case study approach, involving semi-structured interviews with 20 senior managers. The research aimed to uncover successful strategies for establishing an effective organizational culture to improve performance, focusing on a well-defined mission, employee-focused leadership, and core corporate values including social responsibility. The findings highlight the importance of cultural integration, and provide potential strategies for business managers to improve performance, increase productivity, and contribute to economic growth and social change. The study also offers recommendations for action and further research, reflecting on the implications for professional practice and the broader community.

Walden University
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2016
The Impact of Organizational Culture on
Corporate Performance
Tewodros Bayeh Tedla
Walden University
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Walden University
College of Management and Technology
This is to certify that the doctoral study by
Tewodros Bayeh Tedla
has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.
Review Committee
Dr. Charles Needham, Committee Chairperson, Doctor of Business Administration Faculty
Dr. Tim Truitt, Committee Member, Doctor of Business Administration Faculty
Dr. Roger Mayer, University Reviewer, Doctor of Business Administration Faculty
Chief Academic Officer
Eric Riedel, Ph.D.
Walden University
2016

Abstract
The Impact of Organizational Culture on Corporate Performance
by
Tewodros Bayeh Tedla
MS, California State University, 2013
MBA, Unity University, 2009
BS, Unity University, 2006
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
June 2016

Abstract
Lack of effective organizational culture and poor cultural integration in the corporate
group affect organizational performance and decrease shareholders return. The purpose
of this exploratory case study was to explore successful strategies that one corporate
group used to establish an effective organizational culture to improve performance. The
Denison organizational culture model served as the conceptual framework for the study.
A purposive sample of 20 senior managers from a corporate group in Ethiopia
participated in semistructured face-to-face interviews. The selected participant met the
criteria of a minimum 5 years of experience with successful strategies in establishing an
effective organizational culture in the corporate group. The interview data were
transcribed, categorized, and coded; they were subsequently member checked and
triangulated to increase the trustworthiness of interpretations. The findings included a
well-defined mission that attributed to developing shared understanding between
employees and managers, and employee-focused leadership that contributed to
motivating employees. Core corporate value findings included the well-being of the
society through self-regulated corporate social responsibility. The findings identified in
this study could have potential for economic growth in the local economy and may
contribute to social change with strategies business managers may use to sustain their
business and improve the life standards of employees and the local community.

The Impact of Organizational Culture on Corporate Performance
by
Tewodros Bayeh Tedla
MS, California State University, 2013
MBA, Unity University, 2009
BS, Unity University, 2006
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
June 2016

Dedication
This study is dedicated to Dr. Arega Yirdaw, for his generous support,
encouragement, and making my educational dream a reality. I also dedicate this study to
my loving wife, Berhanayehu Arega, and my son, Thomas Tewodros Tedla, for their
unconditional love and support.

Acknowledgments
The completion of this doctoral study would not have been possible without the
support of Dr. Arega Yirdaw; thank you so much for your generous help and inspiration.
I acknowledge and appreciate Dr. Sheikh Mohamed Hussein Ali Al-Amoudi for my
doctoral degree financial support. I would like to thank my loving wife, Berhanayehu
Arega, and my son, Thomas Tewodros Tedla, for their help, understanding, and
encouragement. I would also like to thank Ms. Rekik Aemero and Ms. Yodit Bekele for
their support and help during my data collection. I extend my deepest gratitude to the
study participants for sharing their outstanding work experience and knowledge for this
study. I would also like to thank all family members and friends for their encouragement,
and moral support during my doctoral study.
I would like to thank my mentor and doctoral committee chair, Dr. Charless
Needham, for his outstanding direction, help, and scholastic guidance throughout my
doctoral study journey. The time and effort he gave me were essential; he was always
willing, available, and ready to help me. I would also like to thank my doctoral
committee members, Dr. Tim Truitt, and Dr. Roger Mayer, for their valuable and timely
feedback and direction on my doctoral study. I acknowledge and appreciate the Walden
University leadership, particularly the DBA program director Dr. Freda Turner, and her
faculty staff Fred Walker, Dr. James Savard, and Dr. Gene Fusch for their outstanding
support, encouragement, and quick responses when I needed their help.

i
Table of Contents
List of Tables .......................................................................................................................v
Section 1: Foundation of the Study ......................................................................................1
Background of the Problem ...........................................................................................2
Problem Statement .........................................................................................................3
Purpose Statement ..........................................................................................................3
Nature of the Study ........................................................................................................4
Research Question .........................................................................................................5
Interview Questions .......................................................................................................5
Conceptual Framework ..................................................................................................6
Definition of Terms........................................................................................................8
Assumptions, Limitations, and Delimitations ................................................................8
Assumptions ............................................................................................................ 9
Limitations .............................................................................................................. 9
Delimitations ........................................................................................................... 9
Significance of the Study .............................................................................................10
Contribution to Business Practice ......................................................................... 10
Implications for Social Change ............................................................................. 12
A Review of the Professional and Academic Literature ..............................................13
Organizational Culture .......................................................................................... 14
Sources of an Organizational Culture ................................................................... 16
History of Organizational Culture ........................................................................ 17

ii
Organizational Excellence .................................................................................... 19
Strong and Weak Organizational Culture ............................................................. 20
Positive Organizational Culture ............................................................................ 24
Organizational Culture Effectiveness ................................................................... 26
Denison Organizational Culture Model ................................................................ 30
Types of Organizational Culture ........................................................................... 34
Measuring Organizational Culture Effectiveness ................................................. 38
The Role of Organizational Culture on Corporate Performance .......................... 42
The Role of Organizational Culture in the Corporate Group ............................... 43
Transition and Summary ..............................................................................................50
Section 2: The Project ........................................................................................................52
Purpose Statement ........................................................................................................52
Role of the Researcher .................................................................................................53
Participants ...................................................................................................................56
Research Method and Design ......................................................................................58
Method .................................................................................................................. 58
Research Design.................................................................................................... 60
Population and Sampling .............................................................................................63
Ethical Research...........................................................................................................65
Data Collection ............................................................................................................67
Instruments ............................................................................................................ 68
Data Collection Technique ................................................................................... 70

iii
Data Organization Techniques .............................................................................. 71
Data Analysis Technique .............................................................................................72
Reliability and Validity ................................................................................................75
Reliability .............................................................................................................. 75
Validity ................................................................................................................. 76
Transition and Summary ..............................................................................................78
Section 3: Application to Professional Practice and Implications for Change ..................80
Overview of Study .......................................................................................................80
Presentation of the Findings.........................................................................................82
Theme 1: Well-Defined Mission and Vision ........................................................ 82
Theme 2: Core Corporate Values ......................................................................... 87
Theme 3: Employee-Focused Leadership ............................................................. 93
Theme 4: Consistency ........................................................................................... 98
Applications to Professional Practice ........................................................................103
Implications for Social Change ..................................................................................105
Recommendations for Action ....................................................................................107
Recommendations for Further Study .........................................................................109
Reflections .................................................................................................................110
Summary and Study Conclusions ..............................................................................111
References ........................................................................................................................116
Appendix A: An Invitation Letter ....................................................................................136
Appendix B: Consent Form .............................................................................................138

iv
Appendix C: Interview Questions ....................................................................................142
Appendix D: Letter of Cooperation .................................................................................143
Appendix E: Protecting Human Research Participant Training Certificate ....................144
Appendix F: Summary of References ..............................................................................145

v
List of Tables
Table 1. Reference Table for the Literature Review ......................................................... 14
Table 2. Frequency of Themes for Well-defined Mission and Vision ............................. 86
Table 3. Frequency of Themes for Core Corporate Values .............................................. 92
Table 4. Frequency of Themes for Employee-Focused Leadership ................................. 97
Table 5. Frequency of Themes for Consistency ............................................................. 102