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\nResearchers find that a positive culture boosts performance, but performance alone doesn\u2019t create a positive culture<\/h2>\n<\/blockquote>\n
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Prior research supports a link between organizational culture and performance but generally falls short of establishing causality or determining the direction of a culture\u2013performance (C-P) relationship.<\/p>\n
Using data collected from 95 franchise automobile dealerships over 6\u2009years, we studied longitudinal culture\u2013performance relationships to determine whether culture or performance has causal priority, or alternatively, whether a reciprocal relationship exists. Results from cross-lagged panel analyses indicate that culture \u201ccomes first,\u201d consistently predicting subsequent ratings of customer satisfaction and vehicle sales.<\/p>\n
Furthermore, the positive effect of culture on vehicle sales is fully mediated by customer satisfaction ratings. Copyright \u00a9 2015 John Wiley & Sons, Ltd.<\/p>\n