Organizational culture: Case of the Finnish construction industry

Teräväinen, V; Junnonen, J M and Ali-Löytty, S (2018) Organizational culture: Case of the Finnish construction industry. Construction Economics and Building, 18(1), pp. 48-69. ISSN 2204-9029

Abstract

Academic literature has long recognized the correlation between a company’s organizational culture and its quality performance. The Finnish construction industry is still a highly human powered industry, and thus, organizational culture is seen to have a significant effect on an organization’s efficiency as well. The aim of this study is to examine and determine organizational cultural profiles of organizations in the Finnish construction industry as they are currently perceived and preferred by professionals themselves. In all, 121 professionals working in organizations in the Finnish construction industry were surveyed using the Organizational Culture Assessment Instrument (OCAI). The reliability of characteristics was tested by calculating Cronbach alpha reliability coefficients, and the found differences between the response characteristics were analysed in-depth with paired and independent t-test analyses. The findings show that, on average, construction industry organizations in Finland currently operate with a mixture of clan and hierarchy cultures. Thus, the current organizational culture stresses the point of view of internal focus and integration. However, the organizations desired to emphasize more flexibility and discretion toward individuals. The novelty value of this paper is presenting existing and preferred culture profiles in the Finnish construction industry. These found profiles have the potential to improve management of organizations, which results in better efficiency of the industry through better performance of organizations in the construction industry.

Item Type: Article
Uncontrolled Keywords: Finland; ocai; organizational culture; construction industry; efficiency
Index terms: efficiency, Finland, integration, quality performance, construction industry, organizational culture
Subjects: project delivery, Geography, performance management, industry analysis, organizational analysis, sociology
Topics: Quality Management, Organizational Design, Research Practice, Geographical Context
Descriptive scope: 3 PCT

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here