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Research Article

An Exploratory Study on the Relationship between Organizational Culture and Strategy

Park, Noyun

Published: January 1997 · Vol. 26, No. 2 · pp. 303-329
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Abstract

This study investigated the relationship between organizational culture types and strategy types from an exploratory perspective. Specifically, it examined how the strategic characteristics of organizations differ according to organizational culture types. The research findings revealed that the strategy types employed varied across different organizational culture types, with each type exhibiting distinct strategic characteristics. To more clearly ascertain the fit relationship between organizational culture types and strategy types, organizations were divided into high-performance and low-performance groups, and notably, the relationship between the two variables was found to be more significant in high-performance organizations. The findings of this study are considered highly important for strategic management because they not only provide an explanation of organizational culture phenomena but also offer guidelines on how to manage organizational culture. That is, through understanding the relationship between organizational culture and strategy, one can anticipate and resolve problems that may arise during strategic change. Moreover, the findings provide a basic framework for assessing whether the existing organizational culture is aligned with the strategy, and if not, how it should be transformed. However, organizational culture is not the only factor that influences strategy. The identification of the fit between organizational culture and strategy is expected to become clearer when considered alongside contextual factors that affect strategy, particularly environmental variables.