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Organizational Culture and Performance

Author

Listed:
  • Elizabeth A. Martinez
  • Nancy Beaulieu
  • Robert Gibbons
  • Peter Pronovost
  • Thomas Wang

Abstract

Organizations are all around us. Culture is trickier—to analyze and even to see. We consider both the effect of management on culture and the effect of culture on performance. We begin by describing an intervention that dramatically improved outcomes and conspicuously included a culture-change component. We then use details from this intervention to describe potential empirical analyses of the association between organizational culture and performance in this and similar settings. Finally, we describe opportunities for theoretical models to explore how and why organizational culture might influence organizational performance.

Suggested Citation

  • Elizabeth A. Martinez & Nancy Beaulieu & Robert Gibbons & Peter Pronovost & Thomas Wang, 2015. "Organizational Culture and Performance," American Economic Review, American Economic Association, vol. 105(5), pages 331-335, May.
    • Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:331-35
    Note: DOI: 10.1257/aer.p20151001
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    References listed on IDEAS

    as
    1. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
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    Citations

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    Cited by:

    1. Hjort, Jonas & Li, Xuan & Sarsons, Heather, 2020. "Across-Country Wage Compression in Multinationals," CEPR Discussion Papers 14465, C.E.P.R. Discussion Papers.
    2. Neboj?a Jani?ijevi?, 2020. "The Impact Of Organizational Culture On Firm Performance: Organizational Culture As A Magic Wand Or Silent Killer?," Proceedings of International Academic Conferences 10613063, International Institute of Social and Economic Sciences.
    3. Janne Tukiainen & Vesa Soini & Susmita Baulia & Jan Jääskeläinen, 2026. "Organizational Culture and Habit Formation in Public Procurement," Discussion Papers 177, Aboa Centre for Economics.
    4. Jina Kim & Hye-Sun Jung, 2022. "The Effect of Employee Competency and Organizational Culture on Employees’ Perceived Stress for Better Workplace," IJERPH, MDPI, vol. 19(8), pages 1-22, April.
    5. Narasimha Rao Vajjhala & Kenneth David Strang, 2017. "Measuring Organizational-Fit Through Socio-Cultural Big Data," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 145-158, July.
    6. Ajay Bhaskarabhatla & Luis Cabral & Deepak Hegde & Thomas Peeters, 2021. "Are Inventors or Firms the Engines of Innovation?," Management Science, INFORMS, vol. 67(6), pages 3899-3920, June.
    7. Anja Prummer, "undated". "Discrimination in Promotion," Working Papers 905, Queen Mary University of London, School of Economics and Finance.
    8. Olivera Simovic & Miha Lesjak & Đurđica Perović & Eva Podovšovnik, 2023. "Measuring Organizational Culture in Hotels, Restaurants and Travel Agencies in Montenegro," Sustainability, MDPI, vol. 15(3), pages 1-25, February.
    9. Arjeta Shaqiri Latifi, 2022. "The impact of economy on the fight against trafficking in human beings in Kosovo," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, ejes_v8_i.
    10. Jonas Hjort & Xuan Li & Heather Sarsons, 2020. "Random-Coefficients Logit Demand Estimation with Zero-Valued Market Shares," Working Papers 2020-15, Becker Friedman Institute for Research In Economics.
    11. Tran, Thanh & Nguyen, Harvey & Pham, Mia Hang, 2025. "Do financial markets value corporate culture?," International Review of Financial Analysis, Elsevier, vol. 98(C).
    12. Getinet Astatike Haile, 2023. "Organizational leadership: How much does it matter?," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 653-673, September.
    13. Bakas, Dimitrios & Kostis, Pantelis & Petrakis, Panagiotis, 2020. "Culture and labour productivity: An empirical investigation," Economic Modelling, Elsevier, vol. 85(C), pages 233-243.
    14. Silvia Griselda & Paola Profeta & Giulia Savio, 2026. "Peer Gender Composition and University Climate," CESifo Working Paper Series 12523, CESifo.

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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