Does the stronger one win? The impact of organizational culture strength on financial performance of organizations

Identifying factors that affect organization performance is one of the key issues of contemporary science and practice. Our study builds on the research of this issues and focuses on verifying the influence of organizational culture's strength on the financial performance of an organization, depending on the dynamics of the environment and on the sector of economic activity. Its purpose is to verify whether the strength of organizational culture has a positive impact on financial performance, whether the degree of identification works the same way and whether the influence of these variables varies depending on the selected moderators. Since we assume that the degree of identification acts differently in this context, we were wondering whether the effect of symbolic means of organizational culture is the same for both of these variables. The survey was carried out in 111 organizations operating in the manufacturing sector and the retail wholesale sector. Data were collected through a questionnaire, and the median regression analysis was used to verify the dependence of the monitored variables. Although this was only a pilot study to map important factors that need further attention, the results confirmed the impact of organizational culture's strength on the financial performance of the organization, but depending on the stability of the environment with increasing instability, this influence is diminishing. The impact of the degree of identification was not confirmed but it is possible to hypothesize that this variable has a different dynamics of influence on financial performance in dependence on characteristics of the environment and the sector of economic activity. Further research in these dynamic processes can therefore provide valuable insights for managerial practice