Managing Culture as a Competitive Resource: An Identity-Based View of Sustainable Competitive Advantage

Abstract

How can organizations manage the cognitive processes by which a firm invests in resources for competitive advantage? Studies of organizational culture, as currently framed, have not provided adequate answers to this question. By focusing either on culture as underlying beliefs or on culture as behavioral manifestations, these studies have overlooked the critical links between beliefs and behaviors that are at the very core of managing cognitive processes for sustained advantage. This article reframes the culture concept to highlight the role of contextual identities in linking behaviors and their social meaning in organizations. Drawing on theories from cultural linguistics and structural anthropology, it argues that cognitive processes in organizations do not directly reflect either behaviors or underlying beliefs. Rather, they represent the interface between the two. To manage cognitive processes for competitive advantage requires that we attend to the identities by which people make sense of what they do in relation to a larger set of organizational norms.