This study investigated the
effect of organizational culture on firm performance in the restaurant
industry. Despite the importance of organizational culture in the
organizational functioning, empirical evidence for the organizational
culture-performance relationship remains fragmented. The inconsistency in the
literature was aroused from a lack of theoretical development, a negligence of
industry-specific factors, a small sampling issue, and a lack of longitudinal
examination. Therefore, this study proposed to use text analysis in measuring
organizational culture and examined the organizational culture-restaurant performance
with a consideration of moderating effect of service orientation, franchising,
and economic condition. This study found that different
organizational culture influences restaurant performance differently.
Specifically, the result of this study reveals that: clan culture immediately
increases restaurant productivity; adhocracy culture decreases
restaurant growth; and hierarchy immediately decreases restaurant productivity. In terms of moderating role of service orientation,
this study found that: that tangible service
orientation positively moderates both hierarchy culture-profitability and
hierarchy culture-productivity relationships. This result implies that tangible
service orientation works better with the hierarchy culture in improving
restaurant performance than intangible service orientation. As for the
moderating effect of franchising on the organizational culture-performance
relationship, this study found that franchising positively moderates the
clan culture-profitability relationship and the clan culture-productivity
relationship. This result implies that operational and economic benefit of
franchising could be passed on to create synergetic effect with the clan
culture and maximize the positive clan-productivity relationship while offset
the clan-profitability relationship. Last, this study found that recession
positively moderates the hierarchy culture-profitability relationship and the
hierarchy culture-productivity relationship. Theoretically, this study
contributes to the literature by: providing logical link between the
organizational culture and firm performance; providing empirical evidence that reveals
the performance implication of the organizational culture; and by using
alternative organizational culture measurements based on text analysis of
firms’ 10K filings. Practically, this study offers insightful implications for
industry professionals in understanding the effect of organizational culture on
restaurant performance.
| Identifer | oai:union.ndltd.org:purdue.edu/oai:figshare.com:article/12526250 |
| Date | 23 June 2020 |
| Creators | Hong Soon Kim (9001169) |
| Source Sets | Purdue University |
| Detected Language | English |
| Type | Text, Thesis |
| Rights | CC BY 4.0 |
| Relation | https://figshare.com/articles/Organizational_Culture_and_Firm_Performance_Evidence_from_the_Restaurant_Industry/12526250 |
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