The Effect of Corporate Strategy, Organizational Citizenship Behavior and Compensation on Organizational Culture and Company Performance (Study in Forestry SOE: Perum Perhutani)
Abstract
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.
Keywords
Full Text:
PDFReferences
Amin, M., Ismail, W. K. W., Rasid, S. Z. A., & Selemani, R. D. A. (2014). The impact of human resource management practices on performance: Evidence from a Public University. The TQM Journal.
Ansoff, H. I. (1965). Corporate strategy: An analytic approach to business policy for growth and expansion. McGraw-Hill Companies.
Awadh, A. M., & Alyahya, M. S. (2013). Impact of organizational culture on employee performance. International Review of Management and Business Research, 2(1), 168.
Badawy, T. E., Trujillo-Reyes, J. C., & Magdy, M. M. (2017). Exploring the relationship between organizational culture, organizational citizenship behavior and job satisfaction: A comparative study between Egypt and Mexico. International Journal of Management and Administrative Sciences (IJMAS), 4(6), 1–15.
Banker, R. D., Darrough, M. N., Huang, R., & Plehn-Dujowich, J. M. (2013). The relation between CEO compensation and past performance. The Accounting Review, 88(1), 1–30.
Chathoth, P. K., & Olsen, M. D. (2007). The effect of environment risk, corporate strategy, and capital structure on firm performance: An empirical investigation of restaurant firms. International Journal of Hospitality Management, 26(3), 502–516.
Chen, Y., & Jermias, J. (2014). Business strategy, executive compensation and firm performance. Accounting & Finance, 54(1), 113–134.
Chun, S.-H., Hwang, H. J., & Byun, Y.-H. (2015). Supply Chain Process and Green Business Activities: Application to Small and Medium Enterprises. Procedia-Social and Behavioral Sciences, 186, 862–867.
de Villiers-Scheepers, M. J. (2012). Antecedents of strategic corporate entrepreneurship. European Business Review.
Ehsan, S., & Kaleem, A. (2012). An empirical investigation of the relationship between CSR and financial performance: Evidence from manufacturing sector of Pakistan. Journal of Basic and Applied Scientific Research, 3, 2909–2922.
Ferdinand, A. T. (2014). Structural Equation Model Dalam Penelitian Manajemen, Aplikasi Model-Model Rumit Dalam Penelitian Untuk Skripsi [PhD Thesis]. Tesis dan Disertasi Doktor. In Seri Pustaka Kunci, edited by FE d. BU ….
Garri, M., Konstantopoulos, N., & Bekiaris, M. (2013). Corporate strategy, corporate culture & customer information. Procedia-Social and Behavioral Sciences, 73, 669–677.
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3), 442–458.
Hanzaee, K., & Mirvaisi, M. (2013). A survey on impact of emotional intelligence, organizational citizenship behaviors and job satisfaction on employees’ performance in Iranian hotel industry. Management Science Letters, 3(5), 1395–1402.
Hasbullah, J. (2006). Social capital: Menuju keunggulan budaya manusia Indonesia. MR-United Press.
Hassan, S. (2016). Impact of HRM practices on employee’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 15–22.
Jacobs, R., Mannion, R., Davies, H. T., Harrison, S., Konteh, F., & Walshe, K. (2013). The relationship between organizational culture and performance in acute hospitals. Social Science & Medicine, 76, 115–125.
Kizilos, M. A., Cummings, C., & Cummings, T. G. (2013). How high-involvement work processes increase organization performance: The role of organizational citizenship behavior. The Journal of Applied Behavioral Science, 49(4), 413–436.
Kolade, O., & Ogunnaike, O. (2014). Organizational citizenship behaviour, hospital corporate image and performance. Journal of Competitiveness, 6(1), 36–49.
Lee, M., & Kim, H. (2017). Exploring the organizational culture’s moderating role of effects of Corporate Social Responsibility (CSR) on firm performance: Focused on corporate contributions in Korea. Sustainability, 9(10), 1883.
Li, L., & Roloff, M. E. (2007). Organizational culture and compensation systems: An examination of job applicants’ attraction to organizations. International Journal of Organizational Analysis.
Madhani, P. M. (2014). Aligning compensation systems with organization culture. Compensation & Benefits Review, 46(2), 103–115.
Martínez, R. N., & Scott Tindale, R. (2015). Impact of organizational citizenship behavior on performance in women’s sport teams. Journal of Applied Sport Psychology, 27(2), 200–215.
Muhtasom, A., Mus, H. A. R., Bijang, J., & Latief, B. (2017). Influence of Servant Leadership, Organizational Citizenship Bahaviour on Organizational Culture and Employee Performance at Star Hotel in Makassar. Star, 486(206), 410.
O’Reilly III, C. A., Caldwell, D. F., Chatman, J. A., & Doerr, B. (2014). The promise and problems of organizational culture: CEO personality, culture, and firm performance. Group & Organization Management, 39(6), 595–625.
Pashib, M., Yaqubi, M., Seydmoharrami, I., & Tatari, M. (2015). The relationship between organizational culture and organizational citizenship behavior among staff of Torbat Heydariyeh University of Medical Sciences in 2015. Journal of Torbat Heydariyeh University of Medical Sciences, 3(2), 36–31.
Pfeffer, J. (1998). Seven practices of successful organizations. California Management Review, 40(2), 97.
Purnama, C. (2013). Influence analysis of organizational culture organizational commitment job and satisfaction organizational citizenship behavior (OCB) toward improved organizational performance. International Journal of Business, Humanities and Technology, 3(5), 86–100.
Sadeghi, G., Ahmadi, M., & Yazdi, M. T. (2016). The relationship between organizational citizenship behavior and organizational performance (case study: Agricultural Jihad Organization of Mazandaran Province). Problems and Perspectives in Management, 14, Iss. 3 (spec. iss.), 317–324.
Shahin, A., Naftchali, J. S., & Pool, J. K. (2014). Developing a model for the influence of perceived organizational climate on organizational citizenship behaviour and organizational performance based on balanced score card. International Journal of Productivity and Performance Management.
Silalahi, U. (2012). Metode penelitian sosial (1st ed.). PT. Refika Aditama.
Sudaryono. (2019). Metodologi Penelitian (3rd ed.). PT. Rajagrafindo Persada.
Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, Dan R&D. CV Alfabeta.
Tasgit, Y. E., Şentürk, F. K., & Ergün, E. (2017). Corporate Culture and Business Strategy: Which strategies can be applied more easily in which culture? International Journal of Business and Social Science, 8(6), 80–91.
Tomczyk, D., Lee, J., & Winslow, E. (2013). Entrepreneurs’ personal values, compensation, and high growth firm performance. Journal of Small Business Management, 51(1), 66–82.
Tseng, S.-M. (2010). The correlation between organizational culture and knowledge conversion on corporate performance. Journal of Knowledge Management.
Turro Sol, A. (2015). Antecedents and consequences of corporate entrepreneurship an international study. Universitat Autònoma de Barcelona,.
Uzkurt, C., Kumar, R., Kimzan, H. S., & Sert, H. (2012). The impact of environmental uncertainty dimensions on organisational innovativeness: An empirical study on SMEs. International Journal of Innovation Management, 16(2), 1250015.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Zhou, Y., Fan, X., & Son, J. (2019). How and when matter: Exploring the interaction effects of high-performance work systems, employee participation, and human capital on organizational innovation. Human Resource Management, 58(3), 253–268.
DOI: http://dx.doi.org/10.18415/ijmmu.v8i9.2991
Refbacks
- There are currently no refbacks.
Copyright (c) 2021 International Journal of Multicultural and Multireligious Understanding
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
https://ijmmu.com
editor@ijmmu.com
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.