Business perception of contextual changes: sources and impediments to organizational learning

A firm's ability to shape its policies to meet societal demands depends on how it perceives the opportunities and risks in its environment. We hypothesized that corporate culture plays a significant role in shaping organizational perceptions. This paper summarizes the findings of a study on how the organizational culture of a chemical firm headquartered in West Germany affected the evolution of its social and personnel policy from 1950 to 1989 given the changes in its sociopolitical environment during this period. The study shows that the culture of a company, by shaping its perceptions, plays a central role in determining the areas in which the organization is likely to be able to learn easily and those in which it is likely to resist changing its policies.