STRATEGY IMPLEMENTATION, ORGANIZATIONAL CULTURE AND PERFORMANCE IN TURKISH LOCAL GOVERNMENT BY ELIF GENC A Thesis Submitted in Fulfilment of the Requirements for the Degree of Doctor of Philosophy of Cardiff University Management, Employment and Organization Section of Cardiff Business School, Cardiff University December 2017 DECLARATION This work has not been submitted in substance for any other degree or award at this or any other university or place of learning, nor is being submitted concurrently in candidature for any degree or other award. Signed (candidate) Date 12/06/2018 STATEMENT 1 This thesis is being submitted in partial fulfillment of the requirements for the degree of …………………………(insert MCh, MD, MPhil, PhD etc, as appropriate) Signed (candidate) Date 12/06/2018 STATEMENT 2 This thesis is the result of my own independent work/investigation, except where otherwise stated, and the thesis has not been edited by a third party beyond what is permitted by Cardiff University’s Policy on the Use of Third Party Editors by Research Degree Students. Other sources are acknowledged by explicit references. The views expressed are my own. Signed (candidate) Date 12/06/2018 STATEMENT 3 I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter- library loan, and for the title and summary to be made available to outside organisations. Signed (candidate) Date 12/06/2018 STATEMENT 4: PREVIOUSLY APPROVED BAR ON ACCESS I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter- library loans after expiry of a bar on access previously approved by the Academic Standards & Quality Committee. Signed (candidate) Date 12/06/2018 i DEDICATION To my beloved mother and father, To my dear sister -Zeynep- And In memory of my grandparents ii ACKNOWLEDGEMENTS I would like to express my thanks and appreciation to everyone who supported me and contributed to the completion of this thesis. Above all, I would like to offer my deepest gratitude to my primary supervisor Professor Rhys Andrews. His constant guidance, timely advice and vital feedback helped this work take shape. I will always be indebted to him for his patience and expertise in teaching me how to become a researcher, from his professional approach to his ethical attitude. It’s hard for me to find adequate words to express the gratitude that I feel for the help and support he offered throughout my PhD. It was a great privilege to work with and learn from such an inspirational person. I would also like to express my gratitude to my secondary supervisor, Professor Malcolm Beynon, who helped me so much by sharing his valuable insights and constructive comments. His encouragement and optimism also made a significant contribution to my PhD. My third supervisor, Professor Tom Entwistle, showed me different ways to approach my work, and I will always be grateful for the methods he taught me. Special thanks must also go to Professor Rachel Ashworth for her valuable comments and suggestions, which shaped the final steps of the thesis. It was really a great honour to work with such leading scholars at Cardiff Business School. I would like to thank my sponsor, the Ministry of National Education of the Republic of Turkey for giving me this opportunity of turning my dream of undertaking a PhD into a reality. Special thanks to Professor Hamza Ates for his continuous help and support in improving the quality of my work and helping me to develop my skills as a researcher. Thanks also to Professor Ramazan Sengul for his guidance and help during this process. My personal gratitude goes to my true friend Melis Mustafa for her support and affection throughout my PhD journey in the UK. I am truly grateful for her moral support and patience, especially when I was going through difficult times. My love and deepest thanks go to my mother and father and sister for their unstinting encouragement. Thank you so much for your love, patience and endless support. To all who assisted me whose names are not mentioned here, there are just too many of you to list, but thanks to all of you. You helped me so much. iii ABSTRACT It is widely acknowledged that effective strategy implementation, as one of the most crucial stages of the strategy making process, leads to better organizational performance. In particular, the literature indicates that implementation style is essential for directing strategies towards good organizational outcomes. For public sector organizations, there is a common belief that the implementation of strategies mostly fails in practice. However, there is still very little research addressing whether implementation style is related to better public service outcomes. This study explores the relationships between rational and incremental strategy implementation styles and the performance of public sector organizations. In addition, it investigates the effects of organizational culture, another important organizational characteristics seen as an effective tool for enhancing performance. While there are numerous studies in the literature investigating the relationship between organizational culture and performance in both the private and the public sector, most of this research investigates the direct effects of culture. Here, I examine the separate and combined effects of strategy implementation style and organizational culture on performance by applying the Competing Values Framework, a comprehensive typology which includes four types of culture together with specific organizational effectiveness criteria. By doing so, the current research is intended to contribute to the literatures on strategy implementation, organizational culture and performance. Contextually, the relationships were examined in Turkish local government organizations, specifically in metropolitan municipalities – large multi-purpose public organizations serving many citizens. The study therefore contributes new evidence on public sector strategic management in a non-Western environment. A mixed method research design is applied using 134 survey responses and 16 semi- structured interviews. Survey data, as the main quantitative component of the study, were analysed using multiple and robust moderated regression models. Qualitative data collection was then undertaken to clarify the relationships uncovered by the quantitative data analysis. The study results confirmed the presence of a significant positive relationship between rational strategy implementation and organizational performance. In regards to organizational culture types, only the hierarchy culture showed a consistently positive influence on performance. Nevertheless, a rational strategy implementation style appeared to strengthen the effects of a hierarchical and a market-based culture on performance, while an incremental strategy implementation style seemed to enhance the effects of a clan-oriented culture and an adhocracy culture on performance. Qualitative data analysis largely supports the quantitative findings on the independent and moderating effects of strategy implementation style and organizational performance. However, it also identified some positive performance effects from a hierarchy culture, a market-based culture, a clan culture and an adhocracy culture. Theoretical and practical implications of the findings are discussed in the conclusion. Key words: Strategy Implementation Styles, Organizational Culture, Competing Values Framework, Organizational Performance, Turkish local government. iv TABLE OF CONTENTS LIST OF TABLES ................................................................................................................ xi LIST OF FIGURES ............................................................................................................ xiii ABSTRACT ........................................................................................................................... iii ACKNOWLEDGEMENTS ................................................................................................. iii LIST OF ABBREVIATIONS ............................................................................................. xv CHAPTER 1 ........................................................................................................................... 1 INTRODUCTION .................................................................................................................. 1 1.1 Research Background ........................................................................................................ 1 1.2 Significance of the Study ................................................................................................... 3 1.2.1 The Importance of Strategy Implementation in the Public Sector .............................. 4 1.2.2 The Importance of Organizational Culture ................................................................. 5 1.2.3 Studying Strategic Management in a non-Western Setting ........................................ 6 1.3 Gaps in the Literature ......................................................................................................... 7 1.4 Research Context: Turkey .................................................................................................. 9 1.5 Research Objectives ......................................................................................................... 12 1.6 Research Questions .........................................................................................................