The importance of corporate culture in enhancing the governance of joint-stock companies

https://doi.org/10.35912/jomabs.v2i2.3027
Published: Feb 27, 2025

Abstract:

Purpose: This study examines the role of corporate culture in strengthening the governance mechanisms of joint-stock companies. This study aims to conceptualize how cultural values interact with governance structures to shape accountability and ethical conduct.

Research methodology: A qualitative descriptive approach was applied by synthesizing philosophical, normative, and organizational frameworks from literature published between 2000 and 2023. Content analysis identified recurring themes such as values, rituals, and leadership patterns, with Deal and Kennedy’s four-level model used to assess the cultural influence on governance.

Results: In Uzbekistan’s current economic renewal, joint-stock companies such as “Uzsalaman” JSC and “Maxam Chirchiq” JSC seek to improve efficiency through market alignment, equipment modernization, and cultural development. Evaluating efficiency requires sector-based indicators of cost, profit, and output, as well as internal and external conditions. A multi-indicator system offers a more accurate performance measurement that is consistent with international standards.

Conclusions: Effective governance requires cohesive, value-driven teams that reinforce formal structures and shared goals. Strategic cultural programs should focus on motivation, communication, and management, aligning with organizational conditions. A strong corporate culture enhances productivity, reduces turnover, and supports governance outcomes.

Limitations: This study is conceptual and does not include field-based data from joint stock companies.

Contribution: This study provides a theoretical foundation linking culture with governance effectiveness and offers strategic insights for enhancing organizational performance in joint-stock enterprises.

Keywords:
1. Company Mission
2. Corporate Culture
3. Corporate Governance
4. Employee Satisfaction
5. Organizational Behaviour
Authors:
Nazokat Akramova
Tashkent State University of Economics, Tashkent, Uzbekistan
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How to Cite
Akramova, N. (2025). The importance of corporate culture in enhancing the governance of joint-stock companies. Journal of Multidisciplinary Academic Business Studies, 2(2), 131–140. https://doi.org/10.35912/jomabs.v2i2.3027
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Vol. 2 No. 2 (2025): February
Articles
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References

    Akramova, N. (2023). The Need to form A Corporate Culture in Joint-Stock Companies. Economics and Innovative Technologies, 11(1), 195-204. doi:https://doi.org/10.55439/EIT/vol11_iss1/a20

    Ariyanto, T. P. A., & Idawati, W. (2023). Pengaruh Kompleksitas Perusahaan dan Risiko Perusahaan Terhadap Biaya Audit (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia 2018-2021). Journal of Accounting, Management and Islamic Economics, 1(2), 513-530. doi:https://doi.org/10.35384/jamie.v1i2.468

    Banning, F., Reale, J., & Roos, M. (2023). The Complexity of Corporate Culture as a Potential Source of Firm Profit Differentials. Theoretical Economics, 1-35. doi:https://doi.org/10.48550/arXiv.2305.14029

    Bartkus, B., Glassman, M., & McAfee, R. B. (2000). Mission Statements: Are They Smoke and Mirrors?. Business horizons, 43(6), 23-28. doi:https://doi.org/10.1016/s0007-6813(00)80018-x

    Dutta, D., Mishra, S. K., & Budhwar, P. (2022). Ethics in Competency Models: A Framework Towards Developing Ethical Behaviour in Organisations. IIMB Management Review, 34(3), 208-227. doi:https://doi.org/10.1016/j.iimb.2022.10.002

    Ghaleb, B. D. S. (2024). The Importance of Organizational Culture for Business Success. Jurnal Riset Multidisiplin Dan Inovasi Teknologi, 2(3), 727-735. doi:https://doi.org/10.59653/jimat.v2i03.1098

    Gorton, G. B., & Zentefis, A. K. (2024). Corporate culture as a theory of the firm. Economica, 91(364), 1391-1423. doi:https://doi.org/10.1111/ecca.12537

    Hundschell, A., Backmann, J., Tian, A. W., & Hoegl, M. (2022). Leaders' Cultural Gap Bridging Behaviors and Subordinates' Work Engagement in Multinational Teams. Journal of International Management, 28(3). doi:https://doi.org/10.1016/j.intman.2021.100916

    Ilham, R. (2018). The Impact of Organizational Culture and Leadership Style on Job Satisfaction and Employee Performance. Journal of Advanced Management Science, 6(1), 50-53. doi:https://doi.org/10.18178/joams.6.1.50-53

    Khan, T. Y., Badruddin, I. A., Soudagar, M. E. M., Khandal, S. V., Kamangar, S., Mokashi, I., . . . Hossain, N. (2021). Biodiesel production using modified direct transesterification by sequential use of acid-base catalysis and performance evaluation of diesel engine using various blends. Sustainability, 13(17), 9731. doi:https://doi.org/10.3390/su13179731

    Kohtamäki, M., Heimonen, J., Sjödin, D., & Heikkilä, V. (2020). Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. Journal of Business Research, 118, 12-25. doi:https://doi.org/10.1016/j.jbusres.2020.06.029

    Nisa, S., & Hariyanti, A. I. (2022). Good Corporate Governance, Kinerja Keuangan dan Kinerja Saham Selama Pandemi Covid-19. Jurnal Studi Pemerintahan dan Akuntabilitas, 2(1), 51-64. doi:https://doi.org/10.35912/jastaka.v2i1.1739

    Nurjannah, Rumenta, S., & Rahman, M. A. (2022). Understanding The Relationship Between Communication Style, Good Corporate Governance, Corporate Social Responsibility, Tax Compliance, Ethical Leadership, and Public Trust. Jurnal Publikasi Ilmu Manajemen, 1(4), 286-298. doi:https://doi.org/10.55606/jupiman.v1i4.3618

    Pande, S., & Ansari, V. A. (2014). A Theoretical Framework for Corporate Governance. Indian Journal of Corporate Governance, 7(1), 56-72. doi:https://doi.org/10.1177/0974686220140104

    Putra, M. R. S., & Joeliant, H. B. (2023). Kedudukan Organ Perseroan Perorangan pada Usaha Mikro Kecil dan Menengah Pasca Berlakunya Undang-Undang Nomor 6 Tahun 2023. UNES Law Review, 6(2), 5104-5113. doi:https://doi.org/10.31933/unesrev.v6i2.1341

    Sabri, R., Tabash, M., Abousamak, A., Daniel, L., & Asadullah, D.-M. (2024). Ownership structures and corporate governance: A systematic analysis. Journal of Governance and Regulation, 13, 416-433. doi:http://dx.doi.org/10.22495/jgrv13i1siart15

    Sadikova, M., Karlibaeva, R., Yusupov, A., & Akramova, I. (2021). Evaluation of the Positive Effects of Corporate Culture in Joint-Stock Companies. Turkish Online Journal of Qualitative Inquiry, 12(6), 6956-6966.

    Saidakhmedova, A. M. (2024). Corporate Governance in Joint-Stock Companies: Challenges and Opportunities for Adopting International Standards. Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS: Part A, 57-64. doi:https://doi.org/10.1108/S1877-63612024000033A007

    Saparovna, M. K., & Sayatovna, S. M. (2015). Features of Corporate Governance in Kazakhstan. Asian Journal of Business Environment, 5(2), 15-22. doi:https://doi.org/10.13106/eajbm.2014.vol5.no2.15.

    Sari, R. (2023). Enhancing Corporate Governance Through Effective Oversight and Accountability. Advances: Jurnal Ekonomi & Bisnis, 1(6), 344-356. doi:https://doi.org/10.60079/ajeb.v1i6.291

    Schein, E. H. (2010). Organizational culture and leadership (Vol. 2): John Wiley & Sons.

    Stepanova, L., & Melnikova, N. (2020). Modern problems of Management efficiency in a Joint Stock Company. Paper presented at the International Scientific Conference" Far East Con"(ISCFEC 2020).

    Trinks, A., Mulder, M., & Scholtens, B. (2020). An Efficiency Perspective on Carbon Emissions and Financial Performance. Ecological Economics, 175, 1-12. doi:https://doi.org/10.1016/j.ecolecon.2020.106632

    Utami, D. P., Yuliandari, W. S., & Muslih, M. (2017). Mekanisme Good Corporate Governance dan Transparansi Perusahaan Terhadap Pengungkapan Corporate Social Responsibility. Jurnal Riset Akuntansi Kontemporer (JRAK), 9(1), 19-28. doi:https://doi.org/10.23969/jrak.v9i1.364

    Young, S., & Thyil, V. (2014). Corporate social responsibility and corporate governance: Role of context in international settings. Journal of business ethics, 122(1), 1-24. doi:https://doi.org/10.1007/s10551-013-1745-8

  1. Akramova, N. (2023). The Need to form A Corporate Culture in Joint-Stock Companies. Economics and Innovative Technologies, 11(1), 195-204. doi:https://doi.org/10.55439/EIT/vol11_iss1/a20
  2. Ariyanto, T. P. A., & Idawati, W. (2023). Pengaruh Kompleksitas Perusahaan dan Risiko Perusahaan Terhadap Biaya Audit (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia 2018-2021). Journal of Accounting, Management and Islamic Economics, 1(2), 513-530. doi:https://doi.org/10.35384/jamie.v1i2.468
  3. Banning, F., Reale, J., & Roos, M. (2023). The Complexity of Corporate Culture as a Potential Source of Firm Profit Differentials. Theoretical Economics, 1-35. doi:https://doi.org/10.48550/arXiv.2305.14029
  4. Bartkus, B., Glassman, M., & McAfee, R. B. (2000). Mission Statements: Are They Smoke and Mirrors?. Business horizons, 43(6), 23-28. doi:https://doi.org/10.1016/s0007-6813(00)80018-x
  5. Dutta, D., Mishra, S. K., & Budhwar, P. (2022). Ethics in Competency Models: A Framework Towards Developing Ethical Behaviour in Organisations. IIMB Management Review, 34(3), 208-227. doi:https://doi.org/10.1016/j.iimb.2022.10.002
  6. Ghaleb, B. D. S. (2024). The Importance of Organizational Culture for Business Success. Jurnal Riset Multidisiplin Dan Inovasi Teknologi, 2(3), 727-735. doi:https://doi.org/10.59653/jimat.v2i03.1098
  7. Gorton, G. B., & Zentefis, A. K. (2024). Corporate culture as a theory of the firm. Economica, 91(364), 1391-1423. doi:https://doi.org/10.1111/ecca.12537
  8. Hundschell, A., Backmann, J., Tian, A. W., & Hoegl, M. (2022). Leaders' Cultural Gap Bridging Behaviors and Subordinates' Work Engagement in Multinational Teams. Journal of International Management, 28(3). doi:https://doi.org/10.1016/j.intman.2021.100916
  9. Ilham, R. (2018). The Impact of Organizational Culture and Leadership Style on Job Satisfaction and Employee Performance. Journal of Advanced Management Science, 6(1), 50-53. doi:https://doi.org/10.18178/joams.6.1.50-53
  10. Khan, T. Y., Badruddin, I. A., Soudagar, M. E. M., Khandal, S. V., Kamangar, S., Mokashi, I., . . . Hossain, N. (2021). Biodiesel production using modified direct transesterification by sequential use of acid-base catalysis and performance evaluation of diesel engine using various blends. Sustainability, 13(17), 9731. doi:https://doi.org/10.3390/su13179731
  11. Kohtamäki, M., Heimonen, J., Sjödin, D., & Heikkilä, V. (2020). Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. Journal of Business Research, 118, 12-25. doi:https://doi.org/10.1016/j.jbusres.2020.06.029
  12. Nisa, S., & Hariyanti, A. I. (2022). Good Corporate Governance, Kinerja Keuangan dan Kinerja Saham Selama Pandemi Covid-19. Jurnal Studi Pemerintahan dan Akuntabilitas, 2(1), 51-64. doi:https://doi.org/10.35912/jastaka.v2i1.1739
  13. Nurjannah, Rumenta, S., & Rahman, M. A. (2022). Understanding The Relationship Between Communication Style, Good Corporate Governance, Corporate Social Responsibility, Tax Compliance, Ethical Leadership, and Public Trust. Jurnal Publikasi Ilmu Manajemen, 1(4), 286-298. doi:https://doi.org/10.55606/jupiman.v1i4.3618
  14. Pande, S., & Ansari, V. A. (2014). A Theoretical Framework for Corporate Governance. Indian Journal of Corporate Governance, 7(1), 56-72. doi:https://doi.org/10.1177/0974686220140104
  15. Putra, M. R. S., & Joeliant, H. B. (2023). Kedudukan Organ Perseroan Perorangan pada Usaha Mikro Kecil dan Menengah Pasca Berlakunya Undang-Undang Nomor 6 Tahun 2023. UNES Law Review, 6(2), 5104-5113. doi:https://doi.org/10.31933/unesrev.v6i2.1341
  16. Sabri, R., Tabash, M., Abousamak, A., Daniel, L., & Asadullah, D.-M. (2024). Ownership structures and corporate governance: A systematic analysis. Journal of Governance and Regulation, 13, 416-433. doi:http://dx.doi.org/10.22495/jgrv13i1siart15
  17. Sadikova, M., Karlibaeva, R., Yusupov, A., & Akramova, I. (2021). Evaluation of the Positive Effects of Corporate Culture in Joint-Stock Companies. Turkish Online Journal of Qualitative Inquiry, 12(6), 6956-6966.
  18. Saidakhmedova, A. M. (2024). Corporate Governance in Joint-Stock Companies: Challenges and Opportunities for Adopting International Standards. Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS: Part A, 57-64. doi:https://doi.org/10.1108/S1877-63612024000033A007
  19. Saparovna, M. K., & Sayatovna, S. M. (2015). Features of Corporate Governance in Kazakhstan. Asian Journal of Business Environment, 5(2), 15-22. doi:https://doi.org/10.13106/eajbm.2014.vol5.no2.15.
  20. Sari, R. (2023). Enhancing Corporate Governance Through Effective Oversight and Accountability. Advances: Jurnal Ekonomi & Bisnis, 1(6), 344-356. doi:https://doi.org/10.60079/ajeb.v1i6.291
  21. Schein, E. H. (2010). Organizational culture and leadership (Vol. 2): John Wiley & Sons.
  22. Stepanova, L., & Melnikova, N. (2020). Modern problems of Management efficiency in a Joint Stock Company. Paper presented at the International Scientific Conference" Far East Con"(ISCFEC 2020).
  23. Trinks, A., Mulder, M., & Scholtens, B. (2020). An Efficiency Perspective on Carbon Emissions and Financial Performance. Ecological Economics, 175, 1-12. doi:https://doi.org/10.1016/j.ecolecon.2020.106632
  24. Utami, D. P., Yuliandari, W. S., & Muslih, M. (2017). Mekanisme Good Corporate Governance dan Transparansi Perusahaan Terhadap Pengungkapan Corporate Social Responsibility. Jurnal Riset Akuntansi Kontemporer (JRAK), 9(1), 19-28. doi:https://doi.org/10.23969/jrak.v9i1.364
  25. Young, S., & Thyil, V. (2014). Corporate social responsibility and corporate governance: Role of context in international settings. Journal of business ethics, 122(1), 1-24. doi:https://doi.org/10.1007/s10551-013-1745-8