Managing governmental business relationships: The impact of organisational culture difference and compatibility

Public administration requires close cooperation between many actors within a network of governmental departments, agencies and external stakeholders. Reflecting on these critical interrelationships, we investigate the impact of the related yet under-researched concepts of organisational culture difference and organisational culture compatibility on relationship outcomes in a public sector setting. The research hypotheses draw on the prolific relationship marketing and organisational culture literature streams and an exploratory study. Data gathered on the relationships between public sector agencies and their business partners show perceived organisational culture difference negatively influences relationship performance, with perceived compatibility directly and positively impacting both performance and the certainty of the relationship future.