Relationship between organizational culture and performance among German multinational companies in Mexico

Keywords: culture, performance, multinationals, social and cultural values

Abstract

The objective of this research is to determine if there is a relationship between organizational culture and organizational performance in German multinational companies operating in Mexico. To this end, we use a multiple case study, analyzing five German multinational autoparts companies with operations in Mexico, applying a questionnaire to executives at each of the five companies and to 232 employees at one of them. Our main finding is that there is a significant relationship between organizational culture variables and organizational performance variables, such as turnover, job satisfaction, satisfaction with the company, and sales. The study illustrates the importance of promoting human resources policies aimed at increasing employee satisfaction, and studies should be carried out to identify the triggers of satisfaction with greater precision, which may improve the performance of this type of company. The main limitation of this work is that as a case study, the results cannot be generalized;  however, very few previous studies have attempted to establish the relationship between culture and performance in the Mexican context, so this study constitutes a milestone for knowledge in this area.

Downloads

Download data is not yet available.

Author Biographies

Kathrin Oberföll, NAD Global, Intern Commercial Área.
Maestra en Negocios Internacionales por la Universidad Nacional Autónoma de México. Actualmente trabaja en NAD Global, en Intern Commercial Área.
Maria Elena Camarena Adame, Universidad Nacional Autónoma de México
Licenciada y Maestra en Administración, Doctora en Estudios Latinoamericanos, por la UNAM Profesora titular de tiempo completo en la Facultad de Contaduría y Administración de la Universidad Nacional Autónoma de México, División de Investigación. Reconocimiento del Sistema Nacional de Investigadores del CONACYT
Maria Luisa Saavedra García, Universidad Nacional Autónoma de México
Doctora y Maestra en Administración por la UNAM. Profesora titular de tiempo completo en la Universidad Nacional Autónoma de México, adscrita a la División de Investigación de la Facultad de Contaduría y Administración. Reconocimiento de Investigadora Nacional por el CONACYT

References

Allaire, I. & Firsirotu, M. E. (1984). Theories of Organizational Culture. Organization Studies, 5(3), 193-226.

Boyce, S. A., Nieminen, G. L., Gillespie, A. G., Ryan, M.A. & Denison, R. D. (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priority with automobile dealerships. Journal of Organizational Behavior, 36(3), 339-359. DOI: 10.1002/job.1985

Calori, R. & Sarnin, P. (1991). Corporate Culture and Economic Performance: A French Study. Organization Studies, 12(1), 49-74. DOI: 10.1177/017084069101200104

Cameron, K. & Quinn, R. (2011). Diagnosing and changing organizational culture: based on the competing values framework. 3rd Edition. USA: Wiley John.

Cheung, O., Wong, P. & Lam, L. (2012). An investigation of the relationship between organizational culture and the performance of construction organizations. Journal of Business Management, 13(4), 688-704.

Chow, W.C., Haddad, M. K. & Wu, A. (2002). Corporate Culture and Performance: Evidence from Taiwanese Manufacturing Companies. Journal of Asia-Pacific Business, 4(4), 25- 38. DOI: 10.1300/J098v04n04_03

Connaughton, S. L. & Shuffler, M. (2007), Multicultural and Multinational Distributed Teams, A Review and Future Agenda. Small Group Research, 38(3), 387-412. DOI: 10.1177/1046496407301970

Cooke, R. A, & Rousseau, D. M. (1988). Behavioral Norms and Expectations: A quantitative approach to the assessment of organizational culture. Group & Organization Studies, 13 (3), 245-273. DOI: 10.1177/105960118801300302

Cunha, R. C. & Cooper, C. L. (2002). Does privatization affect corporate culture and employee wellbeing? Journal of Managerial Psychology, 17 (1), 21-49. DOI: 10.1108/02683940210415915

Deal, T. E. & Kennedy, A. A. (1982). Corporate Cultures, The Rites and Rituals of Corporate Life. USA: Addison-Wesley Publishing Company, Inc.

Denison, D. (1984). Bringing Corporate Culture to the Bottom Line. Organizational Dynamics, 13(2)4-22. DOI: 10.1016/0090-2616(84)90015-9

Denison, D. (1991). Cultura corporativa y productividad organizacional. Bogotá, Colombia: Legis Editores.

Denison, D., Janovics, J., y Young, J. (2005). Diagnosing Organizational Cultures: Validating a Model and Method. Working paper. New York: Denison Consulting Group.

Denison, D., Nieminen, L., & Kotrba, L. (2014). Diagnosing organizational cultures: A conceptual and empirical review of culture effectiveness surveys. European Journal of Work & Organizational Psychology, 23(1), 145-161. DOI: 10.1080/1359432X.2012.713173

Deutsch-Mexikanische Industrie- und Handelskammer. (2012). Zielmarktanalyse im Rahmen der Geschäftsanbahnung Automobilzulieferer Mexiko. Die mexikanische Automobil- und Automobilzulieferindustrie und Potenziale für deutsche Unternehmen. Retrieved from: http://www.autocluster.nrw.de/fileadmin/images/PDF/Marktstudie-Automobilzulieferer- Mexiko.pdf

Franke, R., Hofstede, G. & Bond, M. (1991). Cultural Roots of Economic Performance: A Research Note. Strategic Management Journal, 12, 165-173. DOI: 10.1002/smj.4250120912

Friedich E. (2010). Zukunft der deutschen Automobilindustrie. Herausforderungen und Perspektiven für den Strukturwandel im Automobilsektor. Germany: Friedich Ebert Stiffung. Retrieved from http://library.fes.de/pdf-files/wiso/07703.pdf

Gálvez, E. J. & García Pérez de Lema, D. (2011). Cultura organizacional y rendimiento de las MIPYMES de mediana y alta tecnología: un estudio empírico en Cali, Colombia. Cuadernos de administración 24(42), 125-145.

Geertz, C. (1973). The Interpretation of Cultures. Barcelona: Gedisa.
Germany Trade & Invest, Automobil-Industrie. Retrieved from http://www.gtai.de/GTAI/ Navigation/EN/Invest/Industries/Mobility/automotive.html

Ginevicius, R. & Vaitkunaite, V. (2006). Analysis of organizational culture dimensions impacting performance. Journal of Business Economics and Management, VII(4), 201-211.

Gómez, I. & Ricardo, R. (2012). Cultura organizacional: Aproximación sectorial en Bogotá. Revista Facultad de Ciencias Económicas: Investigación y Reflexión, 20(2), 19-41.

Gordon, G. & Di Tomaso, N. (1992). Predicting corporate performance from organizational culture. Journal of Management Studies, 29(6), 783-798. DOI: 10.1111/j.1467-6486.1992.tb00689.x

Gregory, B., Harris, S., Armenakis, A., & Shook, C. (2009). Organizational culture and effectiveness: A study of values, attitudes and organizational outcomes. Journal of Business Research, 62, 673-679. DOI: 10.1016/j.jbusres.2008.05.021

Hamann, P., Schiemann, F., Bellora, L. & Guenther, T. (2013). Exploring the Dimensions of Organizational Performance: A Construct Validity Study. Organizational Research Methods, 16(1), 67-87. DOI: 10.1177/1094428112470007

Harrison, R. (1972). Understanding your organisation´s character. Boston: Harvard Business Review.

Hofstede, G. (1980). Cultures consequences: International differences in work related values. California: Sage Publications, Inc.

Hofstede, G. (2001). Cultures consequences. Comparing values, behaviors, institutions, and organizations across nations. Beverly Hills: Sage.

Hofstede, G., & Hofstede, G. (2005). Cultures and Organizations, Software of the Mind. United States: McGraw Hill.

Jacobs, R., Mannion, R., Davies, H., Harrison, S., Konteh, F. & Walshe, K. (2013). The relationship between organizational culture and performance in acute hospitals. Social Science & Medicine, 76, 115-125. DOI: 10.1016/j.socscimed.2012.10.014

Kotter, J. & Heskett, J. (1992). Corporate Culture and Performance. United States: The Free Press.

Kroeber, A. & Kluckhohn, C. (1952). Culture – A Critical Review of Concepts and Definitions. New York: Vintage Books.

Langat, E. & Lagat, C. (2017). Effect of Organizational Ownership and Culture on Employee Performance Among Selected Banks in Kenya. European Scientific Journal,13 (13)409-425.

Leithy, W. (2017) Organizational Culture and Organizational Performance. International Journal of Economic & Management Sciences, 6 (4)1-6. doi: 10.4172/2162-6359.1000442

Marculides, G. & Heck, R. (1993). Organizational Culture and Performance: Proposing and testing a model. Organizational Science, 4(2), 209-225. DOI: 10.1287/orsc.4.2.209

Martin, J. & Siehl, C. (1983). Organizational Culture and Counterculture: An Uneasy Symbiosis. Organizational Dynamics, 12(2), 52-64. DOI: 10.1016/0090-2616(83)90033-5

Martínez, M. (2010). Relaciones entre cultura y desempeño organizacional en una muestra de empresas colombianas: reflexiones sobre la utilización del modelo de Denison. Cuadernos de Administración, 23(40), 163-190.

Mobley, W., Wang, L., & Fang, K. (2005). Organizational Culture: Measuring and Developing It in Your Organization. Harvard Business Review China. (March 2005), 128-139.

Naranjo, J., Jiménez, D. y Sanz, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología (2016) 48, 30-41.

Nazir, N. & Lone, M. (2008). Validation of Denison´s Model of organizational culture and effectiveness in the Indian context. Vision, 12(1), 49-58.DOI: 10.1177/097226290801200107

Ogaad, T., Larsen, S. & Marnburg, E. (2005). Organizational culture and performance –evidence from the fast food restaurant industry. Food Service Technology, 5(1), 23-34. DOI: 10.1111/j.1471-5740.2005.00109.x/

Ozigbo, N. (2013). Impact of Organizational Culture and Technology on Firm Performance in the Service Sector. Communications of the IIMA, 13(1), 69-81.

ProMexico (2013). Industria Farmacéutica. Unidad de inteligencia de negocios. Mexico City: ProMexico.

PWC (2013). Doing Business in Mexico. Automotive Industry. Mexico City: Pricewaterhouse Coopers. Retrieved from: http://www.pwc.com/mx/es/publicaciones/archivo/2013-05-doing-businessautomotriz.pdf

Sai On Cheung, S., Wong, S.P. & Lam, L. A. (2012). An investigation of the relationship between organizational culture and the performance of construction organizations. Journal of Business Management, 13(4), 688-704. DOI: 10.3846/16111699.2011.620157

Schein, E. (1984). Coming to a new awareness of organizational culture. Sloan Management Review, 25 (2)3-15.

Schein, E. (2004). Organizational Culture and Leadership, a dynamic view. San Francisco, USA: Editorial John Wiley & Sons, Inc.

Schindler, J. (2012). Deutsch-Mexikanische Industrie- und Handelskammer. Zielmarktanalyse im Rahmen der Geschäftsanbahnung Automobilzulieferer Mexiko. Die mexikanische Automobil- und Automobilzulieferindustrie und Potenziale für deutsche Unternehmen. Mexico: German Centre. Retrieved from :http://www.autocluster.nrw.de/fileadmin/images/PDF/MarktstudieAutomobilzule ferer-Mexiko.pdf

Smircich, L. (1983). Concepts of Culture and Organizational Analysis. Administrative Science Quarterly, 28(3), 339-358. DOI: 10.2307/2392246

Van Den Berg, P. T. & Wilderom, P. M. (2004). Defining, Measuring and Comparing Organisational Cultures. Applied Psychology: An International Review, 53 (4), 570-582. DOI: 10.1111/j.1464-0597.2004.00189.x

Wei, Y., Samiee, S. & Lee, R. (2012). The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market. Journal of the Academy of Marketing Science, 42(1), 49-70.

Winston, E. & Dadzie, K. (2007). Organizational Culture in Cote d´Ivoire: Analysis of Cultural Types and Firm Performance. Journal of African Business, 8(1), 99-112. DOI: 10.1300/J156v08n01_06

Yesil, S. & Kaya, A. (2013). The Effect of Organizational Culture on Firm Financial Performance: Evidence from a Developing Country. Social and Behavioral Sciences, 81, 428-437. DOI: 10.1016/j.sbspro.2013.06.455
Published
2018-11-22
How to Cite
Oberföll, K., Camarena Adame, M. E., & Saavedra García, M. L. (2018). Relationship between organizational culture and performance among German multinational companies in Mexico. Journal of Business, Universidad Del Pacífico (Lima, Peru), 10(2), 24-47. https://doi.org/https://doi.org/10.21678/jb.2018.840