The purpose of our study is to investigate the impact of corporate culture on sales order backlog.
The authors use regression analysis to examine the relation between corporate culture and the level of sales order backlog, an important leading indicator of firm performance.
Using a large panel sample of US firms for the period of 2003–2021, the authors find a significant and positive relation, suggesting that firms with strong corporate culture have a higher level of sales order backlog.
The study findings contribute to two separate areas of research: corporate culture in management literature and sales order backlog in accounting literature. Prior study has focused on the impact of corporate culture on current firm performance. This study extends prior research by investigating the impact of corporate culture on order backlog, an important leading indicator of future performance.
