Organizational Culture As A Source of Competitive Advantage - Case Study of A Telecommunication Company in Poland
Organizational Culture As A Source of Competitive Advantage - Case Study of A Telecommunication Company in Poland
Organizational Culture As A Source of Competitive Advantage - Case Study of A Telecommunication Company in Poland
Maryla Bogdanowicz*
Abstract
Background. Research on organizational culture has received significant attention recently.
However, a limited number of studies examine the alignment of organizational culture with
the strategic goals of the company and its impact on effectiveness..
Research aims. The aim of this paper is to analyse the impact of organizational culture on
the company competitiveness. The article describes a process of planned cultural changes
conducted from November 2012 to February 2014, and its results in such areas, as
innovation, efficiency, quality, the company identity and external image.
Method. The theoretical framework is supported by a case study of one of the biggest
telecommunication companies in Poland. The author's observation is supported by informal
interviews and company data analysis (Competing Values Framework, Employees
commitment to change survey, Customer satisfaction survey, internal reports, etc.)
Key findings. The case study shows that organizational culture aligned with a strategy is
the inner strength of the organization, significantly improving its competitiveness. One of the
most important elements in the process of change is the correct diagnosis of the difference
between the current and the desired cultural characteristics. In this case, the important
cultural gaps covered such areas, as the company structure, procedures and internal and
external communication.
products, a large market share, suppliers and buyers with low bargaining
power, rivalry among competitors, and unique products or services.
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top five performers in the last two decades of the twentieth century
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*
Maryla Bogdanowicz, PhD candidate, Kozminski University, Poland.
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54 International Journal of Contemporary Management, 13(3), 53–66 2014
easily replicate what the company has been doing and any advantage
would quickly disappear. Resources and capabilities form distinctive
competencies, that enable innovation, efficiency, quality and customer
responsiveness, all of which can be leveraged to create cost advantage or
differentiation advantage. Competencies that reside in the culture of the
firm help sustain competitive advantage, therefore, the phenomenon of
firm's culture and its social complexity plays an important role in defining
competitive advantage and the survival of many firms (King & Zeithaml,
2001). Organizational culture should be regarded as a set of meanings,
created within the organization, but influenced by broader social and
historical processes. Organizational members use these meanings – norms,
roles, plans, ideals and ideas – to make sense of the flow of actions and
events they experience (Robbins & Judge, 2007). Culture represents “how
things are around here,” (Martin, 2002, p. 3) or the prevailing ideology that
people carry inside their heads. Culture affects the way organization
members think, feel, and behave. Gerry Johnson (1988) defines
organizational culture as a web consisted of 6 components: soft (Symbols,
Stories and Myths, Rituals and Routines), and hard (Control Systems,
Power Relationships and Organizational Structures). Johnson underlines
that the soft components are the “glue” that holds the hard components
together and decides the uniqueness of the culture. The web tries to make
sense of the myriad of internal structures and processes that arise from,
and continuously reinforce an organization’s view of itself. The web
influences individual members self-perception, as well as their internal
organization and external environment. The constituent parts of this web
are unique to each organization.
and meeting new challenges are important. The organization’s long term
emphasis is on rapid growth and acquiring new resources. Success means
producing unique and original products and services. A market culture is
a results-oriented workplace. Leaders are hard driving producers,
directors, and competitors. They are tough and demanding. The glue that
holds the organization together is an emphasis on winning. The long-term
concern is on competitive actions and achieving stretch goals and targets.
Success is defined in terms of market share and penetration. Outpacing
the competition, escalating share price, and market leadership dominate
the success criteria. The hierarchy culture is characterized as a formalized
and structured place to work. Procedures and well-defined processes
govern what people do. Effective leaders are good coordinators, organizers,
and efficiency experts. Maintaining a smooth-running organization is
important. The long-term concerns of the organization are stability,
predictability, and efficiency. Formal rules and policies hold the organization
together.
and implicit assumptions about the way the organization functions. The list
of dimensions has proven to provide an adequate picture of the type of
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people
Source: Cameron & Quinn (1999).
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METHOD
XYZ has a big advantage over its competitors; (3) 46% of customers are
ready, at any moment, to use the services of another operator.
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M. Bogdanowicz, Organizational Culture as a Source… 59
RESULTS
Figure 1 Figure 2
The similar results achieved by the two groups and the group
discussions both confirmed that the organization is driven by the
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Open Communications
New communication channels have been established to facilitate open
communication and exchange of information between the Board members
and the employees: (a) regular meetings, called “breakfast with the Board”,
during which the official part (presentation of financial results) is followed
by the Questions and Answers session; (b) box available for the employees
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to leave the questions and opinions to the Board; (c) open door policy; (d)
new interactive Intranet; (e) mailing system managed by the Communication
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with the Board Members, called “Morning coffee”; (h) anonymous surveys
and questionnaires among the staff.
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62 International Journal of Contemporary Management, 13(3), 53–66 2014
Internal communication 78% of the employees know and understand the strategic goals
4/5 of the employees think that the management supports an open
communication
71% of the employees understand how their individual
performance supports the organization's goals
Structures and 85% of the employees state that thanks to simplified procedures
procedures and new internal regulations decisions are made faster and the
work flow is more efficient
Creativity and 77% of the employees engage themselves in the activities that
innovation exceed their scope of responsibility
80% of the employees feel encouraged to do things in a different
way
Education and support 75% of the employees feel supported by the managers
63% of the employees are pleased with the training and personal
development opportunities provided by the company
Source: own elaboration.
enhanced profitability. In 2013, for the first time since 2008, XYZ has
launched new products on the market and acquired new customers.
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M. Bogdanowicz, Organizational Culture as a Source… 65
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Abstrakt
T³o badañ. Badanie kultury organizacyjnej znajduje siê obecnie w centrum uwagi.
Natomiast ograniczona liczba opracowañ analizuje zbie¿noœæ kultury organizacyjnej ze
strategicznymi celami firmy oraz jej wp³yw na skutecznoœæ dzia³añ.
Cel badañ. Celem tej pracy jest analiza wp³ywu kultury organizacyjnej na konkurencyjnoœæ
firmy. Artyku³ opisuje proces planowanych zmian kulturowych przeprowadzonych od
listopada 2012 roku do lutego 2014 roku i jego wyniki w takich obszarach jak innowacja,
wydajnoœæ, jakoœæ, rozpoznawalnoœæ firmy i wizerunek zewnêtrzny.
Metodyka. Struktura teoretyczna jest wsparta przez stadium przypadku jednej
z najwiêkszych spó³ek telekomunikacyjnych w Polsce. Obserwacje autora s¹ uzupe³nione
przez nieformalne wywiady i analizê danych firmowych (struktura wartoœci konkuruj¹cych,
zaanga¿owanie pracowników w ankietê zmian, ankieta satysfakcji klientów, raporty
wewnêtrzne, itd.)
Kluczowe wnioski. Studium przypadku pokazuje, ¿e zbie¿na ze strategi¹ kultura
organizacyjna jest wewnêtrzn¹ si³¹ organizacji, znacznie poprawiaj¹c¹ jej konkurencyjnoœæ.
Jednym z najwa¿niejszych elementów procesu zmiany jest poprawna diagnoza ró¿nic
pomiêdzy obecnymi a po¿¹danymi cechami kulturowymi. W tym przypadku wa¿ne luki
kulturowe obejmuj¹ takie obszary jak: struktura firmy, procedury, komunikacja wewnêtrzna
i zewnêtrzna.