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A Meta-Analytic Test of Organizational Culture's Association With Elements of


an Organization's System and Its Relative Predictive Validity on Organizational
Outcomes

Article  in  Journal of Applied Psychology · January 2019


DOI: 10.1037/apl0000380

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ORGANIZATIONAL CULTURE META-ANALYSIS

A Meta-Analytic Test of Organizational Culture's Association with Elements of an


Organization’s System and its Relative Predictive Validity on Organizational Outcomes

CHAD A. HARTNELL
Georgia State University

AMY Y. OU
National University of Singapore

ANGELO J. KINICKI
Kent State University
Arizona State University

DONGWON CHOI
NEOMA Business School

ELIZABETH P. KARAM
Texas Tech University

Author Note

Chad A. Hartnell, Department of Managerial Sciences, Georgia State University; Amy Y.


Ou, Department of Management and Organisation, National University of Singapore; Angelo J.
Kinicki, College of Business Administration, Kent State University, and Department of
Management, Arizona State University; Dongwon Choi, Department of People and
Organisations, NEOMA Business School; Elizabeth Karam, Department of Management, Texas
Tech University.
We thank Cheri Ostroff for her valuable feedback on earlier drafts. An earlier version of
this article was presented at the 2016 Academy of Management Conference in Anaheim, CA.
Correspondence concerning this article should be addressed to Amy Y. Ou, Department
of Management and Organisation, NUS Business School, Mochtar Riady Building, BIZ 1 Storey
8 -36, 15 Kent Ridge Drive, Singapore 119245. E-mail: bizyo@nus.edu.sg.

© 2018, American Psychological Association. This paper is not the copy of record and may not
exactly replicate the final, authoritative version of the article. Please do not copy or cite without
authors' permission. The final article will be available, upon publication, via its DOI:
10.1037/apl0000380
ORGANIZATIONAL CULTURE META-ANALYSIS 1

Abstract

Organizational culture is an important predictor of organizational effectiveness, but it is also part

of an organizational system that consists of highly interdependent elements such as strategy,

structure, leadership, and high performance work practices (HPWPs). As such, accounting for

the effect of culture’s system correlates is important to specify more precisely organizational

culture’s predictive value for organizational outcomes. To date, however, efforts to connect

culture with its system correlates have proceeded independently without integration. This trend

is problematic because it raises questions about the strength of culture’s association with its

system correlates, and it casts uncertainty about organizational culture’s predictive validity for

organizational outcomes relative to other elements of an organization’s system. We addressed

these issues by conducting a meta-analysis based on 148 independent samples (N = 26,196

organizations and 556,945 informants). Results generally supported hypothesized predictions

linking culture with strategy, structure, leadership, and HPWPs. Meta-analytic regressions and

relative weight analyses further revealed that culture dimensions explained unique variance in

effectiveness criteria after controlling for the effects of leadership and HPWPs but varied across

effectiveness criteria in terms of relative importance. We discuss theoretical and practical

implications and highlight several avenues for future research.

Keywords: Organizational culture, organizational system, organizational effectiveness,

leadership, high performance work practices


ORGANIZATIONAL CULTURE META-ANALYSIS 2

A Meta-Analytic Test of Organizational Culture's Association with Elements of an

Organization’s System and its Relative Predictive Validity on Organizational Outcomes

Organizational culture, which consists of “shared values and basic assumptions that

explain why organizations do what they do and focus on what they focus on” (Schneider,

González-Romá, Ostroff, & West, 2017, p. 468), has become indelibly ingrained into the

corporate lexicon. For example, 92% of corporate executives believe that organizational culture

is linked to firm value according to a survey of more than 1,300 North American organizations

(Graham, Harvey, Popadak, & Rajgopal, 2016), a conclusion supported by both quantitative and

qualitative reviews (Ehrhart, Schneider, & Macey, 2014; Hartnell, Ou, & Kinicki, 2011;

Sackmann, 2011). The narrow focus on the bivariate relationship between culture and

effectiveness omits a broader consideration of the concurrent effects of organizational culture

alongside other interrelated elements of an organization’s system on organizational effectiveness.

This gap is important because culture’s predictive validity may be accounted for by other

unmeasured correlates in an organization’s system. The purpose of this meta-analysis is thus to

address this gap through the pursuit of two objectives.

The first objective is to theoretically enumerate and empirically examine the relationship

between organizational culture and elements of an organization’s system. Organizations are

social systems that consist of “highly interdependent elements” (Csaszar, 2013, p. 1085) that

coordinate action among organizational members and compose the organizational environment

in which they work (March & Simon, 1958; Morgeson, Dierdorff, & Hmurovic, 2010).

Organizational theory paradigms provide a theoretical foundation to specify the elements of an

organization’s system.

Katz and Kahn (1978) argue that organizational systems rely upon elements such as
ORGANIZATIONAL CULTURE META-ANALYSIS 3

strategy, structure, culture, leadership, and high performance work practices (HPWPs) to secure

their current and future viability. They note that elements of an organization’s system “develop

specific role expectations and penalties for failure to meet them, rewards to bind their members

into the system, norms and values to justify and stimulate required activities, and authority

devices to control and direct organizational behavior” (Katz & Kahn, 1978, p. 47).

This conclusion highlights the essential functions of structure (i.e., specific role expectations),

HPWPs (i.e., rewards), culture (i.e., norms and values), and leadership (i.e., authority devices) to

coordinate employees’ effort and achieve organizational objectives. These functions combined

with an organization’s strategy (i.e., plans to obtain competitive advantage) are critical for

system survival.

Moreover, dominant taxonomies within the organizational design (Daft, 2016; Galbraith,

1973) and organizational architecture (Nadler & Tushman, 1992) literatures also identify

strategy, structure, culture, leadership, and HPWPs as prominent elements of an organization’s

system. Given this consensus, it is not surprising that strategy, structure, leadership, and HPWPs

have been studied most frequently alongside culture empirically and in sufficient volume to

examine their relationships meta-analytically. 1 Unfortunately, research remains fragmented

regarding the interrelationships between organizational culture and elements of an organization’s

system, and little theoretical development exists regarding the strength of association between

culture dimensions and other elements of an organization’s system.

This gap is problematic because strong correlations among culture and other elements of

an organization’s system have significant implications regarding the reciprocal effects of

1
An organization’s technology is sometimes identified as an element of an organization’s system, but it is studied
infrequently alongside culture. Consequently, insufficient primary studies investigating the association between
organizational culture and technology exist to examine relationships meta-analytically in this study.
ORGANIZATIONAL CULTURE META-ANALYSIS 4

changing only one element to increase organizational effectiveness. For instance, changing a

reward system to be more team focused, which is part of HPWPs, is likely to impact

organizational culture. The point is that the interdependence among an organizational system’s

elements suggest that initiatives to change one element may result in subsequent changes to other

elements. Consequently, Chatman and O’Reilly (2016) concluded that exploring the links

between culture and its correlates is one of the most critical directions for future culture research.

Our second objective is to examine culture’s predictive validity relative to other elements

in an organization’s system. Disregard to culture’s correlates may render results linking culture

and organizational effectiveness spurious or confounded because culture’s predictive validity

may be accounted for by other unmeasured correlates in an organization’s system. For example,

meta-analytic reviews indicate that leadership and HPWPs positively relate to similar

effectiveness criteria as those studied in organizational culture research (DeRue, Nahrgang,

Wellman, & Humphrey, 2011; Jiang, Lepak, Hu, & Baer, 2012). Whether and to what degree

culture still matters for organizational outcomes when accounting for these elements thus

remains an empirical question. We address this limitation by conducting meta-analytic

regression and relative weights analyses to quantify organizational culture’s relative predictive

validity for organizational effectiveness criteria in the presence of leadership and HPWPs.

Results will enhance our understanding about organizational culture’s role in an organization’s

system.

Our study contributes to the organizational culture literature in three important ways.

First, we theoretically distinguish organizational culture and its system correlates conceptually

and then document the relationship between them. This contribution advances the culture

literature by more clearly identifying culture’s distinctive role in the organization’s system and
ORGANIZATIONAL CULTURE META-ANALYSIS 5

illuminating the magnitude of the interrelationship between culture and its correlates. Second,

we develop a clearer understanding of culture dimensions’ predictive validity relative to two

system correlates: leadership and HPWPs. Results shed insight into the degree to which culture

matters for different effectiveness criteria. These two extensions collectively provide a more

nuanced understanding of organizational culture’s effect on organizational outcomes.

Third, our results provide three extensions to Hartnell et al.’s (2011) meta-analytic study.

Hartnell et al.’s (2011) study examined the bivariate relationship between three culture

dimensions from the Competing Values Framework (CVF) and organizational effectiveness

(hierarchy culture was omitted from their results due to insufficient data). Our study extends

these findings by examining the degree to which all four of the CVF’s culture dimensions

explain unique variance in organizational outcomes. In addition, the narrow scope of Hartnell et

al.’s (2011) research question omitted a broader consideration of the concurrent effects of

organizational culture on organizational effectiveness alongside other interrelated elements of an

organization’s system. Our study provides a more nuanced view of culture’s impact on

organizational effectiveness criteria by examining its predictive validity relative to leadership

and HPWPs. Finally, our study extends Hartnell et al. (2011) by refining the focal level of

analysis. Hartnell et al. (2011) reported effects that spanned multiple levels of analysis whereas

our study is bounded at the organizational level of analysis. Systems research underscores the

importance of explicitly defining levels of analysis because systems operate at different levels –

an organizational system is composed of subsystems (i.e., units and departments) and is

embedded in a supersystem (i.e., the external environment; Hatch & Cunliffe, 2006). The level

of analysis for this study is restricted to the organizational level because our focus is on the

relationship between organizational culture and elements of an organization’s system as well as


ORGANIZATIONAL CULTURE META-ANALYSIS 6

culture’s relative influence on organizational outcomes. Our study thus provides more precise

estimates of organizational level relationships among culture dimensions, its correlates, and

effectiveness criteria. Taken together, these three extensions to Hartnell et al. (2011) contribute

valuable insights to organizational culture as well as organizational system theory and research.

Focal Dimensions Underlying Culture and Elements of an Organization’s System

Seminal or dominant taxonomies within the culture, strategy, structure, leadership, and

HPWPs literatures reveal common thematic foci underlying their dimensions. These points of

commonality exist because organizational system elements share a collective purpose – to clearly

and consistently communicate the organization’s goals and facilitate formal and informal

exchanges among organizational members to accomplish them. Classical management

perspectives (Burns & Stalker, 1961; Lawrence & Lorsch, 1967; Katz & Kahn, 1978) suggest

that organizations pursue (1) consistency and efficiency and (2) adaptability to ensure their

survival, or their current and future viability (March, 1991). Elements of an organization’s

system support these two superordinate organizational goals. As a result, their underlying

dimensions have common theoretical threads that provide a useful point of comparison to

understand organizational culture’s relationship with other elements of an organizational system.

We will explain our logic for selecting each element’s underlying dimensions, starting with an

expanded discussion of organizational culture due its central role in this manuscript. Table 1

organizes our discussion of each element’s definition, central focus concerning organizational

functioning, and underlying dimensions.


ORGANIZATIONAL CULTURE META-ANALYSIS 7

------------------------------------

Insert Table 1 About Here

------------------------------------

Organizational Culture

Organizational culture’s core content consists of shared social beliefs, values, and norms.

It answers questions about how organizational members should perceive, think, and feel in

relation to organizational events (Schein, 2017; see Table 1). We used the Competing Values

Framework (CVF; Quinn & Rohrbaugh, 1983) as organizational culture's organizing framework

because of its ubiquitous use in organizations (Cameron & Quinn, 2011; Cameron, Quinn,

DeGraff, & Thakor, 2014). The CVF is composed of two competing meta-dimensions. One

meta-dimension reflects an organization’s focus on internal capabilities and integration, such as

developing people, versus an orientation focused on external opportunities and differentiation

from competitors. The second meta-dimension represents a continuum of values from flexibility

and discretion on one end to stability and control on the other end (Cameron et al., 2014). The

CVF framework consists of four quadrants formed by crossing these two meta-dimensions.

The CVF’s four culture quadrants – clan, adhocracy, market, and hierarchy – represent

core values that prioritize fundamental organizational goals and articulate preferred means to

attain them. Importantly, the framers of the CVF acknowledged that while organizations tend to

gravitate toward a dominant culture, all four culture quadrants are present to some degree

(Cameron & Quinn, 2011; Cameron et al., 2014). Therefore, we refer to culture quadrants as

culture dimensions to convey that all four sets of values coexist within organizations.

Clan culture combines internal focus and integration with flexibility and discretion. Its

core values include commitment, communication, and development. Clan cultures focus on
ORGANIZATIONAL CULTURE META-ANALYSIS 8

coordinating employees’ interrelationships through encouraging participation, cooperation, and

collaboration, and prioritizing employees’ development. Adhocracy culture combines flexibility

and discretion with external focus and differentiation. The core values underlying an adhocracy

culture include innovative outputs, transformation, and agility. Adhocracy cultures emphasize

novel solutions, vision, responsiveness and adaptability to the external environment. Market

culture combines stability and control with external focus and differentiation. Its core values

include goal achievement, profitability, and a results orientation. Market cultures underscore the

importance of setting and achieving goals, aggressively competing, and focusing on customers.

Hierarchy culture combines internal focus and integration with stability and control. Core

values within a hierarchy culture include efficiency, timeliness, consistency, and uniformity.

Hierarchy cultures focus on efficiency and consistency by developing formal roles, rules, and

operating procedures.

Strategy

Strategy is centrally concerned with competitive advantage. It is a deliberate plan of

action to use core competencies to obtain competitive advantage (Hitt, Ireland, & Hoskisson,

2007; see Table 1). Although several theoretical strategy frameworks exist (e.g., Porter’s [1980]

competitive strategies, Miles & Snow’s [1978] adaptive strategies), we used March’s (1991)

operational framework because it addresses how organizations reduce uncertainty related to

internal integration and external adaptation and is increasingly adopted in the literature.

According to March (1991), exploration and exploitation are two strategies organizations use to

compete in their respective markets (Matzler, Abfalter, Mooradian, & Bailom, 2013).

Exploration focuses on external adaptation and involves experimenting with new alternatives and

includes activities such as risk taking, flexibility, diversification, and innovation. March (1991)
ORGANIZATIONAL CULTURE META-ANALYSIS 9

notes that the returns from exploration are “uncertain, distant, and often negative” (p. 81).

Exploitation focuses on internal integration and involves maximizing efficiencies in existing

environments. March (1991) contends that “the essence of exploitation is the refinement and

extension of existing competences, technologies, and paradigms. Its returns are positive,

proximate, and predictable” (p. 85).

Structure

Organizational structure involves the way companies organize their resources and

formalize the flow of information to achieve goals (see Table 1). It answers the question, “How

do we organize roles to attain organizational goals?” An organizational structure reflects “the

attempted division of tasks among organizational members and an arrangement for coordination

of their different task activities” (Pawar & Eastman, 1997, p. 94). It encompasses elements such

as work specialization, formalization, and centralization (Pugh, Hickson, Hinings, & Turner,

1968) and provides direction regarding power distribution (Thompson, 1967). We adopt the

organic – mechanistic typology to categorize structure because organic and mechanistic

structures differ in the degree to which they prioritize efficiency or flexibility and adaptability,

and they are most frequently used to empirically measure structure. An organic structure, which

is the opposite of a mechanistic structure, is characterized by lateral communication,

decentralized decision-making, and low levels of work specialization (Burns & Stalker, 1961).

Conversely, a mechanistic structure is composed of formalization, highly centralized decision-

making, and high levels of work specialization. Because organic and mechanistic structures

theoretically occupy opposite ends of a continuum (Rebelo & Gomes, 2011), we reverse-coded

variables relating to mechanistic structure and only posit hypotheses linking culture dimensions

to organic structure.
ORGANIZATIONAL CULTURE META-ANALYSIS 10

Leadership

Leadership’s central focus is interpersonal influence (see Table 1). Leadership’s

distinctive function within the organizational system is to monitor employee behavior and direct

their effort to accomplish organizational goals. Organizational leadership supports an

organization’s superordinate goals in three ways. It supports the organization’s internal

production and human maintenance functions through task and relational leadership (Katz &

Kahn, 1978). Task leadership provides task direction to help group members optimize

organizational functioning. Relational leadership provides employees with social

supportiveness. Organizational leadership also has a boundary spanning function (i.e., change

leadership) in which it adapts to environmental change by instituting corresponding changes

within the organization and inspiring employees to implement these changes to enhance

organizational survival (Katz & Kahn, 1978). These leadership functions correspond with three

dominant meta-themes that summarize the classical and contemporary leadership literature: task,

relational, and change leadership (Bass & Bass, 2008; DeRue et al., 2011).

HPWPs

HPWPs are bundles of human resource (HR) practices that “increase employees'

knowledge, skills, and abilities (KSAs), empower employees to leverage their KSAs for

organizational benefit, and increase their motivation to do so” (Combs, Liu, Hall, & Ketchen,

2006, p. 502; see Table 1). Huselid (1995) first emphasized, and subsequent scholarship (Korff,

Biemann, & Voelpel, 2017) continues to underscore, the importance of studying HPWPs as a

bundle due to the conceptual and empirical limitations of studying individual HR practices and

the observation that firms commonly utilize multiple HPWPs to enhance individual performance.

The ability-motivation-opportunity (AMO) model of HPWPs provides a gestalt view of


ORGANIZATIONAL CULTURE META-ANALYSIS 11

HR practices (Lepak, Liao, Chung, & Harden, 2006; Wright & Snell, 1991) and has emerged as

the dominant taxonomy of HR practices (Jiang et al., 2012). According to the AMO model

(Jiang et al., 2012), HPWPs include skill-enhancing (e.g., recruitment, selection, and training),

motivation-enhancing (e.g., performance management, compensation, incentives, benefits, career

development, and job security), and opportunity-enhancing HR practices (e.g., flexible job

design, work teams, employee involvement, and information sharing). Consistent with the gestalt

focus in the HPWP literature, we examine associations between organizational culture

dimensions and an organization’s HPWPs as a whole.

Theoretical Model

Figure 1 shows the predicted relationships between culture dimensions and the elements

of an organization’s system examined in this study. We depict reciprocal relationships between

culture and its correlates’ dimensions to demonstrate their interdependence. Consequently, we

do not make causal predictions but rather hypothesize the strongest relationships between culture

dimensions and its correlates’ dimensions.

--------------------------------------

Insert Figure 1 About Here

--------------------------------------

Hypotheses

Organizational Culture and its Correlates

Strategy and culture. Firms adopting an exploration strategy require flexibility, values

underlying clan and adhocracy cultures (Denison & Spreitzer, 1991; Cameron & Quinn, 1999).

A clan culture is conducive to an exploration strategy because it focuses on the development and

coordination of human resources. As such, a clan culture emphasizes teamwork, empowerment,


ORGANIZATIONAL CULTURE META-ANALYSIS 12

participation, and open communication, behaviors than increase an organization’s flexibility and

adaptability. An adhocracy culture fosters exploration by emphasizing adaptability, visionary

communication, flexibility, growth and creativity (Cameron & Quinn, 1999). Although values

underlying adhocracy culture directly correspond with the strategic emphases underlying an

organization’s exploration strategy, clan culture facilitates an exploration strategy through

fostering high-quality relational exchanges among organizational employees that engender trust,

fairness, and positive affect. Positive relationships among employees support the interpersonal

risk-taking necessary to execute an exploration strategy. This line of reasoning is consistent with

arguments that a clan mode of governance (which encompasses both clan and adhocracy values)

is more efficient than market or bureaucracy modes of governance in complex environments

(Wilkins & Ouchi, 1983) because it fosters flexibility and creativity necessary for organizations

to adapt.

In contrast to values that facilitate flexibility, a hierarchy culture focuses more rigidly on

process efficiency and product consistency attained through more formal organizational

arrangements. A market culture’s values engender less rigidity than hierarchy culture but also

less flexibility than clan and adhocracy cultures. It facilitates exploration through seeking

customer feedback and monitoring and quickly adapting to competitor behaviors but also

prioritizes the development of internal financial controls to deliver short-term financial results

for shareholders (Cameron et al., 2014). This dual focus is likely to attenuate market culture’s

relationship with an organization’s exploration strategy. Considering the above discussion, we

predict the following:

H1a: Clan and adhocracy culture will each have a stronger positive relationship with an

organization’s exploration strategy than will a market or hierarchy culture.


ORGANIZATIONAL CULTURE META-ANALYSIS 13

Firms adopting an exploitation strategy depend upon rigorous cost controls, frequent

reports, quality operations, and refinements to existing products and/or market scope (March,

1991). Hierarchy cultures facilitate an exploitation strategy because they value stability, order,

and control. A hierarchy culture enhances cost savings and generates efficient ways to utilize

existing resources and technologies through routinization, process formalization, and uniformity.

These values complement an organization’s exploitation strategy by improving consistency,

reducing ambiguity, and improving operational efficiency (Matzler et al., 2013). As described in

the preceding section, a market culture’s values support both an exploration and exploitation

strategy through its dual focus on market responsiveness and internal controls, diminishing its

relationship with exploitation strategy. Consequently, we expect hierarchy culture to have a

stronger positive relationship with exploitation strategy, resulting in the following hypothesis:

H1b: Hierarchy culture will have a stronger positive relationship with an organization’s

exploitation strategy than will a clan, adhocracy, or market culture.

Structure and culture. An organic structure distributes power to employees within the

organization through decentralization (Hage & Aiken, 1967). Decentralization facilitates open

communication channels and enhances adaptability to changing market conditions by limiting

rules and regulations (Ambrose & Schminke, 2003). Clan, adhocracy, and market cultures value

elements that are consonant with this component of an organic structure. Clan and adhocracy

cultures value flexibility and discretion and empower employees to work together in developing

novel and insightful solutions. Market cultures value “rapid response and speed of action”

(Cameron et al., 2014, p. 35) because organizations must adjust quickly to changing market

dynamics, react to competitors’ actions, and respond to evolving customers’ preferences. Market

culture values thus encourage lateral communication and decentralized decision-making to


ORGANIZATIONAL CULTURE META-ANALYSIS 14

enhance organizational competitiveness. In contrast, hierarchy cultures value quality control and

productivity improvements to increase consistency and efficiency (Cameron et al., 2014). These

values are less supportive of an organic structure. Therefore, we predict the following

relationship:

H2: Clan, adhocracy, and market culture will each have a stronger positive relationship

with an organization’s organic structure than will a hierarchy culture.

Leadership and culture. Task leadership interprets, clarifies, and adapts generalized

rules to solve specific organizational problems. It develops “ways and means for implementing

existing policies and reaching existing organizational goals” (Katz & Kahn, 1978, p. 547). The

behaviors comprising task-oriented leadership are similarly emphasized in the values and basic

underlying assumptions of market and hierarchy cultures. Market cultures value competition,

aggressiveness, competence, and achievement as means to increase product quality, productivity,

and unit profitability (Cameron & Quinn, 2011). Hierarchy cultures value routinization,

consistency, and uniformity as means to increase organizational efficiency (Quinn & Kimberly,

1984). Task leaders support market values through their directive and commanding leadership

style that communicates clear performance standards and focuses employees’ effort on achieving

valued organizational outcomes. Task leaders also support hierarchy values through defining

followers’ role responsibilities, clarifying role expectations, and encouraging rule adherence to

produce consistent outcomes efficiently. Taken together, we hypothesize the following:

H3a: Market culture and hierarchy culture will each have a stronger positive

relationship with task leadership than will a clan or adhocracy culture.

Relational leadership motivates group members to work together and coordinate their

efforts to accomplish organizational goals (DeRue et al., 2011). Relational leaders develop
ORGANIZATIONAL CULTURE META-ANALYSIS 15

positive unit interpersonal processes by building relationships characterized by mutual trust,

respect, and support. They also invite followers’ cooperation, feedback, and participation in

decision-making. Drawing upon social learning theory, followers observe relational leader

behavior and derive normative expectations prompting them to interact similarly with their peers

or direct reports (Carmeli, Ben-Hador, Waldman, & Rupp, 2009). Relational leadership thus

supports a social context that values teamwork, collaboration, and open communication—values

that comprise clan cultures. This discussion leads to the following prediction:

H3b: Clan culture will have a stronger positive relationship with relational leadership

than will an adhocracy, market, or hierarchy culture.

Change leadership is a visionary form of leadership that improves an organization’s

adaptability by monitoring changes in the external environment, identifying and articulating a

clear and compelling vision of the future, encouraging creative thinking, and facilitating

collective learning (DeRue et al., 2011; Yukl & Lepsinger, 2005). Change leaders rely on

behaviors associated with external monitoring, envisioning change, encouraging innovation, and

taking personal risks (Yukl, Gordon, & Taber, 2002). They direct followers’ attention externally

to creatively anticipate and identify organizational problems. They also encourage followers to

take risks by instituting novel approaches to resolve unique challenges. These leadership

behaviors reify core values such as flexibility, adaptability, risk taking, and innovation that are

foundational to adaptive, or adhocracy, cultures (Kotter & Heskett, 1992). Change leaders and

adhocracy cultures both encourage employees to anticipate, adapt, and respond quickly to

changing customer needs. These similarities result in the following hypothesis:

H3c: Adhocracy culture will have a stronger positive relationship with change leadership

than will a clan, market, or hierarchy culture.


ORGANIZATIONAL CULTURE META-ANALYSIS 16

HPWPs and culture. Clan, adhocracy, and market cultures are expected to have

stronger relationships with HPWPs than hierarchy culture because they constitute development-

focused values that are foundational to HPWPs. Clan cultures support HPWPs by valuing

collaboration, trust, support, and open communication and thus motivating employees to work

together to learn new skills, solve complex problems, and share important information with

others. Adhocracy cultures support HPWPs by valuing opportunities to enhance employees’

growth and development and giving employees’ discretion to make important decisions. Market

cultures support HPWPs’ performance management and results-based incentives through valuing

clear objectives and employees’ development concerning task-oriented functions such as goal-

setting, planning, task-focus, and execution. Hierarchy cultures are expected to have a weaker

relationship with HPWPs because they emphasize process efficiency and consistency rather than

employee development. As a result, hierarchy cultures support mistake-avoidant HR practices

and behaviors. Although this focus can be valuable to prevent organizations from incurring the

negative effects of costly errors and mistakes, hierarchy values do not intend to motivate or

empower employees to work harder or work smarter – key characteristics of HPWPs (Pfeffer,

1998). As such, we propose the following hypothesis:

H4: Clan, adhocracy, and market culture will each have a stronger positive relationship

with HPWPs than will a hierarchy culture.

Organizational Culture’s Relative Predictive Validity with Leadership and HPWPs

Katz and Kahn (1978) suggest that organizations function “under the continuing

necessity of motivating the behavior required of its human members” (p. 535). Not all elements

of an organization’s system directly and proximally influence employees’ motivation. The

central foci of strategy and structure are to gain competitive advantage and organize resources,
ORGANIZATIONAL CULTURE META-ANALYSIS 17

and thus have a more distal impact on employee motivation and behavior. Culture, leadership,

and HPWPs, however, directly influence and motivate employees to align their efforts with

organizational goals. Given their common socio-motivational influence, we pose a research

question to investigate culture’s relative predictive validity on organizational effectiveness

criteria after accounting for the influence of leadership and HPWPs.

Scant theory exists to generate a priori predictions about the degree to which

organizational culture matters as a predictor of organizational effectiveness when accounting for

the influence of leadership and HPWPs. According to organizational systems logic (Katz &

Kahn, 1978), elements of an organization’s system have different functions to achieve an

integrated purpose and should, therefore, explain unique variance in organizational outcomes.

For example, culture conveys social normative expectations (O’Reilly & Chatman, 1996),

leadership influences followers through providing task direction, social support, and inspiring

change (DeRue et al., 2011), and bundles of HR practices “elicit and reinforce patterns of

behavior” (Snow & Snell, 2012, p. 997) by rewarding and supporting desirable attitudes and

behaviors. Whether culture predicts unique variance in organizational outcomes beyond

leadership and HPWPs, however, remains equivocal. We thus consider the relative predictive

validity of the CVF’s four culture dimensions on organizational outcomes after accounting for

variance explained by leadership and HPWPs, resulting in the following research question:

Research Question: Do organizational culture dimensions explain additional variance in

organizational outcomes apart from variance explained by leadership and HPWPs?

Method

Literature Search

We relied on three sources to identify empirical studies related to organizational culture.


ORGANIZATIONAL CULTURE META-ANALYSIS 18

First, we included all 84 studies contained in Hartnell et al.’s (2011) meta-analysis of data from

1980 to January 2008. Second, we searched two databases (PsycINFO and ABI/INFORM) from

2008 to April 2014 and retrieved 1,729 additional articles. We used the following keywords in

our search: corporate culture, organizational culture, competing values framework,

organizational culture profile, organizational culture inventory, and work practices survey.

Third, to minimize publication bias (Schmidt & Hunter, 2015), we obtained 28 additional articles

by posting inquiries for unpublished studies via three Academy of Management listservs. We

also contacted authors who appeared to have collected relevant data but did not report the data in

their studies, and we reviewed the reference lists in major handbooks on organizational culture

published before April 2014 (e.g., Ashkanasy, Wilderom, & Peterson, 2000; 2011). In total, we

obtained 1,841 studies for screening.

Inclusion Criteria

Studies were included in the meta-analysis if they were: (a) empirical studies written in

English; (b) measured organizational culture and other study variables at the organizational level;

(c) provided data that could be used to calculate effect sizes relevant to organizational culture

and its correlates; and (d) represented independent samples. Applying these criteria resulted in

retaining 165 articles with 188 independent samples. The coding process, which is described

below, further eliminated 40 samples whose variables could not be coded based on our

definitions/categories. The final data set contained 148 samples and 3,312 usable raw

correlations based on 26,196 organizations and 556,945 informants. Of these samples, 126 were

published in peer reviewed journals, and 22 were dissertations, unpublished datasets, or author-

provided data for published articles.

Variable Coding
ORGANIZATIONAL CULTURE META-ANALYSIS 19

We adopted a rigorous two-stage coding procedure commonly used in existing meta-

analyses. In stage 1, two authors independently coded each article for sample information (e.g.,

sample size, level of analysis, and number of informants), variable information (e.g., reliability,

mean, standard deviation, variable definition, source of measure, and aggregation statistics), and

correlations among variables. Other forms of effect sizes (e.g. t or F statistics) were converted

into correlation statistics using formulas from Arthur, Bennett, and Huffcutt (2001). Any

ambiguities at this stage were resolved by discussions between the two authors. In stage 2, we

coded variables into categories following procedures established in Kinicki, McKee-Ryan,

Schriesheim, and Carson (2002) to ensure the content validity of each coded variable. Two

authors independently coded all variables by reviewing each source article and carefully studying

each variable’s definition and measurement items. This detailed review was compared to the

variable definitions for each element of the organization’s system (i.e., culture, strategy,

structure, leadership, and HPWPs) and the organizational effectiveness outcomes. Authors then

made independent categorical judgments and subsequently met to discuss their categorizations to

identify and resolve discrepancies. When the two authors could not reach consensus, they

involved a third author who followed the same process until reaching consensus. 2 We excluded

variables with insufficient information for coding and variables that included items that referred

to more than one element of the organization’s system in the measure. Appendix A provides a

representative list of the sources of measures, variable labels, and coded studies. Appendix B

describes the number of correlations, sample size, and coded variables for each study.

2
We did not record the initial agreement between the two authors during the categorization process, but one
anonymous reviewer suggested that the degree of initial agreement could indicate coding reliability. Therefore, we
replicated the same categorization process and recoded 25% of the articles. The two authors generated the same
categories for 300 out of 317 variables, resulting in an initial agreement of 94.6%. This replication further supported
the rigor of our coding procedures.
ORGANIZATIONAL CULTURE META-ANALYSIS 20

Organizational culture. We used the CVF (Cameron & Quinn, 1999; Quinn &

Rohrbaugh, 1983) to code culture variables into clan, adhocracy, market, or hierarchy culture.

We reverse-coded variables (a) when the variable carried the opposite meaning of a CVF culture

dimension (e.g., uncertainty avoidance was reverse coded for adhocracy, Catana & Catana,

2010); or (b) when researchers used a reversed likert scale (e.g., 1 = strongly agree and 5 =

strongly disagree; Tsamenyi & Mills, 2002).

Strategy. Strategy was coded as either exploration or exploitation (March, 1991).

Exploration involves activities such as innovation, variation (e.g. diversification), risk-taking and

experimentation, and flexibility. In contrast, exploitation involves activities such as refinement,

production (e.g., quality), and efficiency (e.g., speed, low cost).

Structure. We used the organic-mechanistic framework to code organizational structure

(Burns & Stalker, 1961; Lawrence & Lorsch, 1967). We included variables specifying

specialization (number of titles or functional groups/specialties within an organization),

formalization (the extent of use of formally written rules, procedures, and communications), and

centralization (the locus of authority to make decisions). Organic structures were characterized

by low specialization, low formalization, and decentralized decision-making. We reverse coded

mechanistic structure variables because organic and mechanistic structures are typically

considered two ends of one continuum (Rebelo & Gomes, 2011).

Leadership. Leadership variables were coded into task, relational, or change leadership

(DeRue et al., 2011; Yukl et al., 2002). Task leadership included variables such as structuring,

autocratic, monitoring, and contingent reward. Relational leadership contained variables such as

relationship building, considerate, and encouraging the heart. Change leadership included

variables such as idealized influence, attributed charisma, challenging the process, and inspiring
ORGANIZATIONAL CULTURE META-ANALYSIS 21

a shared vision.

High performance work practices (HPWPs). We coded variables that represented

overall HPWPs as well as unique practices specified in the AMO framework (Jiang et al., 2012)

into HPWPs. We included ability-enhancing practices such as selection, recruitment, and

training; motivation-enhancing practices such as performance management, compensation,

career development, and job security; opportunity-enhancing practices such as employee

involvement, information sharing, and work teams; and measures that combined two or more

AMO practices. Because extant research recommends examining HPWPs as a bundle (Jiang et

al., 2012; Lepak et al., 2006; Combs et al., 2006), we combined all HPWPs into one code.

Organizational effectiveness. We coded for five broad categories of organizational-

level effectiveness criteria—employee, innovation, operational, customer, and financial—based

on existing classifications in the management literature (Jiang et al., 2012; Hartnell et al., 2011;

Venkatraman & Ramanujam, 1986). Organizational-level employee outcomes include

aggregated positive employee attitudes and behaviors. Aggregated positive employee attitudes

reflect employees’ positive psychological outcomes or emotional appraisals stemming from

employees’ experience in the workplace (Harrison, Newman, & Roth, 2006). Examples include

aggregated job satisfaction, organizational commitment, and perceived organizational support.

Aggregated positive employee behaviors include positive task and non-task performance related

behaviors that contribute to organizational effectiveness (Motowidlo, 2003; Borman &

Motowidlo, 1997). We coded for aggregated task performance, organizational citizenship

behaviors, and voice. We reverse coded conflict, turnover, and absenteeism.

Organizational-level innovation outcomes represent the development and/or introduction

of new and improved procedures, practices, or products (Anderson, Potocnik, & Zhou, 2014).
ORGANIZATIONAL CULTURE META-ANALYSIS 22

We coded variables such as organizational innovativeness, technical and administrative

innovations, and process innovations.

Organizational-level operational outcomes include product/service quality and

operational efficiency. Product/service quality refers to “the extent to which a product or service

meets customer needs” (Zhou, Li, Zhou, & Su, 2008, p. 986). Operational efficiency reflects the

efficiency with which a firm translates inputs into outputs (Soteriou & Zenios, 1999). We coded

variables such as service quality, defect rate reduction, product reliability improvement,

efficiency, and cycle time. We reverse-coded variables such as waiting time.

Organizational-level customer outcomes include customer satisfaction and market share.

Customer satisfaction refers to companies’ performance in satisfying customers’ expectations on

performance, affect, and equity (Szymanski & Henard, 2001). Market share refers to the

proportion of the market controlled by the organization (Anderson, Fornell, & Lehmann, 1994).

Sample variables include aggregated customer loyalty, customer complaints reduction, customer

satisfaction, and market share. We also included variables that simultaneously measure customer

satisfaction and market share (e.g., market performance and market effectiveness).

Organizational-level financial outcomes include accounting and growth measures.

Accounting outcomes include objective and subjective measures of performance such as

profitability, return on assets, and return on sales. Growth outcomes include measures of change

in accounting outcomes. Sample variables include sales and revenue growth.

Meta-Analytic Procedures

We followed Schmidt and Hunter’s (2015) random-effects meta-analytic approach to

estimate true population effect sizes. We first combined multiple correlations of the same

relationship within the same study using linear composites to fully utilize the available
ORGANIZATIONAL CULTURE META-ANALYSIS 23

information and avoid violating the assumption of independence for effect sizes (Schmidt &

Hunter, 2015). We then corrected sampling errors by weighting sample sizes when calculating

mean correlations. Next, we corrected measurement error in the two correlated variables using

alpha coefficients as indicators of reliability. For studies that did not report alpha coefficients,

we used reliability distributions to correct for measurement error. Although intraclass correlation

coefficient (2) (ICC[2]) is recommended to correct for measurement error in aggregated

organizational level variables (Courtright, Thurgood, Stewart, & Pierotti, 2015), we used alpha

coefficients rather than ICC(2) because most culture studies did not report the latter. Out of 148

studies, only 13 reported ICC(2)s, whereas 107 studies reported alpha coefficients for

organizational culture dimensions. Mean alpha coefficients (.82, .79, .80, and .77 respectively)

for clan, adhocracy, market, and hierarchy cultures were all higher than mean ICC(2)s (.72, .76,

.75, and .74 respectively). We replicated our meta-analyses using ICC(2) distributions to correct

for measurement errors of organizational culture variables and found identical or slightly higher

effect sizes (differences range from .00 to .04) with the same pattern of results, suggesting that

our findings are not sensitive to the approach used to correct for measurement errors.

We report corrected true population correlations, including their 95% confidence

intervals (CI), 80% credibility intervals (CV), I2 and Q-statistics. A CI indicates the possible

amount of error in the point estimate of a population correlation due to sampling error, while a

CV indicates the possible range of population correlation across studies after correcting

sampling error. We report I2 (i.e., percentage of variance due to artifacts) and Q-statistics (i.e.,

the chi-square test of homogeneity) to assess data heterogeneity. An I2 below 75% or a

significant Q-statistic suggests potential presence of moderators in the meta-analyzed

correlations. We also report ΔK to indicate the number of potentially missing studies from the
ORGANIZATIONAL CULTURE META-ANALYSIS 24

trim and fill analysis and adj-r to reveal the adjusted meta-analytic correlations after adding

potentially missing studies (Duval & Tweedie, 2000). We followed Paterson, Harms, Steel, and

Credé (2016) to assess the magnitude of effect sizes as the traditional Cohen’s (1988) rule of

thumbs may overestimate the magnitude of effect sizes. Accordingly, an uncorrected correlation

with a magnitude of .12 falls into the 25th percentile, .20 falls into the 50th percentile, and .31

falls into the 75th percentile.

To test the four hypotheses, we compared the magnitudes of meta-analytic correlations

obtained from overlapping samples and employed a modified Z test that accounted for sample

dependence (Meng, Rosenthal, & Rubin, 1992). We also conducted publication bias analysis and

outlier detection to ensure the validity of our results (see Appendix C). We followed procedures

set forth in Fang, Landis, Zhang, Anderson, Shaw, and Kilduff (2015) to examine our research

question that examines culture’s predictive validity relative to leadership and HPWPs. We first

constructed a meta-analyzed true-score correlation matrix that included all four organizational

culture dimensions, overall leadership (task, relational, and change leadership combined),

HPWPs, and five categories of organizational effectiveness. We used the harmonic mean of

sample sizes in the correlation matrix (Viswesvaran & Ones, 1995) to conduct regression and

relative weight analyses with the four culture dimensions, leadership, and HPWPs as predictors

of organizational effectiveness. Culture dimensions were considered to explain unique variance

when (a) they had significant regression coefficients and contributed to significant R2 changes

after controlling for other predictors, and (b) their relative weights were substantial.

Results

Culture and Organizational System Correlates: Hypotheses 1-4

Table 2 reports meta-analytic correlations among the four culture dimensions (clan,
ORGANIZATIONAL CULTURE META-ANALYSIS 25

adhocracy, market, and hierarchy) and the four elements of an organization’s system (strategy,

structure, leadership, and HPWPs). Hypotheses 1a – 1b concerned organizational strategy. All

relationships between exploration and exploitation strategies and culture dimensions were

significant. Consistent with Hypothesis 1a, clan culture ( ρ̂ = .47) had a stronger correlation

with exploration strategy than market ( ρ̂ = .38; Z = 3.62, p < .01) and hierarchy cultures ( ρ̂ =

.40; Z = 2.47, p < .05). Similarly, adhocracy culture ( ρ̂ = .45) had a significantly stronger

correlation with exploration strategy than market culture ( ρ̂ = .38; Z = 3.05, p < .01), and a

marginally stronger correlation than hierarchy culture ( ρ̂ = .40; Z = 1.49, p < .10). Hypothesis

1a was thus fully supported. Hypothesis 1b also received full support: hierarchy culture had a

stronger correlation with exploitation strategy ( ρ̂ = .51) than clan ( ρ̂ = .38; Z = 4.84, p < .01),

adhocracy ( ρ̂ = .42; Z = 2.33, p < .05), and market cultures ( ρ̂ = .40; Z = 4.31, p < .01).

---------------------------------

Insert Table 2 About Here

---------------------------------

Hypothesis 2 concerned relationships between culture dimensions and an organic

structure. Relationships between culture dimensions and an organic structure were generally low

and non-significant: the only significant relationship was with market culture. Significant

culture – structure correlations, however, are not a prerequisite to utilize modified Z tests which

compares several positive mean correlations (above zero) to a single negative correlation (below

zero). Thus, consistent with Hypothesis 2, results showed that clan ( ρ̂ = .07; Z = 5.76, p < .01),

adhocracy ( ρ̂ = .06; Z = 4.26, p < .01), and market cultures ( ρ̂ = .24; Z = 12.12, p < .01) each

had a stronger correlation with organic structure than did hierarchy culture ( ρ̂ = -.10).
ORGANIZATIONAL CULTURE META-ANALYSIS 26

Hypothesis 2 was thus supported.

Task, relational, and change leadership were all significantly associated with the four

culture dimensions, and 58 percent of the correlations (7 of 12) had effect sizes within the 75th

percentile (i.e., above .31). However, hypothesis 3a was not supported. The correlation between

market culture and task leadership ( ρ̂ = .33) was marginally stronger than that with clan culture

( ρ̂ = .28; Z = 1.91, p < .10) but was marginally weaker in comparison to adhocracy culture ( ρ̂ =

.36; Z = - 1.92, p < .10). The correlation between hierarchy culture and task leadership ( ρ̂ = .26)

was significantly weaker than that with adhocracy culture ( ρ̂ = .36; Z = 3.95, p < .05), but was

not significantly different from clan culture’s association with task leadership ( ρ̂ = .28; Z = .49,

n.s.). In contrast, hypothesis 3b was supported. Clan culture ( ρ̂ = .53) had a stronger positive

relationship with relational leadership than adhocracy ( ρ̂ = .43; Z = 6.50, p < .01), market ( ρ̂ =

.29; Z = 13.99, p < .01), and hierarchy cultures ( ρ̂ = .40; Z = 7.39, p < .01). Findings partially

supported hypothesis 3c. Adhocracy culture ( ρ̂ = .48) had a significantly stronger relationship

with change leadership than market culture ( ρ̂ = .44; Z = 2.28, p < .05), but not stronger than

clan ( ρ̂ = .48; Z = .32, n.s.) nor hierarchy cultures ( ρ̂ = .45; Z = 1.16, n.s.).

HPWPs were significantly related to all four culture dimensions, and 75 percent (3 of 4)

of effect sizes were within the 75th percentile. Hypothesis 4 was fully supported. As predicted,

clan ( ρ̂ = .46; Z = 6.27, p < .01), adhocracy ( ρ̂ = .40; Z = 2.44, p < .05), and market cultures ( ρ̂

= .50; Z = 9.24, p < .01) each had a stronger relationship with HPWPs than hierarchy culture ( ρ̂

= .34).

Culture’s Relative Predictive Validity: Research Question


ORGANIZATIONAL CULTURE META-ANALYSIS 27

Table 3 summarizes the meta-analytic correlation matrix for variables used to analyze the

research question, and Appendix D contains additional details about meta-analytic results of

organizational culture dimensions and effectiveness criteria. Data in Table 3 were used in the

meta-analytic regression and relative weight analysis shown in Table 4. Results indicate that

organizational culture dimensions explained unique variance in 75 percent (15 of 20) of the

relationships with organizational outcomes after controlling for overall leadership and HPWPs.

The four culture dimensions in total accounted for a substantial percentage of the relative

weights in organizational effectiveness criteria, with the highest in employee outcomes

(92.10%), followed by operational (77.60%), customer (62.30%), innovation (53.70%)

outcomes, and financial outcomes (31.20%). HPWPs was the only variable to uniquely explain

variance in all five outcomes, and it accounted for 66.80% of the explained variance (total R2 =

16%) in financial performance. HPWPs accounted for almost twice as much variance in

financial performance as explained by all four culture dimensions combined (31.20%).

Leadership’s unique explanatory power was highest for innovation (22.80%), second to HPWPs’

23.50% contribution. Leadership explained no significant variance in financial outcomes. Its

effect was negative for employee (β = -.17) and operational outcomes (β = -.31). The pattern of

correlations in Table 3, however, suggests that these negative coefficients are likely due to

suppression effects. Such suppression effects occur because predictors with relatively strong

positive intercorrelations mutually suppress shared variance with other predictors thus altering

the predictors’ regression coefficients. All told, results shown in Table 4 render strong support

for the conclusion that organizational culture dimensions explain unique variance in

organizational effectiveness apart from leadership and HPWPs.


ORGANIZATIONAL CULTURE META-ANALYSIS 28

---------------------------------------------

Insert Tables 3 and 4 About Here

---------------------------------------------

Discussion

The purpose of this study was to enhance our understanding of organizational culture’s

role in the organizational system, thereby gaining a more nuanced view of organizational

culture’s predictive validity. Our findings reveal important theoretical and practical implications

as well as future directions for organizational culture research.

Organizational Culture's Relationship with Elements of an Organization's System

Results generally support our predictions regarding organizational culture’s association

with the other four elements of an organization’s system – strategy, structure, leadership, and

HPWPs – indicating that culture dimensions are related with organizational system elements in

predictable ways. Five out of seven hypotheses are fully supported; one hypothesis is partially

supported, and one hypothesis is not supported. Three hypotheses warrant further discussion.

The pattern of correlations linking culture dimensions with task and change leadership

account for an unsupported and a partially supported hypothesis. Contrary to Hypothesis 3a,

market and hierarchy culture are marginally and significantly weaker, respectively, in their

relationship with task leadership than is adhocracy culture. With regard to Hypothesis 3c,

adhocracy culture’s association with change leadership is not significantly different from clan

and hierarchy cultures. These results suggest that the relationship between leadership and culture

is more complex than outlined in prevailing theories. For example, Hartnell, Kinicki, Lambert,

Fugate, and Corner (2016) documented competing theoretical arguments regarding whether

similarities between leadership and culture have a beneficial or deleterious effect on


ORGANIZATIONAL CULTURE META-ANALYSIS 29

organizational outcomes. Similarities create consistent cues that communicate unambiguous

expectations, but they might also provide redundant information. They found that similarities

between CEO leadership and organizational culture negatively impacted firm performance. This

type of interaction may partially explain the unclear pattern of relationships between leadership

styles and culture dimensions in our study. Additional research considering interactions is

clearly needed to more fully understand the dynamic relationship between leadership and culture.

Although the planned contrasts in Hypothesis 2 between culture dimensions and organic

structure are supported, it is important to note that market culture obtained the only significant

effect with structure. This result is surprising given Ostroff, Kinicki, and Muhammad’s (2013)

proposition that organizational structure should be consistent with culture. If culture and

structure should theoretically be related, then future research is needed to uncover the practical

reason executives decouple these two elements of an organization’s system. It is possible that

executives do not consider culture when designing the organization’s structure. Rather,

structural decisions may be more often based on operational processes, products, or customer

locations. Future research is needed to investigate these possibilities.

Organizational Culture’s Relative Predictive Validity

Three important conclusions regarding organizational culture’s relative predictive

validity have implications for organizational culture theory and research. First, our results

provide empirical evidence that culture is functionally distinct from leadership and HPWPs.

Culture dimensions, as a set, predict unique and incremental variance in all five organizational

effectiveness criteria while accounting for variance explained by leadership and HPWPs. These

findings affirm Katz and Kahn’s (1978) contention that elements of an organization’s system

function differently to support organizational outcomes. This conclusion suggests the need to
ORGANIZATIONAL CULTURE META-ANALYSIS 30

investigate the degree to which these elements should be strategically aligned to maximize

organizational effectiveness. Strategic alignment “refers to the notion that the key attributes of

an organization (e.g., strategy, goals, culture, practices, structure) must be arranged and designed

in such a way that they complement one another and operate together harmoniously” (Ostroff et

al., 2013, p. 665). Tightly coupled organizational elements facilitate clarity and continuity

throughout the organization by conveying consistent signals that generate consensus among

organizational members. Organizational elements that are too tightly coupled, however, may

increase an organization’s myopia, reducing its ability to detect and adapt to environmental

changes. For example, Miller (1992) found that organizations with weaker linkages among their

organizational elements were more likely to meet the demands of uncertain external

environments. These perspectives highlight the need for future research to examine system

configurations, or combinations of strategy, structure, culture, leadership and HPWPs to specify

the effect of system consonance on organizational effectiveness (Ehrhart et al., 2014).

Second, the pattern of results linking organizational culture dimensions with

organizational outcomes is more nuanced than Hartnell et al.’s (2011) bivariate effects. Our

results demonstrate that some culture dimensions do not have unique predictive utility when

controlling for the CVF’s other culture dimensions as well as leadership and HPWPs. For

example, clan culture did not explain incremental variance in operational outcomes; hierarchy

culture did not explain additional variance in customer outcomes; market culture did not explain

significant variance in employee outcomes; and adhocracy and market cultures failed to explain

additional variance in financial outcomes. These findings underscore the importance of

accounting for the effects of multiple culture dimensions as well as elements of an organization’s
ORGANIZATIONAL CULTURE META-ANALYSIS 31

system when examining the direct relationship between individual culture dimensions and broad

organizational outcomes to strengthen the internal validity of culture – effectiveness research.

The pattern of results also highlights the need to develop more precise theory explaining

how, why, and when individual culture dimensions influence organizational outcomes (Ehrhart

et al., 2014). Chatman and O’Reilly (2016) lamented that “organizational culture is under-

theorized” (p. 213) and that scant attention has been given to elucidating the mechanisms

through which it influences individual and organizational outcomes. Clearly, culture research

would benefit from investigations of mediating and moderating factors between culture

dimensions and organizational performance as well as studies that parse out the effects among

culture content (i.e., specific norms and values), consensus (i.e., member agreement), and

intensity (importance to members; Chatman, Caldwell, O’Reilly, & Doerr, 2014). Furthermore,

empirical and theoretical work is needed to document the unique mechanisms through which

culture along with other elements of an organization’s system enhance organizational outcomes.

Studies employing longitudinal designs are also needed to examine the strength of the reciprocal

relationships among these elements. Such efforts will provide greater clarity into the

differentiated and integrated functioning of elements that comprise an organization’s system.

Third, our study’s pattern of positive correlations among the CVF’s four dimensions

support Hartnell et al.’s (2011) conclusion that these culture dimensions coexist and explain

unique variance in organizational outcomes. These findings indicate that higher levels of

organizational effectiveness may be driven by a complex combination of culture dimensions

rather than a single, dominant culture dimension. It is thus important to explore how the pattern

of relationships among culture dimensions, particularly among theoretically “competing” values,

impact organizational outcomes. Theory about managing paradox is helpful in this regard.
ORGANIZATIONAL CULTURE META-ANALYSIS 32

Managing paradox involves exploring and building awareness of competing tensions to

capture their “enlightening potential” (Lewis, 2000, p. 763), not suppressing tensions or

compromising (Leana & Barry, 2000; Lewis, 2000). Simultaneously developing culture

dimensions that emphasize paradoxical tensions such as stability and change, efficiency and

innovation, and collaboration and competition, may develop complementarities that amplify

organizational effectiveness. In support, Marinova, Cao, and Park (in press) reported that

multiple CVF culture dimensions combine to create a configuration – constructive organizational

values – that improves employees’ prosocial, proactive, and creative behaviors. This research

highlights the importance of identifying culture configurations that exist within organizations.

Theory about managing paradox is a promising theoretical foundation to develop a typology of

culture configurations and empirically examine their effect on organizational outcomes.

Practical Implications

Our results provide valuable guidance for practitioners engaged in organizational change.

The positive relationships between culture dimensions and its correlates suggest that elements of

an organization’s system are interdependent. Leadership, strategy, structure, and HPWPs are

embedding mechanisms that create and reinforce the organization’s culture (Schein, 2017). As a

result, attempts to change an organization’s culture by relying solely upon appeals for people to

change their values and accepted routines are likely to be ineffective. Direct efforts to change

culture without attending to other elements of an organization’s system are likely to generate

inconsistent messages and conflicting priorities. These change efforts “will either be ignored or

will be a source of internal conflict” (Schein, 2017, p. 196) that will impair organizational

functioning. Instead, “[w]hen changing culture, it is far wiser and more effective to focus on

changing people, incentives, controls, and organizational structure. These changes affect
ORGANIZATIONAL CULTURE META-ANALYSIS 33

behavior that, in turn, brings about changes in culture” (Hrebiniak, 2013, p. 298). Organizational

leaders are thus encouraged to adopt a systems perspective and produce culture change through

attending to factors that support organizational culture (Hrebeniak, 2013; Schaffer, 2012).

Our results also offer practical implications for improving organizational effectiveness.

Results show that organizational culture dimensions are collectively the most significant drivers

(relative to leadership and HPWPs) of employee and operational outcomes, suggesting that

adhocracy and clan values should be prioritized to support employee outcomes and adhocracy

and market values should be emphasized to support operational outcomes. As such,

organizational leaders should ensure that elements of the organizational system support, reward,

and reinforce these values. Results also indicate that HPWPs have the most important impact on

organizational criteria such as innovation, customer, and financial outcomes. Investing in

HPWPs may thus provide the greatest return when focused on enhancing these outcomes. Future

research, however, is needed to confirm this conclusion.

Limitations and Conclusion

Our results and implications should be considered in light of two limitations. First,

results are bounded by the frameworks used to categorize variables used in the meta-analysis.

The typologies used to organize the strategy, structure, leadership, and HPWPs variables in this

meta-analysis are ubiquitous in their respective literatures and inclusive for our quantitative

summary, but they are not exhaustive. Researchers and practitioners should be careful not to

generalize our findings beyond the specific dimensions measured in this study. Similarly, the

CVF is not comprehensive in its ability to categorize all culture dimensions. We organized the

culture literature based upon the CVF’s four culture dimensions because they are meta-categories

that relate to fundamental problems related to organizational survival (Schein, 2017). Lending
ORGANIZATIONAL CULTURE META-ANALYSIS 34

support to our decision to classify culture measures into the CVF, a post hoc analysis indicated

that intercorrelations among culture dimensions were not significantly different between studies

using the CVF’s culture measure (average ρ̂ = .51) and those that did not (average ρ̂ = .50; t =

.20, n.s.). In aggregate, these results affirm the CVF’s parsimony in consolidating different

culture measures within four archetypal culture dimensions.

The second limitation pertains to research design. Many of the studies in this meta-

analysis measured culture and its correlates using cross-sectional data. Such a research design

may generate inflated correlations and are insufficient to examine temporal precedence.

Longitudinal investigations can better assess whether causal sequences exist among elements of

an organization’s system or whether they mutually influence each other in a dynamic manner.

Furthermore, longitudinal research designs are needed to investigate the veracity of causal

models in which leaders influence unit performance sequentially through the organization’s

culture, HR practices, and climate (Ostroff et al., 2013).

Our findings consolidate knowledge about culture’s relationship with elements of an

organization’s system and provide insight into culture’s relative predictive validity. We hope

this study will motivate theoretical and empirical work to more fully understand organizational

culture’s role within the organizational system and document its unique effects.
ORGANIZATIONAL CULTURE META-ANALYSIS 35

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ORGANIZATIONAL CULTURE META-ANALYSIS 47

Table 1

Elements of an Organization’s System: Definitions and Central Questions Related to Organizational Functioning

Central Focus Concerning


Definition Organizational Functioning Focal Dimensions
Strategy "An integrated and coordinated set of commitments and How do we gain competitive  Exploration
actions designed to exploit core competencies and gain a advantage?  Exploitation
competitive advantage" (Hitt et al., 2007, p. 4).
Structure "The ways in which [an organization] divides its labor into How do we organize resources and the  Organic/Mechanistic
distinct tasks and then achieves coordination among them" flow of information to attain
(Mintzberg, 1979, p. 2). organizational goals?
Culture "A pattern of shared assumptions, beliefs, and expectations What is the appropriate way to  Clan
that guide members' interpretations and actions by defining perceive, think, and feel in relation to  Adhocracy
appropriate behavior within an organization" (Chatman et organizational events?  Market
al., 2014, p. 787).  Hierarchy
Leadership "Leadership is a process whereby an individual influences a How do individuals with authority  Task
group of individuals to achieve a common goal" (Northouse, influence employees to accomplish  Relational
2012, p. 3). organizational goals?  Change
High Performance Bundles of HR practices “increase employees' knowledge, What corporate policies, practices,  Overall HPWPs
Work Practices skills, and abilities (KSAs), empower employees to leverage and procedures reward and support
(HPWPs) their KSAs for organizational benefit, and increase their employees’ development, motivation,
motivation to do so” (Combs et al., 2006, p. 502). and opportunities to contribute to
achieve organizational goals?
ORGANIZATIONAL CULTURE META-ANALYSIS 48

Table 2
Meta-Analytic Relationships between Culture Dimensions and Organizational System Correlates
Variable k N r ρ̂ 95% CI 80% CV Q I2 ΔK adj-r
Strategy
Exploration
Clan 8 1,473 .39 .47 [.32, .62] [.20, .74] 64.33 ** 12.44% 0 .39
Adhocracy 5 871 .37 .45 [.41, .50] [.39, .52] 7.12 70.20% 0 .37
Market 5 1,136 .31 .38 [.23, .52] [.17, .58] 28.36 ** 17.63% 0 .31
Hierarchy 6 798 .32 .40 [.27, .53] [.21, .60] 22.32 ** 26.88% 0 .32
Exploitation
Clan 5 1,063 .31 .38 [.34, .42] [.30, .46] 8.31 60.19% 0 .31
Adhocracy 2 383 .33 .42 [.35, .48] [.42, .42] .72 100.00% 0 .33
Market 4 966 .32 .40 [.26, .53] [.23, .56] 15.22 ** 26.27% 1 .28
Hierarchy 5 1,063 .40 .51 [.38, .64] [.33, .69] 18.29 ** 27.33% 0 .40
Structure
Organic
Clan 5 1,159 .06 .07 [-.21, .35] [-.33, .48] 119.62 ** 4.18% 0 .06
Adhocracy 5 824 .05 .06 [-.17, .28] [-.26, .37] 53.83 ** 9.29% 0 .05
Market 5 1,325 .20 .24 [.13, .35] [.10, .38] 19.90 ** 32.42% 0 .20
Hierarchy 5 1,159 -.08 -.10 [-.33, .13] [-.42, .22] 76.37 ** 6.55% 0 -.08
Leadership
Task
Clan 7 1,158 .23 .28 [.12, .43] [.02, .53] 54.15 ** 12.93% 0 .23
Adhocracy 8 1,877 .30 .36 [.29, .43] [.25, .47] 21.37 ** 37.44% 3 .27
Market 8 1,793 .271 .33 [.27, .39] [.24, .42] 16.23 * 49.31% 1 .269
Hierarchy 6 1,710 .21 .26 [.13, .40] [.06, .47] 44.93 ** 13.35% 0 .21
Relational
Clan 16 2,519 .44 .53 [.47, .59] [.37, .68] 46.96 ** 34.08% 0 .44
Adhocracy 11 2,219 .35 .43 [.32, .53] [.20, .65] 66.44 ** 16.56% 2 .30
Market 14 3,302 .24 .29 [.20, .38] [.09, .49] 85.45 ** 16.38% 0 .24
Hierarchy 13 2,647 .32 .40 [.30, .51] [.17, .64] 81.09 ** 16.03% 0 .32
Change
Clan 12 2,283 .39 .48 [.38, .58] [.27, .70] 66.06 ** 18.17% 0 .39
Adhocracy 11 2,277 .38 .48 [.35, .60] [.20, .75] 91.87 ** 11.97% 0 .38
Market 13 3,659 .36 .44 [.39, .50] [.33, .56] 32.18 ** 40.40% 0 .36
Hierarchy 11 2,619 .36 .45 [.38, .53] [.30, .61] 37.23 ** 29.54% 0 .36
High Performance Work Practices (HPWPs)
HPWPs
Clan 17 2,409 .39 .46 [.34, .59] [.13, .79] 158.44 ** 10.73% 0 .39
Adhocracy 13 1,402 .33 .40 [.27, .54] [.10, .70] 87.80 ** 14.81% 0 .33
Market 21 3,354 .42 .50 [.42, .59] [.25, .76] 124.72 ** 19.99% 0 .42
Hierarchy 14 1,899 .27 .34 [.20, .48] [.00, .68] 135.12 ** 10.36% 0 .27
Note. k = number of studies; N = total number of organizations; r = sample size weighted mean
correlation; ρ̂ = estimated population correlation (sample size weighted mean correlation
corrected for unreliability in both measures); CI = confidence interval; CV = credibility interval;
Q = Chi-square test of homogeneity; I2 = proportion of observed variance in the observed
correlation due to statistical artifacts. ΔK = number of filled studies in trim & fill analysis; adj-r
= adjusted r after adding filled studies in trim & fill analysis.
* p < .05. ** p < .01.
ORGANIZATIONAL CULTURE META-ANALYSIS 49

Table 3
Meta-Analytic Correlation Matrix of Organizational-Level Effects for Organizational Culture, Leadership, HPWPs, and Organizational Effectiveness Criteria
1 2 3 4 5 6 7 8 9 10
1. Clan
2. Adhocracy
r/ ρ̂ .49 / .59
k/N 67 / 10,551
3. Market
r/ ρ̂ .38 / .45 .50 / .61
k/N 73 / 11,336 66 / 10,393
4. Hierarchy
r / ρ̂ .39 / .49 .27 / .35 .41 / .52
k/N 60 / 10,839 59 / 10,346 61 / 11,107
5. Overall leadership
r/ ρ̂ .44 / .52 .46 / .56 .39 / .46 .38 / .47
k/N 21 / 3,072 17 / 2,889 20 / 3,993 14 / 2,834
6. HPWPs
r / ρ̂ .39 / .46 .33 / .40 .42 / .50 .27 / .34 .22 / .26
k/N 17 / 2,409 13 / 1,402 21 / 3,354 14 / 1,899 2 / 258
7. Employee outcomes
r / ρ̂ .37 / .43 .36 / .43 .29 / .34 .31 / .38 .21 / .23 .18 / .21
k/N 26 / 3,111 19 / 1,805 22 / 2,632 21 / 1,691 6 / 772 6 / 1,202
8. Innovation outcomes
r / ρ̂ .36 / .43 .35 / .43 .33 / .41 .21 / .27 .36 / .43 .34 / .41 .30 / .35
k/N 23 / 2,410 28 / 4,579 23 / 3,519 19 / 2,052 3 / 234 3 / 813 13 / 1,104
9. Operational outcomes
r / ρ̂ .22 / .25 .29 / .34 .33 / .38 .26 / .31 .06 / .07 .26 / .30 .30 / .33 .48 / .55
k/N 30 / 4,465 25 / 3,131 25 / 3,156 26 / 2,825 4 / 960 3 / 399 16 / 1,119 15 / 1,009
10. Customer outcomes
r / ρ̂ .26 / .31 .21 / .26 .34 / .41 .21 / .26 -a .35 / .41 .33 / .38 .32 / .37 .04 / .05
k/N 17 / 1,581 13 / 783 18 / 1,626 16 / 1,147 5 / 507 14 / 888 10 / 414 14 / 1,094
11. Financial outcomes
r / ρ̂ .12 / .13 .13 / .14 .20 / .23 .19 / .22 .11 / .12 .34 / .38 .25 / .26 .36 / .40 .15 / .15 .54 / .58
k/N 38 / 4,592 39 / 4,349 41 / 5,733 26 / 2,060 8 / 1,172 10 / 1,628 14 / 811 12 / 837 17 / 1,463 16 / 1,1691
Note. r = sample size weighted mean correlation; ρ̂ = estimated population correlation (sample size weighted mean correlation corrected for
unreliability in both measures); k = number of studies; N = total number of organizations; HPWPs = High Performance Work Practices.
a
Data not available for this bivariate relationship.

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ORGANIZATIONAL CULTURE META-ANALYSIS 50

Table 4

Meta-Analytic Regression Models and Relative Weight Analyses of Organizational Culture Dimensions, Leadership, and HPWPs on
Organizational Effectiveness Criteria

Employee Innovation Operational Customer Financial


β RW %RW β RW %RW β RW %RW β RW %RW β RW %RW
Clan .23 ** .08 27.20% .14 ** .06 18.20% .02 .02 8.00% .12 ** .03 13.30% -.12 ** .01 3.70%
Adhocracy .32 ** .08 30.00% .09 ** .05 17.00% .27 ** .06 23.50% -.09 ** .02 6.90% -.01 .01 3.30%
Market .03 .03 11.10% .10 ** .05 14.40% .19 ** .06 25.30% .29 ** .08 34.20% .02 .02 10.40%
Hierarchy .25 ** .07 23.80% -.07 ** .01 4.10% .23 ** .05 20.80% -.01 .02 7.90% .13 ** .02 13.80%
Leadership -.17 ** .01 4.70% .23 ** .07 22.80% -.31 ** .02 9.00% -a -a -a .01 .00 2.00%
HPWPs -.08 ** .01 3.20% .22 ** .07 23.50% .09 ** .03 13.40% .25 ** .09 37.70% .38 ** .11 66.80%

Total R .53 .56 .49 .49 .40


(R2) (.28) (.32) (.24) (.24) (.16)
ΔRClan .027 ** .010 ** .000 .007 ** .007 **
ΔRAdhocracy .045 ** .004 ** .033 ** .004 ** .000
ΔRMarket .000 .005 ** .016 ** .040 ** .000
ΔRHiearchy .037 ** .003 ** .031 ** .000 .011 **
ΔRLeadership .017 ** .030 ** .054 ** -a
.000
ΔRHPWPs .004 ** .034 ** .006 ** .043 ** .094 **

Harmonic
mean
sample size 1,805 1,441 1,690 1,904 2,051
Note. β = standardized regression coefficient; RW = raw relative weights; %RW = percentage of the total variance of the dependent
variable explained by the focal predictor; Total R = multiple correlation; R2 = total explained variance of the dependent variable; ΔRX
= incremental change in multiple R values for predictor X over other predictors; HPWPs = High Performance Work Practices.
a
Variable excluded from analysis due to missing data in meta-analytic correlation matrix.
† p < .10. * p < .05. ** p < .01.

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ORGANIZATIONAL CULTURE META-ANALYSIS 51

Elements of an Organization’s System

Strategy Leadership

Exploration (H1a) Task (H3a)


Organizational
Culture
Exploitation (H1b) Relational (H3b)
Clan
Change (H3c)
Adhocracy

Market

Hierarchy
High Performance
Structure Work Practices

Organic (H2) HPWPs (H4)

Figure 1
Hypothesized Relationships between Organizational Culture Dimensions and Elements of an Organizational System

Note. Arrows reveal only the hypothesized (i.e., strongest predicted) relationships between culture dimensions and the dimensions
underlying other organizational system elements. We depict reciprocal relationships (i.e., bidirectional arrows) between culture and
its correlates’ dimensions to illustrate interdependence.

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ORGANIZATIONAL CULTURE META-ANALYSIS 52

Appendix A

Representative Sources of Measures, Variable Labels, and Coded Studies

Table A1: Organizational Culture

Source of measure Variable label Coded study


Clan culture
Organizational Culture Inventory (Cooke & Rousseau, Constructive culture Aarons & Sawitzky (2006)
1988) Affiliative culture Simosi & Xenikou (2010)
Organizational Culture Profile (O’Reilly et al., 1991) People orientation Jaskyte (2010)
Team orientation Zhang & Jia (2010)
Competing Values Framework (Cameron & Quinn, Involvement Yilmaz & Ergun (2008)
1999; Denison, 2000; Denison & Mishra, 1995; Cooperativeness Chang & Lin (2007)
Quinn & Spreitzer, 1991) Group culture Stock et al. (2010)
Empowerment Denison et al. (2004)
Adhocracy culture
Organizational Culture Inventory (Cooke & Rousseau, Self-actualizing culture Simosi & Xenikou (2010)
1988)
Competing Values Framework (Cameron & Quinn, Adhocracy Boggs & Fields (2010)
1999; Denison, 2000; Denison & Mishra, 1995; Adaptability Denison et al. (2014)
Quinn & Spreitzer, 1991) Creating change Denison et al. (2004)
Organizational learning Denison et al. (2004)
Open systems Lamond (2003)
Market culture
Organizational Culture Inventory (Cooke & Rousseau, Achievement culture Simosi & Xenikou (2010)
1988)
Organizational Culture Profile (O’Reilly et al., 1991) Aggressiveness Zhang & Jia (2010)
Performance orientation Sarros et al. (2008)
Competing Values Framework (Cameron & Quinn, Mission Seong (2011)
1999; Denison, 2000; Denison & Mishra, 1995; Market Behram & Özdemirci (2014)
Quinn & Spreitzer, 1991) Goal and objectives Denison et al. (2004)
Strategic direction and Denison et al. (2004)
intent Denison et al. (2004)
Vision
Market orientation (Deshpandé, Farley, & Webster, Market orientation Zhou et al. (2008)
1993; Narver & Slater, 1990)
Hierarchy culture
Work Practices Survey (Hofstede et al., 1990) Bureaucracy Stamper & Van Dyne (2001)
Organizational Culture Profile (O’Reilly et al., 1991) Stability Densten & Sarros (2012)
Competing Values Framework (Cameron & Quinn, Hierarchical culture Shao et al. (2012)
1999; Denison, 2000; Denison & Mishra, 1995; Consistency Chang & Lin (2007)
Quinn & Spreitzer, 1991)

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ORGANIZATIONAL CULTURE META-ANALYSIS 53

Table A2: Correlates of Organizational Culture

Source of measure Variable label Coded study


Strategy: Exploration
He & Wong (2004) Exploration [E] Matzler et al. (2013)
Hurley & Hult (1998) Innovation orientation [E-I] Zhou et al. (2005)
Rumelt (1974) Diversification strategy [E-V/D] Goll & Sambharya (1995)
Volberda (1996) Strategic agility [E-F] Benitez-Amado et al. (2010)
Miller (1983) Corporate entrepreneurship [E-R] Zahra et al. (2004)
Strategy: Exploitation
He & Wong (2004) Exploitation [EX] Matzler et al. (2013)
Doty et al (1993) Product market scope [EX-Re] Yarbrough et al. (2011)
Schuler & Jackson (1987) Quality [EX-P] Chow & Liu (2009)
Miller & Vollmann (1984) Speed / responsiveness [EX-E] Stock & McDermott (2001)
Organic Structure
MECOR scale (Caetano & Vala,1994) Organizational structure [Org] Rebelo & Gomes (2011)
Hage & Aiken (1967) Centralization (reverse coded) Hult et al. (2000)
[Org-C]
Hage & Dewar (1973) Formalization (reverse coded) Jaskyte (2010)
[Org-F]
Jaworski & Kohli (1993) Departmentalization (reverse Fang & Zou (2009)
coded) [Org-S]
Leadership: Task
Global Leadership and Organizational Structuring leadership Dickson et al. (2006)
Behavior Effectiveness Autocratic leadership Dickson et al. (2006)
questionnaire (GLOBE; House,
Hanges, Javidan, Dorfman, & Gupta,
2004)
Tsui, Wang, Xin, Zhang, & Fu (2004) Monitoring Tsui et al. (2006)
Multifactor Leadership Questionnaire Contingent reward Simosi & Xenikou (2010)
(MLQ; Bass & Avolio, 1990)
Leadership: Relational
Tsui, Wang, Xin, Zhang, & Fu (2004) Relationship building Tsui et al. (2006)
Global Leadership and Organizational Considerate leadership Dickson et al. (2006)
Behavior Effectiveness
questionnaire (GLOBE; House,
Hanges, Javidan, Dorfman, & Gupta,
2004)
Leadership Practices Inventory (LPI; Encouraging the heart Jaskyte (2010)
Kouzes & Posner, 1993)
Leadership: Change
Multifactor Leadership Questionnaire Idealized influence Hult et al. (2000)
(MLQ; Bass & Avolio, 1991, 1995, Attributed charisma Hult et al. (2000)
2004)
Leadership Practices Inventory (LPI; Challenging the process Jaskyte (2004)
Kouzes & Posner, 1993) Inspiring a shared vision Jaskyte (2010)

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ORGANIZATIONAL CULTURE META-ANALYSIS 54

Table A2: Correlates of Organizational Culture (cont.)

Source of measure Variable label Coded study


High Performance Work Practices (HPWPs)
Huselid (1995) HR practices [HR-AMO] Chan et al. (2004)
Chow (2012) High Performance HR Practices Chow (2012)
[HR-AMO]
Shortell (1995) Employee quality training [HR-A] Mrozowski (2001)
Homburg, Fassnacht, & Guenther Personnel recruitment [HR-A] Homburg et al. (2003)
(2003)
Delery & Doty (1996) Performance evaluation [HR-M] Den Hartog & Verburg (2004)
Wang et al. (2003) HR provided inducements [HR-M] Song et al. (2009)
Delery & Doty (1996) Information sharing [HR-O] Den Hartog & Verburg (2004)
Shortell (1995) Employee quality planning Mrozowski (2001)
involvement [HR-O]
Delery & Doty (1996) Information sharing meetings [HR- Den Hartog & Verburg (2004)
O]
Note. Exploration strategy variables: [E] = general exploration; [E-I] = innovation; [E-V/D] =
variation/diversification; [E-F] = flexibility; [E-R] = risk-taking/experimentation. Exploitation strategy variables:
[EX] = general exploitation; [EX-Re] = refinement; [EX-P] = production; [EX-E] = efficiency. Organic structure
variables: [Org] = organic structure; [Org-C] = centralization; [Org-F] = formalization [Org-S] = specialization.
HPWPs variables: [HR-AMO] = composite of ability-motivation-opportunity enhancing HPWPs; [HR-A] = ability-
enhancing HPWP; [HR-M] = motivation-enhancing HPWP; [HR-O] = opportunity-enhancing HWPW.

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ORGANIZATIONAL CULTURE META-ANALYSIS 55

Table A3: Organizational Effectiveness Criteria

Source of measure Variable label Coded study


Employee
Positive attitudes
Jaworski & Kohli (1993) Organizational commitment Kusku & Zarkada-Fraser
(2004)
Job Satisfaction Scale (Melia & Peiro, Job satisfaction Guerra et al. (2005)
1989)
Wood, Chonko, & Hunt (1986) Employee satisfaction Zhou et al. (2005)
Eisenberger et al. (1997); Rhoades et al.
(2001) Perceived organizational support Zhang & Jia (2010)

Positive behaviors
Tsui et al. (1997) Task performance Song et al. (2009)
Lam, Hui & Law (1999) Organizational citizenship Song et al. (2009)
behavior
Van Dyne et al. (1994) Voice Stamper & Van Dyne (2001)
Organizational Conflict Scale (Cox, 1998) Relationship conflict Guerra et al. (2005)
Objective Turnover rate (reverse coded) Chow & Liu (2009)
Objective Absenteeism rate (reverse coded) Jung & Takeuchi (2010)
Innovation
Damanpour (1987); Perri (1993) Organizational innovativeness Jaskyte & Kisieliene (2006)
Hurley & Hult (1998); Škerlavaj et al. Technical innovations Cerne et al. (2012)
(2010) Administrative innovations Cerne et al. (2012)
Zahra & Das (1993) Process innovation Donate & Guadamillas (2010)
Operational
Product/Service quality
Webster (1992) Service quality Ridnour et al. (2001)
Firm product performance measure Defect rate reduction Jabnoun & Sedrani (2005)
(Huarng & Chen, 2002) Product reliability improvement Jabnoun & Sedrani (2005)

Operational Efficiency
Self-developed Efficiency (ratio between sales Berson et al. (2008)
and number of employees)
Hult (1998) Cycle time Gonzalez-Padron et al. (2008)
Objective Waiting time (reverse coded) Mohr et al. (2012)

Customer
Maignan & Ferrell (2000) Customer loyalty Kusku & Zarkada-Fraser
(2004)
Firm product performance measure Customer complaints reduction Jabnoun & Sedrani (2005)
(Huarng & Chen, 2002)
American Customer Satisfaction Index Customer satisfaction Yarbrough et al. (2011)
(ACSI; Fornell, Johnson, Anderson,
Cha, & Bryant, 1996)
Denison (2000) Market share Denison et al. (2004)
Homburg & Pflesser (2000) Market performance Maignan et al. (2011)
Vorhies & Morgan (2005) Market effectiveness Chang et al. (2010)

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Table A3: Organizational Effectiveness Criteria (cont.)

Source of measure Variable label Coded study


Financial
Covin, Slevin, & Covin (1990) Profitability (subjective) Seong (2011)
Objective Return on assets Zhou et al. (2008)
Objective Return on sales Tsui et al. (2006)
Denison (2000) Sales growth Denison et al. (2004)
Objective Revenue growth (corrected) Christensen & Gordon (1999)

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Appendix B

Coding Information for Samples Included in the Meta-analyses

No. of
Sample correlations
size included
(no. of (raw / Organizational Data
Study units) aggregated) culture Correlates Effectiveness source
Aarons & Sawitzky 49 1/1 C - EM P
(2006)
Aier (2014) 138 6/6 C, A, M, H - - P
Andersen et al. (2009) 164 6/4 A, M, H - - P
Bae & Lawler (2000) 138 3/3 C SR, HR - P
Baird et al. (2007) 184 10 / 7 C, A, M, H - - P
Bajdo & Dickson 114 1/1 C HR - P
(2001)
Behram & Özdemirci 187 45 / 24 C, A, M, H SR CU, FI P
(2014)
Benitez-Amado et al. 203 3/3 A SR, LT - P
(2010)
Berson et al. (2008) 26 15 / 15 C, A, H - EM, OP, FI P
Boggs & Fields (2010) 53 21 / 16 C, A, M, H HR FI P
Brockman & Morgan 323 6/6 C, A - IN, FI P
(2003)
Büschgens & Bausch 110 21 / 16 C, A, M, H - IN, OP U
(2012; Sample 1)
Büschgens & Bausch 91 21 / 16 C, A, M, H - IN, OP U
(2012; Sample 2)
Çakar & Ertürk (2010; 43 6/6 C, A, M - IN P
Sample 1)
Çakar & Ertürk (2010; 50 6/6 C, A, M - IN P
Sample 2)
Carmeli (2004) 73 1/1 H - FI P
Carmeli & Tishler 93 15 / 7 H HR CU, FI P
(2004)
Catana & Catana (2010) 13 6/4 C, A, M - - P
Cegarra-Navarro & 100 1/1 - - IN, OP P
Martínez-Martínez
(2009)
Cerne et al. (2012) 112 3/2 A - IN P
Chan et al. (2004) 49 36 / 18 C, A, M, H SR, HR - P
Chandler et al. (2000) 23 3/3 A HR FI P
Chang & Lin (2007) 87 6/6 C, A, M, H - - P
Chang et al. (2010) 209 10 / 7 M HR CU, FI P
Chen (2011) 138 1/1 M LC - P
Chow (2012) 243 10 / 7 C, M, H HR - P
*Chow & Liu (2007) 132 21 / 16 C, M, H SR, SI, - P
HR
Chow & Liu (2009) 451 28 / 22 C, M, H SI, HR EM, IN P
Christensen & Gordon 119 21 / 5 C, A, M - - P
(1999; Sample 1)
Christensen & Gordon 13 7/3 C, A, M - FI P
(1999; Sample 2)

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Appendix B (cont.)
No. of
Sample correlations
size included
(no. of (raw / Organizational Data
Study units) aggregated) culture Correlates Effectiveness source
Christensen & Gordon 13 7/3 C, A, M - FI P
(1999; Sample 3)
Christensen & Gordon 7 7/3 C, A, M - FI P
(1999; Sample 4)
Christensen & Gordon 29 7/3 C, A, M - FI P
(1999; Sample 5)
Christensen & Gordon 7 7/3 C, A, M - FI P
(1999; Sample 6)
Christensen & Gordon 8 7/3 C, A, M - FI P
(1999; Sample 7)
Damanpour et al. (2012) 127 1/1 C, M - - P
Den Hartog & Verburg 175 136 / 17 C, A, M, H HR EM P
(2004)
Denison & Mishra 674 12 / 9 C, A, M - EM, OP, FI P
(1995; Sample 1)
Denison & Mishra 220 3/3 C, A, M - FI P
(1995; Sample 2)
Denison & Mishra 409 3/3 C, A, M - FI P
(1995; Sample 3)
Denison et al. (2004; 20 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 1) CU, FI
Denison et al. (2004; 13 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 2) CU, FI
Denison et al. (2004; 18 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 3) CU, FI
Denison et al. (2004; 92 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 4) CU, FI
Denison et al. (2004; 38 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 5) CU, FI
Denison et al. (2004; 17 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 6) CU, FI
Denison et al. (2004; 20 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 7) CU, FI
Denison et al. (2004; 7 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 8) CU, FI
Denison et al. (2004; 34 120 / 40 C, A, M, H - EM, IN, OP, P
Sample 9) CU, FI
Denison et al. (2014) 155 45 / 37 C, A, M, H - EM, IN, OP, P
CU, FI
Densten & Sarros 635 66 / 18 A, M, H LT, LR, - P
(2012) LC
Dickson et al. (2006) 103 3/2 H LT, LR - P
Donate & Guadamillas 111 5/2 M - IN P
(2010)
Dwyer et al. (2003) 177 10 / 7 C, A - FI P
Erdogan et al. (2006) 30 6/4 C, M LR - P
Fang & Zou (2009) 114 28/16 A ST FI P
Flores et al. (2012) 230 6/6 C, A LR FI P
Gao & Low (2012) 93 44 / 9 M, H HR OP, CU, FI P
Gimenez-Espin et al. 451 6/6 C, A, M, H - - P
(2013)

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ORGANIZATIONAL CULTURE META-ANALYSIS 59

Appendix B (cont.)
No. of
Sample correlations
size included
(no. of (raw / Organizational Data
Study units) aggregated) culture Correlates Effectiveness source
Givens (2012) 43 28 / 16 C, A, M, H HR FI P
Goll & Sambharya 92 6/4 H SR FI P
(1995)
Gonzalez-Padron et al. 200 5/5 C, A SR OP P
(2008)
Guerra et al. (2005) 50 15 / 11 C, A, M, H - EM P
Haas & Hwang (2007) 200 1/1 C, M - - P
Haas et al. (2002) 6 3/3 C, M LR - P
*Hartnell et al. (2016) 119 10 / 10 C, M LT, LR FI P
Homburg et al. (2003) 271 14 / 5 M HR FI P
Huang & Tsai (2013) 106 3/3 H SR EM P
*Hult et al. (2000; 355 55 / 18 C, H ST, LR, OP P
Sample 1) LC
Hult et al. (2000; 200 55 / 18 C, H ST, LR, OP P
Sample 2) LC
Hung et al. (2010) 355 36 / 14 C SR OP, CU, FI P
Jabnoun & Sedrani 81 18 / 12 C, M, H HR OP, CU, FI P
(2005)
Jaskyte (2004) 19 78 / 26 C, A, M, H LR, LC IN P
Jaskyte (2010) 79 35 / 12 C, A, M, H ST, LR, - P
LC
Jaskyte & Kisieliene 21 36 / 18 C, A, M, H LR IN P
(2006)
Jung & Takeuchi (2010) 225 15 / 11 C HR, LR EM, OP P
Kalyar & Rafi (2013) 50 3/2 A - IN P
Keskin et al. (2005) 178 1/1 C, A - - P
Kim et al. (2010) 102 3/2 A, H - - P
*Kinicki et al. (2010) 91 78 / 32 C, A, M, H LT, LR EM, FI U
Kinicki et al. (2012) 119 10 / 10 C, A, M LC FI U
Kotrba et al. (2012) 137 28 / 11 C, A, M, H - FI P
Koufteros et al. (2007) 224 21 / 8 C, M, H ST - P
Kowalczyk & Pawlish 6 10 / 8 C, A, M, H - OP P
(2002)
Kriemadis et al. (2012) 33 6/4 C, A, M - - P
Kusku & Zarkada- 178 28 / 12 C, M, H - EM, CU P
Fraser (2004)
Lægreid et al. (2011) 121 6/4 M ST, HR - P
Lai & Lee (2007) 154 3/3 A, M, H - - P
Lamond (2003) 462 6/6 C, A, M, H - - P
Leisen et al. (2002) 128 28 / 12 C, A, M, H - OP P
Lejeune & Vas (2009) 31 21 / 21 C, A, M, H HR EM, CU P
Li et al. (2008) 37 3/3 C, A, M - - P
Mahalinga Shiva & 312 45 / 18 C, A, M, H LR, LC - P
Suar (2012)

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Appendix B (cont.)
No. of
Sample correlations
size included
(no. of (raw / Organizational Data
Study units) aggregated) culture Correlates Effectiveness source
Maignan et al. (2011) 151 3/3 C - EM, CU P
*Marsh (2005) 187 28 / 22 C, A, M, H LT, LC FI U
Martin & Grbac (2003) 282 83 / 5 M - CU, FI P
Matzler et al. (2013) 232 21 / 21 C, A, M, H SR, SI IN P
McDermott & Stock 97 10 / 10 C, A, M, H - OP P
(1999)
Melo (2012) 295 1/1 - SR, HR - P
Mohr et al. (2012) 114 10 / 7 C - EM, OP, CU P
Mrozowski (2001) 146 15 / 11 C, A, M, H HR - U
Nahm et al. (2004) 224 3/3 C, M, H - - P
Naranjo Valencia et al. 420 3/3 A, H - IN P
(2010)
Nekrep (2009) 60 4/3 - - EM, OP, CU, P
FI
Ngo & Loi (2008) 181 3/3 A HR EM P
O'Regan et al. (2006) 194 3/3 A - IN P
Ou (2011) 63 66 / 23 C, A, M, H LR, LC EM U
Plewa (2009; Sample 1) 62 3/3 A, M, H - - P
Plewa (2009; Sample 2) 62 3/3 A, M, H - - P
Prajogo & McDermott 194 4/4 C, A, M, H HR - P
(2005)
*Prajogo & McDermott 194 21 / 16 C, A, M, H - IN, OP P
(2011)
Rad (2006) 12 6/4 A, H - OP P
Rebelo & Gomes 107 3/2 A ST - P
(2011)
Rhodes et al. (2008) 223 16 / 5 C, A - IN P
Ridnour et al. (2001) 86 4/3 M HR EM, OP P
Roi (2006) 94 6/4 A LC FI U
Ruppel & Harrington 44 6/6 C, A, M, H - - P
(2001)
Russo et al. (2013) 46 10 / 2 M, H HR - P
Sarros et al. (2005) 1918 6/6 C, A, M, H - - P
Sarros et al. (2008) 1158 28 / 5 M LR, LC - P
*Seong (2011) 162 21 / 16 C, A, M, H HR FI U
Shao et al. (2012) 75 36 / 17 C, A, M, H LR, LC - U
Simosi & Xenikou 34 10 / 7 C, A, M LT - U
(2010)
Song et al. (2009) 33 21 / 13 C, A, M HR, LT EM P
Stamper & Van Dyne 6 3/2 H - EM P
(2001)
Stock & McDermott 97 21 / 7 C, H SI - P
(2001)
Stock et al. (2007) 549 10 / 10 C, A, M, H - OP P
Stock et al. (2010) 202 10 / 10 C, A, M, H - OP U

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Appendix B (cont.)
No. of
Sample correlations
size included
(no. of (raw / Organizational Data
Study units) aggregated) culture Correlates Effectiveness source
Stock et al. (2013) 216 6/2 A - IN U
Tellis et al. (2009) 1544 4/2 A, M - IN U
Tsamenyi & Mills 89 4/2 A, M HR - P
(2002)
Tsui et al. (2006; 542 36 / 23 C, A, M, H LT, LR, - P
Sample 1) LC
Tsui et al. (2006; 152 55 / 31 C, A, M, H LT, LR, FI P
Sample 2) LC
Vo & Nguyen (2011) 43 6/6 C, A, M, H - - U
Wang et al. (2011) 212 3/3 C, A, H - - U
Wei & Lau (2008) 600 15 / 6 M ST, HR FI P
Wei et al. (2011) 223 6/6 A ST, HR IN P
Wei et al. (2014) 180 6/6 C, A, M - FI P
Yarbrough et al. (2011) 151 45 / 30 C, A, M, H SI OP, CU, FI U
Yilmaz & Ergun (2008) 100 45 / 29 C, A, M, H - EM, IN, OP, U
FI
Yilmaz et al. (2005) 134 1/1 A, M - - P
Zahra et al. (2004) 536 5/4 M SR FI P
Zajec & Roblek (2011) 24 3/3 C, A, M - - U
Zeng & Luo (2013) 106 6/6 C, A, M, H - - U
Zhang & Jia (2010) 139 10 / 10 C, M HR EM, IN P
*Zheng et al. (2010) 301 10 / 10 C, A, M, H ST - U
Zhou et al. (2005) 180 10 / 7 C SR, LC EM P
Zhou et al. (2008) 180 15 / 11 M LC EM, OP, FI U
Note. For coding content: C = clan culture; A = adhocracy culture; M = market culture; H = hierarchy culture; SR = strategy
(exploration); SI = strategy (exploitation); ST = organic organizational structure; LT = leadership (task); TR = leadership
(relational); LC = leadership (change); HR = HPWPs; EM = employee outcomes; IN = innovation outcomes; OP = operational
outcomes; CU = customer outcomes; FI = finance outcomes. For data source, P = published; U = unpublished (dissertation,
unpublished manuscript, or published sample but with additional author provided data).
* Studies excluded after outlier analyses.

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Appendix C

Publication Bias and Outlier Detection

Table 1 shows that some of our meta-analytic correlations are based on relatively small

number of studies (k < 10), raising the concern that our results may be distorted by publication

biases (Ferguson & Brannick, 2012) or outliers (Cortina, 2003). Although recent research

suggests that publication biases are not a major threat for meta-analyses (Paterson et al., 2016;

Dalton, Aguinis, Dalton, Bosco, & Pierce, 2012), we conducted trim-and-fill analyses (Duval &

Tweedie, 2000) using Wilcoxon distribution and funnel plots. This approach is widely used in

behavioral science and biomedical meta-analyses because it is easy to use, generates results

similar to more complex methods, and provides estimated effect sizes after correcting for

publication bias (Schmidt & Hunter, 2015). We reported the number of potentially missing effect

sizes imputed by trim-and-fill analysis (ΔK) and the estimated correlations (adj-r) after including

those missing effect sizes (i.e., after correcting for publication bias). As shown in Table 2,

correlations between exploitation strategy and market culture, task leadership and adhocracy

culture, task leadership and market culture, and relational leadership and adhocracy culture had

some potentially missing effect sizes, suggesting that publication biases were present in these

four relationships but not in other relationships. The adjusted r’s of these relationships (.28, .27,

.269, and .30, respectively) were different from the sample size weighted mean correlation r

(.32, .30, .271, and .35, respectively), but were not substantial to invalidate the effect sizes.

For outlier detection, we adopted Huffcutt and Arthur’s procedures (Beal, Corey, &

Dunlap, 2002; Huffcutt & Arthur, 1995) to calculate modified SAMD statistics involving

Fisher’s z transformation. We used the cut-off of three (Leslie, Mayer, & Kravitz, 2014) and

identified eight studies (i.e., Chow & Liu, 2007; Hartnell, Kinicki, Lambert, Fugate, & Corner,

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ORGANIZATIONAL CULTURE META-ANALYSIS 63

2016; Hult, Hurley, Giunipero, & Nichols, 2000; Kinicki, Fugate, Hartnell, & Corner, 2011;

Marsh, 2005; Prajogo & McDermott, 2005; Seong, 2011; Zheng, Yang, & McLean, 2010) each

with more than three outliers. We carefully examined each study, found no reporting errors, and

decided to retain the studies in the analysis. For robustness check, we excluded these eight

studies and replicated the meta-analyses. The meta-analytic correlations were generally lower

than without exclusion because most of the outliers were exceedingly higher correlations;

however, the result patterns remained the same. Therefore, we reported the results including

those eight studies, as they represented a more conservative test of the hypotheses.

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Appendix D

Meta-Analysis Results of Organizational Culture Dimensions and Organizational Effectiveness

Criteria

Variable k N r ρ̂ 95% CI 80% CV Q I2 ΔK adj-r


Employee
Clan 26 3,111 .37 .43 [.35, .51] [.17, .68] 149.01 ** 17.44% 10 .28
Adhocracy 19 1,805 .36 .43 [.35, .50] [.23, .62] 62.17 ** 30.56% 8 .27
Market 22 2,632 .29 .34 [.24, .43] [.07, .60] 135.10 ** 16.28% 8 .22
Hierarchy 21 1,691 .31 .38 [.27, .49] [.07, .69] 118.40 ** 17.73% 4 .27
Innovation
Clan 23 2,410 .36 .43 [.37, .49] [.26, .60] 66.08 ** 34.80% 0 .36
Adhocracy 28 4,579 .35 .43 [.37, .49] [.24, .63] 121.82 ** 22.99% 8 .31
Market 23 3,519 .33 .41 [.35, .46] [.25, .56] 69.40 ** 33.14% 2 .33
Hierarchy 19 2,052 .21 .27 [.15, .39] [-.06, .59] 146.82 ** 12.94% 3 .20
Operational
Clan 30 4,465 .22 .25 [.17, .34] [-.04, .55] 259.00 ** 11.58% 8 .16
Adhocracy 25 3,131 .29 .34 [.29, .39] [.21, .47] 55.98 ** 44.66% 2 .29
Market 25 3,156 .33 .38 [.32, .44] [.22, .54] 71.80 ** 34.82% 9 .28
Hierarchy 26 2,825 .26 .31 [.25, .37] [.14, .48] 72.88 ** 35.68% 6 .24
Customer
Clan 17 1,581 .26 .31 [.24, .38] [.16, .46] 36.93 ** 46.04% 0 .26
Adhocracy 13 783 .21 .26 [.16, .35] [.09, .42] 25.75 * 50.49% 1 .20
Market 18 1,626 .34 .41 [.32, .51] [.16, .67] 73.54 ** 24.48% 0 .34
Hierarchy 16 1,147 .21 .26 [.15, .37] [.00, .52] 61.80 ** 25.89% 0 .21
Financial
Clan 38 4,592 .12 .13 [.09, .18] [-.02, .29] 105.68 ** 35.96% 1 .13
Adhocracy 39 4,349 .13 .14 [.09, .19] [-.02, .30] 107.67 ** 36.22% 6 .11
Market 41 5,733 .20 .23 [.18, .27] [.06, .39] 138.04 ** 29.70% 9 .17
Hierarchy 26 2,060 .19 .22 [.14, .29] [.00, .43] 84.41 ** 30.80% 7 .13
Note. k = number of studies; N = total number of organizations; r = sample size weighted mean correlation; ρ̂ =
estimated population correlation (sample size weighted mean correlation corrected for unreliability in both
measures); CI = confidence interval; CV = credibility interval; Q = Chi-square test of homogeneity; I2 = proportion
of observed variance in the observed correlation due to statistical artifacts. ΔK = number of filled studies in trim &
fill analysis; adj-r = adjusted r after adding filled studies in trim & fill analysis.
* p < .05. ** p < .01.

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Appendix E

Detection of Negative Suppression in Organizational Effectiveness Criteria

Employee Employee Innovation Operational Customer Financial


Model Model Model Model Model Model Model Model Model Model Model Model
1a 1b 2a 2b 3a 3b 4a 4b 5a 5b 6a 6b
Leadership .23** -.17** -.17** .23** .07** -.31** - - .01
HPWPs -.08** .21** -.08** .22** .09** .25** .38**
Clan .23** .23** .14** .02 .12** .13** -.12**
Adhocracy .32** .32** .09** .27** .26** -.09** -.01
Market .03 .03 .10** .19** .29** .02
Hierarchy .25** .25** .27** -.07** .23** -.01 .14**

Total R .23 .53 .21 .53 .27 .56 .07 .49 .26 .49 .13 .40
(R2) (.05) (.28) (.04) (.28) (.07) (.32) (.01) (.24) (.07) (.24) (.02) (.16)
ΔR2model a to
.23** .24** .25** .23** .17** .14**
model b
** p < .01.

SUPPLEMENTARY MATERIAL 65

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