Exploring the relationship between national culture and organizational commitment of employees : in the business case of AEG Identifikationssysteme GmbH

Purpose - This master thesis explores the relationship between national culture, organizational culture and organizational commitment of employees in a small to medium sized organization. Many studies have reported relationships between two of the three research topics, very few have reported relationships among all three, and those were carried out in large organizations. This thesis seeks to attempt to help close the literature gap by examining the relationship among all three concepts in a small to medium sized organization. Design/Methodology/Approach - This research uses Hofstede's Value Survey Module 2008 (VSM08) to measure national culture dimensions. It uses Cameron and Quinn's Organizational Culture Assessment Instrument (OCAI) to measure organizational culture. Meyer and Allen's Organizational Commitment Scales (ACS, CCS, and NCS) are used to measure organizational commitment. The relationship among the three concepts is analyzed and interpreted with the help of a Pearson correlation matrix between all measured dimensions. Findings - National culture, organizational culture and organizational commitment of employees in a small to medium sized organization are related. Organizational culture has a higher impact on organizational commitment than national culture, which has a moderate influence on the other two. The most important finding of this research is the understanding that organizational cultures should be balanced to maintain high levels of commitment. In addition clan cultures are preferable over hierarchy cultures for high levels of commitment. Research Limitations - The small number of respondents may not be representative enough to draw general conclusions. Different scales in the three questionnaires as well as translation issues of the questionnaires may have influenced the results. Originality/Value - This study endorses the literature in the respect that it helps closing the gap of studies linking national culture, organizational culture and organizational commitment within small to medium sized organizations.