A common perception in many SMEs is that the corporate culture is fuzzy and hard to manage. A common problem is that many business owners and managers in SMEs do not understand the importance of a well-functioned culture, but instead focus on the core business. Therefore, the purpose of this thesis is to examine how SMEs can strengthen and use the corporate culture as a competitive advantage.

The research contains an analysis of corporate culture in four different Swedish SMEs, two small-sized and two medium-sized enterprises. In order to fulfil the purpose of this thesis a qualitative research method, through semi-structured interviews, is used.

The empirical findings indicated that some companies embrace and develop actively with corporate more proactively than others. The overreaching conclusion is that all the participating companies see corporate culture as important. However, there are differences in how to manage corporate culture and also differences in which way the companies perceive their corporate culture as a competitive advantage.

Significant findings from the research are that visions and motives help corporations to make their culture more tangible. Along with proper internal information the culture becomes stronger and more functional. The CEO has an important and influential role when managing corporate culture.