A Study of the Relationship between Organizational Culture and Organizational Effectiveness of the Electronic Industries in Taiwan(Mathematics of Optimization : Methods and Practical Solutions)

181

A

Study of the

Relationship

between

Organizational

Culture

and

Organizational Effectiveness

of the

Electronic Industries in

Taiwan

Tzai-Zang

Lee1

*_,Ya-FenTseng2

1

Department of Industrial and Information Management NationalChengKungUniversity, Tainan,Taiwan

2

DepartmentofIndustrial Engineering &Management, Hsing Kuo University ofManagement, Tainan,

Taiwan

Abstract

Organizational culturehasbeen shown to influenceorganizational effectiveness. This

study defined theeight dimensions oforganizationalculture

as:

(1)$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$ staff-oriented; (2) achievement-oriented;(3) innovative; (4)analytical; (5) social relationships; (6) rewarding

staff; (7) stableworkenvironment; (8)demanding. These eightdimensions oforganizational

culture showedgenerally sufficient characteristic. This studyalso suggested three dimensions

oforganizationaleffectiveness: (1) structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control; (2)focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{n}\mathrm{a}\mathrm{l}/$external;

(3) strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends. These three dimensions of organizational effectiveness presented the

mainly ample characteristic. This study adopted the listed,

over

thecounter(OTC)and

emerging electronic companies onlyoperatingin Taiwan

as

theresearch objects.

Consequently,

144

effective

responses

(21.18%)

were

collected. Then, this study testedthefit

ofthis framework by LISREL(Linear StructureRelation)and foundthat theeight dimensions of organizational culturehad

a

positive influence

on

organizational culture; theorganizational

culturepositively influenced organizational effectiveness;the three dimensions of

organizationaleffectiveness had

a

positive influence

on

organizational effectiveness. Surveys

were

contributedin the research objects. Itfounddifferentimpacts ineachculturebyDEA

(DataEnvelopmentAnalysis). Finally, tofinda

more

objective relationship between organizationalcultureandorganizationaleffectiveness, this study adopted

a

multi-organizational culture and multi-organizational effectiveness variablesto do

a

pairwise

comparison. This studyunderstoodthe different and optimal influence among thevariables in

organizationalcultureandorganizational effectiveness. It

was

supported by findingfromthe currentliterature. The implications for practice and for ffiture researchare also discussed.

Keywords: Organizationalculture; Organizationaleffectiveness;Organizational culture

category;Data EnvelopmentAnalysis; Electronic industries

Introduction

Whileorganizational culture has attracteda greatdeal ofattention from scholars

(Goodman,Zammuto andGifford, 2001),the major attentionhas beenfocused

on

the

162

definingorganizationalculture (Duncan, 1989)and organizational effectiveness

(Parasuramanand Deshpande, 1986). Measuring organizational effectiveness is

a

very

importantstepinthe developmentprocess ofeach organizationalculture (HandaandAdas,

1996). Theimportanceofforminganddesigningeffectively organizations wasdiscussedby

Hitt(1988). Therefore, it has becomenecessarytopay attentionto organizational culture

along with organizational effectiveness (Jung, 2003).

This study took

a

challenge approachby examining the relationship between

organizationalcultureand effectiveness. First,

one

ofthe mostdifficultchallenges for the field oforganizationalculture andorganizational effectiveness is theapplicationof theories

andmodels developedtounderstandphenomenain eachorganizational culturecategory. Second,thisstudy took$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{f}$-oriented, achievement-oriented, innovative,

analytical, social relationships, rewardingstaff, stableworkenvironment and demanding

as

organizational culture factors (Bennis, 1$969;\mathrm{W}\mathrm{a}\mathrm{l}\mathrm{l}\mathrm{a}\mathrm{c}\mathrm{h}$, 1983; Schin$\mathrm{e}$, 1985; Mirvis, 1988;

Quinn 1988; Kopelman,BriefandGuzzo, 1990; _{QuinnandSpreitzer, 1991;} ;Zammuto and

Krakower, 1991; Hatton,Rivers,Mason etal., 1999; Herg\"u

ner

and Reeves, 2000; Pun, 2001; Goodman,Zammuto andGiffcrd, 2001; Denison,2004),andadopted structural

$\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control, focus

$\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{n}\mathrm{a}\mathrm{l}/$external andstrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends

as

organizational

effectiveness factors (Cameron andWhetten, 1983; _{QuinnandRohrbaugh,} 1983;

Thibodeaus andFavilla, 1995; _{Handna andAdas, 1996; Boerman and Bechger,} 1997;

Denison,HaalandandGoelzer,2004).

Third,this study alsoindicatedthe goodnessoffitinorganizational culture and

organizationaleffectivenessbyLISREL (LinearStructureRelation)model (Joreskogand

Sorbom, 1996). And, it

can

bediscussed therelationship between organizational culture and

organizationaleffectiveness fromthe structural model.

Forth,this study proceededwithDEA(DataEnvelopmentAnalysis) (Friedman

an

Sinuany-Stern, 1998)andAHP (AnalyticalHierarchicalProcess)/DEA (Sinuany-Stern,

Mehrezand Hadad,2000.)

as

an

analysismethod. Bythese conceptualbuild, itadopted

a

challengeapproachbyexploringthe linkbetween organizational culture and organizational

effectiveness.It comparedthe resultsinwhichorganizational cultureinfluenced

organizationaleffectivenessin different organizationalculturecategory.

Fifth, this study discussed thedifferentphenomenon bycombiningDEAwithAHP and

it researched theoptimalrelationshipbetweenorganizationalcultureandorganizational

effectiveness. Finally, the discussionatthe endof thisstudy summarized the finding,

implications and researchlimitation inorganizationalcultureandorganizational effectiveness.

Literature

Review

163

Numerousresearchers have definedorganizationalculture. It

can

be

an

asset

or

a

liability. Understandingculture

means

understandingthedifference between theformalandthe

informalrules,thewayof doing things andthe realway espoused(Wallach, 1983).

Bennis (1969)alreadysuggestedthe beingteam-oriented, trustanddevelopmentfriendsat

work factors includedinthe organizational culture value. In moderntimes, In theindividuals

andorganizations

on

the culturalmatch,Schine (1985)and Wallach(1983)providedthe

organizational culture index includingtherisk, relationships-oriented,result-oriented, creative,

sociable,stimulating, regulated, personalfreedom,equitable, safe, challenging,enterprising,

established, cautious,trustingetc

as

theuseful model of organizational culture. Quinn(1988)

alsoprovidedthatit should emphasisontheorganizationalculturevalue of the being

people-oriented,beingteam-orientedfactors. Then, Kopelman,Brief and Guzzo(1990)

demonstrated that culture influenced organizationalbeingteam-oriented, trust,

an

emphasis

on

quality, achievement orientationandawillingness toexperiment factors. Therefore,

traditional organization suggeststhatanemphasis

on

culture is

a

key forthe being

team-oriented, trust,

an

emphasis

on

quality and autonomyvariables (Mirvis, 1988). So,

Quinnand Spreitzer(1991) foundthat organizationswithstringer groupculture

scores

significantly higher than the hierarchical cultureinterm.Moreover,Zammutoand Krakower

(1991)showed that the negatively relatedto trust, beingprecise, good performance and

positively relatedto conflict.

Presently,thestaffratesreal organizationalcultures tobe relatively highin achievement

orientation and fostering social relationships,tobe highin rewarding staff,being

$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{f}$-oriented andfostering social relationships, and relatively lowinmanaging

conflictand providingrewards,andlowin demands for staff(Hatton,Rivers, Mason and

Emerson, 1999). When HergunerandReeves(2000) explored the goingagainstthe national

culture grain,theyfoundthat the fairness,beingteam-oriented,taking initiative, being result

oriented, achievement orientation,flexibility, actionorientation,being rule-oriented,working

in collaborationwithothers,beingaggressivefactors influenced the organizationalculture

change. Goodman,Zammuto andGifford(2001)presented the groupculture values inwhich

beingteam-oriented, enthusiasmfor the job, taking individual responsibility, being highly organized,

an

emphasis

on

quality variables

were

emphasized.Denison(2004) consideredthat most of theorganizationshave tochange toward the organizationof theparticipation, broader

decision making,buildingteamwork, fasterdecisionmaking and

more

idea factors. Last,

Forsythe (2005)mentionedthecollaboration

was

afactor to change

an

organizational culture. Inthecontext,

we can

understandthat

a

greatdeal ofscholarsdiscuss the organizational

culture.It

can

exhibit the important factorsoforganizational culture. Inaccordance with the

literatures presentedabove,this study tookthe$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{f}$-oriented,achievement-oriented,

innovative,analytical, social relationships, rewardingstaff,stable work environment,

194

1969; Wallach, 1983; Schine, 1985;Mirvis, 1988; Quinm,1988;BriefandGuzzo, 1990;

QuinnandSpreitzer, 1991; _ZammutoandKrakower, 1991;Hatton,Rivers,Mason et$\mathrm{a}1$ ,

1999; _{Herg\"unerand}Reeves,2000; _Kopelman, Goodman,ZammutoandGifford, 2001; Pun,

2001; Denison,2004; Forsythe, 2005).

2. Organizational Effectiveness

Severalmodelshave emerged for thestudyoforganizationaleffectiveness,each of which

has

a

uniqueemphasis. Theeffectivenessoforganizations in achievinggoals at the

organizationallevelis calledorganizationaleffectiveness(CameronandWhetten, 1983;

Quinn and Rohrbaugh, 1983).The organizational effectiveness isalso defined asthe extent

towhich

an

organizationfulfills the objectives(Thibodeaus andFavilla, 1995). Thetopicof

organizational effectiveness emphasizedprocess control, information management and foal

setting (Quinn, 1998; Desion,HaalandandGoelzer, 2004).Handnaand Adas (1996)

identified fourteen organizational effectivenessvariablesintothe fourgeneralcategories for

analyzingtheorganizational characteristics.When BoermanandBechger (1997)researched

thedecentralized decisionmaking and organizationaleffectiveness, they adopted the growth

of the organization, interactionwith the field, evaluation by extemalactors, stability, control,

the

use

ofmanagementinformationsystems, commitment and educationalplanningitems of

organizationaleffectiveness. Thefourculturaltraitsoforganizationaleffectiveness1n the

Dension modelalsoincludesthe integration, coordinationandgoal settingimportance

(Denison, HaalandandGoelzer, 2004).

Themeasurementof organizational effectiveness is

a

very important stepin the

developmentof

an

organization(HandaandAdas, 1996). Its importance in designing and

establishinganeffective organization has been discussed by scholars. Inaccordance with

thetheses discussed above,

we

took the structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{t}\mathrm{r}\mathrm{o}\mathrm{l}$,focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/\mathrm{e}\mathrm{x}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{n}\mathrm{a}\mathrm{l}$ andstrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/\mathrm{e}\mathrm{n}\mathrm{d}\mathrm{s}$ factors

as

organizational effectivenessvariables (Cameronand

Whetten, 1983; _{Quinnand Rohrbaugh,} 1983; _{ThibodeausandandFavilla,} 1995; _Handnaand

Adas, 1996; Boermanand Bechger, 1997; _{Denison, HaalandandGoelzer,}2004)

3. Organizational Cultureand Organizational Effectiveness

Steers(1975)and Zammuto(1982)_{described the measurementof effectiveness}

_was

the

mostissue inthe organizational culture theory. For linking organizationalculture, Ouchi

(1980)identifiedthe characteristicsto determinetheorganizational effectiveness. Quinn

andRohrbaugh(1983)examined thatrelationshiporganizationalculture and effectiveness

byutilizing the competingvalueframework. Denisonandcolleagues (1995)and Denison,

HaalandandGoelzer(2004)illustratedthe differentorganizational cultures

were

involved

with thedifferentorganizational effectiveness.Kotter and Heskett(1992) studiedthe

185

Schmitt(1993) foundthat the organizational effectiveness

was

influencedby the

organizational culture. Juechter, Fisher and Alford(1998) completedthe researchfound that

the organizational culture heavilyinfluencedthe organizational effectiveness of business. Accordingto Smith, Arnold, and Bizzell (1988),theultimatepurpose of strategic

managementis tohelp organizations increaseperformance throughimproved effectiveness,

efficiency,andflexibility. ThibodeauxandFavilla(1995)utilized the planningandgoal

setting, flexibility and adaptation, informationmanagement, communication,readiness,

evaluations by external entityandstability concepts oforganizational effectivenessto

researchthe strategicmanagementprocess. Inthe model of organizational effectiveness for consultation management(Ridley andMendoza, 1993), itincludedthe rules and regulations, sensitivity, contributing to theenvironment, transformation and planning variables. The

process control, informationmanagementandgoal settingimportance

are

emphasized

on

theorganizational effectiveness(Quinn, 1988).

Inthesecontexts, the relationshipbetweenorganizational culture andorganizational

effectivenessbecomesimportant. Inaccordance withthe studiespresentedabove, the

organizational culturehas

a

positive influence

on

organizationaleffectiveness.

Methodology

Thequestionnaire consisted of threeparts includingthe organizationalculture,

organizationaleffectiveness, and the organizational culturecategory. This research

was

conductedffomtheperspectiveof employees, and both the organizational culture

questionnaire and organizational effectiveness questionnaire weresent to all firms. To cover

thephenomenon in theeachorganizationalculture,this study adopted

a

questionnaireabout the organizational culture index (WangandShyu, 2003; _Quinn, 1988), and allitems

were

measured

on a

five-pointLikert scaleof1 to5 from “stronglyagree”to “strongly disagr$\mathrm{e}\mathrm{e}"$.

Since Taiwan’selectronic industryfaces global competition,it

can

give

a

good sample. For

thepurposesof this study,

we

focused

on

the electronic industries within four different

categories, This studyassumedthe $\alpha=0.05$,_$e=0.06$andexpected that the effective

response (20%)

was

collected.This research had provided the

680

questionnaires withthe

listed, OTC and emerging electroniccompanies inTaiwan and then gotthe 144

questionnairesretrieved. The

response

rate

was

about21.18%. Thisdata

was

analyzedfor

getting theresearch purposes.

First,weproceeded with the reliabilityandvalidity analysis ofthe organizationalculture,

organizationaleffectiveness and culturecategory. Second,

we

proceeded the LISREL (Linear

Structure Relation)analysisto fitthe structure model of theorganizational culture and

effectivenesswell.Third, this study analyzedtheefficiencybytheDEAmethod in the four

culturecategories. Itexplored how the differentorganizational culturecouldinfluence the organizationaleffectiveness in the different culture category. Finally,itshowed whic

1\S 8

organizational culture factorscouldinfluence theorganizationaleffectivenessfactorsto

achieve thegreatest efficiencyinthedifferentculturecategoryby$\mathrm{A}\mathrm{H}\mathrm{P}/\mathrm{D}\mathrm{E}\mathrm{A}$ .methodology.

Result

1. Reliability and ValidityTest

1.1

Thereliabilityand validity oftheorganizationalculture

Thisquestionnaireof organizationalculture

was

made upby

as

forty-three items. Theitems

were

adopted from the literaturereview described.According to thefactoranalysis, there

were

the eight factors in theorganizationalculture (Table 1). Cuieford(1965) suggested that

Cronbacha greaterthen 0.7 is high reliability while less than0.35 islow reliability, which

shouldbe rejected. So,the reliability including$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$staff-oriented,

achievement-oriented, innovative, analytical, socialrelationships, rewardingstaff,stable

workenvironmentand demanding factors achievedthehigherreliability

(Cronbach$\alpha$ $\geq 0.7$).

Moreover, accordingtoKerlinger(1999),

measures

withitemto total correlations larger

than

0.6

are believedtohavehigh criterionvalidity(Table 1). Theitem-to-total correlations

of all our

measures are

greaterparts than

0.5

we

concludethatthecriterionvalidityof each

scaleinthis study

was

satisfactory.Furthermore, discriminant validity

was

examinedby

countingthe numberoftimes

an

item correlateshigherwithitemsof other variables than

withitems ofits

own

variable (AladwaniandPalvia, 2002). Jointly, these factors present

bothconvergentanddiscriminatedvalidityinthis study.

1.2The reliabilityandvalidity oftheorganizational effectiveness

Thisquestionnaire oforganizationaleffectiveness

was

developed

as

$\mathrm{t}\mathrm{w}\mathrm{e}\mathrm{n}\mathrm{t}\mathrm{y}rightarrow \mathrm{t}\mathrm{w}\mathrm{o}$items.

These items

were

adopted fiiom the literature reviewsandit

was

sortedtothethree factors

usingthefactoranalysis (Table 2). Thereliability including structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control, focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{n}\mathrm{a}\mathrm{l}/$external and

strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factors achieved thehigher reliability

{Cronbacha

$\geq 0.7$) (Cuieford, 1965).And,theitemtototal correlations of allitems are

greaterparts than

0.5

we

concludethatthecriterionvalidity of eachscale in thisstudy

was

satisfactory(Table 2) (Aladwani andPalvia,2002).

1.3

Thereliabilityand validity of the culture category

This study

was

developedtheorganizationalcategoryindexbased

on

the competing value

framework(Quirm, 1988;Wangand Shyu,2003). We separatedtheorganizationalculture

categoryfromfourparts.Fromthefactoranalysis,this questionnaire was separatedinto

development culture;

common

culture, _stratumculture and rational culture. According to the

reliabilityanalysis, thereliabilitywas fine between 0.7with0.9. But,thecoefficient of item

187

Cronbacha would increase. We must analyzethereliability of each culture categoryand

confirmedthe organizational cultureindex used well. These indicated

a

high degree of four

culturecategories(Cronbacha $\geq 0.7$) (Cuieford, 1965). The item to totalcorrelationsofall

items

are

greater parts than

0.5 we

determined thatthe

criterion

validityofeach variable in

this study

was

satisfactory (Table 3)(Aladwani andPalvia, 2002).

2.Analysis ofthe structuralmodel

Although thepresent Cronbacha anditem-to-total correlationshave shown the sufficient

reliability and validity ofeachconception, the independenceamongthe factorsofeach constructstillrequired examinationand verification. So,evidence factoranalysis

was

implemented (Byrne, 1998),to

assess

themeasurement models of organizational culture and

effectiveness, _{To establish}the scaleforeachlatent variable in themodel, the firstregression

path1n eachmeasurementmodel

was

fixedat 1 (Maruyama, 1998). The results of

confirmatory factor analysis for all dimensions

were

showninTable4 whichreveal thatall

parameterestimates ofthe factors foreachdimension

were

ratherlarge and statistically significant,with$\mathrm{t}$-values greaterthan 1.96 andfactor loading valuesgreaterthan 0.5.Hence,

the models fit the sample data well for alldimensions (Table 4).

This studyusedtheLISREL (Lin

ear

StructureRelation)methodto test that the structure

oftheorganizational culture and organizational effectiveness is well.From themodel text,

we can

knowthat RMR(root

mean

squareresidual)value

was 0.019

($<0.05$_,Joreskog and

Sorbom, 1996),the GFI (goodness of fitindex) value

was

0.943(>0.9,Joreskog and Sorbom, 1996)and the AGFI (adjustedgoodness-of-fitindex)was

0.908

($>0.9$_,Joreskog and

Sorbom, 1996), Allvaluesreached the standardization(Table 5). Andthe LISRELmode

was

shown in Figure

1.

It

was

foundthat 1)the$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{f}$-oriented, achievement-oriented,

innovative, analytical,socialrelationship, rewardingstaff, stable workenvironment and

demandingdimensions towardorganizational culture, 2)the structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control,

focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/$external andstrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/\mathrm{e}\mathrm{n}\mathrm{d}\mathrm{s}$ toward organizationaleffectiveness, 3)the

organizational culture toward organizational effectiveness achievedthe statistically significance.

3. Organizationalculture influenceorganizational effectiveness ineach culture

category-DEA

To analyzethe organizational culturewith whichthe organizationaleffectiveness influence theorganizational effectiveness in each culturecategory,the results obtainedby

DEAcouldachievethisobject. Table

6

showed that thestable work environmentfactor

(28.11

_%)

in organizational culture significantly influencedthe structural$\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{t}\mathrm{r}\mathrm{o}\mathrm{l}$

andstrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factors (42%and

40.15%)

on

developmentculture. Table 7

188

$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/\mathrm{e}\mathrm{n}\mathrm{d}\mathrm{s}$factor(80%)

on

common

culture. Itshowedthat the

$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$staff-oriented,

socialrelationships andstable workenvironment factors (19.25%, 23.74%and

19.24%)

significantly influenced the focus$\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/$ externalandstrategy $\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factors

(40.07%and

48.77%) on

stratumcultureintable 8. Itshowedthatthe $\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$

staff-oriented, innovativeand stable work environmentfactors (18.91%, 19.34%and

18.58%)

influenced the structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control and focus

$\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/$ extemal factors

(49,15%and

30.70%) on

rational cultureintable

9.

From theseresults,itprovidethe

informationwhichthedifferent organizationalcultureinfluencedthe different

organizational effectiveness ineach organizational culturecategory.

4. Pairwisecomparison withtheorganizational cultureand organizational

effectiveness in each category-AHP/DEA

AlthoughDEA

was

originallydesigned fordichotomicclassification, such comparisons and

validation

were

important(Friedmanand Sinuany-Stem, 1998). For clearlyunderstanding and

comparing the results,thisstudy

was an

attempt to illustrate andintegrate well-know andused

methods,DEAandAHP. Itshowed that the innovative factor(54.

_78%)

in organizational culture highly influenced thestrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/\mathrm{e}\mathrm{n}\mathrm{d}\mathrm{s}$ factor(75.94%) in organizational

effectiveness

on

development culturein Table

10.

Table

11

clearlydisplayed thatthe

demandingfactor(77.54%)in organizationalculturehighestinfluenced thestrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ endsfactor(100%) inorganizationaleffectiveness

on common

culture. It showed that the demandingfactor(57.19%) in organizational culture significantlyinfluenced thestrategy

$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factor(74.57%)in organizationaleffectiveness

on

stratumculturein Table 12.

Table 13 showed that the innovative factor(45.94%) in organizational culturehighly

influencedthe strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factor(73.66%) inorganizationaleffectiveness

on

rational culture. Though the demandingfactorin organizational culturesignificantly affected

the strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/\mathrm{e}\mathrm{n}\mathrm{d}\mathrm{s}$ factorinorganizational effectiveness, it presented the

different

importanceineachorganizational culture category.

5.Conclusion

This studyfocused

on

theorganizationalcultureand organizationaleffectivenessin each organizationalculturecategory and tooktheelectroniccompaniesinthelisted, listingand

emerging electronic industries astheresearch objects. Thefactoranalysis of the

organizational culture

measure

produced eightdimensions ofthe organizational culture: (1)

$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{f}$-oriented;(2) achievement-oriented;

(3)innovative; (4) analytical; (5) social

relationships;(6)rewardingstaff; (7) stable workenvironment; (8) demanding. Theseeight

dimensions oforganizational culture showedthe adequate industrycharacteristic. Theconflict

managementfactorinorganizational culture(ZammutoandKrakomer, 1991; _{Hatton,Rivers}

$18\theta$

management didnotconsider thesignificantdifferencesof each organizational culture (Jung, 2003).According to the factor analysisof organizational effectiveness, twenty-twovariables

were

identifiedtopredict the effectiveness ofthe electronic companies, The fourteen variables

were

significant in predicting the effectiveness(HandaandAdas, 1996). This study also

showedthatthe sensitivity, contributing to theenvironmentand transformation (Ridleyand

Mendoza, 1993), informationmanagement (Thibodeauxand Favilla, 1995; Boermanand

Bechger, 1997; _Quinn, 1988),communication and readiness (Thibodeauxand Favilla, 1995)

and evaluation andstability (Thibodeauxand Favilla, 1995;_{Boermanand Bechger,} 1997)had

alsothe significance in electronicindustry.

Thisstudyalso investigated the independentvariables

on

organizational culture and

dependent variables on organizationaleffectivenessfrom the pathdiagramofLISREL model

(Figure 1). Itshowedthatthe$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$staff-oriented, achievement-oriented,innovative,

analytical, social relationships, rewardingstaff, stableworkenvironment anddemanding factorsoforganizationalculturehad

a

positive impact

on

the$\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{a}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$control, focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/$external and strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ endsfactors of organizationaleffectiveness _{$(p\leq 0.\mathrm{O}\mathrm{O}1)$}

(Quchi, 1980, Dension, 1995; Dension,Haaland andGoelzer,2004; _KotterandHeskett, 1992;

OstrffandSchmitt, 1993; _{FisherandAlford,} 1998). Andtherelationship between

organizational cultureand effectiveness

was

measuredby the structuralmodel inelectronic industry.

Forpresentingthe differentresultineach organizationalculture,this study adopted the

organizationalcultureindex to divideinto development,common, stratum andrational

cultures. Thevariables concerned with the long seniority employees hadnosignificantin

electronicindustry (WangandShyu, 2003).

Last, for measuring the efficiency that organizational culture affects organizational effectiveness1n each organizational category, this

paper

adopted DEA (Table 6 to9) and

$\mathrm{A}\mathrm{H}\mathrm{P}/\mathrm{D}\mathrm{E}\mathrm{A}$ (Table 10-13) methodstoappearthedifferent result(Sinuany-Stern,Mehrez and

Hadad,2000). The stableworkenvironmentfactorof organizational culture hadhigher influence

on

thestructural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control andstrategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ ends factorsof

organizationaleffectiveness

on

developmentculture(Table 6). The socialrelationships factor of organizational culturehad higher significance

on

strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factor of

organizational effectiveness

on common

culture(Table 7).The$\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$ staff-oriented,social

relationships and stable workenvironmentfactors of organizational culture highlyinfluenced

on

the focus$\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{n}\mathrm{a}\mathrm{l}/$external factor oforganizationaleffectiveness

on

stratum culture(Table

8).The $\mathrm{t}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$staff-oriented,innovative and stableworkenvironment factors presentedthe

highersignificance

on

the structural $\mathrm{f}\mathrm{l}\mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/$ control and focusinter

$\mathrm{n}\mathrm{a}\mathrm{l}/$ extem al factors of

organizational effectiveness

on

rational culture. But,this studyfoundthe significance of each

organizationculture

was

more

uniform.Hence, it adopted$\mathrm{A}\mathrm{H}\mathrm{P}/\mathrm{D}\mathrm{E}\mathrm{A}$ methodand alsofound thatthe importance of each organizational culture

was

clearer from the resultof$\mathrm{A}\mathrm{H}\mathrm{P}/\mathrm{D}\mathrm{E}\mathrm{A}$

.

It

170

showedout which

one

organizationalculture positivelyaffectedthe organizational effectiveness.

Therefore,this study presented the efficiency which the organizationalculturepowerfully influenced the organizational effectiveness

was

built clearly in the organizational culturesin

theelectronic industry in Taiwan. Italso calculatedand developed fitness model

as

a practice

tool by the DEA and $\mathrm{A}\mathrm{H}\mathrm{P}/\mathrm{D}\mathrm{E}\mathrm{A}$ methodologies. Though the pairwisecomparison, it showed the biggergap of thesevariables of organizational culture and effectiveness.And,nomatter whateach culture,the demanding factor of organizational culture hasmostinfluence

on

the

strategy$\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ends factor oforganizationaleffectiveness

on

thefourcultures(Table 10-13).

Thedifferentimportance amongthe variables inorganizationalcultureand effectiveness

was

clearin the comparison.

Though the present empiricalresultslargelysupportthe currentmodel,this study still has several limitations. First, sincethe empirical data

were

provided byindividual

informants,theexistence possiblebiasescannot bediscounted. Second,thecurrent data

were

collected inTaiwan, andthe distributionof the scale of thefirms surveyedmaybe

quitedifferent fromthat inothercountries. Thus, it shouldnotbe assumed that thepresent

results represent thewider

case.

However,itmaybe a useful reference forthe firms locatedinothercountries whosecircumstances

are

similartothoseinTaiwan.

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Table

1:

ResultofReliabilityandValidityTest onOrganizational Culture

Dimension Factor Item-to-total

correlations Cronbach$\alpha$ $\mathrm{T}\mathrm{o}\mathrm{l}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{t}/$ staff-oriented 0.527669

0.8620

Achievement-oriented

0.638213

0.8769 Organizational Imovative

0.449457

0.8092

Analytical

0.57712

0.7932

Culture Socialrelationships

0.557967

0.7363

Rewarding staff 0.7385

0.8496

Stable work

environment

0.5925

0.7621

Demanding 0.5892

0.7415

Table 2: ResultofReliabilityandValidity Test

on

Organizational Effectiveness

Dimension Factor Item-to-total

correlations

Cronbach$\alpha$

Organizational

Eff$\mathrm{e}$ctiveness

Structural $fl \mathrm{e}\mathrm{x}\mathrm{i}\mathrm{b}\mathrm{i}\mathrm{l}\mathrm{i}\mathrm{t}\mathrm{y}/\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{t}\mathrm{r}\mathrm{o}\mathrm{l}$

0.62382

0.8884

Focus $\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{m}\mathrm{a}\mathrm{l}/$ external

0.660378

0.8962

Strategy $\mathrm{m}\mathrm{e}\mathrm{a}\mathrm{n}\mathrm{s}/$ ends 0.7151

0.8480

174

CultureCategory Development

0.699275

0.9054

culture

Commonculture

0.712538

0.9106

Stratum culture

0.516333

0.7022

Rationalculture

0.5641

0.7775

Table 5; _{Model Fitstatistics ofLISREL}

Index Value Ideal Value

RMR

_0.019

$<0.05$

GFI

_0.943

$>0.9$

175

Figure1: Pathdiagramof theLISREL model of organizational culture and organizational

effectiveness

Note: *** _represents