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The impact of organizational climate and strategic fit on firm performance

✍ Scribed by Richard M. Burton; Jørgen Lauridsen; Børge Obel

Publisher
John Wiley and Sons
Year
2004
Tongue
English
Weight
141 KB
Volume
43
Category
Article
ISSN
0090-4848

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

A firm's organizational climate—its degree of trust, morale, conflict, rewards equity, leader credibility, resistance to change, and scapegoating—helps determine its success. Likewise, organizational strategy—the firm's commitment to capital investment, innovation, quality, and the like—has also been found to be an important determinant of firm performance. However, prior work has most often explored the impact of climate and strategy separately, and not in tandem. In our study, we develop a measure of organizational climate comprised of tension, resistance to change, and conflict, and go on to show that at least for some pairings of a firm's climate and its strategy, there is a negative effect on return on assets (ROA). © 2004 Wiley Periodicals, Inc.

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