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Organizational Effectiveness: American Subsidiaries in Romania

Andrea Banto, Harish Chandan


Romania is becoming increasingly attractive for foreign companies. As the number of U.S. firms is increasing in Romania, their subsidiaries need a better understanding of the local characteristics. This study examined the effect of four organizational culture traits - Involvement, Mission, Adaptability, and Consistency - on seven measures of firm effectiveness for 51 U.S. subsidiaries. This study expands the current research in emerging markets, highlighting the importance of organizational culture for the effectiveness of firms. The study found that all four organizational culture traits have a positive influence on effectiveness.


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