A Study On The Impact Of Organizational Culture On Employee Performance In IT Firms

Abstract

This study investigates the influence of organizational culture on employee performance within the context of Information Technology (IT) firms, where innovation, collaboration, and adaptability are key performance drivers. Drawing on Schein’s organizational culture model and supported by various empirical studies, the research explores how factors such as communication practices, leadership style, motivation, and shared values affect employee outcomes. A quantitative, crosssectional design was adopted, involving 300 IT professionals surveyed through a structured questionnaire. Constructs such as communication and collaboration, employee motivation and engagement, leadership style, and organizational values were measured using a 5-point Likert scale.

Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the data. The findings indicate that communication and collaboration (β = 0.640, p < 0.001) and employee motivation and engagement (β = 0.175, p < 0.05) significantly enhance employee performance. However, organizational values and leadership style did not show a statistically significant impact. The model explains 62.1% of the variance in employee performance, demonstrating a substantial level of explanatory power. These insights underscore the importance of fostering transparent communication and intrinsic motivation to drive high performance in IT environments. The study fills a notable gap in the literature by focusing on the cultural dynamics of IT firms, particularly in an era shaped by remote work and diverse, agile teams.