Economic Themes (2023) 61 (2) 7, 235-248
Bojan Savić, Sreten Jelić, Vasili Vasilije Ostojić
Abstract: Organizational culture as a complex phenomenon has been subjected to numerous researches in the economic science and corporate practice, among which the analysis of the influence of organizational culture on financial performance has an important place, with the basic goal of understanding the link, but also potentially developing “the optimal culture" whose adoption would contribute to achieving optimal financial effects of economic entities. The subject of research of this paper is thus the connection between organizational culture and financial performance, while the goal is to understand the relationship as well as the nature of the influence. Therefore, organizational climate and subcultures were also considered as relevant aspects of organizational culture, but also as a basis for understanding the classifications, as well as its general influences on company business. Based on the review of the most important results of a significant number of researches on this topic, it was concluded that there currently isn’t a generally accepted view on the existence of a relationship between different types of organizational cultures and financial performances. Thus this paper was designed as a review of the topic and could be used as a theoretical basis for future research or for the development of alternative approaches in the analysis of causality between the observed phenomena.
Keywords: : organizational culture; financial performance; subcultures; organizational climate; company; „strong culture“; corporate management
THE IMPACT OF ORGANIZATIONAL CULTURE ON FINANCIAL PERFORMANCE1OF THE COMPANY
Bojan Savić, Sreten Jelić, Vasili Vasilije Ostojić
Abstract: Organizational culture as a complex phenomenon has been subjected to numerous researches in the economic science and corporate practice, among which the analysis of the influence of organizational culture on financial performance has an important place, with the basic goal of understanding the link, but also potentially developing “the optimal culture" whose adoption would contribute to achieving optimal financial effects of economic entities. The subject of research of this paper is thus the connection between organizational culture and financial performance, while the goal is to understand the relationship as well as the nature of the influence. Therefore, organizational climate and subcultures were also considered as relevant aspects of organizational culture, but also as a basis for understanding the classifications, as well as its general influences on company business. Based on the review of the most important results of a significant number of researches on this topic, it was concluded that there currently isn’t a generally accepted view on the existence of a relationship between different types of organizational cultures and financial performances. Thus this paper was designed as a review of the topic and could be used as a theoretical basis for future research or for the development of alternative approaches in the analysis of causality between the observed phenomena.
Keywords: : organizational culture; financial performance; subcultures; organizational climate; company; „strong culture“; corporate management
