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The IUP Journal of Management Research

Role of Organizational Culture as an Internal Business Factor in Successful Strategy Execution: A Review

Article Details

Pub. Date	: April, 2022
Product Name	: The IUP Journal of Management Research
Product Type	: Article
Product Code	: IJMR010422
Author Name	: Manoj Kumar Sharma* and Sonali Sharma**
Availability	: YES
Subject/Domain	: Arts & Humanities
Download Format	: PDF Format
No. of Pages	: 22

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Abstract

A business enterprise operates in a highly complex, dynamic, and multifaceted environment, which deeply impacts its operations and ways of achieving the set objectives. Its strategy, which is crucial for achieving the objectives, is also affected by the environment, and so are the strategic actions like formulation, implementation, and evaluation. Amongst them, strategy implementation is the most important stage, subject to high rates of failure, mainly due to a firm's negligence towards environmental forces, both internal and external. Over the decades, the attention of experts has shifted to the "internal environment" and understanding its relationship with a firm's strategic actions. With regard to implementation, several internal determinants have been reported, "organizational culture" being one of the most frequently quoted. Keeping all these facts in mind, the current study attempts to elucidate the role of organizational culture, as an internal factor, in a firm's strategy execution. Through an extensive review of literature spanning over 11 years i.e., 2011-2021, and analysis of 33 relevant studies, the paper finds that culture plays a significant role in ensuring successful implementation of strategic plans. A "positive" culture is concluded to improve goal achievement, profitability, and overall results.

Introduction

It is widely acknowledged that a business enterprise does not exist in a vacuum, but operates through constant interactions with its environment (Worthington and Britton, 2015, p. 12) in the form of exchange of information, resources, influence, and power (Malhotra, 2018). The "business environment" is characterized as highly complex, dynamic, relative, and multifaceted (Hans, 2018). Its impact on an