Does Organizational Culture Impact on Firm Performance: Evidence From Turkey

This paper aims to examine the impact of corporate culture over the financial performance of certain enterprises therewith by covering the data of chemical, petroleum, rubber and plastic products firms (XCHEMST) traded in Borsa Istanbul. In that regard, corporate culture data have been obtained from the surveys of the Denison's Organizational Culture Model (DOCM) employees and managers of these businesses while the financial data were gleaned from financial statements of the mentioned enterprises between 2012-2016. We posited the ROE as a dependent variable while ROA and DEBT EQUITY have been employed as explanatory financial variables. Accordingly, we have determined SIZE and AGE as firm-specific variables. Utilizing cross-sectional data and multiple linear regression models, we estimated the coefficients of the variables with the aid of an OLS estimator. In so doing, this paper provides sufficient empirical evidence that three out of four cultural traits in the Denison's Theory have had no impact on the financial performance of Turkey's chemical firms traded on BIST, whereas the mission trait has had a significant impact. Consequently, our results are largely in line with the findings of other C/P research, suggesting that the mission trait of the DOCM is the core cultural term in ensuring thriving firm corporate performance.