Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2016 The mpI act of Organizational Culture on Corporate Performance Tewodros Bayeh Tedla Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, Management Sciences and Quantitative Methods Commons, and the Organizational Behavior and Theory Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. 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. 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 i 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