Are corporate values effective drivers for firms? An Italian Cases Analysis

To be effective in achieving corporate goals, strategy has to be consistent not only with profit and market share objectives, but also with principles and values. What is called organizational culture (Shein, 2010) refers to the values and patterns of belief and behavior that are accepted and practiced by the members of a particular organization (Pringle, et al. 1988). Moreover, it can improve firms’ strategic action, in particular when it is developed emphasizing three key groups of stakeholders: customers, shareholders and employees. As literature says: “For a strategy to be successfully implemented, it requires an appropriate culture. When firms change strategies, and often structures, they sometimes fail because they underlying shared values do not support the new approach” (O’Reilly, 1989). Our study considers a sample of firms - employing at least 250 people and with revenues major than 500.000 euros (last available fiscal years) - present in the territory of Piedmont (North Italy). The research purpose is to analyze the link between the application of corporate culture principles, firm performances indicators and managerial control systems. Literature, in fact, suggests that values are defined as enduring goals that serve as guiding principles in people's lives (Rokeach, 1973; Schwartz, 1992). Because each organization develops its own unique culture, even organization within the same industry and territory will exhibit distinctly different ways of operating (Wright et al., 1999). Moreover, we want answer to the following question: does performances control, with a strong corporate culture action, affects firms capacity of attracting capitals and creating value over the years? Which results? Therefore our paper aims to understand which performance measures are used at the various levers of management control in relation to its own corporate culture and values.