Сorporate culture as a component of enterprise’s competitive advantages

Authors

DOI:

https://doi.org/10.33987/vsed.1(69).2019.189-198

Keywords:

corporate culture, strategic factor, competitiveness, competitive advantage, cultural adaptation, lifelong learning, career advancement, image

Abstract

The article investigates the role of organizational culture in the competitive advantages formation process of an enterprise. The main scientific works on the essence of organizational culture and its role in the competitive advantages formation process are analyzed. The main points of view relatively of corporate culture impact on the enterprise’s competitiveness are presented. It has been determined that a competitive advantage is a locking of a strong competitive position of an enterprise and determines the nature of its competitive strategy. It is proved that an organization ability is realized through two components, which are carriers of formalized and non-formalized knowledge, namely: process execution technologies and personnel competencies. The authors’ opinion is highlighted about that non-formalized knowledge reflects of corporate culture quality, namely, the spirituality of business, and, consequently, makes impossible to copy it by competitors. It has been determined that informal norms represent a deep level of corporate culture, where values are perceived automatically in the subconscious as true, irreplaceable, like those that do not need to be legitimized and cannot be copied. It is proved that an influence factors, which characterize of an enterprise’s corporate culture state, are: leadership style; the level of power centralization; an effectiveness level of motivation systems; professional training for career advancement managers; managerial competence level; degree of workers involvement in decision making and leader image. On the basis of experience studying of Odessa city leading enterprises, it is proved that the key to their competitive advantages has become implementation the system of corporate culture strategic principles. The measures system of cultural adaptation is justified, namely: ensuring of information transparency and timeliness; awareness of an importance of cultural and moral values by employees; the growth of management role and the chief executive officer (leader) personally, who initiates and heads organizational changes; involvement of employees in management decisions; formation of a rotation promotion system, lifelong learning, career advancement; formation of a positive image (reputation) encouraging creative, innovative activity

Author Biographies

Valeriy Nikiforenko, Odessa National Economic University

Doctor of Economics, Professor, Head of Personnel Management and Labor Economics Department

Vera Kravchenko, Odessa National Economic University

PhD in Economics, Professor of Management Department

References

Semykina, M., Maslenko, O. (2007). Management of enterprise’s innovation process on the basis of a positive innovation culture forming [Upravlinnia innovatsiinym protsesom pidpryiemstva na zasadakh formuvannia pozytyvnoi innovatsiinoi kultury], Visnyk natsionalnoho universytetu «Lvivska Politekhnika», Problemy ekonomiky ta upravlinnia, s. 549‒554 [in Ukrainian]

Nazarova, G. V., Gavkalova, N. L., Markova, N. S. (2006). Human capital of corporate enterprises formation and development [Formuvannia ta rozvytok liudskoho kapitalu korporatyvnykh pidpryiemstv], Vydavnytstvo KHNEU, Kharkiv, 240 s. [in Ukrainian]

Schein, E. (2002). Organizational culture and leadership. Trans. from Eng. V. A. Spivak [Organizatsionnaya kultura i liderstvo; per. s angl. pod red. V. A. Spivaka], Piter, Sankt-Peterburg, 336 s. [in Russian]

Cameron, K., Quinn, R. (2001). Diagnosis and change in organizational culture. Trans. from Eng. I. V. Andreeva [Diagnostika i izmenenie organizatsionnoy kultury; per. s angl. I. V. Andreevoy], Piter, Sankt-Peterburg, 320 s. [in Russian]

Khayet, G. L., Medvedeva, O. A. (2001). Corporate culture and values of humanity [Korporativnaya kultura i tsennosti chelovechestva], Donbasskaya gosudarstvennaya mashynostroitelnaya akademiya,

Kramatorsk, 268 s. [in Russian]

Daniuk, V. M., Chernushkina, O. O. (2010). Modern understanding of corporate culture [Suchasne rozuminnia korporatyvnoi kultury], Spetsialnyi vypusk u 3 tomakh, Sotsialno-trudovi vidnosyny: teoriia i praktyka, KNEU, Kyiv, Tom 1, 549 s. [in Ukrainian]

Millner, B. Z., Rumyantseva, Z. P., Smirnova, V. G., Blinnikova, A. V. (2006). Knowledge management in corporations. Ed. by B. Z. Millner [Upravlenie znaniyami v korporatsiyakh; pod red. B. Z. Milnera], Delo, Moskva, 599 s. [in Russian]

Nonaka, I., Takeuchi, H. (2003). The company is a creator of knowledge. Innovations origin and development in Japanese firms. Trans from Eng. A. Traktinskiy [Kompaniya – sozdatel znaniya. Zarozhdenie i razvitie innovatsiy v yaponskikh firmakh; per. s angl. A. Traktinskogo], Olimp Biznes, Moskva, 384 s. [in Russian]

Kuznetsova, I. O. (2009). Monitoring as a component of bakery enterprise’s management process: theory and methodology: monograph [Monitorynh yak skladova protsesu upravlinnya pidpryiemstvom hliboproduktiv: teoriia ta metodolohiia: monohrafiia], Drukarskyi dim, Odesa, 228 s. [in Ukrainian]

Voronkova, A. E., Babyak, M. M., Korenev, E. N., Mazhura, I. V. (2006). Corporations: management and culture: monograph. Ed. by A. E. Voronkova [Korporatsii: upravlinnia ta kultura: monohrafiia; za red. A. E. Voronkovoi], Vymir, Drohobych, 376 s. [in Ukrainian]

Ivanov, Yu. B., Kyzym, M. O., Tyshchenko, O. M., Ivanova, O. Yu., Revenko, O. V., Chechetova-Terashvili, T. M. (2010). Management of enterprise’s competitiveness [Upravlinnia konkurentospromozhnistiu pidpryiemstva], INZhEK, Kharkiv, 319 s. [in Ukrainian]

Karlof, B. (1991). Business strategy: concept, content, symbols. Trans. from Eng. O. D. Gorin [Delovaya strategiya: kontseptsiya, soderzhanie, simvoly; per. s angl. O. D. Gorina], Ekonomika, Moskva, 239 s. [in Russian]

Markova, V. D., Kuznetsova, S. A. (2000). Strategic management [Strategicheskiy mendzhment], INFRA-M, Moskva; Sibirskoe soglashenie, Novosibirsk, 288 s. [in Russian]

Porter, M. (2005). Competitive strategy: techniques for analyzing industries and competitors. Trans. from Eng. I. Minervin [Konkurentnaya strategiya: metodika analiza otrasley i konkurentov; per. s angl. I. Minervina], Alpina Bizines Buks, Moskva, 454 s. [in Russian]

Lambin, J.-J. (2007). Market-driven management. Trans. from Eng. V. B. Kolchanov [Menedzhment, orientirovannyy na rynok; per. s angl. V. B. Kolchanova], Piter, Sankt-Peterburg, 800 s. [in Russian]

Fatkhutdinov, R. A. (2000). Competitiveness: economics, strategy, management [Konkurentosposobnost: ekonomika, strategiya, upravlenie], INFRA-M, Moskva, 312 s. [in Russian]

Shevchenko, L. S. (2004). Competitive management [Konkurentnoe upravlenie], Espada, Kharkov, 520 s. [in Russian]

Nikiforenko, V. G., Kravchenko, V. O. (2012). Assessment of organizational culture impact on the enterprise efficiency and competitiveness [Otsinka vplyvu orhanizatsiinoi kultury na efektyvnist ta konkurentospromozhnist pidpryiemstva], Biznes Inform, No. 10, s. 260‒263 [in Ukrainian]

Published

2019-03-26

Issue

Section

Management and business administration