Does Organizational Culture Impact on Firm Performance: Evidence From Turkey

This paper aims to examine the impact of corporate culture over the financial performance of certain enterprises therewith by covering the data of chemical, petroleum, rubber and plastic products firms (XCHEMST) traded in Borsa Istanbul. In that regard, corporate culture data have been obtained from...

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Main Authors: Adem Böyükaslan, Hasan Rıza Aşıkoğlu
Format: Article
Language:English
Published: Istanbul University Press 2022-04-01
Series:Istanbul Business Research
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/51F6E8B68C2A44A38E4C27F607F6009B
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author Adem Böyükaslan
Hasan Rıza Aşıkoğlu
author_facet Adem Böyükaslan
Hasan Rıza Aşıkoğlu
author_sort Adem Böyükaslan
collection DOAJ
description This paper aims to examine the impact of corporate culture over the financial performance of certain enterprises therewith by covering the data of chemical, petroleum, rubber and plastic products firms (XCHEMST) traded in Borsa Istanbul. In that regard, corporate culture data have been obtained from the surveys of the Denison’s Organizational Culture Model (DOCM) employees and managers of these businesses while the financial data were gleaned from financial statements of the mentioned enterprises between 2012-2016. We posited the ROE as a dependent variable while ROA and DEBT EQUITY have been employed as explanatory financial variables. Accordingly, we have determined SIZE and AGE as firm-specific variables. Utilizing cross-sectional data and multiple linear regression models, we estimated the coefficients of the variables with the aid of an OLS estimator. In so doing, this paper provides sufficient empirical evidence that three out of four cultural traits in the Denison’s Theory have had no impact on the financial performance of Turkey’s chemical firms traded on BIST, whereas the mission trait has had a significant impact. Consequently, our results are largely in line with the findings of other C/P research, suggesting that the mission trait of the DOCM is the core cultural term in ensuring thriving firm corporate performance.
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spelling doaj-art-e4a910aa63b44351aaf08c5897759dd72025-08-20T03:11:29ZengIstanbul University PressIstanbul Business Research2630-54882022-04-0151114917410.26650/ibr.2022.51.861397123456Does Organizational Culture Impact on Firm Performance: Evidence From TurkeyAdem Böyükaslan0https://orcid.org/0000-0002-9073-0554Hasan Rıza Aşıkoğlu1Afyon Kocatepe Üniversitesi, Afyon, TurkiyeAfyon Kocatepe Üniversitesi, Afyon, TurkiyeThis paper aims to examine the impact of corporate culture over the financial performance of certain enterprises therewith by covering the data of chemical, petroleum, rubber and plastic products firms (XCHEMST) traded in Borsa Istanbul. In that regard, corporate culture data have been obtained from the surveys of the Denison’s Organizational Culture Model (DOCM) employees and managers of these businesses while the financial data were gleaned from financial statements of the mentioned enterprises between 2012-2016. We posited the ROE as a dependent variable while ROA and DEBT EQUITY have been employed as explanatory financial variables. Accordingly, we have determined SIZE and AGE as firm-specific variables. Utilizing cross-sectional data and multiple linear regression models, we estimated the coefficients of the variables with the aid of an OLS estimator. In so doing, this paper provides sufficient empirical evidence that three out of four cultural traits in the Denison’s Theory have had no impact on the financial performance of Turkey’s chemical firms traded on BIST, whereas the mission trait has had a significant impact. Consequently, our results are largely in line with the findings of other C/P research, suggesting that the mission trait of the DOCM is the core cultural term in ensuring thriving firm corporate performance.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/51F6E8B68C2A44A38E4C27F607F6009Bfirm performanceeffectivenessorganizational cultureorganizational behaviouremerging market countries
spellingShingle Adem Böyükaslan
Hasan Rıza Aşıkoğlu
Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
Istanbul Business Research
firm performance
effectiveness
organizational culture
organizational behaviour
emerging market countries
title Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
title_full Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
title_fullStr Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
title_full_unstemmed Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
title_short Does Organizational Culture Impact on Firm Performance: Evidence From Turkey
title_sort does organizational culture impact on firm performance evidence from turkey
topic firm performance
effectiveness
organizational culture
organizational behaviour
emerging market countries
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/51F6E8B68C2A44A38E4C27F607F6009B
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