The impact of organizational climate and strategic fit on firm performance

A firm's organizational climate-its degree of trust, morale, conflict, rewards equitity leader cred-ibility, resistance to change, and scapegoating-helps determine its success. Likewise, organiza-tional strategy the firms commitment to capital investment, innovation, quality, and the like-has also been found to be an important determinant of firm performance. However, prior work has most often explored the impact of climate and strategy separately, and not in tandem. In our study, we develop a measure of organizational climate comprised of tension, resistance to change, and conflict, and go on to show that at least for some pairings of a firm's climate and its strategy, there is a negative effect on return oil assets (ROA). (C) 2004 Wiley Periodicals, Inc.