Impacts of Organizational Culture on Business Performance-The Case of Multinational Companies in Ethiopia
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Date
2021-04
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Addis Ababa University
Abstract
The main objective of this research was to review the impacts of organizational culture on business performance both in its financial and non-financial perspectives of it on the multi-national environment here in Ethiopia. The four main organization cultural traits mainly involvement/participating, consistency, adaptability and mission indicated on Denison model used as a framework to assess its respective impact on both the financial and non-financial business performance on the multi-national companies that are operating here in Ethiopia. The scope of the research was limited to its study on five multi-national companies named Diageo Meta brewery, Heineken Ethiopia, BGI Ethiopia, Coca Cola Beverage Ethiopia and Habesha breweries having a total target population of 35 in senior leadership roles across various functions. In order to achieve its key objective, the research used a primary data collection method through a questionnaire form and analyzed the data using a descriptive and inferential statistical analysis technique. The findings of the research showed that the four cultural traits has a significant impact on both the financial and non-financial performances of those multi-national companies that are operating here in Ethiopia even though the magnitude of its respective impact varies from one cultural traits to another. Finally, the research concludes that all the four cultural traits has a significant impact on business performance of the multinational companies in Ethiopia and the researcher recommend those companies to have a clear process of establishing and maintaining of a robust organizational culture that better support their strategic business objectives
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organizational culture, consistency, organization cultural traits