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Significance of Organizational Culture in Perceived Project and Business Performance

Abstract: For today's project-based organization, understanding of culture is increasingly important. This study examined how an organization's culture contributes to perceived project and business performance. Surveys collected from project managers, project engineers, and executives from 76 U.S. firms revealed the significance of Clan or group culture in improving performance as measured by project time, budget targets, and customer expectations. Clan culture was also found to significantly contribute to an organization's business performance. Cost savings, sales growth, and increased competitiveness were found to be associated with Clan or group culture. Furthermore, project manager experience moderated the organizational culture and performance relationship. Results from this study indicate that Clan or group culture facilitates a cohesive, high performing teamwork environment, and results in improved project and business performance.