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The aim of this paper is to analyze the impact of organizational culture (OC) on the company competitive advantage (CA). The organizational culture has received significant attention recently. The literature on the organizational culture constantly supports the idea that this culture is significant for effectiveness and performance of the organizations. Although numerous studies have been conducted to explore the relationship between the organizational culture and performance, empirical findings seem to be mixed and inconclusive. Moreover, a limited number of studies examine the relationship between OC and CA, particularly in the tourism industry, a gap this study aims to fill. Data was collected from surveying employees working in five-star hotels and in tour operators companies. The variables' reliability was analyzed by the composite reliability (CR); dimensional structure of the study variables was tested using exploratory factor analysis (EFA), CFA was employed to test the variables validity, and finally, multi-group analysis in structural equation modeling (SEM) was employed to test the causal link among the research variables. The study results and implications are discussed and justified.  Introduction Organizations struggle to survive nowadays competitive world (Fekete and Borsckei, 2011). They are trying to find methods to be more competitive, innovative, and creative (Madu, 2014). Building on Barney (1996) resource-based view (RBV) theory, organization culture (OC) can be considered as one of the intangible resources the firm can utilize to increase performance and gain a competitive advantage (CA). Numerous theoretical and empirical studies have been conducted to explore the relationship between the organization culture and its outcomes including financial performance (FP) and CA, however, findings seem to be contradictory (Yesil and Kaya, 2013). More specifically, some authors (i.e. Kim et al., 2004; Oparanma, 2010; Zheng et al., 2010; Duke II & Edet, 2015) argue that OC positively affects FP. Another group of papers finds no association between OC and performance (Yesil and Kaya, 2013). However no empirical studies (to the authors’ knowledge) were found to test the relationship between OC and CA in the tourism industry (table 1), a gap this study aims to fill. Therefore, it seems that more research is needed for understanding and exploring the relationship between OC and CA (Yesil and Kaya, 2013), particularly in the tourism industry. See table 1. Ibrahim A. Elshaer Alaa Shaker Azazz 66 Literature review Culture and organization culture The concept of organizational culture has received a great deal of attention both from academics and managers and defined from many perspectives in the literature (Madu, 2012). However, there is little agreement on the meaning, outcomes of organization culture and how it could be operationalized or measured, and how it could be employed to improve the organization performance (Schein, 1990). Organizational culture emerges from two distinct fields (Anthropology and sociology) and became a popular topic of organizational research in marketing and management (e.g. Gregory et al., 2009; Maleka, & Kambuwa, 2010; and Naik, 2011). Anthropology accepted the interpretivist view and considers culture as a symbol for associations, defining associations as being cultures. Then again, sociology goes up against the functionalist view and explains culture as something an association has (Sanchez-Canizares et al., 2007 and Prem, 2011). Despite the growing interest in the topic (OC), there seems to be no agreement or consensus within the literature as to what organizational culture actually constitutes (O‟Reilly, Chatman & Caldwell 1991, Barney, 1986; Abu-Jarad et al., 2010). Madu (2012) concluded that a practical way to define organizational culture is the environment in which we work; i.e. these are the member’s behaviors, attitudes, beliefs, skills, perspectives, habits, and prejudices. Some of these attributes have been formed by previous leaders, either bad or good through years of influence and reinforcement. So, leaders of organizations are responsible for the climate they create in their organization. In the current study we a adopted a wide common definition of the organizational culture developed by O’Reilly & Chatman, (1996, 2014) “a system of shared values defining what is important, and norms, defining appropriate attitudes and behaviors” Norm’s help individuals follow the behaviors which are important to their organizational setting (O’Reilly& et al., 2014). According to the previously mentioned, there is a general agreement that organizational culture refers to individuals’ shared norms, values, meanings, beliefs and principles which are held within the organization and forms part of the socialization process of new employees (Naik, 2011). In other words, organizational culture refers to the values and beliefs that provide norms of expected behaviors that employees might follow (Schein, 1992, Hogan & Coote, 2013). Strong versus weak organization culture Kotter and Heskett (1992) assumed that strong culture firms would perform better over the long term. They claimed that the presence of strong culture, which they explain in terms of values and norm shared among individuals of the association, ought to be related to higher objective alignment among association employees, encourage an uncommon level of motivation among employees, and provide needed controls without the effect of bureaucracy (O’Reilly and Chatman, 1996). Organizational culture is important in organizations because it refers to created assumptions, which are accepted as a way of doing things and are passed on to new members of the organization. For new employees, this would mean adaptive behavior within the organization that leads to new belief systems. This new and adaptive behavior is instilled through organizational values and beliefs that are associated with rituals, myths and symbols to reinforce the core assumptions of organizational culture (Hofstede, 1991; Martins and Martins, 2003). The benefits of the culture in organizations direct the organization towards goal attainment, organizational success, enhance organizational citizenship, loyalty, customer satisfaction, motivation and increase the consistency of employees’ behaviour (Pressing and Loennies, 2011; Martins and Von der Ohe, 2006; Martins and Martins, 2003; Robbins, 2005; Struwig and Smith, 2002). Also, culture is able to create a unifying force that increases organizational performance and it is able to positively affect employee behavior, the financial performance of the organization and creates a competitive advantage (Ledimo, 2015; Manetje and Martins, 2009; Ivancevich et al, 2005; Werner, 2007; Mazur, 2010; Madu, 2012; Davidson, 2003 and Barney, 1991). When a great number of employees embraces the same kind of beliefs and values as a concern to the organization, Culture of the association is viewed as strong (Deal and Kenedy, 1982). Managers should try to The impact of organization culture on competitive advantage " An empirical study of hotels and tour operators in Egypt." 66 narrow the gap between employees to develop a strong relationship. Management also believes that employees are more important than rules in the organization. Strong culture plays an important role to improve the performance of the employees. It increases self-confidence and commitment of employees’ and lessens job stress and improves the ethical behavior of the employees (Saffold, 1998). Additionally, Deal and Kennedy (1982) claimed that both weak and strong culture has a great effect on the organizational behavior but in the strong culture, employee’s aims are sided with the goal of management and helpful in increasing the overall organizational performance. A stronger organizational culture has positive great effects on people and group behavior (Trefry, 2006 and Testa & Sipe, 2011). Table: 2 Strong versus Weak OC Source: Robbins et al., (2011) Competitive advantage and Organization Culture Mooney (2007) defined the competitive advantage as “achieving above average performance in the same industry”. The understanding of the way to gain a competitive advantage for firms has become a main area of interest for several researchers in the area of strategic management (Porter, 1985). Past studies have looked extensively at the relationship between OC and its potential outcomes including: performance and commitment (Kotter & Heskett, 1992; LeBlanc & Mills, 1995; Lok & Crawford, 2003; Xenikou & Simosi, 2006; and Naik,2011), organizations effectiveness and efficiency (Dennison,1990; Dennison & Mishra, 1995; Earley & Mosakowski, 2000, Denison & Mishra, 1995; and Kemp & Dwyer, 2001), work-related attitudes (Bimbaum & Sommers, 1986) and profitability (Tidball, 1988). As several empirical and Theoretical studies have been conducted to examine the relationship between organizational culture and performance, empirical findings seem to be mixed and sometimes contradictory (Yesil and Kaya, 2013). Theoretical arguments support the idea that the organizational culture is related to organizational performance and long-term effectiveness (Ahmed, 1998; Cameron & Quinn, 2006; Saffold, 1988; Zheng et al., 2010). In the same vein, Zheng et al., (2010) claimed that the organizational culture is one of the main organization’s intangible assets that have been researched widely in their association with organizational performance. Oparanma (2010) argued that organizational culture prompts or stimulates many other activities that bring about corporate success. Empirical studies also provide an evidence of a link between organizational culture and organization related performance outcomes. Marcoulides & Heck (1993) asserted that organizational culture has a str

journal of association of arab universities for tourism and hospitality (jaauth) /journal of association of arab universities for tourism and hospitality (jaauth)

The impact of organization culture on competitive advantage "An empirical study of hotels and tour operators in Egypt"