What Do Financial Executives Say about Corporate Culture and Strategy?

Abstract

Thinking quantitatively about culture and continuously investing in it can drive success, increase a firm’s value, and help employees thrive. While strategy lays down the rules, culture fuels a firm’s spirit. By analyzing the views of financial executives about when, how, and why strategy and culture influence performance, we derive novel insights for scholars who seek to improve their theories and practitioners who want to build better businesses. We show that financial executives believe that culture can be quantified and optimized. They also consider a firm’s characteristics to be central to determining how culture and strategy will interact. We conclude by sharing ideas for building an effective culture.

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

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