The Implementation of Strategy, Organizational Culture and Performance: Finding 'The Best Fit'

2015 ◽  
Vol 3 (4) ◽  
pp. 08-15
Author(s):  
Achmad Sobirin ◽  
Bambang Tutuko
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Descriptive Analysis ◽  
Strategy Implementation ◽  
Equation Modeling ◽  
Company Performance ◽  
Clan Culture ◽  
Statistical Program ◽  
And Performance ◽  
Best Fit

Objective - The purpose of this empirical study was to examine the degree of alignment between the implementation of strategy and organization's culture, and its implication on company performance. Methodology/Technique - The study is quantitative in nature using survey questionnaires. Total numbers of 201 questionnaires were sent to operational managers of Kimia Farma Pharmacy and 114 questionnaires were returned and analyzed using descriptive analysis with SPSS version 20, and the analysis of Structural Equation Modeling (SEM) with a statistical program AMOS version 7. Findings - The finding of the study shows the implementation of strategy and two types of organizational culture (adhocracy and clan culture) respectively influence the performance of PT Kimia Farma Pharmacy. This study, however, failed to find the best fit between the implementation of strategy and organizational culture in general. Further analysis shows that clan and hierarchy culture become the trigger of the implementation of strategy Novelty - This study proves that clan and hierarchy culture become the trigger of strategy implementation which eventually generate a better performance of the company. Type of Paper - Empirical Keywords: Best Fit; Strategy Implementation; Organizational Culture; Performance.

scholarly journals PENGARUH MOTIVASI KERJA, KEPEMIMPINAN DAN BUDAYA ORGANISASI TERHADAP KEPUASAN KERJA KARYAWAN SERTA KINERJA PERUSAHAAN PT. ERHA CLINIC INDONESIA

2018 ◽  
pp. 2493
Author(s):  
I Gusti Ayu Ari Agustini
Keyword(s):  
Job Satisfaction ◽  
Organizational Culture ◽  
Structural Equation ◽  
Work Motivation ◽  
Descriptive Analysis ◽  
Leadership Skills ◽  
Equation Modeling ◽  
Employee Job Satisfaction ◽  
And Performance ◽  
The Relationship

The purpose of this study is to investigate the relationship between work motivation, leadership, organizational culture, employee satisfaction and its influence on the performance of the company PT. Erha Clinic Indonesia. To answer these research purposes, then an examination of the whole employees of PT. Erha Clinic Indonesia, amounting to 112 people. The method used is descriptive analysis and analysis of structural equation modeling (SEM).  Based on the results of analysis show that motivation, leadership, and organizational culture has a significant impact on job satisfaction of employees of PT. Erha Clinic Indonesia. The result of the analysis also states work motivation, leadership, organizational culture, and employee job satisfaction significantly influences the performance of the company PT. Erha Clinic Indonesia. The implications of this research is to improve leadership skills and organizational cultures that exist, so that aspects of employee job satisfaction can be met, because in general a high employee job satisfaction will increase their work motivation and performance.

scholarly journals Testing the Mediating Role of Career Development in Affecting Intellectual Capital and Organizational Culture on Employee Performance: Evidence of Local Banks in Yogyakarta, Indonesia

2021 ◽  
Vol 23 (1) ◽  
pp. 16-32
Author(s):  
Titi Laras ◽  
Rutha Mathilde Santana ◽  
Bambang Jatmiko ◽  
Tiyas Puji Utami
Keyword(s):  
Organizational Culture ◽  
Career Development ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Employee Performance ◽  
Equation Modeling ◽  
Study Results ◽  
And Performance ◽  
Branch Office

Research aims: This study aims to examine the role of career development in mediating the relationship between intellectual capital and organizational culture on employee performance.Design/Methodology/Approach: This study used a proportional stratified random sampling method with 126 permanent employees of local banks in Yogyakarta, Indonesia, as research respondents. The respondents included Head Office, Main Branch Office, and Senopati Branch Office. The data were collected by distributing a questionnaire, and the secondary data were in the form of data or documents that supported and strengthened the primary information from books, magazines, journals, and other documents. Then, the analytical tool utilized in this study was SEM (Structural Equation Modeling) to test the research hypotheses.Research findings: The results showed that intellectual capital and organizational culture had a positive and significant effect on career development and performance, but career development had no positive and significant effect on performance. Meanwhile, career development could not mediate the effect of intellectual capital and organizational culture on performance.Theoretical contribution/Originality: The study results contribute to the literature (body of knowledge), especially as additional discussion toward theory and literature related to intellectual capital, organizational culture, career development, and performance in local banks, which is still very limited.

scholarly journals PENGARUH BUDAYA ORGANISASI, KOMITMEN ORGANISASI, DAN MOTIVASI KERJA TERHADAP KEPUASAN KERJA DAN KINERJA KARYAWAN

2018 ◽  
Vol 16 (4) ◽  
pp. 473-486
Author(s):  
Zainul Arifin Noor
Keyword(s):  
Job Satisfaction ◽  
Organizational Culture ◽  
Organizational Commitment ◽  
Human Resources ◽  
Structural Equation ◽  
Work Motivation ◽  
Equation Modeling ◽  
Human Resources Development ◽  
Working Performance ◽  
And Performance

This research aims to test and prove the influence of organizational culture, organizational commitment, and motivation of work towards job satisfaction and performance of employees of PT Indofood Sukses Makmur Tbk Kalimantan. The population in this study were employees of PT Indofood Sukses Makmur Tbk Kalimantan some 392 employees originating from the manufacturing, human resources development, marketing, and accounting. Using the formula, the respondent elected slovin as samples of 50.5% of the number of 198 employees originating from the manufacturing of 155 employees, human resources a number of 19 employees, marketing a number of 14 employees, and accounting of 10 employees. Based on the results of data analysis using Structural Equation Modeling (SEM) through AMOS 16.0, the results showed the 7 proposed hypotheses, there is a significant hypothesis 6 or received and there is a rejected hypothesis 1. As for the hypothesis is a hypothesis accepted: 1. Organizational culture affect significantly to job satisfaction of employees. Hypothesis 2. Organizational commitment affect significantly to job satisfaction of employees, the hypothesis 3. Influential work motivation significantly to job satisfaction of employees, hypothesis 4. Organizational culture affect significantly the performance of employees, the hypothesis 6. Significant impact on the motivation of working performance of employees, and hypotheses 7. Job satisfaction influence significantly the performance of the employees of PT Indofood Sukses Makmur Tbk Kalimantan. The hypothesis was rejected while the 1 is the hypothesis that 5 has no effect on the Organization's commitment to the performance of the employees of PT Indofood Sukses Makmur Tbk Kalimantan

scholarly journals The relationship between organizational culture and quality techniques, and its impact on operational performance

2015 ◽  
Vol 35 (10) ◽  
pp. 1460-1484 ◽  
Author(s):  
Lillian Do Nascimento Gambi ◽  
Harry Boer ◽  
Mateus Cecilio Gerolamo ◽  
Frances Jørgensen ◽  
Luiz Cesar Ribeiro Carpinetti
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Competing Values ◽  
Performance Impact ◽  
Content Type ◽  
Performance Effects ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to investigate if a firm’s organizational culture affects the set of quality techniques it uses, and if these quality techniques affect the relationship between organizational culture and operational performance. Design/methodology/approach – Based on data collected from 250 firms in Brazil and Denmark, structural equation modeling is used to investigate the relationship between organizational culture and the use of quality techniques, and its impact on operational performance. Four quality technique groups, four cultural profiles adopted from the Competing Values Framework and a set of operational performance indicators are used to operationalize the study. Findings – Culture does not appear to be an unequivocal predictor of the use of quality techniques. Furthermore, while most quality technique groups contribute indirectly to the total effect on operational performance in the developmental, group and hierarchical cultures, the performance effects are insignificant for all four groups in the rational culture. Practical implications – Managers need to be actively aware of the cultural characteristics of their organization before adopting quality techniques, in order to benefit most from the use of these techniques. Originality/value – Most previous studies address the relationships between culture, quality management and performance at the level of quality practices. This study takes the unitarist-pluralist discussion to the level of quality techniques and extends that discussion to what should be its core, namely, the influence of quality techniques on the performance impact of culture.

scholarly journals The Effect of Compensation, Organizational Culture and Islamic Work Ethic Towards the Job Satisfaction and the Impact on the Permanent Lecturers

2018 ◽  
Author(s):  
Jufrizen
Keyword(s):  
Job Satisfaction ◽  
Organizational Culture ◽  
Structural Equation Modeling ◽  
Structural Equation ◽  
Work Ethic ◽  
Equation Modeling ◽  
Islamic Work Ethic ◽  
And Performance ◽  
The Impact ◽  
Positive Effect

This study examines the effect of compensation, organizational culture and Islamic work ethic directly towards the job satisfaction and performance of the lecturers and the effect of compensation, organizational culture and Islamic work ethic towards the performance of lecturers through job satisfaction. This study was conducted at the Private Islamic University in Indonesia. The population of the study is 295 lecturers. The data were analyzed using The Structural Equation Modeling with LISREL 8.80 applications. The results showed that compensation, organizational culture and Islamic work ethic have a positive and significant effect on job satisfaction. Job satisfaction has a positive effect on the performance. Compensation, organizational culture and Islamic work ethic have a positive effect on the performance of lecturers significantly. Compensation and organizational culture have a significant effect on the performance through job satisfaction while Islamic work ethic does not significantly influence the performance of lecturers through job satisfaction.

scholarly journals The Effect of Corporate Strategy, Organizational Citizenship Behavior and Compensation on Organizational Culture and Company Performance (Study in Forestry SOE: Perum Perhutani)

2021 ◽  
Vol 8 (9) ◽  
pp. 313
Author(s):  
Sangudi Sangudi ◽  
Pribadiyono Pribadiyono ◽  
Khuzaini Khuzaini
Keyword(s):  
Organizational Culture ◽  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Corporate Strategy ◽  
Citizenship Behavior ◽  
Equation Modeling ◽  
Company Performance ◽  
Performance Study ◽  
Effect Test

This study aims to analyze and determine the effect of each variable on corporate strategy, organizational citizenship behavior and compensation on organizational culture and company performance in Forestry SOE: Perum Perhutani. The analytical instrument of this research is SEM (Structural Equation Modeling) through AMOS v.22 software which emphasized structural equation testing and model testing. The results of hypothesis testing from the model shows that: First, corporate strategy has a positive and significant effect on company performance. Second, organizational citizenship behavior has a positive and significant effect on company performance. Third, compensation has a positive and significant effect on company performance. Fourth, organizational culture has a positive and significant effect on company performance. Fifth, corporate strategy has a positive and significant effect on organizational culture. Sixth, organizational citizenship behavior has a positive and significant effect on organizational culture. Seventh, compensation has a positive and significant effect on organizational culture. In addition, the indirect effect test through the Sobel Test finds that organizational culture is able to intervene the effect of corporate strategy, organizational citizenship behavior and compensation on company performance.

scholarly journals THE EFFECT OF THE UTILIZATION OF INFORMATION TECHNOLOGY AND ORGANIZATIONAL CULTURE ON EMPLOYEE MOTIVATION AND PERFORMANCE

2021 ◽  
Vol 2 (1) ◽  
pp. 73-92
Author(s):  
Ni Komang Prasiani ◽  
Anik Yuesti ◽  
Nengah Sudja
Keyword(s):  
Information Technology ◽  
Organizational Culture ◽  
Structural Equation ◽  
Employee Performance ◽  
Employee Motivation ◽  
Sem Analysis ◽  
Equation Modeling ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

The purpose of this study is to determine the relationship between organizational culture variables, information technology, and employee performance, whether or not technology plays a role in improving employee performance. The population in this study is the Information System Users (SINERGY) in the Bali Design and Business Institute, consisting of 81 lecturers and employees. Data relating to research variables were collected using questionnaires that were distributed to all respondents and filled in by the respondents themselves based on the respondents' perceptions. Based on the instrument test performed, it was proven that all statement items in the questionnaire are valid and reliable. This study uses Structural Equation Modeling (SEM) analysis. The results indicate that: the use of information technology has a positive and significant effect on motivation. Organizational culture has a positive effect on motivation. The use of information technology has a positive on employee performance. Organizational culture has a positive effect on employee performance. Motivation has a positive and significant effect on employee performance. Keywords: Information Technology, Organizational Culture, Motivation and Employee Performance.

scholarly journals The Effect of Organizational Culture and Organizational Learning towards the Competitive Strategy and Company Performance (Case Study of East Java SMEs in Indonesia: Food and Beverage Industry)

2012 ◽  
Vol 4 (9) ◽  
pp. 467-476 ◽  
Author(s):  
Hary Sastrya Wanto
Keyword(s):  
Organizational Culture ◽  
Organizational Learning ◽  
Competitive Strategy ◽  
Structural Equation ◽  
Organization Culture ◽  
Equation Modeling ◽  
Learning Climate ◽  
Company Performance ◽  
Organization Learning ◽  
Food And Beverage

Organizational culture and learning organizations are the major topics of discussion in corporate world. It is well realized that to become learning Organization is to agree a set of attitudes, values and practices that support the process of constant learning within the organization. A learning culture can be developed in an Organization only when the top management and executive is committed and deeply involved. “Learning Culture” should be a Corporate Goal and stated at the highest level of objectives in order that it is cascaded down to the organizations employees and becomes a part of every employee’s personal, annual goals. It is necessary to establish the relation between culture, learning climate and strategic performance, in order to provide effective direction to the modern organizations. A study has been initiated to analyze the organization culture and organization learning effects toward the Competitive Strategy and Company Performance From the 615 Small and Medium-sized Enterprises in East Javas population, the sample are 143 from the three biggest cities in East Java Indonesia (Surabaya, Malang and Kediri) as the location of this research. This research conducted to apply the Explanatory Research with the Organizational Culture, Organizational Learning, Competitive Strategy and Company Strategy as a Research Variables. Structural Equation Modeling (SEM) was the appropriate tool to examine and to analyze the data. The results of this research showed that Organization Culture has significant effect towards company Competitive Strategy, Organization Learning has significant effect towards Competitive Strategy, but it did not have significant effect towards Company Performance. Moreover, Competitive Strategy has a significance effect towards Company Performance.

A Structural Modeling on Learning Organization in the Context of Organizational Commitment, Organizational Culture, and Conflict Management Style

10.17158/231 ◽  
2012 ◽  
Vol 18 (1) ◽  
Author(s):  
Cesar A. Adegue IV
Keyword(s):  
Organizational Culture ◽  
Organizational Commitment ◽  
Conflict Management ◽  
Learning Organization ◽  
Structural Equation ◽  
Management Style ◽  
Academic Institution ◽  
Equation Modeling ◽  
Conflict Management Style ◽  
Best Fit

Through structural equation modeling, this study aimed to develop a model of best fit for the learning organization with organizational commitment, organizational culture, and conflict management style as independent variables. Findings of the study revealed that the dominant levels of the academic institution are organizational and individual levels. Furthermore, the level of organizational commitment of the academic institution is high with affective commitment as the greatest contributory factor. Moreover, the level of organizational culture of the academic institution manifests moderately high level with criteria of success, organizational glue, organizational leadership and strategic emphases posting higher ratings while, the dominant conflict management styles are the compromising and integrating styles. Furthermore, there are significant relationships among organizational commitment, organizational culture and conflict management style when analyzed pair wise with learning organization. Correspondingly, organizational commitment and organizational culture significantly influence the learning organization but conflict management style does not. Surprisingly, through the structural equation modeling, the hypothesized models do not meet the standard criteria to fit learning organization. However, with the use of the deductive method, a model of best fit for the learning organization was established.

scholarly journals Peran Fleksibilitas Strategi dan Orientasi Pasar pada Peningkatan Inovasi dan Kinerja Usaha Kecil Menengah Sektor Industri Pengolahan Kota Malang

2019 ◽  
Vol 12 (3) ◽  
pp. 278
Author(s):  
Sumiati Sumiati
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
External Environment ◽  
Equation Modeling ◽  
Strategic Flexibility ◽  
Company Performance ◽  
Processing Industry ◽  
Industry Sector ◽  
And Performance

The processing industry is a growing industry and accounts for around 1/5 of Indonesia's total Gross Domestic Product. This study analyzes the factors that influence the performance of SMEs in the manufacturing industry sector in Malang. Some variables such as internal and external environment, market orientation, are considered as important variables that influence the performance of SMEs, this study aims to examine the effect of market orientation and strategy flexibility on SME innovation and performance. This research is an explanatory study using a sample of 180 managers of processing industry SMEs in Malang. The data collected was analyzed using Structural Equation Modeling (SEM). Strategic flexibility and market orientation are found directly (direct effect) to affect innovation and company performance positively. In addition, proven innovation acts as a mediator in the influence of strategy flexibility and market orientation on company performance. Likewise, company performance has a role as a mediator for each strategy flexibility and market orientation towards innovation.

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