A CRITICAL EVALUATION OF CORPORATE CULTURE AS DETERMINANT OF ORGANIZATIONAL PERFORMANCE IN THE MANUFACTURING COMPANIES IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The subject of corporate culture and its impact on performance has garnered significant attention from both scholars and managers due to its influence on positive organizational outcomes. The performance of a corporation is integral to its success and longevity, directly affecting its effectiveness (Samad, 2020). Scholars in management have acknowledged that evaluating organizational performance is crucial for assessing overall organizational health. In today's rapidly changing world, managers and employees must comprehend and respond to factors influencing corporate performance (Samad, 2018; Samad and Yusuf, 2022). These includes both the external and internal environments within which the corporation operates (Samad, 2018).

According to Daft (2022), the external environment consists of the task environment, which includes customers, competitors, suppliers, and the labor market, and the general environment, which encompasses technology, natural factors, socio-cultural aspects, economic conditions, legal and political factors, and international considerations. The internal environment comprises elements within the corporation such as employees, management, and corporate culture, which shape employee behavior and ultimately support corporate performance (Daft, 2012; Samad, 2018). Prior research has underscored the correlation between corporate performance and organizational outcomes. However, there remains a challenge in identifying the precise variables significantly contributing to corporate performance (Samad and Yusuf, 2022; Samad and Abdullah, 2019). Previous studies have linked various factors to organizational performance, including attitudinal and behavioral aspects, as well as organizational factors and culture. Within the internal environment, culture emerges as a crucial element for competitive advantage and firm performance (Daft, 2019; Samad, 2018), indicating its pivotal role in organizational success. Additionally, Peters and Waterman (2018) discovered that outstanding companies possessed distinctive cultures transmitted through stories, slogans, and legends, motivating employees by imbuing their work with meaning. They argued that the dominance and coherence of culture were essential qualities of excellent companies, contrasting them with poor-performing companies lacking a discernible or dysfunctional culture. Furthermore, Daft (2022) argued that corporate strategy and internal culture need to be in harmony. According to Wiener (2019), highly devoted employees provide excellent organizational performance that is difficult to exceed when this alignment takes place. Therefore, a survey will be conducted in order to critically evaluate corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon.

1.2 Statement of the Problem

Various scholars and researchers have explored the concept of corporate culture, agreeing that it encompasses a collection of values, beliefs, and behavioral norms that shape an organization's fundamental identity and guide employee conduct (Deal and Kennedy, 2020; Jones, 2019; Schein, 2019; Deshpande and Farley, 2022). Schein (2020) defines organizational culture as the shared values, beliefs, and behavioral norms within an organization that imbue meaning and govern conduct. Krefting and Frost (2022) suggest that corporate culture can confer competitive advantage by delineating organizational boundaries to facilitate interaction among individuals or by regulating information processing to an appropriate level. Gordon, DiTomaso (2021) and Denison (2018) propose a link between specific organizational cultural traits and performance, emphasizing that culture contributes to superior performance only when it can adapt to changing environmental conditions. The relationship between corporate culture and performance is a significant focus in literature, with studies exploring culture as an organizational asset affecting performance (Peters and Waterman, 2018), with strong cultures correlating with better financial performance. Kotter and Heskett (2019) underscore the importance of culture in determining superior financial performance, particularly noting the impact of an adaptive culture on  organization performance. Additionally, the behavior of organizational members is directly influenced by culture, further linking culture to performance (Galves & García, 2021; Hofstede, 2019). Hence, it is in the light of these that the study seeks to evaluate corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon. 

1.3  Objectives of the Study

The main purpose of this study is to evaluate corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon. Specifically, the study will;

1.Investigate the correlation between corporate culture and organizational performance in the manufacturing companies in Cameroon.

2. determine the specific elements of corporate culture which influences organizational performance in the manufacturing companies in Cameroon.

3. Assess the impact of corporate culture on organizational performance in the manufacturing companies in Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

What is the correlation between corporate culture and organizational performance in the manufacturing companies in Cameroon?

What are the specific elements of corporate culture which influences organizational performance in the manufacturing companies in Cameroon?

What is the impact of corporate culture on organizational performance in the manufacturing companies in Cameroon?

1.5  Research Hypothesis

H0: There is no significant relationship between corporate culture and organizational performance in manufacturing companies in Cameroon.

Ha: There is a significant relationship between corporate culture and organizational performance in manufacturing companies in Cameroon.

1.6  Significance of the Study

Findings from the study will inform government, policymakers and regulatory bodies in Cameroon about the importance of fostering a conducive corporate culture in manufacturing companies. This will lead to the development of guidelines or policies aimed at promoting positive cultural practices that enhance organizational performance and competitiveness in the manufacturing sector. Furthermore, companies in Cameroon will be able to implement strategies in cultivating a supportive and empowering work environment, which can lead to improved employee morale, loyalty, and productivity.  Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon. Empirically, this study will investigate the correlation between corporate culture and organizational performance in the manufacturing companies in Cameroon, assess the impact of corporate culture on organizational performance in the manufacturing companies in Cameroon and examine the specific elements of corporate culture which influences organizational performance. Geographically, the study will be delimited to employees  in manufacturing companies in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Corporate Culture: is the collective values, beliefs, attitudes, and behaviors that characterize an organization.

Organizational performance: is the effectiveness and efficiency with which an organization achieves its objectives and goals.

Employee: an individual employed by an organization or company to perform specific tasks or duties in exchange for compensation.