The relationship between organisation identity and organisational performance

• Main Author: Sugreen, Gulshan
• Published: 2012
• Subjects: Organisation identity; Corporate image; Organisational effectiveness; Success in business
• Online Access: http://hdl.handle.net/10210/4973

D. Phil. === Whetten (1985), Dutton and Dukerich (1991) and Van Tonder (1987; 1999; 2004a). Organisation identity is often simply described as the distinctive character of the organisation and more formally defined as the core, unique, enduring and unifying features of the organisation. Labich (1994) argued that it is a central factor in corporate failure, while De Geus (1997) concluded that organisation identity is a critical factor in long-living organisations, but empirical research on organisation identity is exceptionally rare. In particular, the organisation identity–performance relationship, which raises and illuminates the relevance of the organisation identity construct, especially at an applied level and from the perspective of organisational management, has not received formal research attention. The present study was expressly concerned with the relevance of the organisation identity construct and specifically investigated the relationship between organisation identity and organisational performance. It elaborates on an earlier empirical study by Van Tonder (1999), which indicated that organisation identity relates to several critical organisational variables, including organisational culture, institutional focus, lifecycle stage, and organisational performance, and which suggested the relevance of the construct. The present study aimed to isolate and illuminate the key variables of organisation identity and organisational performance in order to study and clarify the relationship between these constructs. Consistent with a growing trend towards non-participation, only three of the organisations that were approached eventually participated in the research. Predominantly quantitative in approach, the study used an adapted organisation identity questionnaire (cf. Van Tonder, 1999) together with an organisational performance questionnaire (the PI or Performance Index) (Spannenberg & Theron, 2002). Results from the 274 respondents revealed that organisation identity – both the ‘fact-of-identity’ and the organisational ‘sense-of-identity’ – are directly and indirectly related to the organisation’s performance. It was concluded that these findings are significant from the perspectives of the construct’s relevance to science, theory confirmation and building and at an applied (organisational managerial) level. The findings and their implications for continued research are discussed.