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Firm Culture and Leadership as Firm Performance Predictors: a Resource-Based Perspective

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  • Wilderom, C.P.M.
  • Berg, P. van den

    (Tilburg University, Center for Economic Research)

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    Abstract

    In this study, we tested part of the resource-based view of the firm by examining two 'soft' resources, firm culture and top leadership, as predictors of 'hard' or bottom-line firm performance.Transformational top leadership was found to predict firm performance directly while the link between firm culture and firm performance was indirect: via transformational top leadership.Firm culture was operationalized as the employees' views about the degree of optimization of four organizational practices (job autonomy, external orientational, interdepartmental orientation, and human resource orientation).We conclude that, rather than strong cultures, firms need best organizational practices and transformational leadership.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2000-03.

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    Date of creation: 2000
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    Handle: RePEc:dgr:kubcen:200003

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    Web page: http://center.uvt.nl

    Related research

    Keywords: Organizational culture; Leadership firm performance; Resource-based theory of the firm;

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    1. Christophe Boone & Arjen Witteloostuijn, 1996. "Ceo Locus of Control and Small Firm Performance: an Integrative Framework and Empirical Test," Journal of Management Studies, Wiley Blackwell, vol. 33(5), pages 667-700, 09.
    2. Carrillo, Juan D. & Gromb, Denis, 1999. "On the strength of corporate cultures," European Economic Review, Elsevier, vol. 43(4-6), pages 1021-1037, April.
    3. Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790, September.
    4. Boone, C.A.J.J. & Brabander, B. de & Witteloostuijn, A. van, 1996. "CEO locus of control and small firm performance: an integrative framework and empirical test," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5373484, Tilburg University.
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