Assessing the Relationship between Strategy and Organizational Culture in an Iranian Manufacturing Industry


  •  Khaled Nawaser    
  •  Fatemeh S. Shahmehr    
  •  Azadeh Kamel    
  •  Seyed Mahdi Vesal    

Abstract

Organizational culture and strategy are linked because organizational strategy can be devised by studying theorganizational culture in place. In other words, organizational strategy is influenced by the culture set in theorganization. Organizational culture and strategy are often part of the major contributing factors to how far abusiness will proceed. The purpose of this paper is to investigate the relationship between organizational cultureand the competitive strategies in Iran-Khodro Automotive Company. The research was conducted in Iran-KhodroAutomotive Company. The employees were considered as the population of the study and a questionnaire wasdesigned for the purpose of data collection. Results show that there is a significant relationship between strategyand organizational culture. Considering a minor difference between differentiation and lower cost strategies, thecompany's strategies could be mentioned as a combination of the two. Furthermore, in terms of its competitivestrategies, the company seems to pursue differentiation strategy rather than focus strategy. In addition, analysis ofthe company’s organizational culture characteristics demonstrates that some of these characteristics are not incoordination with company's strategies in specific cases in the Company.


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