Application of the Denison model in the Hungarian energy sector: analysis of organizational culture and management practices in consideration of corporate strategy

Abstract

Contemporary American business literature continuously examines the effects of organizational culture on the formation and management of companies. A strong organizational culture encourages member participation and involvement, which is a core value for the company. The present research analyzes the relationships between cultural characteristics, management practices and corporate strategy through the example of a large Hungarian energy company. The primary research was carried out using a quantitative method, a questionnaire survey, evaluating 4,361 data files using a multivariate statistical method. The special feature of the research is that the values of the individual dimensions were compared to the international industry benchmark. Our aim is to prove with the results of the questionnaire survey and the application of Denison’s organizational culture model that the territorial and cultural differences between the company’s headquarters and rural locations, as well as organizational flexibility, influence the effective achievement of business goals. The study examines more deeply how the Denison model can be applied to analyze organizational culture and increase competitiveness. We examine the 3 × 4 dimensions of organizational culture that have the greatest impact on business performance. The survey is representative of all demographic units examined. According to our results, the organizational culture score and the companies’ financial indicators, such as profitability, sales growth and book value, show a positive correlation. The research contributes to a deeper understanding of the role of organizational culture in achieving competitiveness.