The Impact of Organizational Culture on Firm Performance: An Empirical Research on Indonesian Manufacturing Firms
- November 18, 2019
- Posted by: webmosesadmin
- Category: abstract
Didik Wahjudi, Moses L. Singgih, Patdono Suwignjo and Imam Baihaqi
Many papers have documented the impact of organizational culture on firm performance. Some authors conducted research on internally developed organizational culture, while other authors reported the impact of organizational culture that is influenced by its national culture. Indonesia has received much inflow of foreign direct investment in the past three years. Unfortunately, the impact of organizational culture stemmed from Indonesian national culture on firm performance received little attention. This study tries to confirm the impact of organizational culture on firm performance among Indonesia manufacturing firms. Data from 151 organizations are analyzed using structural equation modeling (SEM). The results confirm that organizational culture has significant effect in firm performance. Among the five culture dimensions, individualism has a stronger impact on firm performance, while uncertainty avoidance has only weak impact on firm performance.
Keywords: organizational culture,national culture,firm performance, structural equation modeling