First Article
The article Studying the Links between Organizational Culture, Innovation, and Performance in Spanish Companies discusses innovation as being the fundamental element influencing company’s success in the competitive markets. The Journal explains the need for studying the factors affecting innovation such as factors related to people as well as behavior. Organizational culture is depicted as being in a position to stimulate or restrain innovation in a firm (Naranjo-Valencia, Jiménez-Jiménez, & Sanz-Valle, 2016). Corporate culture can thus affect the performance of a company in either the way. Since innovation is presented as a primary factor that affects performance and corporate culture is a factor that significantly determines a company’s innovation, it implies that corporate culture is a significant determinant of a corporation’s success. Organizational culture is portrayed as shared values that form the mutual understanding foundation as well as communication. Corporate culture affects workers behavior through its primary function that incorporates internal integration as well as coordination. Corporate culture can stimulate the human resources to adopt an innovative practice as the firm’s underlying value and thus foster commitment in its execution (Naranjo-Valencia, Jiménez-Jiménez, & Sanz-Valle, 2016). In such a case, organizational culture will stimulate innovation in a company and thus enable attainment of success. The article samples industrial enterprises in Spanish context, and it found out that culture was a crucial element that fostered innovation and performance. However, it could also serve as a barrier to the latter following the values that the culture promoted. Innovation was found to mediate the association between some organizational cultures and performance and thus the organization’s success (Naranjo-Valencia, Jiménez-Jiménez, & Sanz-Valle, 2016).
Second Article
The article The Link between Organizational Culture and Corporate Performance - An Overview scrutinizes organizational culture and performance by analyzing some existing culture model as well as the empirical studies carried out to determine the link between corporate culture and the organizational performance. Organizational culture is seen as increasing the business financial performance (Ilieş & Gavrea, 2008). Such a proposition is founded on the perception of culture as a component for generating competitive advantage. The article postulates the occurrence of competitive advantage only if the organizational boundaries are designed in a way that it will facilitate interactions and only if the information scope is controlled to suitable levels (Ilieş & Gavrea, 2008). Furthermore, there is sharing of values that makes the managers be in a position to predict employee reactions to some strategic options. In such a case, managers can minimize the undesired consequences scope. Organizational culture should be structured in a manner that will lead to higher profits and lower costs. Besides, it should be distinctive such that it will enable a firm to outshine the others. Besides, it should be imperfectly imitable by the other organizations. The above characteristics make a culture attain a competitive advantage in the market as opposed to the others (Ilieş & Gavrea, 2008). Organizational culture is correlated to organizational performance. Corporate performance, in turn, determines the success of a company that implies that organizational culture is a critical determinant of organizational success.
I agree with the two articles. According to Giménez Espín, Jiménez, and Martínez Costa (2015), human capital is the competitive advantage source. Human capital is shaped by the organization’s culture. Organizational culture thus determines the performance as well as the success of a company. The change in the culture will negatively affect the success of the health care organization because it will discourage workers from performing better. Moreover, the saving strategy of fifteen jobs will translate into workers’ strain that will adversely affect their performance.
References
Giménez Espín, J. A., Jiménez, D. J., & Martínez Costa, M. (2015). The mediating role of
human capital in the relationship between the organizational culture and performance. Proceedings of the European Conference on Intellectual Capital, 122-130.
Ilieş, L., & Gavrea, C. (2008). The link between organizational culture and
corporate performance - an overview. Annals of the University Of Oradea, Economic Science Series, 17(4), 322-325.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links
between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana De Psicología, 48(1), 30-41. doi:10.1016/j.rlp.2015.09.009
