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The relationship between organisational culture and firm performance: an empirical study on Indonesian manufacturing firms

Wahjudi, Didik and Singgih, Moses L. and Suwignyo, Patdono and Baihaqi, Imam (2016) The relationship between organisational culture and firm performance: an empirical study on Indonesian manufacturing firms. Int. J. Productivity and Quality Management, 18 (1). pp. 1-18. ISSN 1746-6482

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      Abstract

      The impact of organisational culture on firm performance has been well documented. Previous studies on the impact of organisational culture derived from its national culture have been conducted in homogenous cultures. Little attention has been given to the impact of organisational culture derived from Indonesian culture on firm performance. Indonesias subcultures may not be represented in the national culture. This study examines the impact of organisational culture on firm performance among Indonesia manufacturing firms. Results from 152 organisations confirm that organisational culture has significant effect on firm performance. Only individualism and uncertainty avoidance significantly impact firm performance. The implication is that, even in a country with many subcultures, firms top management still need to pay attention to the impact of national culture at organisational level. Furthermore, since Indonesia has a very low score on individualism, managers need to create a conducive and rewarding environment for individuals to contribute.

      Item Type: Article
      Uncontrolled Keywords: national culture; firm performance; structural equation modelling; SEM; organisational culture; Indonesia; empirical study
      Subjects: H Social Sciences > HA Statistics
      H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
      T Technology > TS Manufactures
      Divisions: Faculty of Industrial Technology > Mechanical Engineering Department
      Depositing User: Admin
      Date Deposited: 23 Mar 2016 00:21
      Last Modified: 09 Oct 2020 11:10
      URI: http://repository.petra.ac.id/id/eprint/18877

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