A literature review on organizational culture and organizational effectiveness

The objectives of this paper are to review measures of organizational culture and organizational effectiveness, as well as relationship between them. Firstly, a structured review of a number of organizational culture studies that has accumulated in the past two decades is conducted. Secondly, contents of the studies are analyzed to identify commonalities and gaps, in order to suggest directions for further research. The contents of 69 articles are analyzed by using different approaches. This paper first classifies the previous studies based on criteria as follows: the measure of organizational culture; the measure of organizational effectiveness and the relationship between them.Next, theoretical model, type of organizational culture, measurement and relationship, etc. are further described in each article. Additional relevant contents such as sector, location, and methodology of the studies are also considered. Finally, basic descriptive analysis is conducted for categorizing the studies. It is found that Competing Values Framework (CVF) is the most widespread model in conducting research on organizational culture during the last two decades. The relationship between organizational culture and organizational effectiveness is strongly supported by numerous empirical studies. However, there is still mechanism in hide as an inconsistent of size effects and direction of the relationship. This issue requires more consideration on mediators, moderators and control variables for better understanding the role of organizational culture toward organizational effectiveness.