The Effects of Corporate Culture on Firm Growth: Evidence from Tanzania’s Construction Firms

Abstract

Corporate culture is one of those important aspects that determine the growth of firms. This study investigates the effects of the different types of corporate culture on the growth of Tanzania’s local construction firms. A survey of 227 Tanzania’s construction firms was undertaken using semi-structured questionnaire. The data collected were quantitatively analysed using Stata 13.0 software. The study results indicate that only the hierarchy type of corporate culture positively and significantly impacts the growth of Tanzania’s construction firms. The other types of corporate culture, such as adhocracy, market, and clan had insignificant effects on the growth of the construction firms in Tanzania. The findings show that using the aggregated corporate culture construct is inappropriate in certain research contexts. Hence, the findings are useful in informing managers of Tanzania’s construction firms about the significant effects of hierarchy culture on the growth of firms. This enables them to create a working environment focusing on structured and formatted procedures.