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Analysis of Organizational Culture in the Public Sector

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ANALYSIS OF ORGANIZATIONAL CULTURE IN THE PUBLIC

SECTOR
Afiqah AMIN
Universiti Brunei Darussalam, Brunei
[email protected]

Abstract

A large variety of organizational culture are evident in the public sector during the strategy implementation process. The
Competing Values Model was used to investigate organizational culture and its influence on strategy implementation to
understand this better. This study found that a culture that facilitates strategy implementation in the public sector includes
character traits such as being flexible, discrete, external focus, and differentiate In contrast, the hierarchal culture that
includes characters requiring top-down control and formal rules for decision-making hinders strategy implementation.

Keywords: organizational culture, public sector, strategy, strategic management

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1. INTRODUCTION

Even though culture has been an interest of researchers to understand different groups around the world, it is
only recently that researchers in the area of management have begun to discover the close connections
between culture and organizational outcomes such as organizational performance (Warrick, 2017). Other than
that, organizational culture is also linked to employees behavior and attitudes, such as their goal orientation
and self-control (Tsui et al., 2006; Warrick, 2017). As Hellriegel et al. (2001) stated, the right organizational
culture can enhance organizational performance through the employee's problem-solving skills. It can also help
an organization obtain competitive advantages (Madu, 2012). Jacobs & Roodt (2008) also discovered an
association between organizational culture and other organizational outcomes such as knowledge sharing,
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organizational commitment, individual turnover intentions, and organizational citizenship behavior. Therefore,
it can be said that organizational culture is used as an accurate instrument to assess the effectiveness of an
organization's management (Karpova, Ardashkin, and Kabanova, 2015).
Among many different organizational outcomes, organizational cultural dimensions also impact how a team
works to successfully implement an organization's strategy (Reddy & Scheepers, 2019). This is especially
significant in the public sector as the right organizational culture is needed for stakeholder interactions in a
strategic management process to ensure a smooth-running implementation process. Even though there are
signs of a possible relationship between strategy implementation and organizational culture in general, limited
studies discuss whether there is a relationship between the public sector's organizational culture and strategy
implementation. This notion confirms by several studies that indicated a limited empirical understanding of
culture in public organizations (Brenyah & Obuobisa-Darko, 2017; Harrison & Baird, 2015; Parker & Bradley,
2000). The objective of the study is to fill this gap. It is hypothesized that a certain organizational culture may
influence strategy implementation in the public sector, whether positively or negatively. Similar to other study
such as of Parker & Bradley (2000) that conceptualized and operationalized organizational culture using the
Competing Values Framework (CVF), this study also used a similar approach to understand the relationship
between different types of organizational culture and strategy implementation in the public sector.

2. LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

2.1 Organizational Culture in the Public Sector

Organizational culture is described differently by various authors. It can be defined as beliefs and values shared
within an organization to shape the behavior patterns of employees (Dess et al., 2008; Kotter & Heskett, 1992).
It can also be described as a collective process of the mind in an organization that makes it distinctive from
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other organizations (Robbins, 2003). Organizational culture is also the assimilation of all the members of an
organization to perceive, judge, and solve problems (Schein, 2004). In addition, it can be the determinant of
employees' performance and the organization's success resulting from the employees' different backgrounds
working in unison towards the same goal (Judge & Robbins, 2008). From all these definitions, organizational
culture can be summarized as the behavior of employees working collectively in an organization to attain
organizational objectives. As there are many definitions of organizational culture, the perspectives of
organizational culture are also fragmented, each reflecting different organizations. For instance, the culture can
be bureaucratic, innovative, and supportive (Wallach, 1983). Daft (2005) categorized organizational culture as
adaptive, bureaucratic, achievement-oriented, and clan culture. However, the most prominent typology of
organizational culture developed by Cameron and Quinn (1999) has suggested that the four main
organizational cultures, consisting of clan, adhocracy, market-oriented, and hierarchical dimensions, can
evaluate the effect of organizational culture on an organization's outcomes. Therefore, these cultural
dimensions appear to be quite relevant and, upon further investigation, could each offer advantages for strategy
implementation in the public sector.
Likewise, an appropriate organizational culture is necessary for the public sector, as the public sector faces
incredible pressure to adjust to the evolving demands of their communities (Schraeder et al., 2005). Moreover,
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organizational culture in a public organization is vital in shaping employee motivation (Panagiotis et al., 2014).
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Generally, the public sector has mainly practiced a hierarchical culture based on rules, procedures, and stability
(Parker & Bradley, 2000). However, it was argued that for the public sector to become more efficient, the
organizational culture should be moving towards an entrepreneurial one (Quinn & Courtney, 2016). Adopting
an organizational culture that reflects flexibility and entrepreneurialism in the public sector can lead to
managerial reform (Parker & Bradley, 2000), while an innovative and result-oriented culture has proven its
significance in implementing and embedding management initiatives (Harrison & Baird, 2015b).
Moreover, organizational culture in a public organization is important in shaping employee motivation
(Panagiotis et al., 2014). Another study has identified that a clan culture has a more positive outcome in the
public sector (Panagiotis et al., 2014). In sum, an appropriate organizational culture is necessary for the public
sector to achieve organizational outcomes, particularly strategy implementation.

2.2 Organizational Culture and Strategy Implementation

Among other factors that are commonly observed, such as resources, organizational structure, and leadership,
organizational culture is recognized by many studies to have a progressive effect on strategy implementation,
both in the public and private sector (for example: Chemwei et al., 2014; Crittenden & Crittenden, 2008; Heide
et al., 2002; Koseoglu, Barca, & Karayormuk, 2009; Rajasekar, 2014). In strategy implementation,
organizational culture is the employees' values, beliefs, and behaviors to achieve organizational goals (House,
Hanges, Javidan, Dorfman, & Gupta, 2004) and can directly enhance their intrinsic motivation to work towards
the achievement of the organization's strategy (Alamsjah, 2011). Therefore, from a strategy perspective,
organizational culture can drive an organization to attain desirable strategic development (Lapina et al., 2015).
The literature review indicated substantial studies that prove the significance of organizational culture in
strategy implementation ( Chemwei et al., 2014; Crittenden & Crittenden, 2008; Heide et al., 2002; Koseoglu,
Barca, & Karayormuk, 2009; Rajasekar, 2014). However, an organizational culture that mirrors the behavior of
particular management may not be suitable for another organization (Yozgat & Şahin, 2013). Therefore, using
the organizational culture dimensions developed by Cameron and Quinn (1999), namely clan, adhocratic,
market-oriented, and hierarchical, can improve organizational culture as a basis for public sector strategy
implementation.

2.3 Organizational Culture Dimensions

A very well-known culture typology developed by Cameron and Quinn (1999) called Competing Values
Framework argues that organizational cultures have two dimensions. The first is based on various flexibility
and control behavior, while the second distinguishes between the company's internal and external orientation.
Together, these two dimensions form four clusters, each representing a well-defined set of organizational
effectiveness indicators, namely clan, adhocracy, market and hierarchy culture, as shown in figure 1. Each of
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these dimensions can coexist and in also one dimension can be apparent as the dominant one, rather than
being mutually exclusive to each other. Therefore, assessing organizational culture using this typology can
determined which culture can ensure the success of strategy implementation, even though the culture can be
characterized by more than one dimension.
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FIGURE 1 – COMPETING VALUES FRAMEWORK DEVELOPED BY CAMERON AND QUINN (1999)

2.3.1 Clan culture

The first dimension, clan culture, represents a friendly working environment, similar to a large family. The
organization is held together by loyalty and traditions. Clan culture is open to communication, and the
employees share their information, experiences, and expertise among themselves. In addition, clan culture
emphasizes long-term human resources and supervisor support. It has been proven that clan culture has a
positive impact on organizations by increasing employee engagement (Bakker et al., 2007; Crawford et al.,
2010) is also strongly associated with an employee's attitude toward producing quality products and services
(Hartnell et al., 2011), the commitment of the employees towards the organization (Herminingsih & Gozali,
2014), and entrepreneurial orientation (Cherchem, 2017). It can also foster an environment that stresses
collaboration, which enriches the human development process through employee capacity building (Sensuse
et al., 2015). It is argued that the government applied policies that favored a clan culture in the political system
(Gërxhani & Schram, 2000). This indicates that a clan culture is preferred and utilized in the public sector for
any activities. Thus, it can be hypothesized that:
Hypothesis 1: Clan culture positively influences strategy implementation in the public sector

2.3.2 Adhocracy culture

Adhocracy culture, the second dimension represents a dynamic and creative working environment with a future-
forward posture. It promotes the initiative and freedom of individuals, shaping the employees as innovators and
risk-takers. Past studies have proven that an adhocratic culture has a positive influence on the strength of
cohesion, freedom, value, creativity (Khurosani, 2013), and innovation (Rosario et al., 2017). Moreover, an
adhocratic culture has a positive effect on an organization's competitive advantage, by increasing employee
performance through their ability to leverage resources (Jogaratnam, 2017). Strese, Adams, Flatten, & Brettel
(2016) stated that this type of culture inspires employees to pursue their projects, which will resultantly increase
their commitment and flexibility in the organization. This is perhaps the reason why adhocracy is seen to be
the most dominant culture in the private sector, but the weakest in the public sector (Bhatnagar & Bhandaris,
1998). Despite its perceived weakness in the public sector, an adhocratic culture does lend positive effects
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towards an outcome or goal in any organization and should be investigated on its application on strategy
implementation in the public sector. Hence, the next hypothesis is developed:
Hypothesis 2: Adhocracy culture positively influences strategy implementation in the public sector

2.3.3 Market Culture

A market culture reflects a results-based organization that stresses finishing work and achieving goals. Market
culture focuses on the organization's relationship with external stakeholders, such as their customers and
suppliers. They emphasized on competitiveness and productivity through partnerships and positioning. This
kind of culture that reflects a result-oriented behavior in strategy making requires continuous improvement and
learning (Thakur et al., 2018). Although this kind of culture seems beneficial to an organization, evidence has
shown that market culture is non-existent in public sector organizations. For instance, Bhatnagar & Bhandaris
(1998) stated that the strong result orientation, competitive spirit, and significant market orientation are not
seen as a key concern in the public sector. However, when a market culture is adopted in the public sector,
Walker et al. (2011) mentioned that adopting a market-oriented mindset enhances citizen satisfaction. These
findings need to be validated in a different and specific public sector-focused context of strategy
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implementation. Therefore, having recourse to the above supporting evidence, it is hypothesized that:
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Hypothesis 3: Market culture positively influences strategy implementation in the public sector

2.3.4 Hierarchal Culture

Hierarchical culture-driven organizations share similarities with large, bureaucratic corporations. The culture is
defined by stability and control through rules, standard operating procedures, and specialized job functions in
authority and decision making. Even though a hierarchical culture is associated with low performance
(Deshpande et al., 1993) and a low level of employee motivation (Panagiotis et al., 2014), it can also improve
the quality of decisions regarding the pursuit of entrepreneurial opportunities (Jansen et al., 2006; Martin et al.,
2006).Weber (1947) 's classical attributes of bureaucracy have shown that public sector organizations adopt a
hierarchical culture. This is mirrored by Cameron & Quinn (2011), who stated that a hierarchical culture is
predominantly found in government-run institutions where strict rank-based discipline is practiced. In public
sector organizations, a hierarchical culture is portrayed as having stability, regulations, predictability, and
hierarchy (Panagiotis et al., 2014). This indicates that a hierarchical culture that focuses on centralization,
formal rules, and clear policies to ensure standardization and predictability is beneficial for strategy
implementation. Therefore, the following statement can be posited:
Hypothesis 4: Hierarchical culture positively influences strategy implementation in the public sector

3. METHODOLOGY

The limitation of studies on strategy implementation in the public sector has enabled this study to build on
mixed-method approach through a sequential explanatory; quantitative–qualitative method research design.
While the quantitative perspective attempts to generalize the relationships between the organizational culture
with strategy implementation, the qualitative perspective is used to understand the results from the quantitative
results.
The context of the study is the Brunei Darussalam’s public sector. The country’s civil servant, those who are
working for the government accounts to 24.1% of the total working population in the country, making it the
largest employer in Brunei. The public sector in Brunei practices modern bureaucracy, with a ‘monarchy culture’
instituting the government system (Yapa, 2014). Traditionally, the five-yearly national development plans had
functioned as strategic plans for the Brunei Darussalam government (Haji Mohd Yunos & Milojević, 2016).
Then, at the beginning of this century, a strategic planning system was put in place to attain the country’s Vision
2035, which is a long-term development plan with different strategies that were developed to adopt to the new
public management (Haji Mohd Yunos & Milojević, 2016). The strategy includes fostering good governance
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adoption of modern administrative, legal and regulatory systems and frameworks. Both survey and interview
were conducted to the implementers in Bruneian public organizations during June through December 2018.
Quantitative methods through survey questionnaires were disseminated to the senior public officials and middle
management officers with responsibilities for the strategy implementation in Brunei Darussalam. Following this,
within the context of the Brunei Darussalam public sector, considering only the individuals who were explicitly
involved in strategy implementation, only 182 employees fit the criteria of the sample, with 140 completed
questionnaires were collected, resulting in 76.9% response rate. The survey was organized into two parts.
Strategy implementation questionnaires were adapted from Andrews, Beynon, & Genc (2017), focusing on
strategy implementation in public sector organizations. Organizational culture is measured using the
Organizational Culture Assessment Instrument (OCAI) developed by Cameron & Quinn (2011). This instrument
has been employed frequently in past studies (for example Lau & Ngo, 2004; Naranjo-Valencia, Jiménez-
Jiménez, & Sanz-Valle, 2016), however, to better suit the context of this study, this study used a 5 point Likert
scale, a change from the usual format of OCAI. This kind of testing has already been used in numerous studies
(for example Helfrich, Li, Mohr, Meterko, & Sales, 2007; Heritage, Pollock, Roberts, Shook, & Randall, 2014;
Übius & Alas, 2009; Zahari, Mohamed, & Shurbagi, 2012).
The qualitative study was conducted on 19 participants, ranging from middle to upper management, using
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semi-structured interview ranging from middle to upper-level management in four public sector organizations
(Organization A- D). The study utilized a manifest data analysis developed by Bengtsson (2016) to investigate
the statements made from the interview. Manifest data is the tangible or concrete surface data from the
interview findings. It involves data from the interview findings being described as closely as possible to what
the participants said by using the obvious and visible texts of the participants for the qualitative results (ibid).
Thus, this type of analysis enabled the researcher to preserve as much as possible the original meanings and
contexts of the participants’ responses. This study identifies the components of organizational culture that
facilitates or hinders strategy implementation in the public sector.

4. QUANTITATIVE RESULTS

Principal component matrix was conducted on the items with varimax rotation. The Kaiser-Meyer-Olkin
measure verified the sampling adequacy for the analysis, KMO= 0.858. An initial analysis was used to obtain
eigenvalues for each factor in the data. Five factors had eigenvalues over Kaiser's criterion of 1 and in
combination explain 62.5% of the variance. However, only four factors were retained as multiple factors with
loadings greater than 0.4 were eliminated, following the exclusion criteria in EFA by Maskey, Fei, & Nguyen
(2018). The elimination criteria resulted in the earlier identified variables being deleted, recategorized and
renamed, wherein an initial five variables were deducted to four variables by the factor analysis. From this
result, strategy implementation and hierarchy culture variables are retained while items from clan and
adhocracy culture and items from adhocracy and market culture were combined as factor analysis recognized
the items to share some common ground. This has led to some changes in the hypotheses of the adhocracy
and market culture relationship with strategy implementation, whereby the hypotheses now are:
Hypothesis 1: Culture that is family-oriented and discrete positively influences strategy implementation
in the public sector
Hypothesis 2: Culture that is external focus and differentiate positively influences strategy
implementation in the public sector
Hypothesis 3: Hierarchical culture positively influences strategy implementation in the public sector
Next, scale reliability was evaluated using Cronbach's alpha. The results of alpha coefficients range from 0.611
to of 0.904, suggesting a very satisfactory degree of internal consistency. Problems of bias and distortion were
mitigated by assuring the strict confidentiality of responses and reversing scale anchors in several places
through the pilot study. The means, standard deviations, Cronbach's alphas, and correlations among the
variables are presented in table I. All the correlation coefficients among independent variables are below 0.6.
The relatively moderate correlations provided evidence of discriminant validity.

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TABLE 1: DESCRIPTIVE STATISTICS AND CORRELATIONS

Variables Mean SD Alpha 1 2 3 4
1.Strategy 3.69 0.71 0.904 1 0.428** 0.401** 0.334**
Implementation
2.Family-like and 3.72 0.58 0.833 1 0.316** 0.413**
discrete culture
3. External focus 3.45 0.655 0.780 1 0.517**
and differentiate
culture
4. Hierarchal 3.73 0.54 0.611 1
culture

The next step in analyzing the data was to test the hypothesized model using regression analysis (see table II
for results). Pertaining to the public sector evaluation of the organizational culture, the R² is 0.514, indicating
that organizational culture is accounted for 51.4% of the variation in strategy implementation. The results also
showed significant F change (F (4, 136) = 15.6 p < 0.00), indicating that the inclusion of independent variables
improved the model significantly. A Durbin-Watson value of 1.77 also indicated a positive autocorrelation
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between the three dimensions of organizational culture and strategy implementation. From the analyses,
flexible and discrete culture (β=0.31, p<0.05) and external focus and differentiate culture (β=0.267, p<0.05)
were determined to be significantly and positively related to strategy implementation, while hierarchal culture
(β=0.066, p>0.05) is not significantly related with strategy implementation.
TABLE 2: RESULTS OF REGRESSION ANALYSIS
Std β
Family-like and discrete culture 0.317**
External focus and differentiate culture 0.267**
Hierarchal culture 0.066
R 0.514
R² 0.264
Adjusted R² 0.247
F change 15.6
Significance F change 0.00
Durbin Watson 1.77
Note: **significance at the 0.05 level

5. QUALITATIVE RESULTS

After the results of the quantitative analysis are obtained, the second stage of the study was approached
qualitatively as to double-check and cross-validate the aforementioned quantitative findings. Table III compiled
the findings from the qualitative analysis based on the themes consolidated from the quantitative analysis,
namely family-like discrete culture, hierarchal culture and external focus and differentiate culture.
TABLE 3 – CHARACTERISTICS OF CULTURE FACILITATING AND HINDERING STRATEGY
IMPLEMENTATION
Facilitate Strategy Implementation Hinder Strategy Implementation
Family-like and - Friendly work environment
discrete culture - Interpersonal bonds - Maintaining group harmony
Hierarchical culture - - Maintaining status quo
- Taking opportunities and tackling challenges
- Innovative, creative and dynamic working
External focus and
environment -
differentiate culture
- Results-oriented
- Assertive

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5.1 Family-like and discrete culture

It appears that a friendly work environment and interpersonal bond, reflecting a family-like culture are
embedded in the organizations, which were found to influence strategy implementation positively. However, a
discrete culture which reflects the participant in preserving group harmony was found to hinder strategy
implementation.
5.1.1 Friendly work environment

The participants highlighted the importance of having a friendly work environment within their organization as
well as with other organizations in order to implement strategy. This is because having a friendly work
environment enables them to feel comfortable working with each other, thus facilitating strategy
implementation. Statements supporting this culture are illustrated by the middle and lower management in
mostly organization A and B as follows:
The office is a second home. We spend most of our day here, and of course we share everything. This is also
embedded in our national culture that we have to respect each other. For example, I don’t call my boss, a boss,
but instead I call her ‘kaka’ (older sister), same goes to the clerk as well, I still call her ‘kaka.’ We are like sisters
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and brothers. So it is best to make ourselves comfortable. [INT7, Officer in Organization B]

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We tend to have lunch together. You know like what they said ‘when you break bread together with people you
work (with), you become closer.’ [INT1, Deputy Director in Organization A]
5.1.2 Interpersonal bond

Having a friendly working environment enables employees to build interpersonal bonds. Interpersonal bonds
allow them to increase trust and consensus not just among each other, but also with other implementing
agencies they collaborate with, hence facilitating strategy implementation. On these points, the following
quotations are from leaders and subordinates who elaborated:
People work together here. There is cooperation even from one end to the other end. We blend (in) with each
other. We also respect each other. We also help each other. I do believe the core is cooperation within each
employee (which) will drive the department or ministry. Just imagine a boat, if only one person goes to left, and
others go to right. It will not go anywhere. So, it is the same in this department, if only the leader wants to go
forward but the others do not want to join in, it will not proceed. [INT17, Officer in Organization D]
If given one task, our bond is strong. We do things in a matrix form as well, although the task is not within our
core business, people from different sections will also be involved in it. [INT9, Officer in Organization B]
5.1.3 Maintaining group harmony

A friendly work environment enables the growth of interpersonal bonds among colleagues, as well as promoting
group harmony. However, an officer argued that the need to maintain group harmony may hinder strategy
implementation. For instance, it becomes frustrating for the owner of the initiative to compel the other
organizations to complete their tasks, while maintaining group harmony. One officer was open in describing
the issue briefly, stating:
But last time, when we were too friendly, when we try to communicate with the other focal (of other implementing
agencies), they will tend to say ‘It is hard… I have a lot of things to do…’ and they don’t take it as their own
initiative. So, the thing is they give excuses and treat it like it’s nothing… [INT5, Officer in Organization B]

5.2 Hierachal culture

A hierarchal culture is defined by stability and control through rules, standard operating procedures and
centralized decision making. One particular behavior of a hierarchal culture was found in strategy
implementation, which is the culture of resistance to change. The interview has determined that there is a
culture of resistance to change that reflects the tendency of people to avoid alternative ideas when strategy is
being implemented.
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5.2.1 Resistance to change

During the implementation of strategy, some of the interviewees mentioned a prevailing resistance to change
towards the initiatives and activities to be executed. In the face of increasing pressure for strategy to be
implemented, the public sector is obliged to embrace the process required transformation in executing the
initiatives and activities in order for strategy to be implemented. However, the findings indicate that employees
are comfortable with the present state of affairs and workflow, and status quo, thus delaying strategy
implementation. This issue was highly stressed by interviewees of all job levels, as shown:
Since introducing the strategy is quite new, it’s important for us to do a socialization plan. But we sort of
expected that it will not be agreed by some people and we understand that and that when we do the
socialization plan, we sort of expect that it will not be agreed by the civil servants and they might be reluctant
to change… [INT18, Assistant Director in Organization D]
So as (having) an experience being the implementer, it has not been forthcoming. Meaning, they say ‘yes’, but
it will always go back to square one, so I just need to be patient. [INT10, Assistant Director in Organization C]

5.3 External focus and differentiate culture

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In this study, it was found that the public sector is routinely subjected to external factors, from limited resources
to resistance from its stakeholders and differing or conflicting priorities to the higher levels of government in the
ministry. However, the employees tend to be amenable towards their surroundings and the challenges of
strategy implementation. According to the interview findings, the public sector tends to respond to these
externalities by taking opportunities and tackling challenges constructively, being innovative, and having a
creative and dynamic working environment. The participants acknowledged the importance of having traits that
reflect flexible culture, such as being results-oriented to accomplish the tasks required to implement strategy.
The participants also indicated their assertiveness when being flexible through as getting their initiatives and
activities approved, due to the high level of centralization of authority in the ministry.
5.3.1 Result-oriented

Strategy is comprised of activities and initiatives that themselves are directed by more concise and focused
plans. Thus, the participants acknowledged the importance of having a results-oriented personality to
accomplish the tasks given. The participants expressed that:
The ministry wants to know if we are able to achieve the strategy or not. They (the higher level of government)
want something that can be seen as a result. So, we try to accommodate that and we will adjust our activities
to achieve that target. [INT19, Officer in Organization D]
Our role as a public service provider is important. If we do our work, we must be dedicated to it; we do it for the
benefit of the people that get the service from us. [INT18, Assistant Director in Organization D]
5.3.2 Assertive

Other than having a results-oriented personality, some of participants expressed a different and interesting
opinion, in which they have to be assertive in order to implement strategy. This is due to the slow decision-
making process resulting from the concentration of authority in the ministry. The upper management,
particularly in Organization C, indicated the need to be insistent in order to obtain approval for their initiatives
and activities. They stated as follows:
We want efficiency, but we have to work hard in getting their (higher level of government) attention. We were
asked about why we want to see the minister, but that is just the thing that we need to do to speed things up.
If not, the tasks cannot go on. [INT13, Head of Unit in Organization C]
The pace of work must be fast because we are chasing and adopting and pushing it through the globalization
and trend. We are responsible for equipping people with global competence. Otherwise, Brunei will be left
behind and it will impact on how the civil service runs. [INT11, Director in Organization C]
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5.3.3 Opportunities and Challenges

As mentioned previously, the public sector is subjected to various constraining external factors which are
beyond the implementers’ control, but they can be mitigated or overcome by having leaders who can realise
possible opportunities from these challenges. Strategy implementation provides them an exploration of
opportunities and options for reducing challenges, including through the process of being adaptive and
resourceful employees. These traits are reflected in statements by both upper and middle management in the
organizations. The statements below expressed the view that:
The no-go from the ministry has an impact to the strategy. Just imagine that we have to look at 51,000 officers
in the civil service, if plan A doesn’t work, we go for plan B or C or D. In this case, we will need to learn to
maneuver our way to implement the strategy. [INT11, Director in Organization C]
Working under a ministry means that we have to try as much as possible to adjust….We try to accommodate
that, at the same time, we make sure that we achieve our target by adjusting our activities. [INT19, Officer in
Organization D]
From my experience, it is only due to different perspectives. For us, we only see it from one version, but since
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this involves a bigger picture, (and) management, our idea is perhaps only good in theory, but in terms of
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implementation, maybe it does not work. So when the management says it does not work, we will find different
alternatives. [INT7, Officer in Organization B]
5.3.4 Innovative, creative and dynamic working environment

Some of the participants mentioned the terms “innovative” and “dynamic”, rather than being adaptable when
inquired regarding the kind of characteristics instilled in them when there are issues beyond the implementers’
control. Below, the participants stated:
Innovative in the sense that we aspire to generate and formulate new ideas, plan and move the civil service to
a higher dimension of productivity and efficiency. To be dynamic is our initiatives and readiness to adapt and
adopt changes in policy, process, and procedures in administration to ensure continuous good governance in
the civil service. [INT15, Director in Organization D]
“When proposing a project, we find the opportunity to build ourselves and also the project that we proposed.
When the proposal is rejected, we will try to bring it differently, we will change and develop it until it goes
through”. [INT11, Director in Organization C]

6. DISCUSSIONS

In this study, organizational culture defines the behavior of employees working collectively to implement a
strategy. An appropriate organizational culture is necessary for the public sector, as it faces incredible pressure
to adjust to the evolving demands of its communities (Schraeder, Tears, and Jordan, 2005). In addition,
organizational culture is central to the functioning of an organization (Schraeder, Tears, and Jordan, 2005).
Previous studies have proved that an appropriate organizational culture is associated with strategy
implementation (for example Chemwei et al., 2014; Crittenden & Crittenden, 2008; Heide et al., 2002; Koseoglu,
Barca, & Karayormuk, 2009; Rajasekar, 2014). Furthermore, in the strategy implementation stage, several
researchers (Abdul Rashid et al., 2004; Balthazard et al., 2006; Mello & Stank, 2005) emphasized the
importance of culture in affecting (positively or negatively) organizational change and promoting and
implementing organizational initiatives.
It is evident that various behaviors can be exhibited by an organization. However, to understand organizational
culture in a simpler manner further, organizational culture can be investigated through a tool developed by
Cameron and Quinn (2006) called Competing Values Framework which utilizes two dimensions that firstly,
entails a continuum of flexibility and control and secondly, distinguishes between the company's internal and
external orientation. The two dimensions form four clusters: clan, adhocracy, market, and hierarchy culture.
These typologies were used to identify the appropriate culture that fits strategy implementation in the public
sector. Despite following the Competing Values Framework, the result from this study found that a combination
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of clan and adhocracy culture, forming a family-like and discrete culture, and the combination of adhocracy and
market culture, forming external focus and differentiate culture have a significant positive relationship with
strategy implementation in the public sector. Thus, hypotheses 1 and 2 are accepted. Hierarchal culture
variable, on the other hand is retained but was found to have an insignificant relationship with strategy
implementation, showing that hypothesis 3 is rejected. This result is important for the development of
organizational culture in the area of strategy implementation in the public sector as the marriage between
the components of clan, market and adhocracy culture may be beneficial for strategy implementation in
the public sector. This study has found that rather than isolating the organizational culture dimensions,
they rather coexist with each other in order for the strategy to be implemented.
The significant positive relationship of a family-like culture with strategy implementation in Brunei Darussalam’s
public sector found in the quantitative result is consistent with the qualitative findings, which mirrors clan culture.
The majority of the respondents, especially within the middle and lower management, perceived that the culture
of a friendly work environment that exists in their organization has led to build an interpersonal bond and mutual
trust as an important component in strategy implementation. This is because there is cooperation from one end
to another when getting a consensus about work-related matters for the best solution. A friendly work
environment also allows informal communication, as day-to-day contact and work floor experiences from
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employees become easier through this culture. In addition, the culture benefits the public sector, where a
Management Research and Practice

friendly working environment between the implementing agencies creates better coordination and a stronger
bond. These findings are similar to earlier studies, whereby clan culture promotes a collaborative organizational
environment in strategic planning (Sensuse, Cahyaningsih, and Wibowo, 2015). As a result, clan culture has a
more positive outcome in the public sector (Panagiotis, Alexandros, and George, 2014).
Despite its advantages, it is important to note that the need to maintain group harmony to avoid conflict,
reflecting a discrete culture can create a negative aspect towards strategy implementation. As indicated in the
findings, despite the increasing pressure for strategy to be implemented, some of the employees are
comfortable with the present state of affairs and workflow and status quo, thus delaying strategy
implementation. The employees then feel that they are forced to embrace the required transformation in
executing the initiatives and activities to implement the strategy. However, to preserve group harmony, it is
necessary to avoid confrontation, eventually leading to ingenuine respect that may result in conflict. This
perception has been proved in a study by Pg Hj Idris (2021) in which the employees in Brunei tend to keep
themselves in the background due to being polite and respectful. This has led subordinates to avoid revealing
the truth, which has made it difficult to resolve issues (ibid). This culture is also practiced during strategy
implementation, thus, agreeing previous studies that indicated conflict resolution is achieved by avoiding
confrontation to preserve harmonious group relations in Brunei Darussalam (Black, 2001; Low, 2008; Pg Hj
Idris, 2021).
It is also crucial for the public sector to focus externally, particularly towards finishing work and achieving goals
related to strategy implementation. Perhaps, the need to finish work and achieve goals is due to the nature of
strategy implementation, which comprises activities and initiatives based on a shorter and focused plan. As
reflected in this study, most of the middle and lower management employees in Brunei Darussalam’s public
sector revealed characteristics of the market-oriented value such as being result-oriented during the strategy
implementation process in focusing externally. This is because strategy implementation is made up of activities
based on shorter and focused plans. Other than that, the need to be assertive is highlighted among the
implementing agencies due to the slow decision-making process in the centralized structure. This has obligated
the upper management to insist on obtaining approval for their initiatives and activities for strategy
implementation, especially since the administrative structure is strongly centralized, and trivial decisions have
to be referred to a higher level for resolution. Furthermore, employees can strengthen their behavior through
being results-oriented, taking the initiative and having an uninhibited expression of proposals that allow them
to cultivate an outcome-based environment, further removing the risk of the bureaucratic nature of the public
sector. Therefore, it is important to note that the strength of being external focused is despite the centralized
structure in the public sector. The findings of this study are more consistent with Quinn and Courtney's (2016)
study that mentioned public sector culture should be more forward-thinking, goal-oriented and results-driven.
These findings also further supported the idea of Harrison and Baird (2015), who stated that results-oriented
culture had proved significance in implementing and embedding management initiatives. In addition, the
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findings of this study are more consistent with Quinn and Courtney's (2016) study that mentioned public sector
culture should be more forward-thinking, goal-oriented and results-driven. Therefore, it debunked Harrison and
Baird (2015) that mentioned culture reflecting outcome orientation lags behind in public sector organizations of
government departments and agencies.
Being different is also a culture that is highlighted in this study in order to implement strategy. In this study, to
be adaptable and creative, reflecting being different were arise as a response to the challenges occurring within
the organization. As observed in this study, the public sector appeared to be confronted by structural
constraints, such as centralized decision-making. Other than that, limited resources, resistance from
stakeholders and different priorities from higher levels of government also appeared to be challenging for the
implementing agencies. When these challenges occur, the director and their subordinates see this as an
opportunity to become adaptable and creative in finding ways to implement the strategy. This finding is in
accordance with previous studies that emphasize that flexible and different culture produces creativity
(Khurosani, 2013), innovation (Rosario, Patricia, & Rene, 2017), the ability to leverage resources (Jogaratnam,
2017), and increased commitment and flexibility in pursuing projects (Strese et al., 2016). While a study by
Richards (1991) claimed that work-related values in Brunei are not receptive or conducive to effective problem-
solving and to effective organizational performance, this study proved an opposing view, whereby it is evident
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that the being differentiate brings a positive influence towards strategy implementation in the public sector. A
Management Research and Practice

study by Al Athmay (2008) stated that the public sector in Brunei aims to move from rules-governed practices
to an output orientation. This literature shows that even though Brunei Darussalam’s public sector is routinely
subjected to challenges due to institutional constraints and the external environment during strategy
implementation, taking opportunities and tackling challenges constructively towards their surroundings has
become an advantage.
This study also revealed that hierarchal culture is not significantly related to strategy implementation in the
public sector. Even though hierarchal culture commonly exists in the public sector due to its top-down control,
formal rules, coordination and stability, it seems that this culture does not work with strategy implementation.
This is because, in reality, the middle and lower management are the key positions in strategy implementation
projects and initiatives (Alamsjah 2011; Kiehne et al. 2017; Waldron, Vsanthakumar, and Arulraj, 1997). During
the interview, the participants implied how some stakeholders refused to comply with the execution of initiatives
and activities related to the strategy implementation. As strategy implementation often involves executing new
strategic initiatives and activities, the potential impacts of change on people working in the organization are
significant. Hence, employees sometimes choose to maintain their status quo, indicating that hierarchal culture
hinders strategy implementation. In the same vein, Morshed Alom (2021) stated that bringing desired changes
will require conscious and deliberate efforts, as the employees in a hierarchal culture prefer to remain in their
comfort zones. This proved to be a barrier to strategy implementation, as the process requires adopting strict
new strategic initiatives and activities for the performance of the organization (Rani, 2019). Even though Haji
Rashid and Haji Said (2018) pointed out that the hierarchal culture in the Brunei Darussalam public sector may
benefit strategy implementation by making employees obey when there is an instruction from the central
authority to carry out the implementation, the aspect of maintaining status quo proved to be an obstacle towards
strategy implementation. Hence, hierarchal culture has no fit with strategy implementation, as the existence of
this culture makes it difficult to adapt to a challenging environmental requirement.

7. CONCLUSIONS

The Competing Values Framework developed by Cameron and Quinn (1996) can be understood more through
the components that make up the clan, adhocracy, market, and hierarchy culture. As such, this study found
that the combination of clan and adhocracy culture forms family-like and discrete culture, and the combination
of adhocracy and market culture, forming external focus and differentiate culture deems to be more appropriate
when it comes to strategy implementation in the public sector. Perhaps, the public sector is routinely subjected
to challenges due to the institutional constraints and external environment during strategy implementation; the
marriage of different behaviors can facilitate the process as employees tend to be amenable by taking
opportunities and tackling challenges constructively towards their surroundings. Furthermore, employees can
strengthen their behavior through being results-oriented, taking the initiative, and having an uninhibited
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expression of proposals that allow them to cultivate a dynamic and creative environment, further removing the
risk of the bureaucratic nature of the public sector.

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