A Configurational Approach to Investigating the Relationship Between Organizational Culture and Organizational Effectiveness Using Fuzzy-Set Analysis

Abstract

The theoretical literature on organizational culture strongly emphasizes the multifacetedness of the construct. Nevertheless, empirical research has tended to focus on independent culture dimensions rather than applying a holistic perspective that conceives organizational culture as a complex collective. We addressed this issue by investigating configurations of organizational culture using fuzzy set qualitative comparative analysis (fsQCA) within organizational units of two organizations. Across the two samples (1170 employees in 89 work units of a financial service provider and 998 employees in 49 work units of a fashion retailer), results indicated that culture dimensions do not operate in isolation, but jointly work together in achieving different effectiveness outcomes. The results further suggested that several cultural configurations can be equally effective in reaching the same outcome, and that a clan culture is most relevant for achieving low employee turnover, while a market-oriented culture is most relevant for achieving financial effectiveness. With respect to more specific configurations of cultural elements, the results showed some congruencies, but were mixed overall. The discussion focuses on theoretical implications and future directions for applying configurational, set-theoretic approaches to analyzing organizational culture.