The Influence Of Organisational Culture On Organisational Commitment, Transformational Leadership, And Competitive Advantage After Business Consolidation
Main Article Content
Abstract
The purpose of this study is to analyze the relationship pattern between organizational culture, organizational commitment, transformational leadership, and competitive advantage. The study was conducted on consolidated State Owned Enterprises manufacturing companies in Indonesia, namely PT. X (Persero) Tbk, which includes PT. A, PT. B, and PT. C. Consolidation was done in achieving the vision and mission of the company as a leading cement company in Indonesia and Southeast Asia. This study used respondents of 121 managers with a stratified random sampling technique. Partial Least Square was used for data analysis. The results suggested that there is a significant positive effect between; (a) organizational culture on organizational commitment, (b) organizational culture towards transformational leadership, (c) organizational culture competitive advantage, (d) organizational commitment towards competitive advantage, and (e) transformational leadership towards competitive advantage
Article Details
References
Abdirahman, H. I. H., Najeemdeen, I. S., Abidemi, B. T., & Ahmad, R. B. (2018). The relationship between job satisfaction, work-life balance and organizational commitment on employee performance. Academic Journal of Economic Studies, 4(3), 12-17.
Abelha, D. M., Carneiro, P. C. D. C., & Cavazotte, F. D. S. C. N. (2018). Transformational leadership and job satisfaction: Assessing the influence of organizational contextual factors and individual characteristics. Revista Brasileira de Gestão de Negócios, 20, 516-532.
Afriyie, S., Du, J., & Ibn Musah, A. A. (2019). Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership. Journal of Global Entrepreneurship Research, 9, 1-25.
Agyeiwaah, E., Dayour, F., & Zhou, Y. (2022). How does employee commitment impact customers' attitudinal loyalty?. Journal of Hospitality and Tourism Insights, 5(2), 350-376.
Akpa, V. O., Asikhia, O. U., & Nneji, N. E. (2021). Organizational culture and organizational performance: A review of literature. International Journal of Advances in Engineering and Management, 3(1), 361-372.
Ali, B. J., & Anwar, G. (2021). Business strategy: The influence of Strategic Competitiveness on competitive advantage. International Journal of Electrical, Electronics and Computers, 6(2).
Al-Jabari, B., & Ghazzawi, I. (2019). Organizational Commitment: A Review of the Conceptual and Empirical Literature and a Research Agenda. International Leadership Journal, 11(1).
Alqatawenh, A. S. (2018). Transformational leadership style and its relationship with change management. Verslas: teorija ir praktika, 19(1), 17-24.
Arie, A. A. P. G. B., Kumalasari, P. D., & Manuari, I. A. R. (2019). The role of green intellectual capital on competitive advantage: evidence from Balinese financial institution. Sriwijaya international journal of dynamic economics and business, 227-242.
Arsawan, I. W. E., Koval, V., Rajiani, I., Rustiarini, N. W., Supartha, W. G., & Suryantini, N. P. S. (2022). Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage. International journal of productivity and performance management, 71(2), 405-428.
Atan, J. B., & Mahmood, N. (2019). The role of transformational leadership style in enhancing employees’ competency for organization performance. Management Science Letters, 9(13), 2191-2200.
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635.
Berberoglu, A. (2018). Impact of organizational climate on organizational commitment and perceived organizational performance: empirical evidence from public hospitals. BMC health services research, 18, 1-9.
Cantele, S., & Zardini, A. (2018). Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability–financial performance relationship. Journal of cleaner production, 182, 166-176.
Carvalho, A. M., Sampaio, P., Rebentisch, E., Carvalho, J. Á., & Saraiva, P. (2019). Operational excellence, organisational culture and agility: the missing link?. Total Quality Management & Business Excellence, 30(13-14), 1495-1514.
Chen, R., Lee, Y. D., & Wang, C. H. (2020). Total quality management and sustainable competitive advantage: serial mediation of transformational leadership and executive ability. Total Quality Management & Business Excellence, 31(5-6), 451-468.
Dappa, K., Bhatti, F., & Aljarah, A. (2019). A study on the effect of transformational leadership on job satisfaction: The role of gender, perceived organizational politics and perceived organizational commitment. Management Science Letters, 9(6), 823-834.
Djastuti, I. (2019). Fun at work and employee performance: the roles of job satisfaction and organizational commitment in manufacturing companies. Wseas transactions on business and economics, 16.
Edward, Y. R., & Purba, K. (2020). The effect analysis of emotional intelligence and work environment on employee performance with organizational commitment as intervening variables in PT Berkat Bima Sentana. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol, 3(3), 1552-1563.
Eliyana, A., & Ma’arif, S. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144-150.
Faupel, S., & Süß, S. (2019). The effect of transformational leadership on employees during organizational change–an empirical analysis. Journal of Change Management, 19(3), 145-166.
González-Rodríguez, M. R., Martín-Samper, R. C., Köseoglu, M. A., & Okumus, F. (2019). Hotels’ corporate social responsibility practices, organizational culture, firm reputation, and performance. Journal of sustainable tourism, 27(3), 398-419.
Gürlek, M., & Tuna, M. (2018). Reinforcing competitive advantage through green organizational culture and green innovation. The service industries journal, 38(7-8), 467-491.
Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782.
Imamoglu, S. Z., Ince, H., Turkcan, H., & Atakay, B. (2019). The effect of organizational justice and organizational commitment on knowledge sharing and firm performance. Procedia Computer Science, 158, 899-906.
Jerab, D. A., & Mabrouk, T. (2023). The Role of Leadership in Changing Organizational Culture. Available at SSRN 4574324.
Jia, J., Liu, H., Chin, T., & Hu, D. (2018). The continuous mediating effects of GHRM on employees’ green passion via transformational leadership and green creativity. Sustainability, 10(9), 3237.
Kustyadi, G., & WIJAYANTI, A. (2021). Ambidexterity and leadership agility in micro, small and medium enterprises (MSME)'s performance: An empirical study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(7), 303-311.
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 & Reliability Management, 38(1), 169-194.
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.
Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, 119962.
Metwally, D., Ruiz-Palomino, P., Metwally, M., & Gartzia, L. (2019). How ethical leadership shapes employees’ readiness to change: The mediating role of an organizational culture of effectiveness. Frontiers in psychology, 10, 2493.
Minbaeva, D. B. (2018). Building credible human capital analytics for organizational competitive advantage. Human Resource Management, 57(3), 701-713.
Nguyen, T., Pham, T., Le, Q., & Bui, T. (2020). Impact of corporate social responsibility on organizational commitment through organizational trust and organizational identification. Management Science Letters, 10(14), 3453-3462.
Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics and Business, 7(8), 577-588.
Papadas, K. K., Avlonitis, G. J., Carrigan, M., & Piha, L. (2019). The interplay of strategic and internal green marketing orientation on competitive advantage. Journal of Business Research, 104, 632-643.
Para-González, L., Jiménez-Jiménez, D., & Martínez-Lorente, A. R. (2018). Exploring the mediating effects between transformational leadership and organizational performance. Employee Relations, 40(2), 412-432.
Sabuhari, R., Sudiro, A., Irawanto, D., & Rahayu, M. (2020). The effects of human resource flexibility, employee competency, organizational culture adaptation and job satisfaction on employee performance. Management Science Letters, 10(8), 1775-1786.
Singjai, K., Winata, L., & Kummer, T. F. (2018). Green initiatives and their competitive advantage for the hotel industry in developing countries. International Journal of Hospitality Management, 75, 131-143.
Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266-282.
Suifan, T. S., Abdallah, A. B., & Al Janini, M. (2018). The impact of transformational leadership on employees’ creativity: The mediating role of perceived organizational support. Management Research Review, 41(1), 113-132.
Tian, H., Iqbal, S., Akhtar, S., Qalati, S. A., Anwar, F., & Khan, M. A. S. (2020). The impact of transformational leadership on employee retention: mediation and moderation through organizational citizenship behavior and communication. Frontiers in psychology, 11, 314.
Wang, C. H. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666-683.
Vipraprastha, T., Sudja, I. N., & Yuesti, A. (2018). The effect of transformational leadership and organizational commitment to employee performance with citizenship organization (OCB) behavior as intervening variables (At PT Sarana Arga Gemeh Amerta in Denpasar City). International Journal of Contemporary Research and Review, 9(02), 20503-20518.
Yamin, M. (2020). Examining the role of transformational leadership and entrepreneurial orientation on employee retention with moderating role of competitive advantage. Management Science Letters, 10(2), 313-326.
Yu, Q., Yen, D. A., Barnes, B. R., & Huang, Y. A. (2019). Enhancing firm performance through internal market orientation and employee organizational commitment. The International Journal of Human Resource Management, 30(6), 964-987.