Different organisation cultures in a joint venture : does it impact the employees' performance in reaching the companies' objectives?

Abstract

Every organisation has its own particular culture which has a significant impact on its success or failure. Different organisations that work together towards a common objective can find obstacles due to the fact that the companies might have different cultures. A case study on a joint venture in the hospitality industry was carried out to analyse the level of impact that different corporate cultures have within a partnership. The joint venture is made up of two companies; Golden Sands Ltd and Azure Services Ltd. These two companies have different functions but together provide exclusive luxury vacation ownership (timeshare) products. Their profile has several different characteristics, including length of operation, nationality of management and organisations structures. This research tries to identify whether these two companies actually have different cultures, what they are and whether the fact that they are different inhibits the joint venture from reaching its objectives. The study was carried through an organisation culture assessment instrument and a set of interviews and questionnaires given to selected staff across all hierarchical levels. The results showed that the two companies in fact do have different cultures; Golden Sands Ltd. being rated as a hierarchy with paternalistic management and Azure Services Ltd. being rated as a market driven company. Feedback given implied that this incongruence affected negatively the common objectives, defined mainly as the quality of the product and service given to the clients. The difference in cultures also seemed to impact the experience of the employees' employment, mainly due to communication breakdown, difference in mentality, lack of personal relationships and a mismatch in the strategic objectives amongst others. A number of recommendations were given aiming to assist the companies in addressing these issues and bringing the joint venture's operations more aligned together.