Organizational Culture: Internal and External Fits

The culture of an organization is increasingly being viewed as an important determinant of its performance. This paper adopts the position that the importance (even relevance) of culture to performance is contingency driven. We conceptualize organizational culture in terms of the degree of internal fit (cohesion and consistency) and externalfit (linkages to strategy and the environment). The needfor tight or loose fits under a variety of conditions (within, and external to, the firm) is investigated. Conclusions are drawn regarding the nature of fits appropriate to an organization facing combinations of these conditions.

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