VN1704 00361 Culture In Influencing Aviation

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THE SIGNIFICANCE OF CORPORATE CULTURE IN

INFLUENCING AVIATION ORGANISATIONS’

PERFORMANCE

1. Introduction

The influences that corporate culture could have on firms in the aviation industry has been pointed

out to be significant (Kaufman, 2013). As such, this essay aims to provide an in-depth analysis on

the significance of corporate culture in the influencing of aviation organisations’ performance

within the industry. In particular, an overview on the concept of corporate culture will be

constructed first and foremost; then a thorough evaluation on how corporate culture could have

different impacts on aviation firms’ organisational performance will be given out throughout the

rest of the essay.

2. Discussion

2.1. Definition of Corporate Culture

There have been plenty of attempts to define organisational culture with the aim to best summarize

all of its crucial elements, which have spanned across many research fields as well business

industries around the world (Schein, 1990). According to Crémer (1993), corporate culture can be

defined as the base knowledge that is shared by all employees within the organisation, and that it

is largely formulated by different environments inside and outside of the company and the

corporation’s own activities over time. A broader definition of the term has also been provided by

Schwartz and Davis (1981), in which corporate culture is a set of beliefs and expectations that are

shared by all members of the corporation, and that it is different from organisational climate. In

addition, the study conducted by Gordon (1985) has been able to extract the concept’s boundaries,

stating that external factors such as market features generally outline the corporate culture of an

industry. As there could be numerous definitions of the concept across various articles in different

industries, the definition of corporate culture crafted by Crémer (1993) will be used throughout

this essay due to its conciseness.

2.2. Importance of Corporate Culture to Aviation Firms’ Performance

The significance of corporate culture to the performance of firms has been extracted in various

researches in the past. In particular, it has stated that there are three positive impacts that are

generated from the possession of a well-crafted corporate culture. The first impact is goal-setting:

owning a well-rounded organisational is bound to assist managers in the formulation of strategic

goals as well as employees in decision-making process (Kotter and Heskett, 1992). Secondly,

organisational culture establishes a coordination effect, in which expenses for communication as

well as infrastructures to facilitate coordination are greatly reduced (Crémer, 1993). The third

positive influence is the effect of organisation-wide motivation: when employees believe in

corporate culture, their job motivation will be highly elevated (Besanko et al., 2013). A number of

other empirical studies relating to the topic has also been able to prove that there is a positive link

between a strong corporate culture and a high firm performance, including the ones by Denison

(1984), Sørensen (2002) and Gordon and DiTomaso (1992).

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THE SIGNIFICANCE OF CORPORATE CULTURE IN INFLUENCING AVIATION ORGANISATIONS’ PERFORMANCE 1. Introduction The influences that corporate culture could have on firms in the aviation industry has been pointed out to be significant (Kaufman, 2013). As such, this essay aims to provide an in-depth analysis on the significance of corporate culture in the influencing of aviation organisations’ performance within the industry. In particular, an overview on the concept of corporate culture will be constructed first and foremost; then a thorough evaluation on how corporate culture could have different impacts on aviation firms’ organisational performance will be given out throughout the rest of the essay. 2. Discussion 2.1. Definition of Corporate Culture There have been plenty of attempts to define organisational culture with the aim to best summarize all of its crucial elements, which have spanned across many research fields as well business industries around the world (Schein, 1990). According to Crémer (1993), corporate culture can be defined as the base knowledge that is shared by all employees within the organisation, and that it is largely formulated by different environments inside and outside of the company and the corporation’s own activities over time. A broader definition of the term has also been provided by Schwartz and Davis (1981), in which corporate culture is a set of beliefs and expectations that are shared by all members of the corporation, and that it is ...
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