The Influence Of Organizational Values On Profitability.

Overview

Organizational values have received increased attention in the literature. Research suggested that a relationship existed between organizational values and organizational performance (Alexander & Nagel, 1996; Cascio, 2006; Dobni, Ritchie, & Zerbe, 2000; Hitt, Hoskisson & Harrison, 1991; Van Beurden & Gossling, 2008; Wilkins & Ouchi, 1983; Wolfe, Parker, & Napier, 1994). Despite this belief and the increased attention organizational values have received in the literature, little empirical ...
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Overview

Organizational values have received increased attention in the literature. Research suggested that a relationship existed between organizational values and organizational performance (Alexander & Nagel, 1996; Cascio, 2006; Dobni, Ritchie, & Zerbe, 2000; Hitt, Hoskisson & Harrison, 1991; Van Beurden & Gossling, 2008; Wilkins & Ouchi, 1983; Wolfe, Parker, & Napier, 1994). Despite this belief and the increased attention organizational values have received in the literature, little empirical work has been directed at exploring specifically how this relationship is accomplished. The current study attempts to advance empirical support for this field of study by investigating the influence of organizational values on organizational profitability. Using survey data from a sample of ten companies and 236 employees, this study contributes to the literature by investigating the intermediate factors (i.e., business practices and employee behavior) that may influence the relationship between organizational values and organizational performance in terms of profitability. This study developed scales to measure business practices and employee behavior. Several constructs on these measures, unfortunately, did not meet reliability requirements. Pearson's r product-moment correlations and HLM analyses were used to test the hypotheses and research questions in this study. Partial support was found for several hypotheses. Specifically, support was found for the relationship between values-based business practices and the level of companies' reported organizational values for several values studied. The strongest support was found for hypothesis 4, which examined the relationship between organizational identity and several dimensions of employee behavior. Surprisingly, overall findings provided little support for the hypotheses and research questions studied. Despite several significant findings, due to the reliability issues with the scales and a small sample size, study findings should be interpreted with caution. In general, the findings of this study can be used to facilitate the discussion on organizational values and organizational profitability. Specifically, additional research can further the discussion on the relationship between organizational values and organizational profitability. Future research can examine the intermediate factors that should be present to ensure organizational values are implemented in the organization, thus creating an opportunity for organizational values to influence organizational profitability. Implications of this study and future research are discussed.
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Product Details

  • ISBN-13: 9781243708984
  • Publisher: BiblioLabsII
  • Publication date: 9/8/2011
  • Pages: 132
  • Product dimensions: 7.44 (w) x 9.69 (h) x 0.28 (d)

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