The first consultant has selected a market where competition is low. A strong corporate culture offers no competitive advantage. The consultant will find no evidence of higher performance in strong-culture firms and thus conclude that there is no culture effect. His advice to client firms will be to avoid wasting resources on institutionalizing a strong corporate culture. The second consultant has selected markets at the other end of the competition spectrum.
Competition is high for apparel firms and a strong corporate culture is a competitive advantage.
The consultant will find proof of higher performance in strong-culture apparel firms and conclude that performance is dependent on a strong corporate culture. Later, this consultant will advise client firms to concentrate on institutionalizing a strong corporate culture. So when considering a merger with another firm, Burt recommends that as a first step, investigate the firm's corporate culture. Next, examine the industry's market structure. A strong corporate culture can be a powerful competitive asset in a market that resembles a commodity.