Organizational Performance in Batam’s Food Industry: The Mediating Role of Organizational Culture
DOI:
https://doi.org/10.37385/ijedr.v5i2.3753Keywords:
Organizational Performance, Organizational Innovation, Transformational Leadership, Organizational Change, Organizational CultureAbstract
This study aims to see how organizational innovation, transformational leadership, and organizational change affect organizational performance with the mediating effect of organizational culture. Until now, the previous literature that analyzed this matter is still very minimal and the discussion of organizational performance, organizational innovation, transformational leadership, organizational change, and organizational culture variables in previous journals is still lacking in detail. This study used cross-sectional data and a quantitative approach. Sampling is carried out by distributing questionnaires to employees of Roti Garuda Kencana Ltd and testing the hypothesis using the SPSS application. The results showed that organizational innovation, transformational leadership, and organizational change affect organizational performance. Then organizational innovation and organizational change affect organizational culture, while transformational leadership does not affect organizational culture. After that, organizational innovation, transformational leadership, and organizational change affect organizational performance through organizational culture. Companies can make this research as an assessment and discuss research findings and how to apply them in improving organizational performance. The company is expected to engage relevant stakeholders in discussing how research findings can be integrated into the company's strategy and policies.
References
Akpa, V., Asikhia, O., & Nneji, N. (2021). Organizational Culture and Organizational Performance: A Review of Literature. International Journal of Advances in Engineering and Management, 3(1), 361–372. https://doi.org/10.35629/5252-0301361372
Al-Shibami, A. H., Alateibi, N., Nusari, M., Ameen, A., Khalifa, G. S. A., & Bhaumik, A. (2019). Impact of organizational culture on transformational leadership and organizational performance. International Journal of Recent Technology and Engineering, 8(2 Special Issue 10), 653–664. https://doi.org/10.35940/ijrte.B1116.0982S1019
Alghamdi, F. (2018). Total Quality Management and Organizational Performance: A Possible Role of Organizational Culture. International Journal of Business Administration, 9(4), 186. https://doi.org/10.5430/ijba.v9n4p186
Alrubaiee, L., Alzubi, H. M., Hanandeh, R., & Ali, R. Al. (2015). Investigating the Relationship Between Knowledge Management Processes and Organizational Performance The Mediating Effect of Organizational Innovation. International Review of Management and Business Research, 4(4), 989–1009.
Ardiana, E., & Fitria, A. (2021). Pengaruh E-Filling, Modernisasi Sistem Perpajakan, Pemahaman Pajak, Sanksi Perpajakan Terhadap Kepatuhan Pelaporan. Jurnal Ilmu Dan Riset Akuntansi, 10, 10. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/4054/4066
Asif, M., Saeed, M. R., Tufail, S., & Abbas, G. (2019). Impact of Organizational Innovation and Organizational Politics on Organizational Performance: Job Satisfaction as Mediator. International Journal of Management Science and Economics Research, December, 1. http://www.map-publisher.com/
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66(June), 101635. https://doi.org/10.1016/j.techsoc.2021.101635
Begum, S., Xia, E., Mehmood, K., Iftikhar, Y., & Li, Y. (2020). The impact of ceos’ transformational leadership on sustainable organizational innovation in smes: A three-wave mediating role of organizational learning and psychological empowerment. Sustainability (Switzerland), 12(20), 1–16. https://doi.org/10.3390/su12208620
Bolaji Bello, O., & Olarewaju Adeoye, A. (2018). Organizational learning, organizational innovationand organizational performance: Empirical evidenceamong selected manufacturing companies in Lagosmetropolis, Nigeria. Journal of Economics and Management, 33(3), 25–38. https://doi.org/10.22367/jem.2018.33.02
Chaubey, A., Sahoo, C. K., & Khatri, N. (2019). Relationship of transformational leadership with employee creativity and organizational innovation: A study of mediating and moderating influences. Journal of Strategy and Management, 12(1), 61–82. https://doi.org/10.1108/JSMA-07-2018-0075
do Adro, F. J. N., & Leitão, J. C. C. (2020). Leadership and organizational innovation in the third sector: A systematic literature review. International Journal of Innovation Studies, 4(2), 51–67. https://doi.org/10.1016/j.ijis.2020.04.001
Ekobelawati, F., Setyadi, D., & Hendri, M. I. (2019). Effect of Transformational Leadership Style and through Empowerment , Member Creativity and Learning. Journal of Arts & Humanities, 08(08), 1–16.
Environment, M., Nugroho, Y. A., Asbari, M., Purwanto, A., & Basuki, S. (2020). Transformational Leadership and Employees ’ Performance?: the Mediating Role of. EduPsyCouns …, 2(3). https://doi.org/10.5281/zenodo.1306335
Fartash, K., Davoudi, S. M. M., Baklashova, T. A., Svechnikova, N. V., Nikolaeva, Y. V., Grimalskaya, S. A., & Beloborodova, A. V. (2018). The impact of technology acquisition & exploitation on organizational innovation and organizational performance in knowledge-intensive organizations. Eurasia Journal of Mathematics, Science and Technology Education, 14(4), 1497–1507. https://doi.org/10.29333/ejmste/84835
Gantasala, P. V., Padmakumar, R., Yasin, A., & Gantasala, S. B. (2010). The role of HR practices and knowledge management on organizational performance. International Journal of Knowledge, Culture and Change Management, 10(1), 151–172. https://doi.org/10.18848/1447-9524/cgp/v10i01/59155
Ghasemzadeh, P., Nazari, J. A., Farzaneh, M., & Mehralian, G. (2019). Moderating role of innovation culture in the relationship between organizational learning and innovation performance. Learning Organization, 26(3), 289–303. https://doi.org/10.1108/TLO-08-2018-0139
Hansen, M. (2018). CULTURE , LEADERSHIP STYLE AND COMMUNICATION STYLE WITH. May.
Hussain, I., Mujtaba, G., Shaheen, I., Akram, S., & Arshad, A. (2022). An empirical investigation of knowledge management, organizational innovation, organizational learning, and organizational culture: Examining a moderated mediation model of social media technologies. Journal of Public Affairs, 22(3). https://doi.org/10.1002/pa.2575
Imran, M., Ismail, F., Arshad, I., Zeb, F., & Zahid, H. (2022). The mediating role of innovation in the relationship between organizational culture and organizational performance in Pakistan’s banking sector. Journal of Public Affairs, 22(S1). https://doi.org/10.1002/pa.2717
Jaleha, A. A., & Machuki, V. N. (2018). Strategic Leadership and Organizational Performance: A Critical Review of Literature. European Scientific Journal ESJ, 14(35). https://doi.org/10.19044/esj.2018.v14n35p124
Kartono, E. L., Bernarto, I., Sudibjo, N., & Pramono, R. (2021). Transformational leadership and organizational innovation: the role of goal-oriented synergistic interaction. The Journal of Asian Finance, Economics and Business, 8(6), 909–920. https://doi.org/10.13106/jafeb.2021.vol8.no6.0909
Kim, J., & Choi, S. O. (2020). The intensity of organizational change and the perception of organizational innovativeness; with discussion on open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(3). https://doi.org/10.3390/JOITMC6030066
Lasrado, F., & Kassem, R. (2021). Let’s get everyone involved! The effects of transformational leadership and organizational culture on organizational excellence. International Journal of Quality and Reliability Management, 38(1), 169–194. https://doi.org/10.1108/IJQRM-11-2019-0349
Li, W., Bhutto, T. A., Nasiri, A. R., Shaikh, H. A., & Samo, F. A. (2018). Organizational innovation: the role of leadership and organizational culture. International Journal of Public Leadership, 14(1), 33–47. https://doi.org/10.1108/ijpl-06-2017-0026
Masoomzadeh, A., Zakaria, W. N. W., Masrom, M., Streimikiene, D., & Tavakoli, R. (2019). Organizational innovation factors, capabilities and organizational performance in automotive industry. Montenegrin Journal of Economics, 15(3), 83–100. https://doi.org/10.14254/1800-5845/2019.15-3.6
Naveed, R. T., Alhaidan, H., Halbusi, H. Al, & Al-Swidi, A. K. (2022). Do organizations really evolve? The critical link between organizational culture and organizational innovation toward organizational effectiveness: Pivotal role of organizational resistance. Journal of Innovation and Knowledge, 7(2), 100178. https://doi.org/10.1016/j.jik.2022.100178
Newman, A., Round, H., Wang, S., & Mount, M. (2020). Innovation climate: A systematic review of the literature and agenda for future research. Journal of Occupational and Organizational Psychology, 93(1), 73–109. https://doi.org/10.1111/joop.12283
Nuryanto, U. W., Mz, M. D., Sutawidjaya, A. H., & Saluy, A. B. (2020). the Impact of Social Capital and Organizational Culture on Improving Organizational Performance. International Review of Management and Marketing, 10(3), 93–100. https://doi.org/10.32479/irmm.9923
Olafsen, A. H., Nilsen, E. R., Smedsrud, S., & Kamaric, D. (2020). Sustainable development through commitment to organizational change: the implications of organizational culture and individual readiness for change. Journal of Workplace Learning, 33(3), 180–196. https://doi.org/10.1108/JWL-05-2020-0093
Øygarden, O., Olsen, E., & Mikkelsen, A. (2020). Changing to improve? Organizational change and change-oriented leadership in hospitals. Journal of Health Organization and Management, 34(6), 687–706. https://doi.org/10.1108/JHOM-09-2019-0280
Riyanto, S., & Hapsari, D. C. (2020). Strengthening Organizational Citizenship Behavior Through The Implementation of Transformational Leadership, Organizational Culture, and Compensation System. International Journal of Social Science and Economics Invention, 6(08), 316–323. https://doi.org/10.23958/ijssei/vol06-i08/222
Rizki, M., Parashakti, R. D., & Saragih, L. (2019). The effect of transformational leadership and organizational culture towards employees’ innovative behaviour and performance. International Journal of Economics and Business Administration, 7(1), 227–239. https://doi.org/10.35808/ijeba/208
Rozanna, N., Adam, M., & Majid, M. S. A. (2019). Does Job Satisfaction Mediate the Effect of Organizational Change and Organizational Culture on Employee Performance of the Public Works and Spatial Planning Agency?? 21(1), 45–51. https://doi.org/10.9790/487X-2101044551
Sadaf Razzaq, Abdul Sami, Sib-tul-Manum, & Muhammad Hammad. (2020). Transformational Leadership and Organizational Performance in Western & Non-Western Context: Systematic Review of 2019. International Journal of Entrepreneurial Research, 3(3), 58–60. https://doi.org/10.31580/ijer.v3i3.1505
Safaei, I., & Bayi, E. (2023). The Impact of Strategic Thinking on Innovation and Organizational Change in Managers of Sports Administrations of South Khorasan: The Mediating Role of Strategic Intelligence. Sport Management Journal, 14(4), 223–239.
Sari, P. T., & Rohman, A. (2015). Persepsi Mahasiswa Atas Pengaruh Teknologi Informasi Terhadap Kualitas Informasi Akuntansi Dengan Etika Pengguna Sebagai Variabel Moderasi. Diponegoro Journal of Accounting, 4(2), 543–553.
Schuldt, K. S., & Gomes, G. (2020). Influence of organizational culture on the environments of innovation and organizational performance. Gestao e Producao, 27(3), 1–26. https://doi.org/10.1590/0104-530x4571-20
Smollan, R. K., & Morrison, R. L. (2019). Office design and organizational change: The influence of communication and organizational culture. Journal of Organizational Change Management, 32(4), 426–440. https://doi.org/10.1108/JOCM-03-2018-0076
Soomro, B. A., Mangi, S., & Shah, N. (2020). Strategic factors and significance of organizational innovation and organizational learning in organizational performance. European Journal of Innovation Management, 24(2), 481–506. https://doi.org/10.1108/EJIM-05-2019-0114
Strengers, J., Mutsaers, L., van Rossum, L., & Graamans, E. (2022). The organizational culture of scale-ups and performance. Journal of Organizational Change Management, 35(8), 115–130. https://doi.org/10.1108/JOCM-09-2021-0268
Supriyati, S., Udin, U., Wahyudi, S., & Mahfudz, M. (2019). Investigating the relationships between organizational change, organizational climate, and organizational performance. International Journal of Financial Research, 10(6), 88–94. https://doi.org/10.5430/ijfr.v10n6p88
UIN Sunan Gunung Djati Bandung, B. (2019). Improve Organizational Performance by implementing Competency Based Empowerment for Employees. International Journal of Science and Society, 1(4), 137–144. http://ijsoc.goacademica.com
Virgiawan, A. R., Riyanto, S., & Endri, E. (2021). Organizational culture as a mediator motivation and transformational leadership on employee performance. Academic Journal of Interdisciplinary Studies, 10(3), 67–79. https://doi.org/10.36941/AJIS-2021-0065
Wu, L. F., Huang, I. C., Huang, W. C., & Du, P. L. (2019). Aligning organizational culture and operations strategy to improve innovation outcomes: An integrated perspective in organizational management. Journal of Organizational Change Management, 32(2), 224–250. https://doi.org/10.1108/JOCM-03-2018-0073
Zainol, N. Z., Kowang, T. O., Hee, O. C., Fei, G. C., & Kadir, B. Bin. (2021). Managing Organizational Change through Effective Leadership: A Review from Literature. International Journal of Academic Research in Business and Social Sciences, 11(1). https://doi.org/10.6007/ijarbss/v11-i1/8370
Zandi, M., & Farjad, H. R. (2020). Analyzing Mediation of Organizational Entrepreneurship in Effect on Organizational Innovation on Organizational Performance. Journal of Human Resource Management, 9(4). https://doi.org/10.22034/JHRS.2020.104222
Zhou, S. S., Zhou, A. J., Feng, J., & Jiang, S. (2019). Dynamic capabilities and organizational performance: The mediating role of innovation. Journal of Management and Organization, 25(5), 731–747. https://doi.org/10.1017/jmo.2017.20
