The impact of organizational culture on economic indices - A study in Serbian companies

This paper presents research results whose aim was to examine and define the dependences and impact of organizational culture on the effects of business performance. The research was carried out on Serbian companies and was conducted in three stages. In the first stage, 72 parameters of organizational culture were defined and 30 experts were polled about the significance of these parameters. This was followed by factor analysis which assisted in the selection of 7 key factors of organizational culture. These 7 factors were taken as the representatives of organizational culture in Serbian companies. In the second stage, the representatives of the effects of business performance were defined. Economic indices (7 economic indices) were taken as the representatives of business effects. The third stage included an explanation of the actual state concerning the key factors of organizational culture and the selected economic indices in Serbian companies. The data was collected by polling 100 managers from 100 companies. Finally, multivariate regression and correlation were applied in order to determine the dependences of organizational culture and business effects. The research results confirm the existence of a strong relation between organizational culture and business performance. The obtained dependences show that economic indices in companies are improved by increasing the level of organizational culture. Equations are made which enable the calculation of the values of some economic indices depending on the value and level of the key factors of organizational culture within the company. An efficient review of the current state of economic indices, the simulation of the possible state of economic indices, as well as the effective selection of future activities oriented towards increasing the level of organizational culture are thus provided. These activities all contribute to improved business results.