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Does Corporate Culture Matter? An Empirical Study on Japanese Firms

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Author Info
HIROTA Shinichi
KUBO Katsuyuki
MIYAJIMA Hideaki

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Abstract

Corporate culture does matter. Using Japanese firms' data from 1987-2000, we have shown that the strength of corporate culture significantly affects corporate policies such as employment policy, management structure, and financial structure. We have also confirmed that the culture and its embedding contribute to better corporate performance. These culture effects are found to be considerable in magnitude and at least as large as those of other factors. We suggest that it is important to recognize the existence of the culture for understanding corporate policies and performance.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07030.

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Length: 35 pages
Date of creation: May 2007
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Handle: RePEc:eti:dpaper:07030

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    Other versions:
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  14. Pascale, Richard Tanner & Athos, Anthony G., 1981. "The art of Japanese management," Business Horizons, Elsevier, vol. 24(6), pages 83-85. [Downloadable!] (restricted)
  15. Zingales, Luigi, 2000. "In Search of New Foundations," CEPR Discussion Papers 2551, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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