Сorporate culture as a component of enterprise’s competitive advantages

Valeriy Nikiforenko
Doctor of Economics, Professor, Head of Personnel Management and Labor Economics Department, Odessa National Economic University, Ukraine, e-mail: nikiforenko@te.net.ua, ORCID ID: https://orcid.org/0000-0002-5661-8323

Vera Kravchenko
PhD in Economics, Professor of Management Department, Odessa National Economic University, Ukraine, e-mail: kravchenkovera8@gmail.com, ORCID ID: https://orcid.org/0000-0002-0352-0306

Cite this article:

Nikiforenko, V., Kravchenko, V. (2019). Сorporate culture as a component of enterprise’s competitive advantages. Ed.: M. Zvieriakov (ed.-in-ch.) and others [Korporatyvna kultura yak skladova konkurentnykh perevah pidpryiemstva; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1 (69), pp. 189–198.

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.

Keywords

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

JEL classification: J530; M140; DOI: https://doi.org/10.33987/vsed.1(69).2019.189-198

UD classification: 339.137.2:334.716:005.73

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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