in: Consumer Behavior, Organizational Strategy and Financial Economics, Bilgin Mehmet Hüseyin,Danis Hakan,Demir Ender,Can Ugur, Editor, Springer International Publishing AG, Chur, pp.85-95, 2018
This paper seeks
to foster a conceptual discussion about the relationship between organizational
culture and strategy. Organizations must find ways to handle global, national,
market, technological and consumer demands whilst crafting relevant strategies
to their internal workings and cultures. When the strategies of organizations are
misaligned with market realities, the survival rate rapidly decreases. We
suggest that the culture of organizations offer an anchor dictating how
organizations perceive themselves, their surroundings, their customers and
relevant stakeholders. The assumptions, beliefs and values determine how
companies comprehend what is happening inside and outside the organization
while dominating the strategy formulation and execution process. In a culture
where change is avoided, prompt adaptation to market changes could be painful
if not impossible. Thus, we propose that organizational culture can be utilized
as a bridge for aligning inner realities of organizations with demands of the
outer domain. Essentially, we suggest that
organizations’ internal values and culture are generally not aligned with their
strategic positions and the focus of organizations need to be on a “fit” which
will create a “competitive cultural persona” supporting the strategic posture
in the marketplace. Such a “fit” will enable organizations to deploy resources
effectively and make information flow smoothly.