The Impact of Social Capital and Organizational Culture on Improving Organizational Performance

To run their business, many companies uses various types of capital, financial, technological, as well as natural and human resource–based. In fact, optimal use of these kinds of capital do not guarantee that company will get maximum performance. There is still one important type of capital, namely...

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Main Authors: Uli Wildan Nuryanto, Masyhudzulhak Djamil Mz, Ahmad Hidayat Sutawidjaya, Ahmad Badawi Saluy
Format: Article
Language:English
Published: EconJournals 2020-05-01
Series:International Review of Management and Marketing
Online Access:https://econjournals.com/index.php/irmm/article/view/9923
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author Uli Wildan Nuryanto
Masyhudzulhak Djamil Mz
Ahmad Hidayat Sutawidjaya
Ahmad Badawi Saluy
author_facet Uli Wildan Nuryanto
Masyhudzulhak Djamil Mz
Ahmad Hidayat Sutawidjaya
Ahmad Badawi Saluy
author_sort Uli Wildan Nuryanto
collection DOAJ
description To run their business, many companies uses various types of capital, financial, technological, as well as natural and human resource–based. In fact, optimal use of these kinds of capital do not guarantee that company will get maximum performance. There is still one important type of capital, namely social capital, which is an asset and instrument characterizing the interaction between employees and management. Social capital can also be conceptualized as a company's organizational culture. Here, interviews were conducted with the management of a chemical manufacturer see how synergizing between corporate strategy and support forms the organizational culture. This research focussed to the industrial chemical manufacture at Banten Province, Indonesia, which is the province with the third-largest number of chemical firms in Indonesia. This research using SEM-PLS method to measure 97 respondents from the managerial level. The final results provide a positive and significant relationship between social capital and organizational culture through competitive advantage and organizatioan performance. Competitive advantage also increased the relationship between social capital and organizational culture through the organizational performance. This result has implication for managerial levels to increase human resources performance so it can improve the firm's competitive advantage. Keywords: Social Capital, Organizational Culture, Competitive Advantage, Organizational Performance, Chemical manufacturer sector JEL Classifications: L2, M14 DOI: https://doi.org/10.32479/irmm.9923
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spelling doaj.art-6b8c31e3879b412cb8c850f8dbb2e7492023-02-15T16:17:17ZengEconJournalsInternational Review of Management and Marketing2146-44052020-05-011034603The Impact of Social Capital and Organizational Culture on Improving Organizational PerformanceUli Wildan NuryantoMasyhudzulhak Djamil MzAhmad Hidayat SutawidjayaAhmad Badawi Saluy To run their business, many companies uses various types of capital, financial, technological, as well as natural and human resource–based. In fact, optimal use of these kinds of capital do not guarantee that company will get maximum performance. There is still one important type of capital, namely social capital, which is an asset and instrument characterizing the interaction between employees and management. Social capital can also be conceptualized as a company's organizational culture. Here, interviews were conducted with the management of a chemical manufacturer see how synergizing between corporate strategy and support forms the organizational culture. This research focussed to the industrial chemical manufacture at Banten Province, Indonesia, which is the province with the third-largest number of chemical firms in Indonesia. This research using SEM-PLS method to measure 97 respondents from the managerial level. The final results provide a positive and significant relationship between social capital and organizational culture through competitive advantage and organizatioan performance. Competitive advantage also increased the relationship between social capital and organizational culture through the organizational performance. This result has implication for managerial levels to increase human resources performance so it can improve the firm's competitive advantage. Keywords: Social Capital, Organizational Culture, Competitive Advantage, Organizational Performance, Chemical manufacturer sector JEL Classifications: L2, M14 DOI: https://doi.org/10.32479/irmm.9923 https://econjournals.com/index.php/irmm/article/view/9923
spellingShingle Uli Wildan Nuryanto
Masyhudzulhak Djamil Mz
Ahmad Hidayat Sutawidjaya
Ahmad Badawi Saluy
The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
International Review of Management and Marketing
title The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
title_full The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
title_fullStr The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
title_full_unstemmed The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
title_short The Impact of Social Capital and Organizational Culture on Improving Organizational Performance
title_sort impact of social capital and organizational culture on improving organizational performance
url https://econjournals.com/index.php/irmm/article/view/9923
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