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has been producing small cars since 1974, imported cars are still more economical than
their US equivalents (Huff, 1982). By benchmarking against each other rather than
against global rivals, US manufacturers converged in making similarly misguided
resource commitments over the years and in disregarding looming threats from seemingly
peripheral producers (Halberstam, 1986; Keller, 1989).
Finally, because not all organizational assumptions and values are driven by industry
imperatives, one should not be surprised to find significant variations in culture within
industries. Companies in the same industry can encompass very different elements in
their corporate cultures, as long as those elements are not driven by basic industry
assumptions. Variations may stem from founders’ convictions, successful coincidences
(see Schein, 1985) or changes in management.
Variations may also stem from changes in the industry environment and the fact that
companies react in different ways. When, for example, some of the successful past behav-
iours that have evolved from industry-shared cultural elements are no longer effective,
companies will feel pressure to search for new actions that will be more effective. However,
because the competing firms will have had little, if any, experience with such actions (i.e.
the previous industry context did not call for them) it is likely that a variety of alternative
actions will be attempted by the various companies. Some of these actions will be
successful and will lead to new values (as suggested by Schein, 1985) that are compatible
with the new environmental influences, thereby creating cultural diversity within the
industry. Thus, to some extent, cultural diversity within an industry may be a function of
the dynamism of that industry (Gordon, 1991).
3.6 Organizational Culture and Strategy
Section 3.3 suggested that the link between national culture and organizational culture is
important for employees and thus for corporate performance. Section 3.4 discussed the
link between ‘cultural fit’, or the fit between the cultures of merging corporations, and
corporate performance. Another way in which organizational culture is linked to econ-
omic performance is by means of its relationship to strategy (see Figure 3.3). It has been
suggested that in order to be successful, a company’s strategy should be aligned with, or
‘fit’, its organizational culture. This relationship is far from straightforward, however.
Hence, while there are several approaches to the relationship between organizational
culture and strategy, only one suggests the link with success. Below we briefly discuss the
different approaches and clarify why one should be wary of the link with success.
One less popular approach to the link between strategy and organizational culture
suggests that the two are essentially synonymous because they are both ‘deeply ingrained
patterns of management behavior’, and they both ‘[emerge] out of the cumulative effect
of many informed actions and decisions taken daily and over years by many employees’
(Greiner, 1983, cited in Weick, 1985: 384).
Another approach sees organizational culture as the driving force behind all move-
ments in the organization (an approach that is advocated by, among others, Mintzberg,
1979, and Saffold, 1988). This approach argues that the chosen strategy depends to, a
large extent, on the existing culture. As an illustration of this relationship between culture
and strategy, Gordon (1991: 399) considers an electric utility where a basic assumption is
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