| Summary: | The topic of this paper is to examine the influence of organizational culture on determination and implementation of the appropriate strategy within the company. Specifically, the author has tested the hypothesis about the influence of organizational culture on determination of strategy in Montenegrin companies. Firstly, in the theoretical part of the paper, the author defined organizational culture and business strategy and then analyzed the nature and manner of influence of organizational culture on formulation and implementation of strategy, as well as influence of implemented strategy on organizational culture. Organizational culture affects formulation of strategy determining information gathering, perception and interpretation of the environment. Namely, culture can facilitate or prevent implementation of the strategy through legitimization process. In the same way, the application of chosen strategy may, through its institutionalization process, reinforce or change the existing organizational culture. The empirical part of the paper refers to research results and testing of hypotheses about the influence of organizational culture on strategy of companies in Montenegro carried out on sample of 16 companies (324 respondents) in Montenegro.
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