The relationship between business-level strategy and organisational culture
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Date
2014-12-17
Authors
Chorn, Norman Harold
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Abstract
The purpose of this dissertation is to investigate the relationship between organisational
culture and strategy. The organisation is studied from two perspectives to produce a
holistic understanding of the strategic process.
The functionalist perspective views culture as a variable within a systems viewpoint of the
organisation, while the interpretive perspective uses culture as a metaphor to
conceptualise and analyse the organisation, By combining the insights from the two
perspectives, the organisation is defined as a three-level construct of underlying
assumptions, values and beliefs, and physical manifestations. For the purposes of the
research, strategy is viewed as a key manifestation of the organisation. Its relationships
with the assumptions, values and beliefs are analysed.
The overall research problem concerns the concept of the organisation as an integrated
whole. By combining theories from the literature and perceptions from the target
population, a typology of four organisational forms is developed. Each is a consistent set
of underlying assumptions, values and beliefs, and strategy. The research propositions
advocate that specific strategies are associated with specific assumptions, values and
beliefs, and that the consistency between these wifi influence organisational performance.
The propositions are tested in 59 Strategic business Units (SBUs) of organisations listed
on the Johannesburg Stock Exchange (JSE). By collecting data from a variety of sources,
the organisations’ assumptions, values and beliefs, and strategic orientations are
measured. These are then tested for consistency, and compared to the overall level of
organisational performance.
The findings suggest that organisations may be considered as integrated wholes, and that
a degree of consistency exists in organisational assumptions, values and beliefs, and
strategy. Furthermore, certain strategies are associated with certain cultures, and the
consistency between these is associated with superior economic performance.
The study concludes that an integrated perspective of the organisation produces valuable
Insights Into the strategic process. These include an enhanced view of the
organlsation-environment Interface as well as guidelines for the management of strategic
change.
Description
A Thesis submitted to the Graduate School of Business Administration,
University of the Witwatersrand, Johannesburg, in fulfillment of the
requirements for the degree of Doctor of Philosophy.
Johannesburg, 1987