Opposites attract: Organisational culture and supply chain performance

Purpose: The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach: The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings: The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications: The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications: Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value: This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.