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Organizational Culture and Business Strategy: Connection and Role for A Company Survival

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The purpose of the article was 1) to assess the relationship between the organizational culture (OC) type and business strategy (BS); 2) to prove that OC influences the survival strategy success/implementation; 3) to contribute to the expansion of organizational theory by analyzing the Boston Consulting Group (BCG) strategy palette as the basis for developing an effective company survival strategy during the crisis. To achieve the purpose, correlation analysis between OC types (authors' typology) and BS (Boston Consulting Group and Miles & Snow Models) was used (561 employees of different industries participated in the survey; the data collected laid the foundation for the research). As a result, it was proved that 1) certain types of organizational culture correspond to certain types of strategies; 2) during the period when the company overcomes the recession, OC affects strategic innovation decisions; 3) building a sustainable business ecosystem enhances the positive impact. The main limitations of the study are 1) some elements of subjectivity assessment, 2) constant changes in OC and BS, 3) the probability of different subcultures coexistence. Implications for a Central European audience: The results confirmed that there is a need for managers to 1) take into account the organizational culture characteristics/features to implement chosen strategies successfully; 2) be ready to adapt the OC before the BS is approved; 3) adopt the idea that building an innovation ecosystem can be crucial to confront the crisis with confidence.

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Volume 9 | I ssue 4 | 2020

https://doi.org/10.18267/j.cebr.241

CENTRAL EUROPEAN BUSINESS REVIEW

ORGANIZATIONAL CULTURE AND BUSINESS STRATEGY:

CONNECTION AND ROLE FOR A COMPANY SURVIVAL

———————————————————————————————————————

Krupskyi, O., Kuzmytska, Y.

———————————————————————————————————————

Oleksandr P. Krupskyi / Oles Honchar Dnipro National University, Department of

Management and Travel Business, 49000, D. Yavornitskiy avenue, 35 (building №5),

Dnipro, Ukraine. Email: krupskyy71@gmail.com.

Yuliia Kuzmytska / Founder & Chief Executive Officer of Project Generation (Business

Consulting) 49006, Chicherina st., 21, Dnipro, Ukraine.

Abstract

The purpose of the article was 1) to assess the relationship between the organizational

culture (OC) type and business strategy (BS); 2) to prove that OC influences the survival

strategy success/implementation; 3) to contribute to the expansion of organizational theory

by analyzing the Boston Consulting Group (BCG) strategy palette as the basis for

developing an effective company survival strategy during the crisis. To achieve the

purpose, correlation analysis between OC types (authors' typology) and BS (Boston

Consulting Group and Miles & Snow Models) was used (561 employees of different

industries participated in the survey; the data collected laid the foundation for the research).

As a result, it was proved that 1) certain types of organizational culture correspond to

certain types of strategies; 2) during the period when the company overcomes the

recession, OC affects strategic innovation decisions; 3) building a sustainable business

ecosystem enhances the positive impact. The main limitations of the study are 1) some

elements of subjectivity assessment, 2) constant changes in OC and BS, 3) the probability

of different subcultures coexistence.

Implications for a Central European audience: The results confirmed that there is a need

for managers to 1) take into account the organizational culture characteristics/features to

implement chosen strategies successfully; 2) be ready to adapt the OC before the BS is

approved; 3) adopt the idea that building an innovation ecosystem can be crucial to

confront the crisis with confidence.

Keywords: organizational culture; business strategy; ecosystem; organization survival

strategy.

JEL Classification: L22, M14

Introduction

"Your strategy needs a strategy"(Reeves, Haanaes, & Sinh, 2015). Heads of business

structures appreciated the importance of this idea right after the publication of an article in

Harvard Business Review (Reeves, Love, & Tillmanns, 2012): the companies specialized in

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consulting services of strategic management immediately adopted a new two-stage

approach to exit crisis proposed by BCG experts (Boston Consulting Group). Unfortunately,

although the method was developed with the direct participation of academic collaborators

(in particular, Simon Levin of Princeton University) (Reeves, Haanaes , & Sinh, 2015), as of

today, the scientific world has not paid enough attention to "The Strategy Palette ".

Moreover, this method's undoubted advantages include not only the specificity and

effectiveness of the steps taken but also the maximum consideration of the impact on the

process of forming the strategy and its environmental results.

It is unstable. The economies of countries, primarily the developing ones, are faced with the

need to tackle complex tasks at the macro level caused by the continually gaining

momentum of globalization processes, changes in the structure of demand, expenditures

and consumer incomes; at the micro-level ─ with the organization's uncertainty in the ability

to withstand external challenges, accept changes, keep up with technological progress,

attract and retain personnel with the necessary characteristics and skills in the long term

(Ulrich, 1997). Social development is driven by the impact of global subjects, global trends,

global threats, global risks, global problems, and global challenges (Sardak, Korneyev,

Simakhova, & Bilskaya, 2017). All the above makes the limited resources problem even

more acute; actualizes the need to solve it.

In such conditions, intangible sources start to play a special role in improving the

companies' competitiveness: methods, tools, systems, structures. These, as proven by both

theory and management practice, include organizational culture and the company's

business strategy.

As will be shown below, for certain aspects of both BS and OC, there was given sufficient

attention in the scientific literature: scientists are aware of the role of both in the successful

development of an individual enterprise and the global economy as a whole. However, the

relationship of certain types of strategies and types of organizational culture cannot be

considered as sufficiently investigated; when it comes to the stage of overcoming the crisis

by the company under the BCG renewal strategy, no attempt has yet been made to study

such relationships. That is why our purpose to enhance the existing organizational/strategic

management theory can be considered as essential.

Moreover, when it comes to business practitioners, the BCG approach should be

recognized as crucial: the palette is a simple and clearly defined algorithm of action, which

has already proved its effectiveness in Western countries and was increasingly used in

developing countries. The enhancement of an appropriate theoretical framework will not

only popularize a relatively new management method but also become a reliable tool for

solving problems both by business owners themselves and by professionals involved.

1 Organizational culture: definition

The OC definition range available today is quite impressive. For most scientists in their

research based on the Schein findings (1985), that organizational culture means a "pattern

of basic assumptions that a given group has invented, discovered or developed in learning

to cope with its problems of external adaptation and internal integration, and have worked

well enough to be considered valid. Therefore, to be taught to new members as the correct

way to perceive, think, and feel in relation to those problems ". Hofstede (2011) proposes to

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refer to the culture as "culture of mind ". O'Dell & Grayson (1998) described OC as "a

combination of shared history, expectation unwritten rules ". Janicijevic (2011) insists that

OC can be defined as "a system of assumptions, values, norms and attitudes manifested

through symbols which the members of an organization have developed and adopted

through mutual experience and which help them to determine the meaning of the world

surrounding them and how to behave in it " . "Hatch (1993) believes that culture is a "set of

assumptions and a group of individual and group behaviour ". Culture can also be

perceived as philosophy, ideology, values, and assumptions shared by members of an

organization (Lund, 2003); as an invention that promotes integration, fills in with meaning,

and fosters organization loyalty and increases productivity (Deal & Kennedy, 1982; Lund,

2003).

These definitions are based on both cognitive and functional approaches. However, it is

precisely their influence on the organization members' behaviour and, as a result, on

possible changes in the company that is becoming a source of increasing interest in

researching the topic of OC.

2 Organizational culture: typology

The OC classification also received considerable attention from scientists. Deal & Kennedy

(1982) identified four types of culture: 1) "you did a good job – you can rest "(stable, not

very risk-taking group); 2) "boy-macho "(appreciating pressure, individual achievement and

risk, when it justifies himself); 3) "process "(based on a strict hierarchy and actively resisting

any innovations); 4) "put everything at stake "(aimed at long-term projects requiring

significant investments; welcoming strategic decisions, not seeking to avoid uncertainty;

considering innovation as a success factor) ("Work Hard-Play Hard Culture "; "Though-Guy

Macho Culture "; "Process Culture "; "Bet-Your-Company ").

Ogbonna & Harris (2000) base their findings on the culture division into the following

components: innovative culture, competitive, bureaucratic, and community culture. Huey

Yiing & Zaman Bin Ahmad (2009) focused on analyzing innovative, bureaucratic and

supportive OC.

Olanipekun, Aje & Abiola-Falemu (2013) offer an alternative: a culture of stability, support,

corporate social responsibility, reward, competition, performance orientation, and innovative

culture (performance orientation culture, competitive culture, stability culture, supportive

culture, reward culture, cooperate social responsibility culture, innovative culture).

Abdullahi Sarki & Bin Adulhamid (2016) analyzed and summarized the predecessors'

results, obtaining a list that includes both typology and components, and OC

measurements; for their own research, they chose innovative culture, constructive culture,

task culture, passive/defensive culture, bureaucratic culture, supportive culture, the norm of

work.

In this case, the typology proposed by Cameron & Quinn (1999) is most frequently used by

the researchers today. Scientists have identified: 1) clan (or group) culture; 2) adhocracy

(entrepreneurial); 3) hierarchical (bureaucratic) and (4) rational (market) (1) Group or Clan,

2) Adhocracy or Entrepreneurial, 3) Hierarchy or Bureaucracy, and 4) Rational or Market

culture). Naranjo Valencia, Jiménez - Jiménez, & Sanz-Valle (2011) used the same model;

Yarbrough, Morgan, & Vorhies (2010); Ahmadi, Ali, Salamzadeh, Daraei, & Akbari (2012);

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Zhang & Li (2013); Herminingsih & Gozali (2014); Davis & Cates (2018) et al. The criteria

for decomposition are the norms developed by the organization, which help to interact with

the internal and external environment and to choose between stability-control pairs, on the

one hand, and flexibility and adaptability, on the other (Cameron & Ettington, 1985;

Cameron & Quinn, 1999).

3 The role of organizational culture

In modern conditions, the role of organizational culture is difficult to overestimate. It is

especially important to develop a strong and strategically significant culture in the early

stages of a company's existence, since, together with the control and organizational

structure, culture is the key to subsequent achievements (Baron, Hannan, & Burton, 2001)

leads to success (Ouchi, 1981). Morente, Ferràs, & Žizlavský (2017) argue that the close

relationship between organization, culture, and innovation is critical for survival.

Providing a culture that is not easy to copy, it can become the basis for creating sustainable

competitive advantage (SCA) (Rothaermel, 2015), which is reflected in financial results

(Barney, 1986). In addition:

• The OC is the most important factor in the knowledge dissemination

(organizational structure takes the second place) (Ruggles, 1998) and the

effectiveness of this process (Zheng, 2005),

• The OC forms industrial relations (Awino, Muteshi, Kitiabi, & Pokhariyal, 2018) as

a whole.

• The OC provides for mobility and employee development; responsible for talent

management (Handari Wahyuningsih et al., 2019).

• The OC has a significant impact on the company's communication system (which,

in turn, significantly depends on the transparency of goals and roles, reducing the

number of conflicts and the turnover of qualified personnel) (Biswas, 2009); this

system's low efficiency makes it considerably more difficult (or impossible in

principle) to achieve goals jointly (Solaja, Idowu, & James, 2016).

Thus, the Z theory, highlighting the humanistic approach to the interaction organization

within the company, proves that employees become loyal, increase the productivity and

profit of the enterprise when they are confident in the stability of career advancement; have

the ability to maintain a balance between working time and personal life, constantly

develop, learn, expand their powers, make decisions, thereby increasing self-esteem; they

trust each other, take care of themselves, are collectively responsible for what is

happening. Only a strong corporate culture can provide all the following aspects (Ouchi,

1981; Ouchi & Wilkins, 1985):

• identifies key top management skills; acts as a moderator of relations between

managers and subordinates reduces their tensions (the exception is bureaucrati c

culture) (Huey Yiing & Zaman Bin Ahmad, 2009),

• influences innovation and productivity (Hogan & Coote, 2014),

• has a strong and positive impact on employee commitment (Sepahvand, Jafari, &

Hamidvand, 2016),

• plays a positive moderating role in the relationship "knowledge management –

organizational effectiveness "(Danish, Munir, & Butt, 2012),

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• improves employee performance (Huey Yiing & Zaman Bin Ahmad, 2009;

Odiakaose ODOR, 2018),

• the involvement in the workflow forms a system of cognitive and affective

perception of one's life for employees (Zhou, Chen, & Liu, 2019),

• increases the level of job satisfaction (Mariati & Mauludin, 2018), although, in

general, the latter significantly depends on the OC type (clan and hierarchical

leadership positions) (Zhang & Li, 2013),

• promotes innovation strategy implementation (Oro & Lavarda, 2019). Moreover,

OC can rightfully be considered as its determinant (Naranjo-Valencia et al., 2011),

• supports sustainability (from this point of view, it is crucial to encourage the

development of cultural components that help to set high ethical standards in the

organization) (Odiakaose ODOR, 2018).

Prajogo & McDermott (2011) also insist on the importance of taking into account the features

of particular types of OC. In particular, according to the authors, it is the developing culture

(when compared with rational, group and hierarchical) that contributes the most to improving

the product/service quality, introducing product and process innovations (Prajogo &

McDermott, 2011). When it comes to innovation, in terms of, for example, adhocracy,

preference is given to innovations, hierarchy – imitation (Naranjo-Valencia et al., 2011) and so

on. For the service sector, an organizational culture is a pricing tool on which customer

satisfaction depends (Kalnitska, 2018) and, as a result, accessible business strategies.

The degree of heterogeneity of the dependence of the results on certain types of culture

was noted by other scientists. For example, a clan culture has a stronger effect than others

on achieving a sustainable level of organizational effectiveness (Koutroumanis & Alexakis,

2009). However, both clan and adhocratic cultures contribute to the implementation of

business strategies (the other two also have this ability but to a lesser extent) (Ahmadi, Ali,

Salamzadeh, Daraei & Akbari, 2012).

4 Strategy: definition

The strategies and various aspects related also occupied a worthy niche in the scientific

literature. The latter, in particular, defines the strategy as

• "t he determination of the basic long-term goals and objectives of an enterprise,

and the adoption of courses of action and the allocation of resources necessary for

carrying out these goals "(Chandler, 1962),

• the creation of a coherent stream of individual decisions taken in the negotiation

process in the presence of conflicting objectives (Cyert & March, 1963),

• "t he match an organization makes between its internal resources and skills… and the

opportunities and risks created by its external environment "(Hofer & Schendel, 1978),

• "a pattern or stream of major and minor decisions about an organization's future

domain "(Miles & Snow, 1978),

• "a pattern in a stream of decision where the decision is defined as a commitment

to action, usually a commitment of resource "(Mintzberg, 1978),

• "t he pattern of decisions in a company that determines and reveals its objectives,

purposes or goals, produces the principal policies and plans for achieving those

goals, and defines the range of businesses the company is to pursue, the kind of

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economic and human organization it is or intends to be, and the nature of the

economic and non-economic contribution it intends to make to its shareholders,

employees, customers, and communities "(Andrews & David, 1987),

• important decisions aimed at establishing certain company relations with the

external environment, as well as defining the internal structure, processes, and

efficiency (Hambrick, 1980),

• "a ctions taken to match the organization with its environment "(Segev, 1987),

• "a n integrated set of choices depicting what a firm is doing or intends to do to

achieve its performance goals "(Asoh, 2004).

5 Role of strategy

From the considered definitions, it directly follows the role that the strategy performs. It has

already been proven that it serves as a means to achieve goals (desired for business results)

(Reeves, Haanæs, & Sinha, 2015). BS is the connection between the organization's

objectives, on the one hand, and operational plans/functional policies to achieve them, on the

other (Hofer & Schendel, 1978; Hambrick, 1980). The strategy can have an impact on profits

and productivity in a company in the event of unforeseen situations (Allen & Helms, 2006; Chi,

2010); a positive effect not only on efficiency, but also on culture, and contributes to achieving

the synergy effect (O'Regan & Lehmann, 2008) from joining the efforts of partners.

It is a strategy that:

• defines organizational abilities, competences, and change management (Crawford,

2013) (with the organization's commitment to change, including significant (the so-

called strategic competition; revolutionary approach),

• leads to a "reduction "of time (allows to achieve specific results over several years,

which usually in the case of natural competition (evolutionary one) takes decades

(Stern & Deimler, 2006)),

• influences a different degree of significance (depending on the chosen type) on

leadership (Marx, 2015),

• serves as a "predecessor "of the organizational structure, while the lack of coherence

between the first and the last is fraught with negative consequences (Marx, 2016).

However, like any other tool, strategies need updating. It allows employees to change their

own perception of what is happening in the environment (which allows – including – faster

than competitors to adapt their business) (Baumgartner & Mangematin, 2019). This ability is

also important at the macro level: by improving strategies, companies in developing

countries are able to penetrate the markets of developed countries; inexperience, instability

and informational asymmetry in the domestic market, in this case, may not play a significant

role (Samiee & Chirapanda, 2019).

6 Typology of strategies

As for individual species, Ansoff (1965) compared "Market Penetration ", "Market

Development ", "Product Development ", "Business Diversification "; Mintzberg (1973)

reviewed "Entrepreneurial Style ", "Adaptive ", "Planning "; Hofer & Schendel (1978) defined

"Share Increasing ", "Growth ", "Profit ", "Turnaround ", "Market Concentration ", "Asset ",

"Reduction ", and "Liquidation "; Chaffee (1985) – "Linea ", "Adaptive ", "Interpretive ".

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"Generic Strategies" (Porter, 1980) can rightly be considered classical from the

management theory point of view. This typology provides a standardization strategy

(leadership at the expense of low costs), differentiation and concentration on the segment.

The approach was further expanded (concretized) and included "Cost Leadership ",

"Differentiation ", "Focused Cost Leadership ", "Focused Differentiation ", and "Integrated

"strategies (the latter should be considered as a combination of the four previous ones)

(Hoskisson, Hitt, & Ireland, 2004).

Yua, de Man, Duysters, & van Rijsewijk (2006) reviewed the "Applications Pioneering

Strategy", "Product Technology Pioneering Strategy", "Reverse Product Life Cycle

Innovation Strategy", "Reverse Value Chain Strategy"(The basis was a comparative

analysis of the technological development levels of the United States, Western Europe, and

Japan, on the one hand, and China, on the other). The division of strategies used in

management into "corporate strategy, business strategy and functional area strategy

(Functional Area Strategy), has become more traditional in the scientific literature "(Lin,

Hsing, & Wang, 2008). At the same time, a characteristic feature of a business strategy is

customer focus; concentration on a specific production unit or a particular field of activity

(e.g., market segmentation; leadership in product and price policy) to gain more competitive

positions (Lin et al., 2008; Sammut-Bonnici, 2015)). In comparison, Functional Area

Strategy aims to improve one of four main areas – marketing, finance, human resources,

and operational management in general (Jiang, 2009). The corporate strategy identifies

opportunities for further scale-up from a single business unit to a network of enterprises

operating in the global market; it is based on the strategic positioning of the product and

brand (Sammut-Bonnici, 2015).

The process of strategies differentiation is directly related to various models of

management decisions that are focused on the functional areas of the company. Here,

social and marketing business systems of a modern organization take a special place

(Velychko & Velychko, 2017). Moreover, in recent years, "Product ", "Best value ", "Blue

Ocean ", and "Market "strategies (Marx, 2015) have been offered to interested parties;

Strengths-Opportunities, Weaknesses-Opportunities, Strengths-Threats, Weaknesses-

Threats (strategies developed in accordance with the results of the SWOT analysis and

AHP Model) (Nikolić, Spasić, Živković, Đorđević, Mihajlović, & Kangas, 2015).

However, the Miles, & Snow (1978) (M & S) model (Table 1) is the most frequently cited in

the scientific literature today. The main reasons for its popularity for almost 30 years can be

considered: 1) the authors' intention to harmonize the organization's internal characteristics,

the external environment, and the strategy directly with its correct formulation (Bouhelal &

Kerbouche, 2016); 2) the fact that this typology is both an effective tool and a basis for

predicting the behaviour of an organization under certain conditions. Helmig, Hinz, &

Ingerfurth (2014) subsequently expanded the typology proposed by Miles & Snow (1978)

through Defensive Analyzer, Prospective Analyzer, Undecided Organization, but their idea

was not widely spread.

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Table 1 | Model Miles and Snow (1978): characteristics and applications

Applied when managers/leaders

lead an aggressive policy of winning and

maintaining competitive positions; persist in

seeking new market opportunities; strive to

be pioneers in the industry; give preference

to decentralization and cooperation over

control, creativity over efficiency; results are

evaluated in comparison with competitors;

aware of the loss risk associated with the

launch of a new product

continually increase market share through

diversification or cost reduction; use of

adaptable technologies; introduction of a

wide range of technological lines.

The approach provides advantages in a

changing business environment or in a

highly unpredictable environment.

focus on occupying a narrow niche by

ensuring a low level of prices or high quality

of the product; focus on achievements, do

not like challenges; exercise strict center

control and long-term planning

focus on the release of a narrow but profitable

product line; investing in R&D to produce a

standardized product. The strategy justifies

itself when the environment is stable; changes

are minor and predictable; competitors take a

similar approach

Act on the basis of existing products/services,

constantly expanding the range; aim to extend

the life cycle of their product; adhere to

standardization, allowing for adaptation

elements; organize their structure in the form of

a matrix; failure to achieve targets is

considered to be the greatest risk.

avoid high technology costs; monitoring

competitors; special attention to

engineering and marketing.

The strategy has proven high efficiency in

the new environment.

do not have a clear plan to strengthen

competitive positions; in daily activities, they

prefer to answer outside calls to prevent

losses and maintain status; content with

what is of no interest to other groups; obey

the rigid center, do not have room for

maneuver; incapable of accepting changes

and planning for the future

take a wait-and-see attitude or, conversely,

an activity aimed at solving bureaucratic

and not production problems. The

approach cannot be considered a strategy

as such. The situation arises due to the

lack of personnel with sufficient

qualifications to develop a vision and

exercise thoughtful control over the

implementation of the ideas

The authors insist that the criteria for the strategy's classification are "The Entrepreneurial Problem

"(choice of market, product, technology); "The Engineering Problem "(technological process support;

"The Administrative Problem "(formation of a structure that provides effective decision-making and

control of resources) (Miles & Snow, 1978).

Source: adapted by the author from Miles & Snow (1978); Zahra & Pearce (1990); Asoh (2004 ) ;

Helmig, Hinz, & Ingerfurth (2014).

However, despite its evident popularity, the model of Miles & Snow (1978) has certain

limitations. So, Helmig et al. (2014), analyzing the health sector, faced with the fact that the

"pure "matrix does not work; had to resort to the hybrid method; considering strategies "in-

between either prospector and analyzer or defender and analyzer "(Helmig et al.; 2014, p.

8). Gimenez (2000) showed that the enterprises (150) he studied applied the four strategies

discussed; that they allow companies adapting to competitive conditions; At the same time,

he noted that this is true when there are mainly small businesses on the market. James &

Hatten (1994) indicated that the theory does not work in a turbulent environment (would like

to emphasize again that the environment instability level is growing rapidly and steadily).

When managers encounter similar problems, they start to look for a way out; science

comes to their aid. Probably, that is why in recent years practice managers have

increasingly applied the typology of strategies developed by specialists of the Boston

Consulting Group to solve strategic tasks. Its "Matrix "has long become a classic of

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marketing analysis; at the same time, the Strategy Palettestill, no doubt, needs detailed

study and a deeper theoretical substantiation (Table 2).

Table 2 | Five strategies of the Boston Consulting Group

Applied when managers/leaders

convinced of their power over the world; realize this

power by offering consumers revolutionary

products or new business models. In instability,

such leaders see first of all the opportunity that

needs to be realized

1) readiness to foresee

(represent); 2) to be the first to

"build "; 3) execute and scale

the strategy until it has

exhausted itself

confident in the stability of the business environment,

the level of competition and the sustainability of the

competitive advantage once obtained; inability to

change external conditions; forced to take advantage

of size, differentiation or competencies

1) analysis of CE, own and

market opportunities;

2) development and 3)

effective implementation of the

plan

realize that the environment cannot be considered

predictable and pliable, forecasting is reliable, and

the advantage is long-term; show flexibility,

experiment, find options faster and more efficiently

than other market players

continuity of change,

generation, and selection of

alternatives

Shaping

(be the orchestrator )

consider the environment as poorly predictable, but

pliable; sees this as a chance to establish their own

rules of the game; understand that without

cooperation with other stakeholders, it will not be

possible to build an industry, reduce risk, restrain

competitors

in forming a platform for

cooperation, in the

development of its and its

associated ecosystem, in

maintaining flexibility and

diversity

The principal difference from the three approaches mentioned above is the reliance

on an ecosystem that includes not only "like-minded people ", but also competitors,

and not individual enterprises.

Realize the threat at an early stage; recognize the

need to restore the viability and competitiveness of

a firm operating under tough conditions; without

delay, accept the fact that, without cardinal

changes in the course, the restoration of positions

and further prosperity are impossible

1) switch to economy mode; 2)

start investing saved money in

updating the business model

(innovation; in the end, they

can choose one of four

approaches – see above)

The principal difference: the approach is usually defensive in essence, includes two

separate stages and is only a step towards the final choice

Source: Reeves et al., 2015; compiled by the author

If we perform a comparative analysis, we can assume that there is a certain

correspondence between the pairs Classical-Defenders, Adaptive-Analyzers, Visionary-

Prospectors.

7 The OC connection with the strategy

Any theory (proposed by mathematicians, physicists, economists, etc.) becomes more

convincing and of demand, when its results are confirmed by practice; when they can be

brought to life and "touch ". The opposite is also true: the observations of practitioners form

the basis of a theory that can be improved, supplemented, and distributed among a wide

range of interested in solving such problems.

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Something similar occurs now with the Boston Consulting Group strategy palette. Its

components very clearly describe the actions/behaviour of managers under different

conditions of the business environment (under the influence of external factors) (Reeves,

Haanæs & Sinha, 2015). However, such a promising theory is still in specific isolation; lack

of research leads to missed opportunities; in particular, it remains unclear how internal

factors can affect the implementation of specific strategic decisions. Of course,

organizational culture should be considered one of these factors.

The power of culture in strategic management has been recognized as critical (Picken &

Dess, 1997). First of all, in many organizations, traditional culture can influence business

strategy and decisions (Schein, 2009); successful implementation of long-term plans is not

possible without an appropriate OC. Geert Hofstede, a recognized cultural authority,

insisted on the need to take cultural dimensions into account in making and implementation

of a strategy (Hofstede, Neuijen, Ohayv & Sanders,1990). This statement remains relevant

for our time (Isac & Remes, 2018). Yarbrough et al. (2010) asserted that the OC,

introducing innovations, welcoming risk and entrepreneurship is very important for the

successful implementation of strategies.

Chow & Liu (2009) emphasized the need to match the HR strategy with organizational

culture to increase efficiency and monitor employee turnover rate (turnover rate);

hypothesized that the effectiveness of the personnel strategy depends on its compatibility

with the organizational culture, as well as with the general business strategy of the

enterprise; showed that culture does not have a direct impact on the choice of personnel

management strategy, but only affects this strategy, the company's efficiency, and the staff

turnover rate.

Baird, Harrison, & Reeve (2007) admitted the existence of mutual conditionality existing

between the organizational culture and strategy: a certain OC corresponds to each

individual strategy and vice versa. Similar is true for different "subcultures ": Clan,

Adhocracy, Market culture, Hierarchy show an unequal, but significant degree of correlation

with the individual components of a business strategy (policy formation, policy

implementation, recourses, motivation, and structural factors) (Ahmadi et al., 2012). In

particular, Kalnitskaya (2015) showed the connection of OC with the innovative potential of

the enterprise; however, the study has not yet developed further than theoretical reflections.

The impact of OC on the strategy development is carried out through the information

collection, its awareness and interpretation; in the power of culture, both "legitimize "the

strategy and "block "its adoption. OC affects the strategy in two stages. During the

development (mentioned above) culture determines the features of the formulation and

interpretation of strategies; In the process of incarnation, legitimization takes place directly.

When implementation takes place in accordance with values and norms, the implemented

strategy strengthens the built culture and vice versa (Janićijević, 2011; Isac & Remes,

2018).

In addition to this, researchers acknowledge that organizational culture can both contribute

to and impede the ability to implement strategies and transformations (Alvesson &

Sveningsson, 2008). There are two reasons why an influential culture is valuable:

1) compliance of culture and strategy; 2) increasing the level of commitment of company

employees. Both of these factors provide a competitive advantage (O'Reilly, 1989). Beer,

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Voelpel, Leibold, & Tekie (2005) stated that to conquer it, the organization's strategy must

be compatible with the environment; meanwhile, the company should open up opportunities

consistent with its strategy; learn and change under new circumstances (Beer et al., 2005);

the organizational culture provides such an opportunity. The strategy will "return the favour

"; strikes back, takes "feasible part ": expanding the rights of others while maintaining the

level of productivity is the most crucial strategic technique that managers use to create and

sustain OC during the crisis (Wilson, 2012).

It is the heads (leaders) who keep their finger on the pulse of this "opposition "; become the

driving force behind culture and strategy (Picken & Dess, 1997); strategic decision-making

and building OC are among the key competencies leading the way (Brimhall, 2014). Thus,

various elements of organizational culture, leadership, and strategy "enter into cooperation

"to obtain a synergistic effect (Swank, 2010). Coordination of "levers "of management for

the company success is exceptionally essential; its absence very often leads to confusion

and malfunctions. The costs associated with the ineffective behaviour of key executives

may be unpredictable. A company led by managers who are not aware of the importance of

such relationships does not have a long-term future (Beerel, 1998): it's kind of like going in

a vicious circle. OC-based management systems develop strategies and processes that

determine business success and can have more severe consequences than individual

leadership by key managers (Pool, 2000), when insufficient attention is paid to culture, the

strategy effectiveness decreases, which, in turn, leads to a new round of cultural

degradation and a decrease in the level of professionalism of a leader.

The converse is also true: the BS and OC, taken together, become practical factors in

creating an environment that encourages risk, fosters innovation, freedom, and productivity

growth. (Wilson, 2012); long-term targeting and overcoming resistance to changes (Hughes

& Beatty, 2003).

They are inevitable. The world has radically transformed – and will undoubtedly continue

this trend; unique methods, explosive ideas that have yielded results in the past, cannot

extend this success to the future (Collins & Porras, 1995). The amount of new technical

information has doubled in less than two years (Cameron & Quinn, 2011). Due to changes

in legislation regarding technology sharing, patent rights and information security, the future

costs and profitability of companies operating in this field are difficult to predict; the same

applies to long-term strategic planning on the Internet, software (Ford, 2002), and all others

remaining afloat or vanguard.

The changes' intensity caused by digitalization and globalization opens up scope for new

ways of thinking aimed at the sustainable conduct of the company's business for a more

extended period. The era of knowledge is being replaced by the age of design thinking,

entrepreneurship, and innovation. Critical and creative thinking, communication, and

collaboration become priorities in the workplace, at home, in almost every interaction

(Istance & Paniagua, 2019). In general, significant changes are the topic that, without

exception, affects the interests of individuals, organizations, economies, and societies

(Kinicki & Williams, 2016). In fact, transformation is the only thing that is stable in today's

turbulent environment (David & David, 2017); we can say it another way: in modern society,

there is nothing permanent except change. So, of the one hundred largest companies in the

early 1900s, only sixteen are still operational.

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These dramatic changes have affected almost every sector of the economy (Cameron &

Quinn, 2011). Collins & Porras (1995) cited examples of several, including fairly well-known

firms, which, hoping for stability, eventually faced a financial catastrophe or significant

reputation losses. Significantly inferior to competitors – if, in principle, have not lost their

positions – Zenith, Colgate, Texas Instruments, Columbia Pictures. As a result, the need to

solve a pressing problem has become so widespread that change management has

become a kind of industry, which includes consulting firms, management and leadership

gurus, the media, the business press, senior corporate executives, politicians and business

schools (Alvesson & Sveningsson, 2015).

A logical conclusion follows from here: changes and the ability to change are the key

features of organizations aimed at long-term progress. Any company wishing to succeed

should have a systematic and well-functioning process of innovation management; be able

to accept the fact that changes will occur and often repeat (French & Bell, 1999) in a new

round.

This idea is entirely supported by the findings of Reeves et al. (2015). Their Strategy

Palette is fundamentally different from the theories discussed above precisely in the

presence of a renewal strategy, implemented in two stages: the first involves a significant

reduction in costs; the second is the investment of savings in innovation and, accordingly,

the growth of competitiveness.

The study was based on the following hypotheses:

H1 – there is a connection between certain types of organizational culture (independent

variable) and strategies implemented by the company (dependent variable)

H2 – organizational culture determines the implementation of a renewal strategy during a

recession.

8 Methodology

An analysis of the theoretical background confirms that with different types of strategies and

culture connections types arising between them differ in various degrees of significance.

Ahmadi et al. (2012) found that all the culture types studied (Cameron & Quinn, 1999) make

a significant contribution to the strategy implementation process; however, the "share "of

each component is different. Baird et al. (2007) noted that "visionaries "(prospector) are

more characterized by cultures aimed at achieving results and innovative development, and

for "advocates "– aimed at stability.

Naranjo-Valencia et al. (2011) proceeded from the analysis of two opposite strategies:

innovation and imitation. Scientists have shown that their relationship with organizational

culture exists, but is not unambiguous. For example, in the case of adhocracy and

hierarchy, there is a positive influence of the dominant OC characteristics on innovation; at

the same time, the second of the considered indicators, human resources management

(management of employees), demonstrated results that these groups were not consistent

with each other or with the findings of previous studies. At the same time, the propensity to

innovate is "gaining momentum "when the organization takes measures to strengthen the

team.

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The developed questionnaire contained forty-eight questions with four alternative answers.

These questions were correlated with issues highlighted by Miles & Snow (1978) related to

business, administration, and engineering. Each alternative answer to the question was

associated with one of the four strategic types, according to M&S (Prospectors; Defenders;

Analyzers; Reactors) and correlated with specific business strategies (Classical; Adaptive;

Visionary; Shaping). Most of the answers in one of those four categories were used to

indicate the preferred overall strategy for each firm.

To assess the validity of our research, at the first stage, we sent out a questionnaire to ten

experts in the field of corporate and strategic management and asked them to evaluate the

reliability of our questionnaire and the possibility of its application to achieve the goals of

our research. After receiving feedback, we corrected the questionnaire and made a

newsletter and opened access to the network.

Data collection has been done from September 2018 to January 2019. In total, 400

questionnaires were sent out (126 received back with answers); 44 personal interviews

were conducted; during the month, access to the questionnaire was opened on the Internet

(invitations were sent out to participate in the survey to the Facebook profile groups, and

the questionnaire itself was posted on www.surveymonkey.ru). 852 "entrances to the

questionnaire "were recorded, 391 people completed the questionnaire. As a result, 561

questionnaires were received. Of these, using the mailing forms – 31.5%; interview 100%;

With a scowl of users, Facebook 46%. Respondents were mostly men (67%); 1 % of

respondents did not indicate gender. The average age was 34 years, аt the time of the

survey, 34% of respondents were in the range of 18 to 25 years old; 41% – 26 -40 years old;

22% – 41-60; 60 and older – 3%; restrictions on the industry are not imposed. On average,

respondents have held their positions for nine years. Of the respondents, most attributed

themselves to specialists (60%); 23% of participants take leadership positions; 11% work in

state bodies; 6% carry out auxiliary activities. Approximately 31% of respondents

independently classified their organization as the one that concentrates on current services

and markets (defenders); 17% of respondents indicated that their companies are the first to

develop/offer new services (prospectors), the rest of the respondents found it difficult to

answer. Respondents identified the business strategy of their company by M&S as follows:

Prospector – 27.5%; Analyzer – 29.2%; Defender – 23.4%; Reactor –19.9%; BCG determined

as follows: Classical – 19.5%; Adaptive– 30.1%; Visionary– 26.3%; Shaping –24.1%.

9 Results

The calculations were based on the generalized typology used by Krupsky (2014a, 2014b)

in earlier works (Table 3, 4) and M&S strategy models – BCG.

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Table 3 | Correspondence among types of organizational culture and business strategy.

flexible, open to new ideas; favors

the ability to take risks

achieving competitiveness is the

main purpose of the organization;

social responsibility fades into the

background

personal input and results are

recognized as a priority; remuneration is

associated with performance indicators,

rather than working experience

predictable, focused on strict

adherence to rules, maintaining the

status quo

focused on the rights, privileges,

comfort, interests, respect and

dignity of employees

special attention is paid to

cooperation, interchangeability,

exchange of knowledge and

experience, readiness to assist

concentrates on accuracy and

respect for the details of the

business process

greater attention than others is given

to ceremonies, rituals, stories, less

attention to strict rules

gives preference to roles,

procedures, rules; guided by the

mission; articulates the expectations

associated with the capabilities of

the individual

based on the support of unhealthy

competition, the rejection of the

desire to have and defend their own

opinions, make decisions

occurs in organizations where they

try to simultaneously achieve

several, often conflicting goals

unlike soft, does not aim to ensure

the well-being of staff; penalties for

failing tasks and mistakes are tough;

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reward – deserved and obligatory

distinguished by a high level of

professionalism of staff who are not

inclined to change jobs

constantly faces the turnover of

(mostly young) personnel, in search of

new knowledge and sensations,

traveling from company to company;

focused on the implementation of

projects

(1) typology compiled in accordance with Schein, 1985; Divan, 2012; Marchand, Haines, &

Dextras-Gauthier, 2013; adapted, supplemented and calculated by the authors

(2) Prospectors – P; Defenders – D ; Analyzers – A ; Reactors − R

(3) R2 – Pearson's r

(4) Classical – C; Adaptive – Ad ; Visionary – V ; Shaping – S

ρ-Value < 0.10 * ρ-Value < 0.05 ** ρ-Value < 0.01

Source: Authors calculations

The data in table 3 confirm a correlation connection of different significance degrees a

strong, reliable positive correlation is highlighted in the table with a darker colour of values

and filling. For ρ-Value < 0.10, a relationship between

• innovative culture and strategies Prospectors (0.76), Visionary (0.812), Shaping

(0.849);

• result-oriented culture and strategies Analyzers (0.791), Visionary (0.748), Shaping

(0.743);

• subject-oriented culture and Defenders (0.743);

• Hard culture and Adaptive strategy (0.711);

• Academic Culture and Classical Strategy (0.804).

Based on the results of the research, we can assume that there is a relationship between

OC and the strategy, but the data reliability level (ρ-Value < 0.10) does not fully confirm or

refute the hypothesis that there is a connection between the type of OC and the business

strategy, because, with a 10% probability, we can argue that the connection may be

random. While ρ-Value < 0.05 and ρ-Value < 0.01 confirm the error minimum probability

and allow confirming a non-random connection between OC and BS.

For ρ-Value< 0.01, a relationship was found between

• a culture focused on stability and hierarchy and Defenders strategy (0.752),

• Commandculture and Shaping strategy (0.861),

• the formal culture and Classical strategy (0.706).

For these types of cultures (Stability, Team , Formal), there was obtained a mathematically

reliable, secure connection with the corresponding strategies (Defenders, Shaping,

Classical). At this stage of the research, such a significant relationship can be explained by

the fact that the philosophy of cultures corresponds to the philosophy of strategies. So, the

culture of stability means "protection "of the positions that the enterprise takes at the

moment, and it is not surprising that it is correlated with a high degree of certainty with the

Defenders strategy. Command culture facilitating cooperation, mutual assistance,

interchangeability, the exchange of knowledge and experience is only possible in an

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environment that involves interested cooperation and reliance on both the external and

internal environment of an enterprise, and this condition is satisfied only by the Shaping

strategy philosophy, where we observe a correlation with ρ -Value < 0.01. Formal culture,

based on the classical hierarchy and assessment of human capabilities, is maximally

feasible (comfortably developing) within the Classical Strategy framework when stability is

considered as predictability and planning and competitive advantages as advantages of

size, differentiation, or competency.

No stable relationships were found for ρ-Value < 0.05.

"Reactors "confirmed their "inability "(possible unwillingness) To make strategic decisions:

for the majority of OC types, they demonstrated a lack of communication. Its greatest value

(R2 = 0.433) is observed with a dysfunctional organizational culture (according to the

responses of the questionnaire, 7% of respondents considered OC of their enterprises to be

such; 100% recognized the actions of managers as ineffective and called them the main

cause of failure).

The main difference of the Shaping strategy (as mentioned earlier) is its use within the

business ecosystem; which, according to the theory founder, Moore (1999), "crosses many

industries. In the business ecosystem, companies jointly develop opportunities around a

new innovation: they work together and on a competitive basis to support new products,

meet customer needs and, ultimately, implement the next round of innovation "(at this

stage, the idea of an ecosystem is recognized as one of the most economical promising in

terms of business development as such). This study showed that associations using

Shaping are likely to have innovative (R2 = 0.849, the maximum of the obtained values) or

clean (R2 = 0.861) cultures.

Regarding the fifth strategy (Renewal), where, according to the authors, there is a

fundamental difference between the BCG model and the M&S typology discussed in the

scientific literature earlier, it can be stated that the respondents' answers allowed them to

draw interesting, somewhat predictable conclusions. First of all, it should be noted that 39%

of the respondents worked in companies that had survived the 2008 crisis (the reason was

a global recession); 54% – decline in production in 2014 (unstable foreign policy situation).

As a result, 94% of the companies' employees who have ever experienced difficulties

caused by various macro and micro factors stressed that their company faced a significant

reduction in costs (Phase I of the Renewal strategy).

However, this BS involves two stages: a simple transition to the economy mode can help

the company to stay afloat, but not remain competitive and develop (the already mentioned

94% indicated that 69% of companies were able to cope with the problems as a result of

the measures taken; move to a new stage of development – only 43%; of the latter only 2%

did not create a special reserve fund for the implementation of subsequent changes). At the

same time, 89% of employees of enterprises that have been operating and confirm the

growth of indicators over a period of more than ten years (26% turned out to be such) were

convinced that the secret of their organization's success lay in the application of new

technologies (from the survey it follows that more often there are changes to the existing

product (34%), to the production process (28%) and management (23%). Further analysis

also confirmed that the type of organizational culture (Table 4, hypothesis H2) has a definite

influence on the choice of a course for innovation (implementation of the "II phase ").

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So, the leader in terms of R2 was adhocracy (0.704); in the second place was a result-

oriented culture (0.623), in the third – a rational (0.569). The most "incapable "for the

introduction of innovative solutions were dysfunctional (-0.178), free (-0.24) and mild (0.14)

OC (it should be added that among enterprises that survived the recession in 2008 and in

2014 there was not a single dysfunctional culture; 3% can be attributed to "free "; 1.4% – to

"soft "). Considering innovation as a vital element of the update strategy, we can say that

OC is not the dominant factor in determining the level of a company's readiness to

introduce innovations, although it forms an attitude towards innovation in general.

However, for ecosystem participating organizations (19%), these figures were slightly

different. In particular, for organization with a culture with the Shaping strategy is most

characteristic, the relationship was more significant for adhocracy (R 2 = 0.799), rational (R2

= 0.695), result-oriented (R2 = 0.715), command (R2 = 0.579) culture; less significant

changes were noted in subject-oriented (R2 = 0.501), stable (R2 = 0.464), academic (R2 =

0.363), solid (R2 = 0.275) cultures.

Table 4 | Organizational culture inclination to adopt a renewal strategy

ρ-Value < 0.10 * ρ-Value < 0.05 ** ρ-Value < 0.01

Source: authors

Conclusions

Organizational culture is an asset which absence makes it impossible to successfully

implement the strategy (Ahmadi et al., 2012; Pirayeh, Mahdavi & Nematpour, 2011; Ouchi,

1981; Awino et al., 2018) and for a company to survive (Olivares Farías, 2013) in general.

Accordingly, the OC should be evaluated in terms of its role in strategic planning (Bushardt,

Glascoff & Doty, 2011). Efficiency and BS, and OC significantly increase when the short-

term and long-term goals underlying the strategy, meet the values, rules, principles, mission

(it primarily depends on the choice of the strategic direction of development, goals and

vision, directly related to organizational results (performance) (Lousã, & dos Santos

Mendes Mónico, 2018.) Therefore, it may be crucial for a company to change cultural

conditions before choosing one strategy or another (Yarbrough et al., 2010). This may

concern the choice of the culture type that will most successfully implement the strategy,

since the existence of a relationship between these variables has already been proven

(Naranjo-Valencia et al., 2011; Lund, 2003).

This paper is precisely focused on` the relationship of individual types of organizational

culture and strategies. The analysis and the results obtained, in particular, allowed the

authors to clarify the definitions of organizational culture in the broad sense (Krupsky,

2014a). OC is a culture that:

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1) determines general laws of cognitive interpretations or collective perceptions of

actions, thoughts, decisions,

2) inspires, motivates, provides emotional comfort and a sense of security and, as a

result, employee commitment; creates and implements a model of behaviour

adopted in organizations,

3) develops an identification system, sets boundaries that allow separating members

of the organization from those who do not have a direct relationship to it,

4) determines the style of management of daily activities, controls over the course of

the production process; prevents conflicts and problems; promotes the

involvement of employees in the process of formulating and implementing

strategies that are most effective under existing conditions and that meet the basic

principles of the organization.

In a narrow sense, the author proposes to consider organizational culture as a tool to

improve the organization competitiveness by creating an atmosphere of justice,

responsibility, cohesion, commitment to the mission and focus on results.

In addition, the study confirmed that:

1) there is a correlation between certain types of organizational culture and strategies

developed and implemented by a company, which suggests the degree of

supportiveness/inertia of the OC existing in the company by introducing changes

to available business strategies,

2) the implementation of the Renewal strategy in full (2 stages) during a recession

substantially depends on the OC type, and the participation of a company in the

ecosystem will positively affect the organization's decision to resort to innovation,

which, in turn, may entail changes in the OC and BS. That is, the organizational

culture can promote a positive attitude towards changes at the level of personnel

cultural patterns, but it is not decisive in deciding whether to make changes.

Under such conditions, an important task for managers will be timely response to changes;

taking measures to adapt OC and decisions about whether this adaptation will be gradual

or revolutionary; developing rules to meet new business conditions and prevent undesirable

consequences (Bushardt et al., 2011). Ideally, the leader should clearly understand what

and how available OC influences the ongoing changes in the business processes of a

company, which will avoid a confrontation in the perception of what is happening between

the managers and personnel of the company.

The obtained data can be considered as guidelines for further research in the

interconnection and mutual influence of OC and BS, which is especially relevant in the era

of the digital economy when traditional cultural perceptions face changes in work behaviour

and space all around the world.

Limitations

Researches without certain restrictions practically do not happen. Firstly, "nothing happens

in isolation "(Gummesson, 2006); Any object is influenced by a large number of factors that

cannot be predicted or simply considered in full. Secondly, when it comes to analyzing the

data collected as a result of the survey, the task is complicated by the need to take into

account the diversity of experience, perception and interpretation by individuals of certain

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events, information, decisions; the absence or presence of respondents' ability to see

causal relationships, draw appropriate conclusions, exclude emotions; the possibility of

significant changes in them over time, under the pressure of circumstances.

All this turns out to be essential even in case of an attempt to assess the effectiveness of

the material resources use; it becomes much more significant when analyzing concepts that

describe different aspects (classification, economic value, components) of intangible

resources.

The latter includes both organizational culture and strategies. Their types are not once

rigidly and permanently established. At the time of assignment to a particular type, a certain

element of the subjectivity of a particular respondent's opinion is possible. In addition, in the

same organization, it is possible both the simultaneous coexistence of different subcultures

and the change in OC as a whole over time (to bring it, for example, into line with the

updated BS). Such subtleties are simply impossible to take into account in a single study.

There will be subsequent authors' work devoted to them.

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The research paper passed the review process. | Received: December 9, 2019 ; Revised: March

17, 2020; Accepted: March 31, 2020; Published: September 30, 2020.

... Although managers believe that the cultural aspect is important for the success of the business and that innovation can bring competitive advantages (Dorin MAIER, Robert BUMBAC, Cristian ILIE, & Andreea MAIER, 2019), leaders must clearly understand how the available organizational behaviour can influence the company business (Krupskyi & Kuzmytska, 2020). In a scenario of massive digitalization and industry 4.0 (I4.0), culture impacts the success of these initiatives (Sieber, Although it has great potential innovation, AM present several barriers to be implemented in companies. ...

Additive Manufacturing (AM), widely known as 3D printing, is a fabrication process to build 3D parts layer by layer directly from a virtual CAD model. It is an innovative technology, with the potential to revolutionize the manufacturing industry completely. It is possible to manufacture complex shaped parts, shortening production sequence, reducing time to market and allowing mass customization. As one of Industry 4.0 nine pillars, AM has promoted an extensive number of researches. Some of them identify organizational culture as a leading factor affecting its implementation in industries. Like any change within companies, organizational culture can be a decisive factor for the successful implementation of AM. However, few studies have thoroughly explored the subject to find which set of cultural characteristics can guide the whole organization. This research identifies, through a systematic literature review (SLR) based on the PRISMA Protocol, which set of cultural characteristics can guide the transition from conventional to AM technology. The systematic literature review was capable of identifying a set of 41 cultural characteristics, which the company should present to implement AM successfully. Knowing which cultural characteristics can help AM implementation companies will increase their chances of succeeding when moving towards AM technologies within Industry 4.0.

• Grynko Tatyana
• Olha Yehorova

Цель - исследовать проблемы внедрения системы стратегического планирования на промышленных предприятиях. Дизайн / Метод / Исследовательский подход . Теоретический подход, основанный на обобщении имеющихся исследований, анализа и сравнения для выявления препятствий для реализации стратегического планирования на промышленных предприятиях. Выводы. Обосновано, что разработка стратегии и реализация системы стратегического планирования являются необходимыми условиями функционирования современного промышленного предприятия в силу динамизма и нестабильности экономической среды. Одним из важнейших факторов, влияющих на эффективность хозяйствующего субъекта, является осознание необходимости внедрения системы стратегического планирования, поскольку это позволяет компании добиться динамичного развития и укрепить свои позиции на рынке. Утверждается, что среди проблем, влияющих на реализацию стратегического планирования на промышленных предприятиях, есть внешние факторы влияния, внутренние факторы организации и факторы, связанные с мотивами собственника предприятия. Theoretical implications. The research's theoretical significance is to change the research focus in strategic planning from external factors to the enterprise owner's motives research. Practical implications. Owners and top managers can use the research to prevent problems with the enterprise's strategic planning implementation. Originality/Value. The paper's originality is because, for the first time, the relationship between the dynamics and problems of strategic planning system implementation in industrial enterprises is considered by the personal motives of the enterprises' owners. Ограничения исследований / Будущие исследования . В прогнозах дальнейших исследований далее анализируется взаимосвязь между внешними и внутренними факторами, влияющими на проблемы внедрения системы стратегического планирования на промышленных предприятиях. Тип статьи - теоретическая.

• Qiwei Zhou
• Guoquan Chen
• Wei Liu

Drawing upon the competing values framework and flow theory, we conducted an empirical study to examine the predictive role of perceived organizational developmental culture (PODC) on subjective well-being (SWB), and further explored its mechanism and boundary conditions. Participants were 229 Chinese employees who completed measures of PODC, perceived organizational rational culture (PORC), job involvement, and SWB. Results showed that job involvement mediated the relationship between PODC and SWB, and that PORC not only strengthened the relationship between PODC and job involvement, but also moderated the mediating effect. We have highlighted the importance of emphasizing both the future growth and present time achievement orientation types of perceived organizational culture to increase employees' SWB.

• Sri Handari Wahyuningsih
• Achmad Sudiro
• Eka Afnan Troena
• Dodi Wirawan Irawanto

This paper is mainly to study implementation of organizational culture in enhancing business competitiveness. Culture is seen as a soft system tool that reflects beliefs that are able to drive business performance in an international environment. Today, culture is a part of instrument to measure organizational readiness in managing business in an international environment. The research is focused on evaluatiny organizational culture in international-scale hotel in Yogyakarta, Indonesia. International-scale hotels are faced with differences in the nature of employees and customers, so management needs to develop a culture type as a strategy to encourage business competitiveness. The research applies Denison's organizational culture model with four dimensions: involvement, consistency, adaptability, and mission. Sample includes 248 working people at four star hotels with various positions, that is managers, supervisors and employees. The results of the study found that international hotel chains have the power to carry out internal alignment as a strategy to increase competitiveness through employee empowerment programs, team orientation, skills development, and alignment of work values. The results of the study illustrate the importance of internal and external dimension consistency for international business competitiveness.

This study intends to analyse the effects of leadership and organizational culture in innovation in small, medium and large Portuguese enterprises. The sample is composed of 102 organizations (68.6% small, 24.5% medium-sized and 5.9% large companies), from which a total of 854 workers answered to the Transformational Leadership Scale and the Organizational Culture Questionnaire Denison. Additionally, a total of 102 top managers of each organization answered a questionnaire concerning the innovation activity in their organization. Data analysis was performed with structural equation modelling. The results showed that the size of the company moderates the relationship between leadership and organizational culture in the prediction of innovation. This moderation surpasses the differentiated effect size of leadership in innovation predicted by culture, showing also influence on the contribution of the several variables in the model.

Culture is a concept with different meanings, which is in close contact with the business world as well. Its influence on managerial activities within current organizations cannot be questioned, especially in the existing political, economic and social context. Nowadays, one of the specific ways of formulating and implementing strategies at the level of companies is related to the change of organizational culture. This paper aims to highlight, from a managerial perspective, the way in which the existing strategies at the organizational level are influenced by different cultural contexts. Sometimes strategy can be considered as a variable determined and constrained by the culture in which it is defined. It is not limited to the reflection and expression of culture but rather influences and changes it.

This study aimed to analyze how the interface occurs between the management control systems (MCSs) and the strategy and performance measures in a family business, from the perspective of Contingency Theory. The relevance of the theme lies in understanding how the use of the managerial levers from the Levers of Control (LOC) model (Simons, 1995) is perceived by the senior management of a family business in the interface with the strategy and performance measures. In terms of its impact in the area, this article broadens the field of research that uses the LOC model together with strategy and performance measures in family businesses. The research methodology used combined methods, operationalized by the case study procedure. The content analysis was performed using coded categories based on the literature and selected passages from the interviews, observation, and documents, by means of qualitative analysis software. As a result, it was observed that the family management designed by the controlling owner, with an entrepreneurial vision, working together (father and sons), and the organizational values of the family unit (belief systems), showed particularities of the family-business duality that contributed to the implementation of the strategy and the use of performance measures. It is also inferred that the two systems (diagnostic controls and interactive controls) are complementary in the organization and that the "customized control" produced by the integrated management system is an adjustment of the MCS to the contingencies in order to enable the interface with the strategy and performance measures. The study revealed that the family values present in the management take form in the belief systems that shape the use of the MCSs and in the strategic behavior of the organization, which is an element that is barely discussed in Simons (1995) and opens up room for new research.

• Hanif Mauludin

This research aims to analyze the direct and indirect influence of organizational culture and work motivation on employee performance through employee job satisfaction. Population and sample of this research are all employees at Pasuruan Regional Secretariat which amount to 170 people. Questionnaires distributed to respondents were 170, of which 130 were returned, the response rate was 76.47%. Data analysis used is the technique of structural equation (SEM) with Smart Partial Least Square (PLS) software. The results of this research indicate that: 1). Organizational culture direct positive and significant influences on job satisfaction 2) organizational culture direct positive and significant influences on employee performance. 3) job satisfaction a direct positive and significant influences on employee performance, 4) work motivation a direct positive and significant Influences on job satisfaction, 5) work motivation did not influence on employee performance, 6) job satisfaction mediate a relationship between organizational culture and work motivation with employee performance. The findings of this research provide both theoretical and practical implications. This research contributes to the existing management literature related to Organizational Culture, work motivation on employee performance through job satisfaction. The findings of this research are expected to be a source of information and material considerations for the Regional Secretariat Pasuruan in improving the performance of employees by forming organizational culture and improve motivation and employee job satisfaction.

• Maryna O. Kalnіtska

Purpose – to investigate the state of development of organizational culture of legal entities engaged in tourism business in order to further improve the mechanism of development of organizational and cultural resources involved in the international tourism business. Design/Method/Approach. The method of analysis has been applied when investigating the state of market development of tourism business; the questionnaire method ‒ when assessing the state of development of organizational culture of the tourism business in Dnipropetrovsk oblast; the method of logical generalization ‒ to draw conclusions based on the results of the survey. Findings. Author has analyzed current market of tourist services and revealed main trends in development. The trend of further development of the sector has been illustrated; active growth in the number of accommodation facilities has been identified, specifically hotel chains. The rating of hotel brands has been compiled, which compares national and international hotel brands in terms of the number of accommodation facilities available in the tourist market. The author has given the authentic definition of organizational and cultural resources in the business of international tourism. Competitiveness factors for the entities of tourism business have been determined, which include organizational culture among the organizational and cultural resources. An express-algorithm has been presented in order to evaluate the state of development of the organizational culture of a tourism business entity. The results of the study graphically illustrate the assessment of the state of development of the organizational culture by the tourism business entities in Dnipropetrovsk oblast. Practical implications. The research results will be applied in the further formation of the mechanism of development of organizational and cultural resources in tourism business. The proposed express-algorithm and the questionnaire could be used in order to estimate the state of development of organizational culture by enterprises in different businesses. Originality/Value. The scientific-theoretical provisions for the formation of tourism business in Ukraine have been further developed through the assessment of state of development of organizational culture, which, in contrast to existing ones, are based on the results of surveying the entities of tourism infrastructure, which makes it possible to identify the main components in the system of competitiveness management by assessing key performance indicators in the management system related to the development of organizational and cultural resources. Research limitations/Future research. The research results could create a basis of the mechanism for developing the organizational and cultural resources in international tourism business. Paper type – empirical.

• Saeed Samiee
• Suthawan Chirapanda

Unlike their counterparts in developed markets, emerging-market firms are characterized by limited resources, including international experience and access to relevant information, which are essential for developing suitable international marketing strategy (IMS). Under such circumstances, strategies are expected to produce suboptimal results, especially when targeting competitive markets in advanced economies. Prior IMS research has largely focused on developed markets. In contrast, the authors examine IMS of exporters in Thailand, an emerging market. Despite major differences in environments and processes in emerging markets, they establish that Thai exporters that match their IMS to local market conditions realize superior performance, as predicated by strategy coalignment. The authors validate these results and discuss emerging-market firms' capacity to adapt their strategies and succeed in highly competitive advanced economies, despite relative inexperience, volatility, and information asymmetry at home. Exporting remains of critical importance to the economies of emerging markets, and the findings provide greater optimism for their firms' ability to address host-market conditions in their marketing strategies, as well as pointing to the competitive threat posed by these emerging-market neophytes.

• Marc André Baumgartner
• Vincent Mangematin

Purpose Repeatedly engaging in strategic exercises may lead to a certain weariness, as the same strategic processes are used over and over again. The authors advocate looking at business model as a new concept to challenge existing beliefs and what is taken for granted. This paper aims to better understand how business model renews strategic processes. Does it change the strategic process, or is it a new strategic tool? Based on an analysis of the strategic processes of eight small- and medium-sized enterprises, the authors identify four mechanisms for challenging existing strategic processes: cognitive challenge, focus on process, mindset and mindset change, cognition and capabilities. Renewing strategic tools and processes is necessary to change the lens through which the environment is viewed. This change of perspective happens because of newness in the process of how top managers read the organisation and the environment, thus adapting their business more quickly than do other companies. To combine the understanding of history necessary for strategic thinking with the ability to think outside the box requires a certain flexibility of mind, which can be called cognitive strategic ambidexterity. Design/methodology/approach Based on an analysis of the strategic processes of eight small- or medium-sized enterprises, this paper shows that it is not because of business modelling that top managers may renew their strategic approach and think outside the box. Findings Based on an analysis of the strategic processes of eight small- and medium-sized enterprises, the authors identify four mechanisms for challenging existing strategic processes: cognitive challenge, focus on process, mindset and mindset change, cognition and capabilities. Renewing strategic tools and processes is necessary to change the lens through which the environment is viewed. This change of perspective happens because of newness in the process of how top managers read the organisation and the environment, thus adapting their business more quickly than do other companies. Originality/value A lot of research has been conducted in the fields of strategy as practice and business model. The newness added by this article is the interlinkage between the two fields of research. Looking at the process of strategy through the lens of business modelling has so far not been covered. Cognitive strategic ambidexterity is the key.

Source: https://www.researchgate.net/publication/344449169_Organizational_culture_and_business_strategy_connection_and_role_for_a_company_survival

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