The Importance of Corporate Culture in International Market

Topics: Organizational culture, Organizational studies, Organizational studies and human resource management Pages: 17 (5142 words) Published: December 13, 2012
Paschaloudis-Haidos-Pantelidis- Anastasiadou-Dapis, 656-667

“The Importance of Corporate Culture in International Market: The case of Procter & Gamble” Dr D. Paschaloudis, K.Anastasiadou Technological Educational Institute of Serres Department of Business Administration, Greece dim@teiser.gr, ak@teiser.gr S. Haidos University of Sunderland, Business School U.K stefhai80@yahoo.gr Dr P. Pantelidis Technological Educational Institute of Serres Department of Business Administration, Greece pantelidis@c.forthnet.gr A. Anastasiadou Technological Educational Institute of Serres, Liaison office between higher education, industry and market natasa@teiser.gr D. Dapis Technological Educational Institute of Serres Department of Accounting, Greece

Abstract Many academics argue that corporate culture constitutes a vital factor for the organizational performance. The specific research focuses on the called “behavioral side” of organization and management in general. This managerial approach supports that the difference between high performing and lower performing organizations is affected significantly from the Core values and Principles of their organizational/corporate culture. Studies from Pascale (1985) and Kotter & Heskett (1993) mentioned that the most usual reason for an organization’s failure is that they did not focused enough on their corporate culture. Porter (1979) argued that large, successful organizations simply respond to external markets and narrow forces based just on financial criteria such as: entry-barriers, market share and suitable policy against competitors. Firms like Wal-Mart and P&G become successful not only by following the factors that Porter (1979) suggested. Their competitive advantage in achieving this enormous performance seems to be its organizational/corporate culture. Using the qualitative case study method, in other words presenting the “Procter & Gamble” case study, the research will practically demonstrate how the strong culture of this specific organization has a great impact on its international performance. P&G is chosen as a case study because this corporation constitutes an excellent example of an undoubtedly strong culture, while it is widely known as one of the most profitable consumer marketing organizations. Also notice that the nature of a particular culture is a reflection of the original strategies of the founders of the company, as well as the learning and retention that have occurred over time. Therefore, the main aim of this paper is to theoretically buttress that the specific culture of an organization greatly affects its MIBES 2008

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effectiveness/performance, as well as to present and critically analyze the case of Procter & Gamble in order to demonstrate this influence in a business-like manner in the international field. Keywords: corporate culture, international performance, organizational behavior management, business

Introduction
During the 1980’s there was a break-through in the field of organizational/corporate culture. The specific trend began with the books “The Art of Japanese Management” by Pascale and Athos (1981) and “Corporate Cultures” by Deal and Kennedy (1982) and reached at its peak with the book that probably best presents this trend, “In search of Excellence” by Peters and Waterman (1982). Since then, numerous academics and other authors have published various books focusing on organizational studies and management. Porter (1979) argued that large, successful organizations simply respond to external markets and narrow forces based just on financial criteria such as: entry-barriers, market share and suitable policy against competitors.. Firms like Wal-Mart and P&G become successful not only by following the factors that Porter (1979) suggested. Several recent studies indicate that the factor that distinguishes those from their competitors is something less tangible. Their...

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