Research Article
An Empirical Study on Corporate Strategy Types, Culture Types, and Financial Performance
Published: January 1994 · Vol. 23, No. 특별 · pp. 1-40
Full Text
Abstract
Corporate strategy and culture have long been research topics of great interest in both the academic and practitioner communities of management. Accordingly, many scholars have been conducting steady and vigorous research on these subjects. However, empirical studies examining the relationships among corporate strategy, culture, and financial performance are rare. Therefore, this study designed a model of the relationships among these variables from the perspective of contingency theory and empirically investigated how financial performance differs depending on the fit between strategic type and cultural type. The results showed that firms with a fit between strategic type and cultural type tended to exhibit higher financial performance overall compared to firms with a misfit. In particular, firms pursuing a prospector strategy with a developmental culture showed higher stability than firms with a strategy-culture misfit. Conversely, firms pursuing a defender strategy with a hierarchical culture showed higher profitability than firms with a strategy-culture misfit. This study discusses the implications of these findings and directions for future research.
