The Relationship between Corporate Culture and Value at Different Life Cycle Stages

Despite the general agreement that a firm embodies its own culture, there is still lack of empirical research on how firm’s culture affects value. Another caveat previous studies they implicitly assume does not vary over time. In this paper, we examine following two questions to address lack: (1) Does affect value? (2) If varies at different life cycle stages, do these changes have an impact By using competing values framework, identify four types corporate culture—adhocracy, market, clan, and hierarchy—and use stages proxy for in environment. The results reveal adhocracy has positive effect contrast, find negative association between hierarchy This can be interpreted as features which gives autonomy members (flexible discretion) keeps challenging grow (external focus differentiation), positively impacting value more than other cultures. Furthermore, growth stage faces dynamic environmental changes, both clan cultures incrementally implies firms mature or decline lose their operational environment, therefore, restricted those stages.