An Empirical Study On The Relation Of Corporate Culture And Corporate Performance Of State-owned Enterprises And Private Domestic Enterprises

After experience from the ways of organizational structure, strategy, human resource management and management styles, Enterprises turn to corporate culture in order to improve performance. Corporate culture has become the core of improving performance. With the rising competition among enterprises, there are higher level requirements in enterprises management. We should realize that corporate culture may improve performance or not, so it's not sure corporate culture improve performance. We need argue that some specific culture will be helpful for performance. Our final objective didn't build the corporate culture but improve corporate performance through building corporate culture system. The existing literatures argue that corporate culture has significant effect on corporate performance. The types of ownership were divided into state-owned enterprises, private domestic enterprises, foreign-invested firms and joint adventure firms. State–owned enterprises are the main of China economy and private domestic enterprises are stronger than before. In the different nature of enterprises, the dimensions of corporate culture on the impact of corporate performance will be different. This paper will study dimensions of corporate culture, and the dimensions of both state-owned enterprises and private domestic enterprises on the impact of performance.Based on the data of pilot study and large-sample, this paper studied the structure of variable of corporate culture and corporate performance. Finally, the variables of ten-items corporate culture (cohesion, employee development, values, management systems, corporate democracy, customers oriented, innovation, team construction, organizational learning and social responsibility) and four-items corporate performance (financial performance, marketing performance, internal operation, learning and development) are constructed with balanced score card. While estimating the measurement model, this paper confirms the structural validity of every variable by the confirmatory factor analysis. Through the methods of structural equation full model, this paper studied the hypothesis and draws conclusions that employee development, values, management systems, customers oriented, team construction, organizational learning and social responsibility has a positive significant effect on corporate performance in the state-owned enterprises and private domestic enterprises, cohesion and corporate democracy has a positive significant effect on corporate performance in the state-owned enterprises, innovation has a positive significant effect on corporate performance in the private domestic enterprises.This paper studied dimensions of corporate culture on the impact of corporate performance in different natures of enterprises. The conclusion of this study will be helpful for domestic corporate culture to building. Meanwhile being conformed in this study, the indicators of corporate culture and corporate performance are helpful for future related research.