Impact of Organizational Culture on Organizational Performance (A case on Educational Materials Production and Distribution Enterprise (EMPDE)

Abstract

One of the strategies to sustain in business and maximize earnings is strong culture in the organizations. The main aim of this research paper is to investigate impact of organizational culture on organizational performance with the Denison cultural model, among employees & managers of Educational Materials Production and Distribution Enterprise (EMPDE). The research approach used is quantitative & explanatory type Method. Structured Denison’s cultural traits Questionnaire used as data survey. The collected data tested and analyzed result shows, Mission cultural trait is impacting (predicting) culture among Denison`s four cultural traits and Vision culture index scored the highest mean score among the cultural indexes. The findings show, there is a strong correlation between all the four cultural traits and a strong correlation between independent variables & dependent variable, from this concluded that Mission have a strong relationship with organizational performance with correlation coefficient, r=0.680. Regressions analysis tested to identify the predicting power (influence) of the independent variables over the dependent variable; the findings show that organizational culture explains (R2=0.567) 56.7% changes in organization performance. Also the Beta coefficient confirms only Mission & Consistency traits explains (β=0.439, P<0.05) and (β=0.254, P<0.05) respectively, therefore in multiple regressions Mission is the strongest impacting (predicting) cultural traits of organizational performance in this study. However, in bivariate regression test result shows (R2=0.365, P<0.05) Involvement explain organizational performance by 36.5% & (R2=0.349, P<0.05) Adaptability explain organizational performance by 34.9%.

Key words: organizational culture traits, organizational performance, independent & dependent variables, Mission, Consistency, Adaptability, Involvement

DOI: 10.7176/IEL/15-1-03

Publication date: January 31^st 2025