Corporate Culture and Organizational Performance : The Mediating Role of Psychological Well-Being

Paritosh Mishra; Anshu Yadav; Shweta Awasthi; Jaideep Kaur; Seema Johar

doi:10.17010/pijom/2026/v19i6/175083

Corporate Culture and Organizational Performance : The Mediating Role of Psychological Well-Being

Authors

Paritosh Mishra Professor, Amity Business School, Amity University, Uttar Pradesh, Noida https://orcid.org/0000-0002-0025-4874
Anshu Yadav Associate Professor (Corresponding Author), Amity Business School, Amity University, Uttar Pradesh, Noida https://orcid.org/0000-0002-0593-3841
Shweta Awasthi Associate Professor, Amity Business School, Amity University, Uttar Pradesh, Noida https://orcid.org/0000-0002-1690-750X
Jaideep Kaur Associate Professor, Amity Business School, Amity University, Uttar Pradesh, Noida https://orcid.org/0000-0003-2012-2964
Seema Johar Assistant Professor, Amity Institute of Corporate Communication, Amity University Uttar Pradesh, Noida https://orcid.org/0000-0003-2528-6618

DOI:

https://doi.org/10.17010/pijom/2026/v19i6/175083

Keywords:

corporate culture, psychological well-being, organizational performance, partial least squares structural equation modeling.
JEL Classification Codes : D91, L25, M12
Publication Chronology: Paper Submission Date : December 15, 2025 ; Paper sent back for Revision : May 5, 2026 ; Paper Acceptance Date : May 15, 2026 ; Paper Published Online : June 15, 2026.

Abstract

Purpose : Prior research has frequently attributed superior performance to an enabling organizational culture. But what remained unexplored was the answer to the question of “how?” Further, psychological well-being at work, albeit an important variable, received scant attention from researchers regarding its role in shaping the association between organizational performance and corporate culture. Therefore, this study examined the relationship between corporate culture and organizational performance and investigated the mediating role of psychological well-being in this relationship.

Design/Methodology : The research was carried out using a descriptive, quantitative research design. A survey questionnaire was administered, convenience sampling was used to select participants, and data were analyzed using partial least squares structural equation modeling.

Findings : The proposed model indicated that psychological well-being at the workplace mediated the association between corporate culture and firm performance.

Practical Implications : This study has significant managerial implications, especially during periods of volatility, uncertainty, complexity, and ambiguity. The study suggested that managers could achieve higher organizational performance by originating and executing new, innovative measures aimed at keeping employees happy.

Originality/Value : This research added value to the extant literature by integrating corporate culture, psychological well-being, and organizational performance within a single mediation framework. The integration of micro-employee variables with macro-organizational outcomes advanced theoretical development and offered practical implications.

Downloads

Download data is not yet available.

Downloads

Requires Subscription or Fee PDF (INR 450)

Published

2026-06-15

How to Cite

Mishra, P., Yadav, A., Awasthi, S., Kaur, J., & Johar, S. (2026). Corporate Culture and Organizational Performance : The Mediating Role of Psychological Well-Being. Prabandhan: Indian Journal of Management, 19(6), 8–27. https://doi.org/10.17010/pijom/2026/v19i6/175083

Download Citation

Issue

Volume 19, Issue 6, June 2026

Section

Articles

References

1) Al Hammadi, F., & Hussain, M. (2019). Sustainable organizational performance: A study of health-care organizations in the United Arab Emirates. International Journal of Organizational Analysis, 27(1), 169–186. https://doi.org/10.1108/ijoa-10-2017-1263

2) Arora, R., & Pratibha. (2022). Relationship between flexible work arrangements, well-being, and performance of employees during the COVID -19 pandemic. Prabandhan: Indian Journal of Management, 15(2), 8–23. https://doi.org/10.17010/pijom/2022/v15i2/168332

3) Baid, C., Baid, D., & Bhuyan, A. K. (2024). Exploring organizational performance: A multidimensional construct. Prabandhan: Indian Journal of Management, 17(4), 29–42. https://doi.org/10.17010/pijom/2024/v17i4/173426

4) Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

5) Black, W., & Babin, B. J. (2019). Multivariate data analysis: Its approach, evolution, and impact. In B. J. Babin & M. Sarstedt (eds.), The great facilitator (pp. 121–130). Springer International Publishing. https://doi.org/10.1007/978-3-030-06031-2_16

6) Christensen, E. W., & Gordon, G. G. (1999). An exploration of industry, culture and revenue growth. Organization Studies, 20(3), 397–422. https://doi.org/10.1177/0170840699203002

7) Cohen, J. (1992). A power primer. Psychological Bulletin, 112(1), 155–159. https://doi.org/10.1037//0033-2909.112.1.155

8) Cokins, G. (2017). Strategic business management: From planning to performance. John Wiley & Sons, Inc. https://doi.org/10.1002/9781119449492

9) Dagenais-Desmarais, V., & Savoie, A. (2012). What is psychological well-being, really? A grassroots approach from the organizational sciences. Journal of Happiness Studies, 13(4), 659–684. https://doi.org/10.1007/s10902-011-9285-3

10) Deshpande, R., & Chakraborty, D. (2023). Impact of work stressors on career commitment – A study of Indian IT sector employees. Prabandhan: Indian Journal of Management, 16(11), 27–42. https://doi.org/10.17010/pijom/2023/v16i11/173214

11) Dewangan, R. L., & Goswami, T. (2025). Organizational role stress, quality of work life, organizational citizenship behavior, and psychological well-being among university faculty members. BMC Psychology, 13(1), Article no. 538. https://doi.org/10.1186/s40359-025-02883-x

12) Dhir, S. (2025). Role of workplace spirituality on work-related attitudes and outcomes: The moderating role of organisational politics. IIMB Management Review, 37(3), Article ID 100594. https://doi.org/10.1016/j.iimb.2025.100594

13) Diener, E., Sandvik, E., & Pavot, W. (2009). Happiness is the frequency, not the intensity, of positive versus negative affect. In Assessing well-being. Social Indicators Research Series (Vol. 39, pp. 213–231). Springer. https://doi.org/10.1007/978-90-481-2354-4_10

14) Gonçalves, S. P., dos Santos, J. V., Sobral, T., & Neves, J. (2025). Experimental study on the relationship between organizational culture and affective well-being at work: Role of person–organization fit. The American Journal of Psychology, 138(3), 265–277. https://doi.org/10.5406/19398298.138.3.01

15) Grobler, P. A., & de Bruyn, A. J. (2018). High-performance work practices (HPWPS) in determining success of South African companies: Fact or fiction? Journal of Contemporary Management, 15(1), 288–313. https://scielo.org.za/scielo.php?script=sci_arttext&pid=S1815-74402018000100013

16) Hair Jr., J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2023). Advanced issues in partial least squares structural equation modeling. SAGE Publications.

17) Hemavathi, G. P., & Justus, F. S. (2023). Flexibility culture, person–job fit, and job benefits as predictors of eudaimonic workplace well-being and turnover intention of employees. Prabandhan: Indian Journal of Management, 16(10), 46–60. https://doi.org/10.17010/pijom/2023/v16i10/171900

18) Hird, S. (2003). What is well-being? A brief review of current literature and concepts. NHS Health Scotland, 1–28.

19) Huppert, F. A. (2009). Psychological well‐being: Evidence regarding its causes and consequences. Applied Psychology: Health and Well-Being, 1(2), 137–164. https://doi.org/10.1111/j.1758-0854.2009.01008.x

20) José, D., Palma-Moreira, A., & Au-Yong-Oliveira, M. (2025). Organizational culture and perceived performance: Mediation of perceived organizational support and moderation of motivation. Administrative Sciences, 15(8), Article no. 307. https://doi.org/10.3390/admsci15080307

21) Joshanloo, M., & Weijers, D. (2014). Aversion to happiness across cultures: A review of where and why people are averse to happiness. Journal of Happiness Studies, 15(3), 717–735. https://doi.org/10.1007/s10902-013-9489-9

22) Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. Accounting Horizons, 15(1), 87–104. https://doi.org/10.2308/acch.2001.15.1.87

23) Karapinar, P. B., Camgoz, S. M., & Ekmekci, O. T. (2019). Employee well-being, workaholism, work–family conflict and instrumental spousal support: A moderated mediation model. Journal of Happiness Studies, 21(7), 2451–2471. https://doi.org/10.1007/s10902-019-00191-x

24) Kim, C. Y. (2021). Psychological well-being, knowledge management behavior and performance: The moderating role of leader-member exchange. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.566516

25) Krekel, C., Ward, G., & De Neve, J.-E. (2019). Employee well-being, productivity, and firm performance. SSRN. https://doi.org/10.2139/ssrn.3356581

26) Kroeber, A. L., & Kluckhohn, C. (1954). Review of Culture: A critical review of concepts and definitions. Bulletin de l'Institut de Recherches Économiques et Sociales, 20(7), p. 755. https://doi.org/10.1017/s1373971900104433

27) Kumari, N., & Singh, D. (2018). Impact of organizational culture on employee performance. Prabandhan: Indian Journal of Management, 11(6), 53–63. https://doi.org/10.17010/pijom/2018/v11i6/128442

28) Lather, A. S., Puskas, J., Singh, A. K., & Gupta, N. (2010). Organisational culture: A study of selected organisations in the manufacturing sector in the NCR. Agricultural Economics, 56(8), 349–358. https://doi.org/10.17221/63/2010-agricecon

29) Liu, G., Tsui, E., & Kianto, A. (2021). Knowledge-friendly organisational culture and performance: A meta-analysis. Journal of Business Research, 134, 738–753. https://doi.org/10.1016/j.jbusres.2021.05.048

30) Loon, M., Otaye-Ebede, L., & Stewart, J. (2019). The paradox of employee psychological well-being practices: An integrative literature review and new directions for research. The International Journal of Human Resource Management, 30(1), 156–187. https://doi.org/10.1080/09585192.2018.1479877

31) Lopez-Martin, E., & Topa, G. (2019). Organizational culture and job demands and resources: Their impact on employees' well-being in a multivariate multilevel model. International Journal of Environmental Research and Public Health, 16(17), Article no. 3006. https://doi.org/10.3390/IJERPH16173006

32) Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33(3), 321–349. https://doi.org/10.1177/0149206307300814

33) Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2018). The impact of ethical leadership on leadership effectiveness among SMEs in Malaysia. Procedia Manufacturing, 22, 968–974. https://doi.org/10.1016/j.promfg.2018.03.138

34) Mafini, C., & Pooe, D. R. (2013). Performance measurement in a South African government social services department: A balanced scorecard approach. Mediterranean Journal of Social Sciences, 4(14), 23–36. https://doi.org/10.5901/mjss.2013.v4n14p23

35) Meyer, D. F., & Meyer, N. (2017). Management of small and medium enterprise (SME) development: An analysis of stumbling blocks in a developing region. Polish Journal of Management Studies, 16(1), 127–141. https://doi.org/10.17512/pjms.2017.16.1.11

36) Michulek, J., Gajanova, L., Krizanova, A., & Nadanyiova, M. (2023). Determinants of improving the relationship between corporate culture and work performance: Illusion or reality of serial mediation of leadership and work engagement in a crisis period? Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1135199

37) Mierke, J., & Williamson, V. (2017). A framework for achieving organizational culture change. Library Leadership & Management, 31(2). https://doi.org/10.5860/llm.v31i2.7216

38) Mishra, P. (2025). Strategic human resource management practices and organisational commitment: Impact of industrial relations climate. Journal of Chinese Human Resources Management, 16(3), 22–40. https://doi.org/10.47297/wspchrmwsp2040-800502.20251603

39) Mishra, P., Shukla, B., & Sujatha, R. (2020). Vision actualisation and spirituality: A theoretical model. Purushartha - A Journal of Management, Ethics and Spirituality, 11(2). https://doi.org/10.21844/pajmes.v11i2.14625

40) Mishra, P., Shukla, B., & Sujatha, R. (2021). Changing contours of unionism and HR as an enabler. In Human resource management and the implementation of change (1st ed., pp. 57–68). Routledge. https://doi.org/10.4324/9781003191384-5

41) Pareek, U. (1994). Studying organizational ethos: The Octapace profile. In J. W. Pfeiffer (ed.), The 1994 annual: Developing human resources (pp. 153–165). Pfeiffer & Company.

42) Pareek, U., & Khanna, S. (2008). Understanding organizational behaviour. Oxford University Press.

43) Pareek, U., & Rao, T. V. (2015). Designing and managing human resource systems (3rd ed.). Oxford and IBH Publishing Co. Pvt. Ltd.

44) Pettigrew, A. M. (1979). On studying organizational cultures. Administrative Science Quarterly, 24(4), 570–581. https://doi.org/10.2307/2392363

45) Pradhan, R. K., & Jena, L. K. (2017). Employee performance at workplace: Conceptual model and empirical validation. Business Perspectives and Research, 5(1), 69–85. https://doi.org/10.1177/2278533716671630

46) Rami, U., & Gould, C. (2016). From a “culture of blame” to an encouraged “learning from failure culture.” Business Perspectives and Research, 4(2), 161–168. https://doi.org/10.1177/2278533716642651

47) Rasoolimanesh, S. M., Taheri, B., Gannon, M., Vafaei-Zadeh, A., & Hanifah, H. (2019). Does living in the vicinity of heritage tourism sites influence residents' perceptions and attitudes?

Journal of Sustainable Tourism, 27(9), 1295–1317. https://doi.org/10.1080/09669582.2019.1618863

48) Robertson, I., & Cooper, C. (2011). Well-being: Productivity and happiness at work. Springer.

49) Ryan, R. M., & Deci, E. L. (2001). On happiness and human potentials: A review of research on hedonic and eudaimonic well-being. Annual Review of Psychology, 52(1), 141–166. https://doi.org/10.1146/annurev.psych.52.1.141

50) Salgado, J. F., Blanco, S., & Moscoso, S. (2019). Subjective well-being and job performance: Testing of a suppressor effect. Journal of Work and Organizational Psychology, 35(2), 93–102. https://doi.org/10.5093/jwop2019a9

51) Sandilya, G., & Shahnawaz, G. (2018). Index of psychological well-being at work—Validation of tool in the Indian organizational context. Vision: The Journal of Business Perspective, 22(2), 174–184. https://doi.org/10.1177/0972262918766134

52) Schein, E. H. (1984). Coming to a new awareness of organizational culture. Sloan Management Review, 25(2), 3–16. https://sloanreview.mit.edu/article/coming-to-a-new-awareness-of-organizational-culture/

53) Schein, E. H. (2010). Organizational culture and leadership. Jossey-Bass.

54) Scholz, C. (1987). Corporate culture and strategy— The problem of strategic fit. Long Range Planning, 20(4), 78–87. https://doi.org/10.1016/0024-6301(87)90158-0

55) Shastri, A., Jadhav, P., & Gaikwad, V. (2021). OCTAPACE culture an antecedent to successful start-up: An extensive bibliometric analysis. UGC Care Journal, 44(1).

56) Shin, D., & Konrad, A. M. (2017). Causality between high-performance work systems and organizational performance. Journal of Management, 43(4), 973–997. https://doi.org/10.1177/0149206314544746

57) Siddiqui, A., & Yadav, A. (2025). Correlation of self-efficacy, optimism and engagement in inducing positive change. Multidisciplinary Multilingual Research Journal, 01(01), 14–27. https://doi.org/10.64006/mmrj/1103

58) Stankevičienė, A., Tamaševičius, V., Diskienė, D., Grakauskas, Ž., & Rudinskaja, L. (2021). The mediating effect of work-life balance on the relationship between work culture and employee well-being. Journal of Business Economics and Management, 22(4), 988–1007. https://doi.org/10.3846/jbem.2021.14729

59) Subha, K., & Babu, C. N. (2024). Influence of organizational culture on organizational effectiveness in higher educational institutions: Ownership as a moderator. Prabandhan: Indian Journal of Management, 17(5), 41–59. https://doi.org/10.17010/pijom/2024/v17i5/173481

60) Sudarsanam, S. (2012). Chapter 8: Value creation and value appropriation in m&a deals. In D. Faulkner (ed.), The handbook of mergers and acquisitions (pp. 195–253). Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199601462.003.0008

61) Sun, J., Sarfraz, M., Ivascu, L., & Ozturk, I. (2023). How does organizational culture affect employees' mental health during COVID-19? The mediating role of transparent communication. WORK: A Journal of Prevention, Assessment & Rehabilitation, 76(2), 473–488. https://doi.org/10.3233/wor-220365

62) Sutton, A., & Atkinson, C. (2023). Performance at the cost of well-being? Testing the multi-level effects of HR practices on organisational performance via employee experiences and well-being. Evidence-Based HRM: A Global Forum for Empirical Scholarship, 11(4), 675–694. https://doi.org/10.1108/ebhrm-12-2022-0299

63) Tisu, L., Lupșa, D., Vîrgă, D., & Rusu, A. (2020). Personality characteristics, job performance and mental health: The mediating role of work engagement. Personality and Individual Differences, 153, Article ID 109644. https://doi.org/10.1016/j.paid.2019.109644

64) Turner, B. A. (1971). Exploring the industrial subculture. Springer Nature. https://doi.org/10.1007/978-1-349-00687-8

65) Varghese, F., Das, V. M., & Jebamalai, V. (2016). Organisational culture - A potential source of organisational commitment. IPE Journal of Management, 6(1), 118–122.

66) Varma, R., Sharma, A., Rath, N., & Sahai, A. K. (2024). Personality, job crafting, and performance in select public sector employees in India. Prabandhan: Indian Journal of Management, 17(5), 24–40. https://doi.org/10.17010/pijom/2024/v17i5/173480

67) Vazquez, C., & Hervas, G. (2012). Addressing current challenges in cross-cultural measurement of well-being: The Pemberton happiness index. In H. H. Knoop & A. D. Fave (eds.), Well-being and cultures. Cross-cultural advancements in positive psychology (Vol. 3, pp. 31–49). Springer. https://doi.org/10.1007/978-94-007-4611-4_3

68) Viswesvaran, C., & Ones, D. S. (2017). Job performance: Assessment issues in personnel selection. In A. Evers, N. Anderson, & O. Voskuijl (eds.), The Blackwell handbook of personnel selection (pp. 354–375). John Wiley & Sons, Inc. https://doi.org/10.1002/9781405164221.ch16

69) Wang, S., & Huang, L. (2022). A study of the relationship between corporate culture and corporate sustainable performance: Evidence from Chinese SMEs. Sustainability, 14(13), Article no. 7527. https://doi.org/10.3390/su14137527

70) Warr, P. (1990). The measurement of well‐being and other aspects of mental health. Journal of Occupational Psychology, 63(3), 193–210. https://doi.org/10.1111/j.2044-8325.1990.tb00521.x

71) Wilderom, C. P., Glunk, U., & Maslowski, G. R. (2000). Organizational culture as a predictor of organizational performance. In N. M. Ashkanasy, C. P. Wilderom & M. F. Peterson (eds.), Handbook of organizational culture and climate (pp. 193–209). Sage.

72) Yang, Y., Obrenovic, B., Kamotho, D. W., Godinic, D., & Ostic, D. (2024). Enhancing job performance: The critical roles of well-being, satisfaction, and trust in supervisor. Behavioral Sciences, 14(8), Article no. 688. https://doi.org/10.3390/bs14080 688

73) Yesil, S., & Kaya, A. (2013). The effect of organizational culture on firm financial performance: Evidence from a developing country. Procedia - Social and Behavioral Sciences, 81, 428–437. https://doi.org/10.1016/j.sbspro.2013.06.455

74) Zaidi, S. W., Khan, S. M., Azeem, M., & Ola, O. (2025). Examining the influence of organizational work climate on employee performance in India. Business Strategy and Management Insights, 1(1), 55–62. https://doi.org/10.64006/bsmi/1105