Simon A. Booth and Kristian Hamer
The purpose of this paper is to assess claims that culture is a significant factor in accounting for corporate financial performance (defined as sales intensity (SI)) in the…
Abstract
Purpose
The purpose of this paper is to assess claims that culture is a significant factor in accounting for corporate financial performance (defined as sales intensity (SI)) in the retail sector at store level. The paper provides a critical analysis of the “strong culture‐good performance” thesis.
Design/methodology/approach
Company data were used which included the annual employee survey (at store level), store characteristics data, and store sales data (SI per square foot). Multiple regression was used to predict SI. Stepwise cross‐lagged regression analysis was used to infer cause and effect linkages.
Findings
Contrary to the strong culture thesis, the results show that a physical factor, store format, is the most important element in explaining SI. Employee morale is the most significant human cultural variable, followed by employee perception of manageable workloads. Interestingly, whilst job satisfaction is a significant predictor, it is in a negative direction. The more employees are satisfied, the more SI decreases.
Research limitations/implications
This is a very large study at store level, and the literature suggest the methods adopted are the best available. The key limitation of the research lies in the reliability of the inference that behavioural and managerial attributes are causally related to performance outcomes measured in sales data. Many other external factors also influence store sales in any given period (ranging from macroeconomic to store level promotion factors). The research accounts for 32.7 per cent of total variance, so other factors beyond the scope of this study are also likely to have significance.
Originality/value
This paper is one of the first contributions to empirically analyse corporate culture compared to other factors that explain store performance.
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Simon Booth and Kristian Hamer
This paper aims to identify key variables that influence the variability of labour turnover.
Abstract
Purpose
This paper aims to identify key variables that influence the variability of labour turnover.
Design/methodology/approach
The approach used in this research is a case study of a major retailer. The key data sources are an index for local competitive and labour market factors, an annual employee survey, and internal labour turnover data for each UK unit of the retailer. The method used for analysis is stepwise regression which identifies the key relationships that predict labour turnover.
Findings
The findings show that environmental factors such as local labour markets have a major influence on labour turnover. Organisational factors such as company culture and values are a significant influence. Management behaviour as seen through operational and control variables are also of importance. Individual employee variables are also important in decisions concerning turnover.
Research limitations/implications
The statistical analysis accounts for 38.7 per cent of the total variance in labour turnover. There are, therefore, other factors which are not assessed in this paper which also contribute to labour turnover. Whilst this study is of retail units across the UK as a whole, it is of one organisation and statistical generalisations cannot be made from this research.
Practical implications
A significant paradox is found in which, as employees become more embedded and familiar with the organisation, its valency for them diminishes and labour turnover increases. This poses a challenge for retailers: how can they retain valued employees who find that as their self‐esteem increases they wish to search for better jobs elsewhere?
Originality/value
This research uses a statistical approach to provide new findings concerning the attitudes of individuals to their work and good explanations of the factors involved in labour turnover. It also provides statistical predictions which could be used by managers who wish to improve performance and decrease labour turnover at the retail unit level.