Effects of the organizational culture and knowledge exploration and exploitation on results in the EFQM model framework

Abstract

Purpose This paper aims to adopt Cameron and Quinn’s analysis of organizational culture and March’s learning framework to analyze the type of organizational culture (OC) that promotes learning competences and whether exploration and exploitation competences (ambidexterity) improve the European Foundation of Quality Management (EFQM) results (excellent results). In addition, this research tests if these competences exercise a mediating effect in the relationship between OC and performance. Design/methodology/approach A model is proposed whose relationships have been tested using structural equations. The sample was obtained from the SABI database. Two hundred valid questionnaires were returned via a webpage, in which four managers from each of the 200 organizations responded. Findings The results support the proposed relationships. Adhocracy, hierarchy and market culture have a positive relationship with excellent results. A hierarchical culture develops exploitation competences, and a market culture develops learning ambidexterity. Moreover, exploration and exploitation increase results. Finally, these two cultures indirectly influence results through exploration and exploitation competences. Research limitations/implications The proposed model can help managers who implement the EFQM model to better understand how the culture of their organization promotes learning and how these two variables improve their performance. Practical implications Because the EFQM model requires organizations to use a knowledge management system to enhance the effect of the enabliers criteria on excellent results, the managers of these companies must know that only market and hierarchy cultures are suitable for it. Besides, this study highlights the importance of two cultural values for the implementation of the EFQM Model and, therefore, to promote excellent results: market orientation and process control. Originality/value This study fills an existing gap in the literature by combining exploitation, exploration, OC and EFQM results in a single model and highlights the importance of market orientation and process control for excellent results and knowledge exploration and exploitation.