How are formula one teams influenced by organizational culture? A study of Ferrari, Mercedes and McLaren

Abstract

This study consists in how organizational culture influences the decision-making and performance of Formula One (1) teams, focusing on Scuderia Ferrari HP, Mercedes-AMG PETRONAS, and McLaren Racing. Culture is integrated in this sport as it is present globally with the different Grand Prixs. It shapes the team dynamics and strategies. Organizational culture, which is made up of the shared values, beliefs, and behaviors within a team, plays a crucial role on how that team handles competition and makes important decisions. To analyze this, two different frameworks were used. Mary Douglas’s Cultural Theory, which identifies four cultural biases –individualism, hierarchy, egalitarianism and fatalism– that affect decision-making and Miles and Snow’s model of organizational strategies which shows how an organization adapts to the environment depending on the strategy, that can be defender, prospector, analyzer and reactor. Through qualitative research and code process, the study explores how they behave. It is found that Ferrari is based out of tradition with a hierarchical culture and a defender strategy. They focus on an organized structure, preserving what they already have and improving it, investing in high quality. On the other hand, both Mercedes and McLaren embrace a more egalitarian culture and a prospector strategy. Constantly looking for innovation and opportunities to improve, supporting diversity and inclusion. Lastly, this study shows that organizational culture is a key factor in how F1 teams perform, make decisions, and maintain their competitive edge. By understanding the role of culture in F1, it can be better appreciated how teams adapt to challenges and continuously aim for excellence in such a high-pressure environment.