International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
In technological developments and the demands of the times, it requires the Regional Secretariat of
East Java Province to have a strategy to provide excellent service to the citizens of East Java. Not achievement
yet of the predicate as a Regional Government with Excellent Service and the existence of various problems and
public complaints related to the public service bureaucracy triggers and spurs the East Java Provincial
Government to realize competitive organizational performance
Ethical decision making is a requirement and is a must for leaders in the local authorities to ensure
that actions will be taken in a proper way.Decision making is the starting point of an outcome; it could be good
or otherwise.Decision making by officers in a local authority is imperative;
In technological developments and the demands of the times, it requires the Regional Secretariat of
East Java Province to have a strategy to provide excellent service to the citizens of East Java. Not achievement
yet of the predicate as a Regional Government with Excellent Service and the existence of various problems and
public complaints related to the public service bureaucracy triggers and spurs the East Java Provincial
Government to realize competitive organizational performance
Ethical decision making is a requirement and is a must for leaders in the local authorities to ensure
that actions will be taken in a proper way.Decision making is the starting point of an outcome; it could be good
or otherwise.Decision making by officers in a local authority is imperative;
Process and Content Model of CSR Decision-making - A Stakeholder ApproachCSCJournals
This paper examines the process and factors that determine the decision for taking Corporate Social Responsibility (CSR) initiatives by businesses globally. Specifically, it investigates the stages of decision making and the factors that drive the decision making in each stage. A process model of decision making is proposed based on the factors determined from literature. The model consist of four stages in which the first stage is the pre-finalization stage in which the initial reasons for carrying out the CSR initiatives are explored, second stage is the finalization stage where the reasons for carrying out CSR initiatives are finalized, third stage is the context building for acting according to those reasons and subsequently carrying forward the CSR initiatives and the last stage is the implementation and execution of CSR initiatives. The review of previous literature reveals that major studies have focused only on one aspect of CSR namely, the reasons for CSR initiatives. This study opens up the direction for studying these factors deeply, so that it can be of use and importance to the businesses who are involved in the decision making of CSR initiatives. The interdependency of factors, as explained in the study, will aid decision makers at different levels of planning and implementation stages. It provides valuable inputs for those decision makers who are planning for CSR initiatives as well as to those who are seeking solutions for unsatisfactory results of these initiatives in their organizations.
Ltc pp mgt307_wk2 Copyright 2013 Edward F. T. Charfauros. Reference, www.Your...Edward F. T. Charfauros
Edward F. T. Charfauros, inspiring author, assists fellow students with their presentation for a successful grade. He also blogs upon his own inspiring blog, where you'll discover life changing stuff. Sign up for his blog by sending him an email~
Copyright 2013 Edward F. T. Charfauros. Reference, www.YourBlogorResume.net.
Work Motivation and Job Satisfaction of Employees before and after Company Re...IJAEMSJORNAL
This study was conducted to determine and compare the work motivation and job satisfaction of the employees before and after the cooperative reorganized sometime in 2015. Using descriptive comparative research design with survey questionnaire as data gathering instrument, the study involved 70 purposively chosen respondents from the said cooperative found out that motivation and job satisfaction levels of the respondents significantly increased after the reorganization. The study recommends that the current management continue striving to keep the level high.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
The impact of Psychological Empowerment and Organizational Justice on Perceiv...IJAEMSJORNAL
The study aimed to investigate the influence of psychological empowerment and organizational justice on perceived organizational performance at public sectors in Kurdistan region of Iraq. The research provided empirical evidence regarding the role of psychological empowerment and organizational justice on perceived organizational performance. The current study applied quantitative research, a questionnaire was used to collected data from the participants (employees, supervisors, and managers) from public sector in Kurdistan region of Iraq. The sample size for the current study was 114 units. The study developed two research hypotheses to measure the current study. The findings revealed that the first research hypothesis was supported which stated that psychological empowerment has a positive and significant influence on perceived organizational performance at public sector in Kurdistan region of Iraq, furthermore the second research hypothesis was supported which stated that organizational justice has a positive and significant influence on perceived organizational performance at public sector in Kurdistan region of Iraq. However, it was found that the highest value was for the psychological empowerment effect on perceived organizational performance.
Role of Organizational Commitment & Transformational Leadership in Enhancing ...inventionjournals
Past and present studies discuss the importance of transformational leadership and organizational commitment in an organization. This study further aimed at adding into the existing body of literature and explores the relationship between organizational commitment, transformational leadership and its role in enhancing employee in role performance and organizational citizenship behavior in banking sector of Pakistan. Study explores a significant positive relationship between variables. A sample of 240 employees working in public sector was drawn using multistage cluster sampling. 180 respondents took final part and response rate was 75%. Data was collected primarily with help of questionnaire and further analyzed with help of several techniques e.g. descriptive statistics to describe & summarize the data. Correlation and regression analysis was run to prove the hypothesis of the study.
Organizational citizenship Behavior as Attitude Integrity in Measurement of I...IOSR Journals
Quality of Human Resource represent one of the factor which to increase performance productivity an institution or organization. Therefore, needed Human Resource having high interest because interest or membership will be able to support the make-up of employees performance achievement. During the time at generally in governance institution not yet had officer with adequate interest, proved with still lower officer productivity and is difficult measure officer performance [in] governance institution scope. Performance Management System in a modern concept of human resource management is an objective and transparent performance measurement model of Organizational Citizenship Behavior in giving reward to individual’s sacrifice for organization. Three main elements of individual’s sacrifice performed in Organizational Citizenship Behavior (OCB) are compliance, loyality, and participation.The organization shoud appreciate these attitudes by giving clear job description and brief rewardsystemcriteriato encourage the individual’s job motivation. Combined with theindividual assessment of job description, job grading is used to compile a correct Key Performance Indexand a precise salary component. The aim of this action research is to give a comprehensive solution for Hospital X, in order to determine a Key Performance Indexsmodel, in response to some problems such as jobmotivation, work stress and performance. An interviews with hospital’s director and Human Resources section was conducted to compile the KPI. The results of this research can be recommended to the hospital to make a comprehensive performance assessment consist of the review of employee's job descriptions, Key Performance Indicator (KPI), job grading, specifying fundamental salary based on work,Bonus Scame and score summary
The Influence of Organizational Innovation towards Internal Service Quality i...Hamzani Fadil
Procedia - Social and Behavioral Sciences
Volume 224, 15 June 2016, Pages 317–324
IRSSM-6 The 6th International Research Symposium in Service Management — “Service Imperatives in the New Economy: Service Excellence for Sustainability”
Critical Evaluation of the Big 4 in Bangladesh Caught Between The Global and ...Anamika Hore
this is an assignment on a research paper named 'The Big 4 in Bangladesh Caught Between the Global and The Local. this is the critical evaluation of that stated paper
Impact of Corporate Governance on Organizational PerformanceJenıstön Delımä
Citation: Delima, V. J., & Ragel, V. R. (2017). Impact of corporate governance on organizational performance. International Journal of Engineering Research and General Science, 5(5).
Abstract- This study examined whether corporate governance has impact on organizational performance in Financial Institutions as research problem. This research was carried out with objective to measure association between Corporate Governance and Financial Institution’s Performance in Batticaloa district. Conceptual framework has been developed to measure linkages between Corporate Governance and Financial Institution’s Performance. Board Size, Corporate Governance Mechanism, Communication Strategies, and Code of Conduct are considered as the measurement variables of Corporate Governance which was derived from Changezi & Saeed (2013) and Customer Satisfaction, Employee Commitment and Corporate Reputation are considered as the measurement variable of Organizational Performance which was derived from Bayoud (2012) and Carton (2004). Questionnaires were used to collect data for this study. 115 Management Respondents and 115 Customers from whole Financial Institutions in Batticaloa district have been selected for this study. Data were analyzed and evaluated by Univariate and Bivariate techniques. In Univariate analysis, Descriptive statistic has been used for the analysis. In Bivariate analysis, Correlation and multiple regressions have been used for the analysis. Findings have shown the Corporate Governance and Organizational Performance are at high level. Moreover, it also found that there is a strong positive relationship between Corporate Governance and Organizational Performance. Corporate Governance significantly impacts Organizational Performance of Financial Institutions. These findings would be useful to consider more on Corporate Governance practices to avoid the Corporate Collapses and to achieve successful Organizational Performance
Process and Content Model of CSR Decision-making - A Stakeholder ApproachCSCJournals
This paper examines the process and factors that determine the decision for taking Corporate Social Responsibility (CSR) initiatives by businesses globally. Specifically, it investigates the stages of decision making and the factors that drive the decision making in each stage. A process model of decision making is proposed based on the factors determined from literature. The model consist of four stages in which the first stage is the pre-finalization stage in which the initial reasons for carrying out the CSR initiatives are explored, second stage is the finalization stage where the reasons for carrying out CSR initiatives are finalized, third stage is the context building for acting according to those reasons and subsequently carrying forward the CSR initiatives and the last stage is the implementation and execution of CSR initiatives. The review of previous literature reveals that major studies have focused only on one aspect of CSR namely, the reasons for CSR initiatives. This study opens up the direction for studying these factors deeply, so that it can be of use and importance to the businesses who are involved in the decision making of CSR initiatives. The interdependency of factors, as explained in the study, will aid decision makers at different levels of planning and implementation stages. It provides valuable inputs for those decision makers who are planning for CSR initiatives as well as to those who are seeking solutions for unsatisfactory results of these initiatives in their organizations.
Ltc pp mgt307_wk2 Copyright 2013 Edward F. T. Charfauros. Reference, www.Your...Edward F. T. Charfauros
Edward F. T. Charfauros, inspiring author, assists fellow students with their presentation for a successful grade. He also blogs upon his own inspiring blog, where you'll discover life changing stuff. Sign up for his blog by sending him an email~
Copyright 2013 Edward F. T. Charfauros. Reference, www.YourBlogorResume.net.
Work Motivation and Job Satisfaction of Employees before and after Company Re...IJAEMSJORNAL
This study was conducted to determine and compare the work motivation and job satisfaction of the employees before and after the cooperative reorganized sometime in 2015. Using descriptive comparative research design with survey questionnaire as data gathering instrument, the study involved 70 purposively chosen respondents from the said cooperative found out that motivation and job satisfaction levels of the respondents significantly increased after the reorganization. The study recommends that the current management continue striving to keep the level high.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
The impact of Psychological Empowerment and Organizational Justice on Perceiv...IJAEMSJORNAL
The study aimed to investigate the influence of psychological empowerment and organizational justice on perceived organizational performance at public sectors in Kurdistan region of Iraq. The research provided empirical evidence regarding the role of psychological empowerment and organizational justice on perceived organizational performance. The current study applied quantitative research, a questionnaire was used to collected data from the participants (employees, supervisors, and managers) from public sector in Kurdistan region of Iraq. The sample size for the current study was 114 units. The study developed two research hypotheses to measure the current study. The findings revealed that the first research hypothesis was supported which stated that psychological empowerment has a positive and significant influence on perceived organizational performance at public sector in Kurdistan region of Iraq, furthermore the second research hypothesis was supported which stated that organizational justice has a positive and significant influence on perceived organizational performance at public sector in Kurdistan region of Iraq. However, it was found that the highest value was for the psychological empowerment effect on perceived organizational performance.
Role of Organizational Commitment & Transformational Leadership in Enhancing ...inventionjournals
Past and present studies discuss the importance of transformational leadership and organizational commitment in an organization. This study further aimed at adding into the existing body of literature and explores the relationship between organizational commitment, transformational leadership and its role in enhancing employee in role performance and organizational citizenship behavior in banking sector of Pakistan. Study explores a significant positive relationship between variables. A sample of 240 employees working in public sector was drawn using multistage cluster sampling. 180 respondents took final part and response rate was 75%. Data was collected primarily with help of questionnaire and further analyzed with help of several techniques e.g. descriptive statistics to describe & summarize the data. Correlation and regression analysis was run to prove the hypothesis of the study.
Organizational citizenship Behavior as Attitude Integrity in Measurement of I...IOSR Journals
Quality of Human Resource represent one of the factor which to increase performance productivity an institution or organization. Therefore, needed Human Resource having high interest because interest or membership will be able to support the make-up of employees performance achievement. During the time at generally in governance institution not yet had officer with adequate interest, proved with still lower officer productivity and is difficult measure officer performance [in] governance institution scope. Performance Management System in a modern concept of human resource management is an objective and transparent performance measurement model of Organizational Citizenship Behavior in giving reward to individual’s sacrifice for organization. Three main elements of individual’s sacrifice performed in Organizational Citizenship Behavior (OCB) are compliance, loyality, and participation.The organization shoud appreciate these attitudes by giving clear job description and brief rewardsystemcriteriato encourage the individual’s job motivation. Combined with theindividual assessment of job description, job grading is used to compile a correct Key Performance Indexand a precise salary component. The aim of this action research is to give a comprehensive solution for Hospital X, in order to determine a Key Performance Indexsmodel, in response to some problems such as jobmotivation, work stress and performance. An interviews with hospital’s director and Human Resources section was conducted to compile the KPI. The results of this research can be recommended to the hospital to make a comprehensive performance assessment consist of the review of employee's job descriptions, Key Performance Indicator (KPI), job grading, specifying fundamental salary based on work,Bonus Scame and score summary
The Influence of Organizational Innovation towards Internal Service Quality i...Hamzani Fadil
Procedia - Social and Behavioral Sciences
Volume 224, 15 June 2016, Pages 317–324
IRSSM-6 The 6th International Research Symposium in Service Management — “Service Imperatives in the New Economy: Service Excellence for Sustainability”
Critical Evaluation of the Big 4 in Bangladesh Caught Between The Global and ...Anamika Hore
this is an assignment on a research paper named 'The Big 4 in Bangladesh Caught Between the Global and The Local. this is the critical evaluation of that stated paper
Impact of Corporate Governance on Organizational PerformanceJenıstön Delımä
Citation: Delima, V. J., & Ragel, V. R. (2017). Impact of corporate governance on organizational performance. International Journal of Engineering Research and General Science, 5(5).
Abstract- This study examined whether corporate governance has impact on organizational performance in Financial Institutions as research problem. This research was carried out with objective to measure association between Corporate Governance and Financial Institution’s Performance in Batticaloa district. Conceptual framework has been developed to measure linkages between Corporate Governance and Financial Institution’s Performance. Board Size, Corporate Governance Mechanism, Communication Strategies, and Code of Conduct are considered as the measurement variables of Corporate Governance which was derived from Changezi & Saeed (2013) and Customer Satisfaction, Employee Commitment and Corporate Reputation are considered as the measurement variable of Organizational Performance which was derived from Bayoud (2012) and Carton (2004). Questionnaires were used to collect data for this study. 115 Management Respondents and 115 Customers from whole Financial Institutions in Batticaloa district have been selected for this study. Data were analyzed and evaluated by Univariate and Bivariate techniques. In Univariate analysis, Descriptive statistic has been used for the analysis. In Bivariate analysis, Correlation and multiple regressions have been used for the analysis. Findings have shown the Corporate Governance and Organizational Performance are at high level. Moreover, it also found that there is a strong positive relationship between Corporate Governance and Organizational Performance. Corporate Governance significantly impacts Organizational Performance of Financial Institutions. These findings would be useful to consider more on Corporate Governance practices to avoid the Corporate Collapses and to achieve successful Organizational Performance
The Impact of Corporate Governance on Improving Overall Performance of the Co...CSCJournals
Corporate governance is recognized as one of the most important implications in building marketplace confidence. The study will assess the level of implementation of corporate governance and level of performance in seven companies from different industries in some countries. We selected seven companies (Audi Bank, Nestlé Group, Dana Gas, Medgulf, Coca Cola, SABIS, Al Baraka Banking Group) which operate in different sectors (Banking, Food and beverages, Energy, Insurance, Education, and Islamic Banking).
The result of the study shows that there is a significant relationship between corporate governance practices and companies' performance. It is expected that the findings of this research paper would contribute to improve understanding about corporate governance practices and their impacts on improving overall performance of the companies.
Results of the study shows that through appropriate application of the standards of corporate governance companies increase profitability, effectiveness and efficiency, improve their credibility, sustainability, transparency, disclosure, reputation, competitiveness and quality in all aspects and enhance management control, risk management, financial management, oversight and relations with key stakeholders such as investors, business partners, employees, customers, etc.
The study recommends that companies should implement corporate governance principles and standards in their strategy and decision making process. They should focus on board of directors, committee structure, risk management, internal audit, external audit, internal control, human capital, sustainability, social responsibility, financial management, disclosure, transparency and the rights of shareholders.
Corporate Governance and Corporate Profitability Empirical Study of Listed La...ijtsrd
Corporate governance is concerned with ways in which all parties interested in the well- being of the organization attempt to ensure that mangers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders.. The purpose of the study is to find out the impact of corporate governance on profitability of listed Land and Property companies in Sri Lanka. Return of Assets is used as dependent variable. To measure the corporate governance, Board size, Board composition and independent directors of Remuneration committee. number of auditors are considered in this study. Firm size was considered as control variable in this study. The data were collected from firms annual financial reports and Data Stream over the period of 2011to 2016, from the CSE website. Descriptive statistics, correlation analysis, multiple linear regression analysis were used to analyse the data and examine the hypotheses by using the E-views 10 version, in this study. The findings revealed that there is a positive and significant relationship between ROA with auditors, board composition. Independent directors of Remuneration committee and board size are insignificantly correlated with ROA. Furthermore, it was found that the control variable firm size was insignificant in influencing firm performance ROA ..This study provides useful information for policy makers, regulators in improving the corporate governance policies in the future and also helps in increasing and understanding the relationship between corporate governance and firms performance. S. Anandasayanan | H. Thavarasasingam "Corporate Governance and Corporate Profitability: Empirical Study of Listed Land and Property Companies in Sri Lanka" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd20309.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/20309/corporate-governance-and-corporate-profitability-empirical-study-of-listed-land-and-property-companies-in-sri-lanka/s-anandasayanan
STRATEGY FORMULATION MODEL TO IMPROVE IMPLEMENTATION OF CORPORATE SOCIAL RESP...IAEME Publication
This research is based on reality condition of Corporate Social Responsibility
(CSR) activity in generic CSR program. Many companies implement CSR based on
external pressures, such as regulators, environmentalists and other associations. CSR
Implementation is not an internal awareness of company to improve social
environment and has no relevance to main activities and corporate strategy.
Therefore, it does not give benefits to the performance and competitive advantage.
This research focus is to develop a CSR implementation model based on internal
awareness of company by examining the leadership behavior to formulate CSRoriented
strategy formulation in an effort to improve company performance. This
research location is Makassar Industrial Estate (PT.KIMA). The unit analysis is
company. The samples are 81 leaders at general manager level and leadership of
company functional manager level. The study proves that transformational leadership
stylehas a significant effect on CSR-oriented strategy formulation. Leaders with
ethical integrity rules, norms and policies will increase the leadership commitment to
formulate the company's strategy by taking into account aspects of natural and social
environment in addition to main purpose to generate profits. Organizational learning
culture improves the effectiveness of corporate strategy formulation. Strategy
formulation will improve leadership commitment to create CSR implementation
The present study aimed to examine the effect of the entrepreneurial orientation (EO) on organizational performance (OP). This study was motivated by the mixed findings in literature regarding the relationships between EO and organizational performance. Owing to the mixed results, a novel stream of research was created and this motivated further examining of the impact of other variables that may shed a light on the nature of the relationship. Several theories have been proposed in literature posit the direct relationships among strategies, resources and capabilities as antecedents of success. In this study, copies of questionnaires were distributed to 300 Libyan banks branches, where 200 copies of questionnaires were returned and analyzed. The proposed hypothesis was tested through PLS-SEM and the study results showed that EO positively predicted organizational performance.
Attainment of Cooperative objectives and the performance of officers in perfo...IJAEMSJORNAL
Cooperatives have brought significant contributions to uplift the lives of many individuals and to resolve problems related to financial, marketing and production. This study was conducted to determine whether the different registered cooperatives in Gapan City, Nueva Ecija were attaining their objectives and whether the board of directors and officers were performing their duties and responsibilities by fulfilling their management functions. Furthermore, this study was conducted to determine the different constraints the cooperatives were facing that could affect their everyday operations. The researcher utilized the descriptive research design using a survey– questionnaire technique to gather the necessary information. Moreover, the researcher with the use of T–test determined whether there is a significant difference in the extent of attainment of the cooperative objectives, level of performance of the officers in performing their management functions and the constraints affecting the operations of the organizations based on the perceptions of the officials and the members of cooperatives. Findings have shown that the existing registered cooperatives in the city were able to attain their cooperative objectives to a very great extent. It has also been found out that the board of directors and officers were able to perform their management functions very satisfactory. On the other hand, the respondents perceived that the constraints affecting the operations of cooperatives were just minor problems. The two groups differ in their responses on the extent of attainment of their cooperative objectives and on the constraints affecting the operations of the cooperatives while both groups of respondents have the same perception as to the level of performance of the board of directors and officers in performing their management functions.
The importance of quality practices has considerably increased over the last years, on both a
practical and theoretical level. In competitive and global business environment, companies should create a need
for managers in manufacturing sector to effectively and continually improve quality, capability and process
efficiency. This paper presents the findings from the survey on the current status of measurement system on
CSR capability by using SQC and DMAIC method (Define-Measure-Analyze, Improve and Control) in fulfilled
the standard of quality product in home industries based. Case study was one of growth home industries
supported by CSR of PT. Pertamina Gas (Pertagas) in Prabumulih, South Sumatera. The chosen of industry as
they contribute in absorption of local content raw materials produce by using the vacant land along the yard.
The aims are to determine whether the essential quality measurement such as SQC snf DMAIC as have a
significant contribution to reduce the production reject and increasing the utility of raw material from local
content and develop the value added in the future. This paper outlines the results of the research conducted on
the industries under CSR programme, it was found that the CSR program by Pertagas was effective in reducing
product reject and give good contribution in spread the local product into the market, either local and national
area as shown by ANOVA test. The main finding from the study proved that suitable program of CSR was give
positive contribution on quality improvement.
The Influence of the Audit Committee, the Board of Commissioners, And Institu...AJHSSR Journal
ABSTRACT : This research was conducted to determine the supporting factors that influence company
performance based on agency theory with corporate governance variables. This study uses secondary data,
namely banking companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021. The population in this
study was 45 companies. Using a purposive sampling method, with a total sample of 26 companies for 3 years.
Methods of data analysis using multiple linear regression. Based on the results of the study it was concluded that
the variables of the audit committee and the board of commissioners have a positive effect on company
performance, while ownership has no effect on company performance.
KEYWORDS: Audit Committee, Board of Commissioners, Institutional Share Ownership, Tobin's Q
A STUDY ON EMPLOYEE PERCEPTION TOWARDS ORGANISATIONAL COMMITMENT AND ITS IMPA...IAEME Publication
The organizations in both public and private sectors have been putting their efforts toward creating performance culture, which is characterized by a search for strategies to improve the contribution of both individuals and organizations to enhance the performance. The Organizational Commitment is found to be one of the factors associated with enhancing Job Performance. Higher affective Commitment towards an organisation is considered an important determinant of dedication and loyalty. Affectively committed employees considered to be having a sense of belonging and identification exhibit their increased involvement in organisation’s activities and their desire to perform well in the organisation. The perception that organisation values their wellbeing evidently led employees’ to identify the organization’s wellbeing with their own. This study portrait the behavioral aspects of the employees of the firm, exhibiting their commitment to the organization.
Corporate Governance Mechanism and Sustainability of Health Care Firms in Nig...ijtsrd
This study was carried out to examine the relationship between corporate governance mechanism and sustainability of health care firms in Nigeria. The study is vital as it portrays the extent to which corporate governance mechanism ensures organizational sustainability. In order to determine the relationship between corporate governance mechanism CGM and sustainability, CGMs key proxy variables were used in the study, namely board independence BI and board diligence BD while sustainability on the other hand was measured by social environmental performance. Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using ordinary least square model. The study anchored on the Stewardship Theory adopted an Ex Post Facto Approach. Hence, data were collected from the annual reports and accounts of listed health care firms in Nigeria for the period 2016 2020. The empirical analysis of the research indicates that there is a significant and positive relationship between board independence, board diligence and sustainability of listed health care firms in Nigeria at 1 significant level. Thus, the study concludes that corporate governance mechanism ensures sustainability of quoted health care firms in Nigeria. In lieu of this, the study recommended that companies should re examine the frequency of meetings of the Board. Attention should be focused on the efficiency and not the frequency of meetings of the Board. Also in the composition of corporate board, there shall be independent directors and female directorship presence as thus ensures organizational sustainability. Onuora, J. K. J. | Obiora Fabian. | Iloghalu Chika. R "Corporate Governance Mechanism and Sustainability of Health Care Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-3 , April 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49500.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/49500/corporate-governance-mechanism-and-sustainability-of-health-care-firms-in-nigeria/onuora-j-k-j
Effect of Corporate Governance Committees and Financial Performance of Health...ijtsrd
This study examined empirically corporate governance committees and financial performance of healthcare companies. The independent variables are remuneration committees and nomination committees and independent variable was proxied with return on equity. The study used Ex Post Facto research design. Regression analysis was employed to test the hypotheses. The result showed that remuneration committee has a negative effect on return on assets, and this effect was not statistically significant at 5 level of significance. While nomination committee has a positive effect on return on assets, and this effect was statistically significant at 5 level of significance. It was suggested that the remuneration committee ensure that the appointed board members have an appropriate balance of skills to successfully discharge their duties. Unamma, Amaka Nkiru | Nwachukwu Raphael "Effect of Corporate Governance Committees and Financial Performance of Healthcare Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-4, August 2023, URL: https://www.ijtsrd.com/papers/ijtsrd59782.pdf Paper Url:https://www.ijtsrd.com/management/accounting-and-finance/59782/effect-of-corporate-governance-committees-and-financial-performance-of-healthcare-companies-in-nigeria/unamma-amaka-nkiru
Effect of Corporate Governance on Profitability of Quoted Manufacturing Compa...YogeshIJTSRD
The study determined the extent corporate governance affect profitability of quoted manufacturing companies in Nigeria using board size, board independence, directors’ shares and profit margin of quoted manufacturing companies in Nigeria. Only secondary data was used for the successful execution of this research work. Three hypotheses were formulated for this study while data extracted through the financial statement was tested with the Regression statistical tool using the E view 9. The outcome of the analyses carried out showed that board size has negative but significant effect on net profit margin of manufacturing companies quoted on the Nigeria Stock Exchange. It is therefore recommended that board size should be relative to the firm’s business need, scope and complexity. Since no two firms are exactly alike in all ramifications, it is important that an appropriate size be understood to be a function of each firm’s circumstances. Setting arbitrary board size benchmarks will therefore be counterproductive. Okoye, Pius V. C. | Ugwu, Scholastica C. "Effect of Corporate Governance on Profitability of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd44953.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/44953/effect-of-corporate-governance-on-profitability-of-quoted-manufacturing-companies-in-nigeria/okoye-pius-v-c
This research aimed to analyze the effects of organizational commitment, competency, and reward
on employee performance. The population of this research was local public officers in the Yapen Islands
Regency.
Sugarcane Company’s performance has remained to be one of the challenging facts in the growing companies in Kenya today. The delays in harvesting operations are attributed to uncoordinated and unpredictable harvesting and transport schedules; and inefficiencies in mill operations. Therefore, the main aim of the study is to determine the influence of Sustainability Management Systems CSR on firm performance of selected sugarcane companies in Kenya. The study is guided by Corporate Social Performance Theory. This study used ex- post facto research design. Ex- post facto research design determines and reports the way things are. The target population was 528 employees. This study therefore sampled 228 respondents. Purposive sampling technique was used to select 10 managers, 24 supervisors, 38 accountants and 156 clerks from the 7 sugarcane companies because they have specific information concerning the effects of corporate social responsibility practice on firm performance of selected sugarcane companies in Kenya. Pilot study was done in order to test for validity and reliability of the research tools. The pilot study was done in Trans-Mara Sugar Company found in rift Valley region of Kenya. For inferential statistics, correlation and multiple regression was used for comparative analysis between frequencies of corporate social responsibility practice on firm performance. The study findings indicated that sustainability management systems have an effect on firm performance. The government will use this study in establishing policies that would ensure improvement in firm performance of sugarcane processing firms among other firms in Kenya. The study recommends that the companies should encourage sustainability management systems since sustainable management systems is an important mechanism for improving corporate sustainability performance. It can generate business value through measurement and management of sustainability risks and opportunities. The study recommends further researchers to study on corporate social responsibility strategy and financial performance of firms in Kenya which the study didn’t cover.
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B0361013022
1. International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org Volume 3 Issue 6ǁ June. 2014 ǁ PP.13-22
www.ijbmi.org 13 | Page
Tri Hita Karana Culture Effect on Company Performance,
Leadership and Organizational Commitment
(Studies an Regional Water Company in Bali Province)
1
Ida Bagus Ketut Surya, 2
Armanu Thoyib, 3
Achmad Fatchan, dan 4
Mintarti
Rahayu
1
Program Doctor of Management Science, Economics and Business Faculty, Brawijaya University, Malang,
East Java, Indonesia.
2,3,4
Management Program, Economics and Business Faculty, Brawijaya University, Malang, East Java,
Indonesia.
ABSTRACT : This study purpose is to explore the effect of Tri Hita Karana culture on leadership,
organizational commitment and company performance. Data was collected through survey methods in cross -
section through a questionnaire. Analysis units are Regional Water Companies in Bali Province. Samples are
16 directors. Data analysis techniques to test hypothesis is Generalized Structured Component Analysis
(GSCA).This study result indicate that implementation of Tri Hita Karana culture can improve company
performance either directly or mediated by asta dasa paramiteng prabhu leadership and organizational
commitment. Implementation of Tri Hita Karana culture simultaneously can improve leadership quality,
organizational commitment, and improve company performance. But good leadership has no effect on
organizational commitment. This study originality is to provide a basis for modeling development configuration
with GSCA methods and conceptual models to prove values of local wisdom, namely: Tri Hita Karana culture
and asta dasa paramiteng prabhu leadership and mediating role of organizational commitment shown
significant effect on to improve company's performance at Regional Water in Bali Province.
KEYWORDS: Tri Hita Karana culture, Asta Dasa Paramiteng Prabhu Leadership, Organizational
Commitment and Company Performance.
I. INTRODUCTION
Regional Water Company (RWC) is one of local government’s enterprises. Under Law No. 5 year
1962, government-owned businesses of Regional Water Company provide services and organize public
services in water drinking. RWC activities ranging from producing, processing, and distributing clean water to
customers. Akbar [1] said that local companies have responsibility to develop and manage water supply systems
as well as serving all groups of consumers at an affordable price. Akbar [1] states that to carry this mission
RWC faces many obstacles, particularly in large cities the problem of clean water availability is very
pronounced. Effendy [2] stated that RWC have institutional and management problems associated with low
efficiency, low human resources competence, inefficient operating system, less supportive corporate culture, no
visionary leadership, lack of entrepreneurship, low business strategy, and less smart. Based on World Bank
report, Mugabi et al. [3] state that water management challenges in developing countries are inefficient usage of
drinking water, lack of effective information management systems and unclear vision and mission. Bali
Province is one of Indonesia provinces needs water supply for people that depend on RWC. There are nine
RWC in Bali Province that established by local regulations of ) district/city. RWC in Bali province have some
problems such as high operational costs, low rates, limited production capacity, lack of production facilities,
quantity and quality of raw water does not meet standards and leakage level is still high. This obstacles make
public service is not maximal. It is proved by many complaints from customers. Based on data of Bali, within a
period of 3 years (2008 to 2010), customer complaints increased respectively at 8.21%, 8.61 %, and 8.96 %. It
statistically high with magnitude above 5 per cent or over the tolerance level [4]
In addition to customer complaints, leakage level (losses), also called the term accounted for water
(UFW), during last 3 years (2008 - 2010 increased respectively 26.27 %, 26.30 %, and 26.84 %). Based on
Domestic Ministry (Kepmendagri) No. 47 year 1999 [5], a high leakage level tolerance is 20 %.Higher customer
complaints and leakage rate are an indication of RWC performance in Bali province is lower than expectations.
Rival et al. [6] said that to increase organizational performance and achieving organizational goals, it would
require a strong organizational culture, a culture in this case includes values , norms and attitudes.
2. Tri Hita Karana Culture Effect On Company…
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Chouke and Armstrong [7] states that organization's culture is an important variable to achieve
company's performance, and organizational culture become one of important factors as key drivers in
development and success of big companies and also important for small companies. Susanto et al. [8] describes
organizational culture as a key in achieving corporate excellence, it is because organization culture able to create
groups within organization take swift and coordinated action against competitors, customers, and various
processes within organization Davidson et al. [9] that conducted research on banking companies shows that
organizational culture affects on company performance , as well as Kotter and Heskett [10] stated that
organizational culture significantly affect on long-term economic performance, and be able to determine future
success and failure. Denison [11] develops a relationship with organizational culture and business management
activities performance by developing four key characteristics of organizational culture namely: involvement,
consistency, adaptability and mission.
Several studies that examining relationship between organizational culture with organization
performance show that organization's culture is one key factors of organizational performance improvement
(Onken [12]; Denison and Mishra [13]; Davidson et al. [9]; Denison et a.l [14]; Carl F Fey and Denison [15];
Gani [16]; Supartha [17]; Gunawan [18]; Riana [19]; Kamaliah [20]; and Astawa et al. [21])
Chouke and Armstrong [7]; Marcoulides and Heck [22]; Michie and A.West [23]; Koesmono [24]; and
Rashid et a.l [25] also show same result. Various studies lead to conclusion that organizational culture has a
positive effect on organizational performance improvement. This means that formation of a positive
organizational culture within organization will have a positive effect on organizational performance
improvement. The same opinion is expressed by Moeljono [26]; Kotter and Hasket [10]; Robbins and Judge
[27], that organizational culture affects company performance.This condition is different from what was
findings of Lim [28]; Raka Suardana [29];; Yuan and Lee [30]; Februanto [31]; Dharmanegara et al. [32];
Syauta [33]; Chen [34]; Sumarto and Subroto [35]; Xenikou and Simosi [36]. They says that organizational
culture does not affect on company performance. This means that implementation of organizational culture
within organization will not affect organization performance.
Organizational culture can also negatively affect performance. Van Veet and Griffin [37] states that a
defensive culture have negative effect on performance improvement. It is also in line with Bathazard et al. [38]
finding that that a dysfunctional organization will lower efficiency, effectiveness and performance.
In addition to organizational culture, leadership also affect organization performance. Leadership is a key
element of management with important role in strategic and survival of a business [39]. The same thing is also
said that managers closest to company and responsible for operating efficiency, short term and long term
profitability, as well as the effective capital usage, human resources and other resources. Various theories
suggest that relationship between leadership style on organization performance as Day and Lord [40];
Reksohadiprojo and Handoko [41]; Fidler [42].Several studies show relationship between leadership style
Elenkov organizational performance ([43]; [44]; [45]), especially transformational leadership attributes and
organizational effectiveness measurement. Leadership performance also to affect on organizational
performance improvement ([46]; [18]; [20]; [24]). Several studies above reinforces the theory about relationship
between leadership and organizational performance.
Different opinion of [36]; [31]; [17] and [30] found results no significant relationship between
leadership and performance. This means that good leadership in organization is not able to improve performance
or leadership within an organization. The different results of Timothy et al. [47] said that transactional
leadership have significant positive effect on organizational performance, whereas transformational leadership
does not on organizational performance.Other factors that affect company performance is organizational
commitment, because commitment shows confidence and strong support of values and goals to be achieved by
organization [48]. Organizational commitment can grow due to individuals who have an emotional bond to
organization that includes the moral support and accept the existing value and inner determination to serve
organization [49] whereas according to Wiener [50] organizational commitment boost individual to do
something in order to support organization success in accordance with purpose of prioritizing interests of
organization above own interests.
Various previous studies that looked at relationship between organizational commitment to
performance as Rashid et al. [25] show positive effect between organizational commitment and organizational
performance. Research conducted of Somers [51]; Kamaliah [20]; Koesmono [24]; Syauta [33] through
identification variable affective commitment, normative and continuous show significant effect on
organizational performance.
3. Tri Hita Karana Culture Effect On Company…
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While Randall et al. [52] stated that organizational commitment does not affect organization
performance. Adversely, Shaw et al. [53] show that those migrant workers do not affect organization
performance , while native workers have significant positive effect organizational performance.The effect of
organizational culture on leadership has done empirically. Research by Ogbonna and Harris [45]; Kamaliah
[20]; and Gunawan [18]; Mehta and Krishnan [54]; Butarbutar and Sandjaya [55]; and Mohanty et al. [56] show
that organizational culture have positive and significant effect on leadership. Research of Sharma and Sharma
[57]; Sumarto and Subroto [35]; Endorgan et al [58]; Van Emmerik et al. [59]; and Alas et al. [60] show that
organizational culture affects on leadership. Results of this study support the notion Schein [61] that
organizational culture affects on leadership.Schimmoeler [62] found different that Clan culture and Adhocracy
provide significant positive effect on transformational and transactional leadership, but the clan culture has an
effect on leadership of laissez - faire. Hierarchy and adhocracy culture have no effect on laissez- faire
leadership. While the market does not have effect on organizational culture, both transformational leadership
style, as well as transactional, and laissez - faire.
Organizational culture affect on company's performance and also affects on organizational
commitment. Various previous studies of Rashid et al. [25]; Chen [34]; Koesmono [24] show that there is a
positive and significant effect between organizational culture with organizational commitment. This means that
a good implementation of organizational culture in company will increase the employee's desire to maintain
membership in organization and willing to strive for the achievement of organizational goals. In contrast, results
of study by Nongo and Ikyanyon [63] says that cultural adaptability and involvement have significant positive
effect on organizational commitment, consistency while mission culture does not affect on organizational
commitment.Previous studies show different result about effect among variables. Previous studies rarely show
organizational culture and leadership are adopting local values and their effect on organizational commitment
and company performance. Similarly, the study of organizational culture and leadership more concern to
phenomena in Western world, which has a different culture with a company in Indonesia in general and Bali in
particular. Corporate organizational culture in Bali is very colored by local cultures rooted in religion [19].
According to Windia and Goddess [64], Tri Hita Karana (THK) as an element of Balinese culture contains
parahyangan (harmonious relationship between man and God), pawongan (harmonious relationship between
humans), and palemahan (harmonious relationship between humans and environment).
In his study Riana [19] have studied contemplation between THK cultures with some theories of
organizational culture. It was found that parahyangan dimensions analogous to Basic Assumptions of Schein
[61] and subsystems Koentjaraningrat value [65] and is a behavior that tends to be difficult to be changed
because it contains the value - the value of which does not seem with Kotter and Heskett [10] and Denison [11].
Similarly, Hofstede [66] looked at basic norms of religion at most people in Asia are used as a way to avoid
uncertainty (uncertainty avoidance). Compared with culture concept of Hofstede [66] palemahan dimensional
analogues with short term and long term objective, and pawongan dimensions analogous to individualism and
collectivism, power distance, masculinity and femininity.Based on research gap, this study examines the role of
local leadership values , known as asta dasa paramiteng prabhu and organizational commitment as the
mediating effect of organizational culture (Tri Hita Karana) on local company performance. It needs further
research, especially at Regions Company Drinking water in Bali Province. Study result of theoretical and
empirical phenomena affect on construction of concept of organizational culture, leadership, and corporate
performance and this gap was essential and interesting to research further into new findings that inspire
researchers to reexamine inconsistency of previous research findings about effect of organizational culture on
leadership, organizational commitment, and company performance.Several previous studies result still show
contradictory about relationship between variables. In addition, previous research results still leaves a
phenomenon that local content concerning organizational culture and leadership will greatly affect to
relationship between variables that have been built but have not been widely studied. Therefore, this study
aimed to explore the effect of Tri Hita Karana culture on leadership, organizational commitment and company
performance.
II. THEORY AND RESEARCH HYPOTHESES
Effect OF Tri Hita Karana Cultural on Corporate Performance.
Deal and Kennedy [67] describes organizational culture as the dominant values espoused by
organization. Kotter and Heskett [10] suggested that organizational culture is a pattern of behavior or style that
encourages new members to follow.
Tri Hita Karana term is religious leaders creativity were finally able to formulate concepts that exist in
Hindu religion. Accordingly, this view should able to be kept in mind a society, even will be able to be
transformed into other people way of live with cultural backgrounds and different religions [64]. Tri Hita
4. Tri Hita Karana Culture Effect On Company…
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Karana is derived from Sanskrit with meaning three, hita means happy, karana means cause so Tri Hita Karana
means “three causes of happiness”.Organizational culture associates with company's long-term economic
performance. Kotter and Heskett [10] and Quinn [68] also study efficiency of company Cameron. They show
organizational culture is an important variable to drive company's performance. Based on a review of Lee and
Yu [77]; Davidson et al. [9]; Fey and Denison [14]; A. Michie and West [23] says that organization culture
positively and significantly related to company performance. Marcoulides and Heck [22] said that
organizational culture can be used to predict organization performance, and achievement of organizational goals
in accordance with organizational culture within organization.Gunawan [18] and Riana [19] find that
implementation of Tri Hita Karana culture can improve company performance. In addition, Tri Hita Karana
culture also able to affect employee’s culture orientation in carrying out duties in company. Astawa et al.
(2012) find the values of cultural harmony is summarized in Tri Hita Karana culture can create company good
performance. Based on this exposure it can be proposed the following hypothesis.Hypothesis 1: Tri Hita Karana
culture has positive and significant effect on company performance.
Effect of Tri Hita Karana culture on Leadership.
Kasali [69] argues that leadership is communicating to others their worth and potential clearly that
others come to see it themselves and have a high commitment to organization. Yukl [70] said that leadership is
process to influence others to meet common goals. Luthans [71] defines it as a group process, the personality,
the fulfillment of certain behaviors, persuasion, strengths, goals, achievements, role differentiation, structure
initiation, as well as a combination of two or more of these things. Meanwhile, according to Paul and Blanchard
[72], a leader is one who can affect the activities of individuals or groups in an effort to achieve goal in a given
situation.In Hindu teachings, there are some teachings or principles of leadership which emphasizes on leader
behavior. One of them is asta dasa paramiteng prabhu or eighteen main principles of leadership.
Suhardana [73] said leadership principles contained in Kakawin of Gajah Mada. Kakawin describes the
triumph Gajah Mada Prime Minister with famous wise. Kakawin contained teachings of leadership among
leaders namely hard work, visionary, ingenious, careful, deceit, eliminate the interference of state.Schein [61]
explained that organization culture should refer to several things such as group norms. Basic values of
organization are believed to be the truth, formal philosophy, rules of game in organization, climate, and
behavior based on habit in organization. Tri Hita Karana culture in organizational culture can be described as
follows.Parahyangan reflect human dimension that must maintain a relationship with God in harmonious. The
meaning of this dimension is human understand existence of God, implementing life performance and how
people can prepare adequate facilities to carry out the activities of Lord. These dimensions indicate the integrity
of human being in his life to always act in accordance with rules and norms of religion. In internal integration by
Schein [61] show that there are things that can and can not be explained that concerns about ideology and
religion. This is reinforced by the opinions Hofstede [66] that Asian community values and religious norms are
still very strong Dimensions of pawongan stated that activities should respect the rights of individual human
beings. Human beings regard as equal and worth individuals. Each individual is expected to acquire the rights
and obligations to achieve management goals. Therefore management should transparent to foster participation
of all active resource activities [64]. This concept is associated with organizational culture of Hofstede's theory
[66] as individualism, collectivism, power distance, masculinity, and femininity. For organizational culture of
Schein [61] can become analogy with values system.
Palemahan dimension reflects a balanced relationship with environment with stating that purpose of
Tri Hita Karana culture business system is achievement of sustainable businesses that are not swayed only on
effort to seek maximum profit by any means. Business systems purpose is affected by surrounding environment
and Goddess [64]. This concept can become analogy into Schein's organizational culture [61] in form of
artifacts and Hofstede [66] associated with long term and short term objective. Tri Hita Karana culture that has
been compared to culture of Schein [61] and Hofstede [66] has also been used in company's operations in Bali.
It can be said as organization's culture. Tri Hita Karana culture affect on lives of existing companies and
foundation in corporate governance.Ogbonna and Harris [45] found that there is a strong relationship between
organizational cultures on leadership. Likewise Sumarto and Subroto [35], Sharma and Sharma [57]. Likewise
Gunawan [18]; Sumarto and Subroto [35]; and Schimmoeler [62] found that there is positive and significant
correlation between organizational cultures on leadership. Some above studies reinforce the theory a close
relationship between organizational cultures on leadership. Based on this exposure it can be proposed the
following hypothesis.
Hypothesis 2: Tri Hita Karana Culture has positive and significant effect on leadership.
5. Tri Hita Karana Culture Effect On Company…
www.ijbmi.org 17 | Page
Effect of Leadership on Corporate Performance.
Hasibuan [74] defines performance as a record gains from a particular job functions and activities
during a specific time period. Gibson et al. [75] stated performance as " The Outcome of Jobs roommates relate
to purpose of organization such as quality, efficiency and effectiveness of any other criteria.Elenkov [43],
Waldman et al. [44], Obganna and Harris [45], found no relationship between transformational leadership
attributes with organization performance. Likewise a study conducted by Bass [76]; Xenikou and Simosi [36];
Prabhu and Robson [46] found performance improvement is affected by leadership. The same opinion is
expressed by: Lee and Yu [77]; Gunawan [18]; Sumarto and Subroto [35]; and Kamaliah [20] that leadership
has a positive effect on organizational performance. Raka Suardana [29] and Koesmono [24] said that leadership
affects organizational performance. Some of above studies reinforce the theory that existence of a close
relationship between the leadership on organizational performance. Based on this explanation it can be proposed
the following hypothesis.
Hypothesis 3: Leadership has positive and significant effect on company performance
Effect of Tri Hita Karana Culture on Organizational Commitment.
Baron and Greenberg [78] suggested that work commitments reflect the identification and engagement
of individuals in work and his unwillingness to leave the job. Gordon [79] stated that organizational
commitment is a worker's feeling and attitudes about the entire work organization. It means an organization's
commitment is all the feelings and attitudes of employees towards everything related to organizations in which
they work, including on their work.Rashid et al. [25] and Ojo [80] conclude that organizational culture affects
on organizational commitment. A similar argument are stated by Lock and Crawford [81]; Nongo and Ikyanyon
[63]; and Koesmono [24] based on his studies that came to conclusion that organizational culture affects on
organizational commitment.Some of above studies reinforce the theory that Tri Hita Karana culture relates to
organizational commitment. Based on this explanation it can be proposed the following hypothesis.
Hypothesis 4: Tri Hita Karana Culture have positive and significant effect on organizational
commitment.
Effect of Organizational Commitment on Corporate Performance.
Rashid et al. [25], Koesmono [24], and Syauta [33] stated organizational commitment have positive
effect on organizational performance. Similarly, Kamaliah [20] through the identification variable affective
commitment, normative and continuous commitment show effect on organization performance. Shaw et al. [53]
stated that organizational commitment of expatriate do not affect on organization performance. While for native
workers have significant positive effect. Yousef [82] concluded that organizational commitment have significant
positive effect on company performance.Some of above studies reinforce the theory that organizational
commitment have strong effect on organizational performance. Based on this explanation it can be proposed the
following hypothesis.
Hypothesis 5: Organizational Commitment has positive and significant effect on company
performance.
Effect of Leadership on Organizational Commitment
Relationship between leadership on organizational commitment have been researched by Muchiri [83]
and Chen [34]. The results show there is a significant positive effect between leadership and organizational
commitment. Results of this study reinforced by research conducted by Ying and Ahmad, [84]; Kamaliah, [20]
that there is a positive and significant effect between leadership and organizational commitment.
Some of above studies reinforce the theory leadership relates to organizational commitment. Based on
this explanation it can be proposed the following hypothesis.
Hypothesis 6: Leadership have significant and positive effect on organizational commitment
III. METHODS
The approach used in this study is a quantitative (positivist). This study location is Regional Water
Company in Bali. There are 9 RWC in Bali, which consists of 8 RWC at district level and one RWC at city
level. Respondents in this study were the directors RWC. The number of respondents in this study as many as
16 people. Data was collected using questionnaires distributed to respondents. The data obtained were then
analyzed using Generalized Structured Component Analysis (GSCA) developed by Hwang and Takane [87]
IV. RESULTS AND DISCUSSION
Results of hypothesis testing are presented in path diagram of Figure 1
6. Tri Hita Karana Culture Effect On Company…
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Figure 1. Path Coefficient Diagram and Hypothesis Testing
Description : Ns = non- significant; s = Significant (CR *) at α = 0.05
Source: Processed GSCA, in 2013
Effect of Tri Hita Karana Cultural on company performance
Analysis result shows Tri Hita Karana cultural variables indicate a positive and significant effect on
company performance. These results indicate that Tri Hita Karana culture is able to explain variation in change
in RWC performance in Bali Province. This result is consistent with opinion of Robbins [27], Kotter and
Haskett [10], Hofstede [66]. The findings of this study extend research conducted by: Davidson et al. [9]; Fey
and Denison [15]; Denison et al. [14]; Onken [12]; Supartha [17]; Kamaliah [20]; Riana [19]; and Astawa [21]
who concludes that there is a positive and significant effect between organizational culture on company
performance. Tri Hita Karana culture as the organization culture of RWC can drive toward the expected
performance.
Effect of Tri Hita Karana Cultural on Leadership
Analysis result shows Tri Hita Karana cultural variables indicate positive and significant effect on
leadership. Thus results of this study can demonstrate empirically that better implementation of Tri Hita Karana
culture creates better leadership. This result indicate that Tri Hita Karana culture is able to explain variation in
change in leadership RWC in Bali Province. This finding supports previous empirical studies conducted by:
Obganna and Harris [45]; Sharma and Sharma [57]; Sumarto and Subroto [35]; Gunawan [18]; Mehta and
Krishnan [54]; Endorgan et al. [58]; Van Emmerik et al. [59]; Butarbutar and Sendjaya [55]; and Mohanty et al.
[56].
Effect of Leadership on business performance.
Analysis result shows leadership variables indicate a positive and significant effect on company
performance. This study result can demonstrate empirically that better implementation of leadership can
increase company performance. These results indicate that leadership is able to explain variation in changes in
company's performance at RWC in province of Bali. This study suggests the enactment of leadership theory
and enrich previous research, namely: leadership play a major role in achieving objectives or goals of
organization, which goals or objectives to be achieved in form of achievement or performance (Day and Lord
[40], Reksohadiprojo and Handoko [41], Fiedler [42], Elenkov [43] and Waldman et al. [44]).
Effect of Tri Hita Karana Culture on Organizational Commitment
Analysis result shows Tri Hita Karana culture variables indicate a positive and significant effect on
organizational commitment. Thus results of this study can demonstrate empirically that better implementation of
0.261
(ns)
TriHitaKarana
Culture(X)
Leadership
(Y1)
0.454
(s)
Organizational
Commitment
(Y2)
Company
Performance
(Y3)
0.251
(s)
0.599
(s)
0.993
(s)
0.670
(s)
= Significant path
= Insignificant path
7. Tri Hita Karana Culture Effect On Company…
www.ijbmi.org 19 | Page
Tri Hita Karana culture can increase organizational commitment. These results indicate that Tri Hita Karana
culture is able to explain variation of organizational commitment at RWC in Bali Province.
Organizations culture act as social glue which binds all members of organization together [8]. This
finding supports previous empirical studies conducted by: Rashid et al. [25]; Chen [34]; Ojo [94]; Koesmono
[24]; Nongo and Ikyanyon [63]. Results of his research concludes that there is a positive and significant effect
between organizational cultures on leadership.
Effect of Organizational Commitment on company performance.
Analysis result shows organizational commitment variables indicates a positive and significant effect
on company performance. Thus results of this study can demonstrate empirically that higher implementation of
organizational commitment can increase company performance. These results indicate that organizational
commitment can explain variation in company's performance at RWC in province of Bali.These findings
reinforce results of study Shaw et al. [53] who conducted a study of workers in United Arab Emirates (UAE)
which examines the effect of organizational commitment on organizational performance. Workers of Arabs
show positive and significant effect. Results of this study also enriches the research Kamaliah [20] who
conducted research on part of Islamic Banking in Riau, one of purpose of his research examines the effect of
organizational commitment on performance parts at Islamic Bank in Pekanbaru. His research show a positive
and significant effect of organizational commitment on performance.
Effect of Leadership on Organizational Commitment.
Analysis result shows that leadership does not effect on organizational commitment. Results of this
study can not prove empirically that implementation of good leadership will lead to higher organizational
commitment. These results indicate that leadership was not able to explain variation in organizational
commitment to change RWC in Bali Province. This insignificant effect due to differences in measurement
concepts. and indicators. These findings support research conducted by Lok and Crawford [81], Bourantas and
Papalexandris [85] Kuo - Tsai Liou [86] These findings do not support research conducted by Yousef [82];
Muchiri [83]; Chen [34]; Ying and Ahmad [84]; and Koesmono [24] who found a positive and significant effect
of leadership on organizational commitment. Difference in results of this study with previous studies is caused
by the different research objects and different concepts of constructs or variables used and indicators that make
up especially on leadership.
V. CONCLUSION
[1] Based on hypothesis testing and study findings, some conclusions can be stated as follows:
[2] Tri Hita Karana Culture has positive effect on performance of Regional Water Company. Implementation
of Tri Hita Karana culture able to improve performance of RWC. Implementation parahyangan, pawongan
and palemahan have an important role in supporting implementation of Tri Hita Karana culture, so it can
make a real contribution to company's performance.
[3] Tri Hita Karana Culture has positive effect on leadership at Regional Water Company. Implementation of
Tri Hita Karana culture can improve leadership RWC. Implementation parahyangan, pawongan
palemahan have an important role in supporting implementation of Tri Hita Karana culture, so it can make
a real contribution to leadership.
[4] Leadership has a positive effect on performance of Regional Water Company. Implementation of good
leadership is able to improve company performance. Implementation of spiritual, moral, and good
managerial have an important role in supporting implementation of leadership, so as to make a real
contribution to leadership and company performance.
[5] Tri Hita Karana Culture has positive effect on organizational commitment in Regional Water Company.
Implementation of Tri Hita Karana culture at RWC can increase organizational commitment.
Implementation of parahyangan, pawongan and palemahan have an important role in supporting
implementation of Tri Hita Karana culture, so it can make a real contribution to company's organizational
commitment.
[6] Organizational commitment has a positive effect on performance of Regional Water Company.
Implementation of good organizational commitment can improve performance of RWC. Implementation of
affective, continuous and normative commitment have an important role in supporting organizational
commitment implementation, so as to make a real contribution to company's performance.
[7] Leadership does not affect on organizational commitment at Regional Water Company. Implementation of
spiritual, moral and good managerial plays an important role in supporting achievement of organizational
commitment but can not make a real contribution to improve organizational commitment in Regional Water
Company.
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VI. SUGGESTIONS
Based on research results and conclusions, it may put forward suggestions and recommendations as
follows:
[1] Tri Hita Karana Culture as an organizational culture of RWC can improve the quality of leadership, and
increase organizational commitment and be able to improve RWC performance. Therefore, board of
directors and management in Bali RWC should further promote a culture embraced even be used as
guidelines for organ RWC in Bali.
[2] Management of RWC in Bali province should improve the implementation of leadership, through: self-
control to achieve the company's goals, should focus on targets, and always conduct the evaluation and
continuous improvement.
[3] Development of organizational commitment by RWC management should concern to conditions related
to employee dismissed because of this specific type of work makes them difficult to obtain same job.
[4] It should be reexamined the weight of each indicator of performance appraisal based on Kepmendagri
No. 47 1999. On Article 3, paragraph 2, the weight of each indicator: 45% of financial, operational 40 %,
and 15 % administration. Based on respondents' assessment and analysis of results, it should be reviewed
performance indicator weighting sequence starting from the operational indicators with greatest weight,
followed by financial indicators, and last is administration indicator.
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