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Journal of Strategic Management

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ISSN: 1649-3877

Listed by: Cabells and EBSCO

Frequency: 1 online Volume per year


Exploring the Relationship between Organizational Culture, Leadership Styles and Corporate Performance: An Overview

JSME Vol 5: Issues 3 & 4, 2009

Author(s): Osaro Mgbere (University of New England, USA)

This paper attempts to evaluate the relationships between organizational cultures and leadership styles toward corporate performance. Findings from several studies indicate that managerial literature has generally accepted the idea that organizational culture and leadership style are positively linked to performance outcomes. But empirical research data are still somewhat conflicting as the results are mixed and inconclusive. Consistent with predictions from economic theories of corporate culture, we find that the relations are long-term and stronger for internally grown business units and older firms. It was noted that what is considered important for long-term
organizational success may not be the type of organizational culture, per se, but the ability to effectively manage and change the culture over time to adjust to changes in the situation and needs of the organization. Decision making and work design were found to be associated with long term financial performance, while supervisory leadership was associated with short term financial performance. These observations point to the need for a more dynamic understanding of culture and the role of organizational leaders in ensuring that the culture contributes both to the organizationís current and future success.

Keywords: organizational culture, ethical values, leadership styles, corporate performance.

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