Culture and leadership are simply two sides of the same coin

Leadership and organisational culture are considered two sides of the same coin and are regarded as the most crucial organisational elements that help firms compete successfully and gain sustainable advantage. We aim to examine the interconnection between these elements and conduct an in-depth theoretical research paper focusing on these elements and the different variables related to them. The study deeply examines the theoretical literature associated with various definitions of culture and its correlation with leadership, and comes up finally with results and recommendations. The researchers are also examining whether the nature of the relationship can be determined by market conditions, like the level of competition and the organisational age and scale. Market competition appears to affect the direction of the relationship, with the corresponding impact of operational age and size. Such findings show that both organisational factors contribute significantly, while the alignment of factors (identical cultural type and leadership style) improves this connection. Such observations refer to the work of Hofstede (1980), the most commonly quoted work on the subject (Bond, 2002). Hofstede used the five-dimension method (power distance, individualism vs. collectivism, avoidance of confusion, long-term orientation) for the development of national-cultural profiles. Since no significant market changes took place over the last five years (in terms of reform or privatisation), leadership and culture are most likely associated with a transparent system. Some studies argue that leaders are cultural, but they also transform culture by imposing new values, trends and standards of behaviour.