Citation:

Renalwin Sitorus, Willy Arafah, Wahyuningsih Santosa. "The Influences of Corporate Culture and Organizational Behavior to the Organizational Performance in Private Banking Sectors North Sumatera Areas Mediated by Business Strategy and Competitive Advantage" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 605-615, 2023.

Abstract:

The objective of this study was to investigate empirically, as well as to understand how business strategy and competitive advantage mediate the effects of corporate culture and organisational behaviour on the organisational performance of the Indonesian private banking region 01 north Sumatra. The originality of this study lies in how business strategy and competitive advantage were used as a mediating factor in assessing the effects of corporate culture and organisational behaviour on organisational performance at one of Indonesia's private banking regions, 01 North Sumatra. Data obtained by distributing questionnaires and interviews. The sample in the study amounted 270 respondents addressed to all employees who are responsible for designing company strategic policies. The Partial Least Square (PLS) based Structural Equation Model (SEM) is the data analysis technique employed in this study to test all assumptions. According to the study's findings, competitive advantage, corporate culture, and business strategy all significantly improve organisational performance. Business strategy and competitive advantage are significantly influenced positively by organisational behaviour and corporate culture. Organisational performance, however, is not significantly improved by organisational conduct. Organisational performance is significantly impacted favourably by corporate culture, which is both mediated by strategic business and competitive advantage. Organisational behaviour, however, only significantly improves organisational performance when competitive advantage acts as a mediating factor. Organisational behaviour, while mediated by business strategy, has little to no positive impact on organisational performance. The factor that has the biggest impact on organisational performance is competitive advantage. Additionally, the mediating factor with the greatest influence on the correlation between corporate culture, organisational behaviour, and organisational performance is competitive advantage. The most important factor influencing business strategy and competitive advantage is corporate culture. The findings of this study support the resource base view (RBV), which holds that corporate culture, business strategy, and competitive advantage can all enhance organisational performance. Corporate culture and organizational behaviour can also increase business strategy and competitive advantage. Corporate culture can improve organizational performance mediated by strategic business and competitive advantage. Organizational behaviour can also improve organizational performance mediated by competitive advantage.

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Keywords:

Corporate Culture, Organizational Behaviour, Business Strategy, Competitive Advantage, Organizational Behaviour.