Organisational climate and corporate performance: an empirical investigation

Interest in organisational climate and its link with corporate performance is gaining momentum. The aim of this paper is to contribute to this discourse by examining the extent to which “above” and “below” average performing companies also exhibit different climate measurements. A survey was conducted on a sample of electronic component manufacturers, as a sunrise industry in a growth phase, and hosiery and knitwear manufacturers, as a sunset industry, in decline. In turn, sub‐samples of companies that performed above or below average for each of these sectors were selected. Climate dimension measurements collected from staff of the sample companies were analysed against corporate performance measurements. The results showed a consistent association between climate and performance. Independently of sector, companies performing above average showed higher values on climate dimensions than those performing below average. Although a link was shown to exist between climate and performance, it would be premature to conclude that this connection is causal and, if so, in which direction.