The impact of organizational climate and strategic fit on firm performance

  1. Richard M. Burton1,*,
  2. Jørgen Lauridsen2,
  3. Børge Obel3,4

Article first published online: 19 APR 2004

DOI: 10.1002/hrm.20003

Issue

Human Resource Management

Human Resource Management

Volume 43, Issue 1, pages 67–82, Spring 2004

Additional Information

How to Cite

Burton, R. M., Lauridsen, J. and Obel, B. (2004), The impact of organizational climate and strategic fit on firm performance. Human Resource Management, 43: 67–82. doi: 10.1002/hrm.20003

Author Information

  1. 1

    Fuqua School of Business, Duke University

  2. 2

    Department of Economics, University of Southern Denmark

  3. 3

    Department of Organization and Management, University of Southern Denmark

  4. 4

    European Institute for Advanced Studies in Management (EIASM)

*The Fuqua School of Business, Duke University, Durham, NC 27708-0120

Publication History

  1. Issue published online: 19 APR 2004
  2. Article first published online: 19 APR 2004

SEARCH

SEARCH BY CITATION

ARTICLE TOOLS

Get PDF (141K)

Abstract

A firm's organizational climate—its degree of trust, morale, conflict, rewards equity, leader credibility, resistance to change, and scapegoating—helps determine its success. Likewise, organizational strategy—the firm's 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 on assets (ROA). © 2004 Wiley Periodicals, Inc.

Get PDF (141K)