CEO values, organizational culture and firm outcomes

Abstract

Abstract Few empirical works have examined the process through which CEO dispositions relate to organizational outcomes. In this study we examined the relationships between CEO values and organizational culture, and between organizational culture and firm performance. Data were collected from different sources (26 CEOs, 71 Senior Vice Presidents and 185 other organizational members), and include organizational financial performance data collected at two points in time. In support of our hypotheses, CEO self‐directive values were associated with innovation‐oriented cultures, security values were associated with bureaucratic cultures and benevolence values were related to supportive cultures. In turn, cultural dimensions showed differential associations with subsequent company sales growth, an index of organizational efficiency and assessments of employee satisfaction. Copyright © 2007 John Wiley & Sons, Ltd.