Organizational culture and strategy

The paper analyzes the relationship of strategy and organizational culture as two fundamental concepts in management. The results of recent empiric research are first presented, which prove that there is a relationship of interdependence and influence between strategy and organizational culture. Then, the nature and mechanism of the influence of culture on strategy formulation and implementation are analyzed, as well as the influence of strategy on organizational culture. It is shown that organizational culture influences the strategy formulation by determining the gathering of information, perception and interpretation. Also, organizational culture can, through the process of legitimization, facilitate or disable strategy implementation. On the other hand, implementation of the selected strategy leads to the strengthening or changing of organizational culture through the process of its institutionalization.