Opposites attract: organisational culture and supply chain performance

Abstract

Purpose – The aim of this paper is to expand the knowledge of buyer‐supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high‐performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low‐performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm‐based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.