Based on the historical research, the ultimate source of an organizational culture is the founder (Schein, 2010). The culture derives from the founder’s philosophy; they have a vision of what the organization should be, and impose that vision on all members. Generally, founders can have a direct impact on building strong cultures that have a positive impact on company performance; and strong corporate culture can contribute to an organization’s bottom line and performance.
Kotter and Heskett (1992) conducted several studies to determine whether a relationship exists between corporate culture and long-term economic performance and found that firms with strong cultural traits and leadership from managers at all levels outperformed firms that did not have the same cultural trai...
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...ip had an indirect negative effect on performance. Ogbonna and Harris (2000) conclude that the results show the relationship between leadership style and performance is mediated by the form of organizational culture that is present. On the basis of these finding, Bass’s (1985) proposition that transformational leadership leads to performance beyond expectations can be further expanded, more specifically, to show that transformational leadership might create group expectations for higher performance , which, in turn affect levels of performance.
One of the main questions the research set out to explore was whether organizational culture is the filter through which leadership has an effect on performance. Thus, the findings
support the proposition that organizational culture is found to be a filter through which leadership influences various performance outcomes.
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