And Time Inc.'s merger with Warner Communications in 1989 had more than a few bumps in the road. Indeed, there is good reason for concern. During periods of rampant mergers and acquisitions, a critical eye is given to a company's corporate culture. According to recent research by Ronald Burt, a professor of sociology and strategy at the University of Chicago Graduate School of Business, a strong corporate culture can positively affect a firm's economic performance. But there is no guarantee that a strong culture assures high performance.
Corporate culture is defined by a shared set of beliefs, myths and practices.
As in any other social system, this shared culture binds people together. Burt's research begins with corporate culture, but specific beliefs and how they are formed do not concern him. Examining Culture Consider a hypothetical case of two consultants designing research on the performance effects of a strong corporate culture. One selects 10 beverage firms for in-depth case analysis because the consultant worked in the industry and has good personal contacts there. The other consultant selects 10 apparel firms.