The effects of organizational culture on firm performance in construction and building materials industry in Vietnam
Abstract
Along with the strong development of science and technology, companies
need to create their own competitive advantages and effective business strategies to
make differences and succeed in today's tough market. To achieve such results, the
core values and the factors affecting firm performance have always been an unsolved
problem for companies and businesses; especially firms in Vietnam, a developing
country with many potential opportunities for not only domestic businesses and
investors but also foreign ones.
Recently, construction and building materials market in Vietnam is more
volatile. The companies in this industry are competing fiercely each other to get some
achievements. In addition to these market factors, organizations or firms also need to
build and invest for themselves a team of quality staffs and a dynamic and
professional workplace which can be called "organizational/corporate culture".
Therefore, the aim of this research is to understand the effects of organizational
culture on firm performance in Construction and Building Materials Industry in
Vietnam.
By applying the Denison model with data collected from 284 respondents
working in construction and building materials firms in Vietnam and one in-depth
interview, the research sought out that Creating Change and Agreements are the most
popular factors applied. Besides, organizational cultural traits influence on
performance through overall performance, market share, profitability, sales growth
and employee satisfaction aspects.
Despite of some limitation, this study somehow brings to construction and
building materials companies in Vietnam the findings and results about the effects of
organizational culture on firm performance. From that, each firm can formulate
strategies to build and invest to create effective corporate culture and professional
working environment in order to enhance firm performance which is also considered
as an important competitive advantage comparing to other construction and building
materials firms in Vietnam nowadays.