Case Study: Organizational Culture in Montenegrin Companies

Conclusions and Recommendations

Theoretical elaboration of influence of organizational culture on business strategy as well as empirical research on Montenegrin companies' exaample shows that organizational culture and business strategy are mutually interacting categories, i.e. organizational culture influences the choice of appropriate strategic option. Depending on the degree of consistency of organizational culture with the strategy chosen, organizational culture can legitimize or delegitimize the strategy. In the case where culture legitimizes the strategy, the strategy is also easily applied. However, if culture delegitimizes the strategy the strategy chosen is impossible to apply. The strategy affects organizational culture by institutionalizing or deinstitutionalizing the same. If the chosen strategy is in accordance with the existing organizational culture, the strategy will further strengthen the existing organizational culture, i.e. institutionalize it. Likewise, long-term use of certain strategies will deinstitutionalize the existing organizational culture by which its process of change begins.

In order to achieve positive effects of organizational culture on overall operations of the company, it is of particular importance to harmonize the actual organizational culture of the company with the strategy chosen. The existing organizational culture creates the "limits of behavior" of the company that affect the degree of implementation of a business strategy. It presumes constant monitoring and review of the situation in order to affirm the choice of the strategy or to choose another adequate strategy. Therefore, recommendations for the management of the company would be the following:

- Management of the company must actively participate in the creation of such organizational culture that favors the company by whose implementation the effective implementation of business strategy will be ensured. This is the only way for succesful operations of the company, i.e. ensuring a competitive advantage in the market;