What Do Financial Executives Say about Corporate Culture and Strategy?

Abstract

We present interview evidence from financial executives that highlights how thinking about culture in a quantitative way and making continuous investments in culture can amplify success, improve firm value, and help employees thrive in the new world of work. By reporting financial executives’ views of when, how, and why strategy and culture matter for performance, we provide novel insights for scholars looking to improve their theories of strategy and culture and for practitioners looking to build better businesses. Among the many insights, financial executives insist that culture can be quantified and even optimized, and that firm characteristics are of central importance to determining the interaction between culture and strategy. We conclude by sharing ideas for building an effective corporate culture.

Keywords: corporate culture, organizational culture, strategy, leadership, intangible value, sustainable value

JEL Classification: G30, G32, L10, L21, M10, M14