EFFECTS OF INDIVIDUAL-LEVEL FACTORS ON THE STRENGTH OF CORPORATE CULTURE

INTRODUCTION 7
CHAPTER 1. LITERATURE REVIEW ON INDIVIDUAL-LEVEL FACTORS AFFECTING CORPORATE CULTURE 11
1.1. Theoretical background based on Political Economy findings 11
1.2. Corporate Culture 13
1.3. Satisfaction of Employees with the Company as Individual-Level Factor Affecting Corporate Culture 21
1.4. Turnover Intention of Employees as Individual-Level Factor Affecting Corporate Culture 24
1.5. Perceived Autonomy of Employees from the Management of the Company as Individual-Level Factor Affecting Corporate Culture 26
1.6. Hypotheses and Research Model 28
CHAPTER 2. RESEARCH METHODOLOGY 30
2.1. Methodological Approach 30
2.2. Sample Description 32
2.3. Measurement 36
CHAPTER 3. RESULTS 44
3.1. Empirical Results 44
3.2. Discussion 50
3.3. Implications, Limitations and Directions for Future Research 52
CONCLUSION 54
BIBLIOGRAPHY 56
APPENDIX I. COMPLETE SURVEY SAMPLE 65
APPENDIX II. EXPLORATORY FACTOR ANALYSIS OUTPUTS 79
APPENDIX III. CONFIRMATORY FACTOR ANALYSIS OUTPUTS 82
APPENDIX IV. HETEROSCEDASTICITY AND MULTICOLLINEARITY TESTS OUTPUTS 83
APPENDIX V. PAIRWISE COMPARISONS OF INDEPENDENT VARIABLES OUTPUTS 85
APPENDIX VI. MULTI-GROUP MODERATION ANALYSIS FOR EXPERIENCE
CONTROL VARIABLE 87
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The corporate culture of an organization is a critical determinant of its success and sustainability (O’Reilly, Chatman, 1996)1. It encompasses the shared norms, values, beliefs, and practices that influence how employees interact with each other and with stakeholders outside the organization (Schein, 2010)2. A strong corporate culture fosters a sense of identity and belonging among employees, enhances their commitment and loyalty, and drives organizational performance (Kotter, 2012)3. However, the strength of corporate culture is not solely dependent on top-down initiatives from management; it is also significantly influenced by individual-level factors that reflect the attitudes, perceptions, and behaviors of employees (Hudson et al., 2017)4.
Understanding the effects of individual-level factors on the strength of corporate culture is crucial for several reasons. First, it provides insights into how individual-level factors contribute to or detract from the cohesiveness and effectiveness of the corporate culture (Lu et al., 2016)5. Second, it helps identify the optimal combination of factors that can be leveraged to strengthen corporate culture, thereby enhancing organizational resilience, adaptability, and competitiveness. Third, it offers practical guidance for managers and HR professionals on how to cultivate a positive and inclusive corporate culture that aligns with the organization's strategic goals and values (Kavanagh, Ashcanasy, 2006) .
Given the dynamic and complex nature of today's business environment, where organizations are constantly challenged by technological advancements, changing market demands, and evolving workforce expectations, the need to understand and effectively manage the determinants of strong corporate culture has never been more pressing. This research aims to fill this critical knowledge gap by empirically testing the impact of job satisfaction, employee turnover intentions, and employee autonomy on the strength of corporate culture.
Despite the recognized importance of corporate culture in organizational success, existing literature has predominantly focused on the role of leadership and management practices in shaping and sustaining corporate culture (Nahavandi, 2009; Baumgartner, 2009; Groysberg, 2018)789. While these studies have provided valuable insights, there is a notable gap in understanding the influence of individual-level factors on the strength of corporate culture. Specifically, there is limited empirical research that systematically examines how job satisfaction, employee turnover intentions, and sense of autonomy from management collectively impact the cohesiveness, resilience, and effectiveness of corporate culture.
Furthermore, most studies have treated these individual-level factors in isolation, overlooking the potential interactions and synergies between them that could amplify or mitigate their effects on corporate culture. As a result, there is a lack of comprehensive models that integrate these factors to identify the optimal combination that strengthens corporate culture within a company. This research seeks to address these gaps by adopting a quantitative approach to empirically test the effects of job satisfaction, employee turnover intentions, and employee autonomy on the strength of corporate culture. By doing so, it aims to contribute to the existing body of knowledge by providing a more nuanced understanding of the determinants of strong corporate culture and offering evidence-based recommendations for organizational leaders and HR professionals to foster a positive and inclusive corporate culture...
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