Moderation of OM practice effectiveness by organizational culture profile: contingency vs paradox perspective

Purpose: This paper investigates how a firm’s organizational culture profile (configuration of organizational culture types) influences the effectiveness of Operations Management (OM) practices in improving their targeted outcomes. Design/methodology/approach: We developed alternative hypotheses based on contingency and paradox perspectives to predict the effectiveness of OM practices in Dominant (one prevalent organizational culture type) vs. Eclectic (opposing organizational culture types at a similar level) organizational culture profiles. They were tested using data from over 7,000 respondents across 330 manufacturing plants in 15 countries. Findings: Consistent with contingency theory, OM practices oriented towards innovation are more efficacious in plants with an Adhocracy-Dominant organizational culture profile and practices targeting supply chain control are less effective in a Clan-Dominant organizational culture profile. Consistent with paradox theory, OM practices oriented toward efficiency or supply chain control are more effective in plants with an Eclectic organizational culture profile. Originality: Previous research on organizational culture provides a limited understanding of effectiveness of OM practices in the presence of strategic tensions, such as opposing organizational cultures or opposing targeted outcomes. This research concludes that the validity of the contingency or paradox perspective depends on strategic tensions faced, with important implications for research and practice. Practical implications: This study offers relevant practical implications regarding the effectiveness of various OM practices, whether they are used in an aligned Dominant organizational culture profile or in an Eclectic organizational culture profile.