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Organizational Culture and Business Strategy: Connection and Role for A Company Survival

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  • Oleksandr P. Krupskyi
  • Yuliia Kuzmytska

Abstract

The purpose of the article was 1) to assess the relationship between the organizational culture (OC) type and business strategy (BS); 2) to prove that OC influences the survival strategy success/implementation; 3) to contribute to the expansion of organizational theory by analyzing the Boston Consulting Group (BCG) strategy palette as the basis for developing an effective company survival strategy during the crisis. To achieve the purpose, correlation analysis between OC types (authors' typology) and BS (Boston Consulting Group and Miles & Snow Models) was used (561 employees of different industries participated in the survey; the data collected laid the foundation for the research). As a result, it was proved that 1) certain types of organizational culture correspond to certain types of strategies; 2) during the period when the company overcomes the recession, OC affects strategic innovation decisions; 3) building a sustainable business ecosystem enhances the positive impact. The main limitations of the study are 1) some elements of subjectivity assessment, 2) constant changes in OC and BS, 3) the probability of different subcultures coexistence.Implications for a Central European audience: The results confirmed that there is a need for managers to 1) take into account the organizational culture characteristics/features to implement chosen strategies successfully; 2) be ready to adapt the OC before the BS is approved; 3) adopt the idea that building an innovation ecosystem can be crucial to confront the crisis with confidence.

Suggested Citation

  • Oleksandr P. Krupskyi & Yuliia Kuzmytska, 2020. "Organizational Culture and Business Strategy: Connection and Role for A Company Survival," Central European Business Review, Prague University of Economics and Business, vol. 2020(4), pages 1-26.
  • Handle: RePEc:prg:jnlcbr:v:2020:y:2020:i:4:id:241:p:1-26
    DOI: 10.18267/j.cebr.241
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    References listed on IDEAS

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    1. Hogan, Suellen J. & Coote, Leonard V., 2014. "Organizational culture, innovation, and performance: A test of Schein's model," Journal of Business Research, Elsevier, vol. 67(8), pages 1609-1621.
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    More about this item

    Keywords

    organizational culture; business strategy; ecosystem; organization of survival strategy;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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