Organizational Culture And Firm Performance

Chinese enterprises have occupied an increasingly important position in global competition. But compared with other world-class enterprises, Chinese enterprises are still at a position of competitive disadvantage. How to reverse this situation and help domestic enterprises to create competitive advantage has been increasingly concerned under the pressure of global competition. As a special kind of social capital, corporate culture is the company’s core competitiveness, and can bring sustainable competitive advantage. Therefore, the study of corporate culture and organizational performance in the Chinese context has important theoretical and practical value.The relationship of corporate culture and performance is influenced by a lot of factors, including leadership behavior. A lot of studies have shown that corporate culture and leadership behavior has influence on each other. As still in the stage of formation, china’s corporate culture reflects the behavior of the ideas and values of entrepreneurs, therefore, the effectiveness of the corporate culture is inevitably influenced by leadership behavior. The study of the mediating role of transformational leadership behavior on the relationship between corporate culture and performance will help companies to select and adjust leadership style.Based on the review of existing research literature, we select151enterprises in Tongzhou City as the object of empirical study. We use the corporate culture Scale developed by Tsui, et al (2006) in the Chinese context, and research the relationship between corporate culture and performance, as well as the mediating role of transformational leadership behavior. We analyze the distribution of the five dimensions of corporate culture in enterprise with different ownership and in different industries.The purpose of this study:(1) Use the corporate culture Scale developed by Tsui, et al (2006) in Chinese context, and research the relationship between corporate culture and performance.(2) Research the relationship between various dimensions of corporate culture and the performance in Chinese context.(3) Research corporate culture conditions in TongZhou’s enterprises and provide theoretical and practical basis for Chinese enterprises the transition of economy.(4) The study of the mediating role of transformational leadership behavior on the relationship between corporate culture and performance will help companies to select and adjust leadership style.The results show that:Various dimensions of the corporate culture distribute differently in enterprise with different ownership and in different industries. Corporate culture and its dimensions can significantly promote enterprise performance. Transformational leadership significantly strengthened the relationship between corporate culture and performance. Transformational leadership significantly strengthened the relationship between staff development, innovation and the performance.