Marketing culture and strategy: An assessment of the effect of coalignment on performance
Abstract
Although the marketing culture of an organization and the strategy of an organization have been independently related to organizational performance, there is a lack of research concerning their combined impact. Consequently, the purpose of this study is to examine the relationship of the fit, congruence or coalignment of a firm's marketing culture and strategy to the performance of the firm.
Structural equation modeling is used to estimate two competing models. The first model, termed the direct effects model, proposes that organizational performance is independently affected by organizational strategy and marketing culture. The second model, termed the coalignment effects model, proposes that the fit between strategy and marketing culture affects organization performance.
Results indicate that the fit or coalignment between marketing culture and strategy positively affects firm performance. More specifically, marketing culture and strategy are indicators of a higher order construct termed coalignment. Coalignment, in turn, is positively related to organizational performance.