Theses and Dissertations

Date of Award

5-2024

Document Type

Thesis

Degree Name

Master of Business Administration (MBA)

Department

Business Administration

First Advisor

Ghada Ismail

Second Advisor

Akinloye Akindayomi

Third Advisor

Jorge Vidal

Abstract

This thesis investigates the intricate relationship between organizational culture and firm performance, focusing on specific cultural dimensions of respect, teamwork, innovation, quality, and integrity as possible determinants of firm performance. The main objective is to find out the impact of these cultural elements on the dependent variable, return on assets (ROA).

As organizations strive for sustained success and competitive advantage, understanding the interplay between culture and financial performance becomes important. The cultural variable of respect is examined as a catalyst for fostering diverse perspectives and collaborative interactions within the organization. Teamwork is analyzed for its role as a fundamental driver of collective efficacy and operational synergy. Innovation is explored as a key factor influencing adaptability and creative problem-solving for firms. Quality is scrutinized as a cultural commitment to excellence in products, services, and processes. Integrity is considered as the foundation for ethical conduct, influencing both internal and external trust.

The research employs a comprehensive approach, integrating empirical evidence and theoretical frameworks to unravel the intricate connections between these cultural dimensions and return on assets. By utilizing statistical analysis and qualitative assessments, the study aims to provide insights into how cultivating a culture characterized by respect, teamwork, innovation, quality, and integrity can significantly impact a firm's financial performance, as measured by return on assets.

This thesis contributes not only to the academic discourse on organizational culture but also offers practical implications for leaders and decision-makers navigating the complexities of the contemporary business landscape.

To examine the potential effect of culture on firm performance, financial data was used to create a basic model that measures the Return on Assets. OLS regressions were run and results indicate that ROA is affected differently by the different dimensions of culture.

The results of the regression model show that the culture variables of integrity, teamwork, innovation, respect, and quality, have varying impacts on the Return on Assets (ROA). From the study, integrity and teamwork have a significant negative impact on ROA while innovation, respect and quality variables show a positive and significant relationship with ROA.

Comments

Copyright 2024 Raphael Mwangi Wambugu.

https://go.openathens.net/redirector/utrgv.edu?url=https://www.proquest.com/pqdtglobal1/dissertations-theses/impact-culture-on-firm-performance-study-effect/docview/3085283622/sem-2?accountid=7119

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