CHANGING CORPORATE CULTURE TO IMPROVE BUSINESS PERFORMANCE: CASE OF THE AUSTRALIAN AUTOMOBILE INDUSTRY

Abstract

Literature suggests that by developing distinctive cultural traits of involvement, mission, consistency and adaptability, firms can achieve effective business performance. Whilst this topic has been researched worldwide, little research has been done in Australia. This paper helps fill this gap in the literature using the automobile industry. The research findings suggest that a link between corporate cultural traits and business performance exists in the Australian automobile industry. Compared to other cultural traits, adaptability has the greatest influence over business performance. Of the business performance measures assessed, both non-financial and financial, customer satisfaction as a non-financial measure was considered the most important one. In comparing cultural traits and business performance, consistency and mission were found to be important predictors of profitability; and adaptability and mission important predicators of sales growth.