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Organizational Culture and Performance

Elizabeth A. Martinez, Nancy Beaulieu, Robert Gibbons, Peter Pronovost, Thomas Wang

American Economic Review · 2015 · Volume 105 · Issue 5

DOI: 10.1257/aer.p20151001

Abstract

Organizations are all around us. Culture is trickier—to analyze and even to see. We consider both the effect of management on culture and the effect of culture on performance. We begin by describing an intervention that dramatically improved outcomes and conspicuously included a culture-change component. We then use details from this intervention to describe potential empirical analyses of the association between organizational culture and performance in this and similar settings. Finally, we describe opportunities for theoretical models to explore how and why organizational culture might influence organizational performance.

Keywords

Organizational Behavior, Transaction Costs, Property Rights, Firm Performance: Size, Diversification, and Scope, Corporate Culture, Diversity, Social Responsibility

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