**5. Organizational culture and strategy implementation**

### **5.1 Definition and elements of organizational culture**

Organizational culture refers to the shared values, beliefs, assumptions, and norms that guide the behaviors and actions of individuals within an organization [15]. It represents the unique personality and character of an organization and influences how employees think, behave, and interact with each other and with external stakeholders. Organizational culture is composed of various elements, including symbols, rituals, stories, language, norms, and the overall organizational climate [3]. These elements shape the collective identity and provide a framework for decision-making and behavior within the organization.

## **5.2 Competing values framework**

The Competing Values Framework (CVF) provides a model for understanding different types of organizational culture and their implications for strategy implementation [3]. The CVF identifies four types of culture: clan, adhocracy, hierarchy, and market. Clan culture emphasizes collaboration, teamwork, and a focus on employee development. Adhocracy culture values innovation, flexibility, and risktaking. Hierarchy culture emphasizes stability, control, and a clear chain of command. Market culture focuses on competitiveness, results-orientedness, and external market forces. Each type of culture has distinct strengths and weaknesses in relation to strategy implementation. For example, a clan culture may foster employee engagement and commitment, while a market culture may drive a focus on performance and results.

#### **5.3 Organizational socialization theory**

Organizational socialization theory explains how culture shapes employee values, beliefs, and norms, which in turn influence their behavior during strategy implementation [9]. As employees enter and adapt to an organization, they learn the cultural values and expectations through socialization processes. This socialization influences their perception of what behaviors are desirable and acceptable in the organization, shaping their actions during strategy execution. For instance, if the organizational culture emphasizes innovation and risk-taking, employees are more likely to engage in proactive and creative behaviors to support strategy implementation.

#### **5.4 Schein's model of organizational culture**

Schein's model of organizational culture highlights three levels of culture: artifacts, espoused values, and basic underlying assumptions [15]. Artifacts are the visible and tangible aspects of culture, such as physical symbols, rituals, and behaviors. Espoused values represent the stated beliefs and norms that are promoted by the organization. Basic underlying assumptions are the deeply embedded, unconscious beliefs and values that guide behavior but may not be explicitly acknowledged. These levels interact and influence each other, shaping the organization's culture and its impact on strategy implementation. For example, if the artifacts and behaviors reflect a culture of collaboration and adaptability, employees are more likely to exhibit cooperative and flexible behaviors during strategy implementation.

In conclusion, organizational culture plays a crucial role in strategy implementation. The Competing Values Framework helps identify different types of culture and their implications for strategy execution. Organizational socialization theory explains how culture shapes employee values and behavior. Schein's model of organizational culture highlights the levels of culture and their impact on strategy implementation. Understanding the elements of culture and their influence on behavior can help organizations align their culture with strategic objectives and create an environment conducive to effective strategy implementation.
