Matija Bakarić

Influence of organizational culture on firm efficiency: competing values framework in Croatian forestry

For forestry sector in transition economies organizational or corporate culture can be a key link in restructuring processes and business improvements of forest companies. A considerable amount of research about corporate culture influence on firm’s efficiency in various sectors has been conducted, but no one has explored the impact of cultural and managerial components on the development of organizational structure of forest company and improvement of its organizational efficiency. This paper addresses this dearth of research by examining forestry employee’s attitudes, using Competing Value Framework and associated models. The goal is to evaluate forestry firm’s organizational culture, investigate the relationship between culture characteristics and diverse measures of company units’ efficiency (a separate structural and production units). The findings should be used as a potential mediator for the firms restructuring process and business improvement. Results of research, conducted in Croatian forestry sector context, provide evidence that developed approach, i.e. examining and identifying corporate culture, can be used for performance improvements. Results suggest that unbalanced focus of the existing firm culture, with formally directive management style and the lack of reward system, results with a strong resistance to essential improvements in forest company performance. In the discussion this is displayed and argued through a holistic approach to develop (upgrade) forest company (structural, business, and cultural) efficiency.