The Effect of Organizational Culture, Ethical Orientation, Strategic Orientation, and Strategy Implementation on Financial Performance in Manufacturing Companies: a Research on Food and Beverage Manufacturing Companies in Indonesia

  • E Rusyani Universitas Pasundan
  • A Suryaningprang Universitas Pasundan

Abstract

This research aims to obtain empirical evidence about organizational culture, ethical orientation, strategic orientation, and strategy implementation effect on manufacturing companies’ financial performance. The results are expected to contribute to the development of management accounting, strategic management, and business ethics. In addition, companies and practitioners can utilize the provided information in choosing a strategic orientation and implementation to improve the company's financial performance. The research was conducted on food and beverage companies registered at GAPMMI. The method used was the census method, a type of descriptive verification research. Furthermore, the hypothesis is tested by using Structural Equation Modeling. The first hypothesis testing results showed that there was a simultaneous effect of organizational culture and ethical orientation on strategic orientation. The second hypothesis testing proved that strategic orientation had a positive effect on strategy implementation. Moreover, the third hypothesis testing proved that there was an effect of organizational culture and ethical orientation on financial performance. The fourth hypothesis testing proved that strategic orientation and implementation influenced financial performance, and the fifth hypothesis testing proves that there was an influence of organizational culture, ethical orientation, strategic orientation, and strategy implementation on financial performance both simultaneously and partially.

Published
2019-05-29
How to Cite
Rusyani, E., & Suryaningprang, A. (2019). The Effect of Organizational Culture, Ethical Orientation, Strategic Orientation, and Strategy Implementation on Financial Performance in Manufacturing Companies: a Research on Food and Beverage Manufacturing Companies in Indonesia. Proceeding Interuniversity Forum for Strengthening Academic Competency, 1(1), 426 - 431. Retrieved from http://proceedings.conference.unpas.ac.id/index.php/ifsac/article/view/201