Determinants of employee performance at public hospitals in Indonesia: Examining the moderating role of organizational culture
-
Received August 7, 2023;Accepted November 2, 2023;Published December 28, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0001-6479-0011Link to ORCID Index: https://orcid.org/0009-0005-4015-7867Link to ORCID Index: https://orcid.org/0009-0009-4025-7330
-
DOIhttp://dx.doi.org/10.21511/ppm.22(1).2024.06
-
Article InfoVolume 22 2024, Issue #1, pp. 57-68
- TO CITE АНОТАЦІЯ
- 578 Views
-
171 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Performance refers to the outcome or overall degree of achievement exhibited by an individual within a specified timeframe in executing duties about a range of potential outcomes, including conventional work outputs, goals, objectives, or mutually established benchmarks. With a moderated organizational culture, this study aims to analyze the effect of good corporate governance, organizational commitment, and internal controls on employees’ performance at public hospitals in North Sumatra, Indonesia. The paper employs an associative approach to the quantitative data type. The sample consists of 102 public hospital employees in North Sumatra, Indonesia. This study used a questionnaire to collect the data and SEM-PLS to analyze the data. The research results show that good corporate governance, organizational commitment, and internal control affect employee performance at public hospitals in North Sumatra, Indonesia (p < 0.05). Good corporate governance affects employee performance moderated by organizational culture (p < 0.05). Organizational commitment affects employee performance moderated by organizational culture (p < 0.05). Internal control affects employee performance moderated by the organizational culture at public hospitals in North Sumatra, Indonesia (p < 0.05). The implication is that organizational culture has a role attached to the individual level of an employee and as a strategy to improve employee performance.
- Keywords
-
JEL Classification (Paper profile tab)I10, L32, M14
-
References55
-
Tables6
-
Figures1
-
- Figure 1. Conceptual framework
-
- Table 1. Average variance extracted
- Table 2. Composite reliability
- Table 3. Cross-loadings
- Table 4. R-Square
- Table 5. Direct effects
- Table 6. Moderation effects
-
- AbuSen, M. A., & Saad, M. (2023). Corporate governance effect on corporate performance, through the moderation role of organizational culture. Journal of Business and Management Sciences, 11(2), 90-100.
- Alawiye-Adams, A. A., & Afolabi, B. (2014). The impact of internal control mechanism on the operational efficiency of small and medium scale enterprises in Nigeria. SSRN Electronic Journal.
- Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedent of affective, continuance, and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1-18.
- Almutairi, R. L., Aditya, R. S., Kodriyah, L., Yusuf, A., Solikhah, F. K., Al Razeeni, D. M., & Kotijah, S. (2022). Analysis of organizational culture factors that influence the performance of health care professionals: A literature review. Journal of Public Health in Africa, 13(s2), 74-78.
- Alosani, M. S., Yusoff, R., & Al-Dhaafri, H. (2020). The effect of innovation and strategic planning on enhancing organizational performance of Dubai Police. Innovation & Management Review, 17(1), 2-24.
- Ariantini, N. K. L., & Widhiyani, N. L. S. (2017). Pengaruh komitmen organisasi dan time budget pressure pada kinerja auditor dengan budaya THK sebagai pemoderasi [The effect of organizational commitment and time budget pressure on auditor performance with THK culture as a moderator]. E-Jurnal Akuntansi Universitas Udayana, 20(1), 845-874. (In Indonesian).
- Arslan, M., & Alqatan, A. (2020). Role of institutions in shaping corporate governance system: Evidence from emerging economy. Heliyon, 6(3), e03520.
- Aryanti, M., Sadalia, I., & Fadli, F. (2021). The effect of good governance on performance employees through intellectual capital in the Sumatera Utara Regional Police. International Journal of Research and Review (IJRR), 8(2), 209-217.
- Awan, S. H., Habib, N., Shoaib Akhtar, C., & Naveed, S. (2020). Effectiveness of performance management system for employee performance through engagement. SAGE Open, 10(4).
- Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
- Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173(2021), 1-11.
- Eliyana, A., Ma’arif, S., & Muzakki, M. (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.
- Goswami, M. (2020). Analysis of psychological contract influence on employee commitment. Materials Today: Proceedings, 37(Part 2), 2670-2676.
- Graham, J. R., Grennan, J., Harvey, C. R., & Rajgopal, S. (2022). Corporate culture: Evidence from the field. Journal of Financial Economics, 146(2), 552-593.
- Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
- Hair, J. F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least squares. European Journal of Marketing, 53(4), 566-584.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer.
- Haliah, H., & Nirwana, N. (2019). The development of good governance model for performance improvement. International Journal of Excellence in Government, 1(1), 21-36.
- Handayani, E., Garad, A., Suyadi, A., & Tubastuvi, N. (2023). Increasing the performance of village services with good governance and participation. World Development Sustainability, 3, 100089.
- Hendharsa, A. (2020). Peran komitmen organisasional dan kompensasi terhadap kepuasan kerja dengan moderasi budaya organisasi karyawan PT PLN (Persero) unit induk wilayah kalimantan barat [The role of organizational commitment and compensation on job satisfaction with the moderation of organizational culture of employees of PT PLN (Persero) Unit of West Kalimantan Region]. E-Journal of Management and Entrepreneurship, 8(1), 1-22. (In Indonesian).
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Hoai, T. T., Hung, B. Q., & Nguyen, N. P. (2022). The impact of internal control systems on the intensity of innovation and organizational performance of public sector organizations in Vietnam: The moderating role of transformational leadership. Heliyon, 8(2), e08954.
- Hong, C. C., Ramayah, T., & Subramaniam, C. (2018). The relationship between critical success factors, internal control and safety performance in the Malaysian manufacturing sector. Safety Science, 104, 179-188.
- Huda, K., Sinarwati, N. K., & Herawati, N. T. (2014). Pengaruh partisipasi anggaran terhadap senjangan anggaran dengan budaya organisasi sebagai variabel pemoderasi pada PT Pos Indonesia (Persero) Singaraja [The effect of budget participation on budget constraints with organizational culture as a moderating variable at PT Pos Indonesia (Persero) Singaraja]. E-Jurnal S1 Ak Universitas Pendidikan Ganesha, 2(1), 1-10. (In Indonesian).
- 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.
- John, K., & Senbet, L. W. (1998). Corporate governance and board effectiveness. Journal of Banking & Finance, 22(4), 371-403.
- Jufrizen, J., Lumbanraja, P., Salim, S. R. A., & Gultom, P. (2017). The effect of compensation, organizational culture and Islamic work ethic towards the job satisfaction and the impact on the permanent lecturers. International Business Management, 11(1), 53-60.
- Jufrizen, J., Mukmin, M., Nurmala, D., & Jasin, H. (2021). Effect of moderation of work motivation on the influence of organizational culture on organizational commitment and employee performance. International Journal of Business Economics (IJBE), 2(2), 86-98.
- Jufrizen, J., Nadia, N., & Muslih, M. (2022). Mediation role of job satisfaction on the influence of emotional intelligence and transformational leadership on organizational commitment. International Journal of Science, Technology & Management, 3(4), 985-996.
- Kardos, M. (2012). The reflection of good governance in sustainable development strategies. Procedia – Social and Behavioral Sciences, 58, 1166-1173.
- Kaur Bagga, S., Gera, S., & Haque, S. N. (2023). The mediating role of organizational culture: Transformational leadership and change management in virtual teams. Asia Pacific Management Review, 28(2), 120-131.
- Khan, H., Rehmat, M., Butt, T. H., Farooqi, S., & Asim, J. (2020). Impact of transformational leadership on work performance, burnout and social loafing: A mediation model. Future Business Journal, 6(1), 40.
- Klimach, A., Dawidowicz, A., & Źróbek, R. (2018). The Polish land administration system supporting good governance. Land Use Policy, 79, 547-555.
- Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66.
- Lapiņa, I., Kairiša, I., & Aramina, D. (2015). Role of organizational culture in the quality management of university. Procedia – Social and Behavioral Sciences, 213, 770-774.
- Li, X. (2020). The effectiveness of internal control and innovation performance: An intermediary effect based on corporate social responsibility. PLOS One, 15(6), 1-31.
- López-Cabarcos, M. A., Vázquez-Rodríguez, P., & Quiñoá-Piñeiro, L. M. (2022). An approach to employees’ job performance through work environmental variables and leadership behaviours. Journal of Business Research, 140, 361-369.
- Mangkunegara, A. A. A. P. (2017). Manajemen sumber daya manusia [Human resource management]. PT.Remaja Kosda Karya. (In Indonesian).
- Metz, D., Ilieş, L., & Nistor, R. L. (2020). The impact of organizational culture on customer service effectiveness from a sustainability perspective. Sustainability, 12(15), 6240.
- Monteiro, A. P., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45, 100557.
- Mueller, K., & Straatmann, T. (2014). Organizational commitment. In A. C. Michalos (Ed.), Encyclopedia of Quality of Life and Well-Being Research (pp. 4520-4525). Springer.
- Mulyadi. (2017). Sistem informasi akuntansi [Accounting information system]. Salemba Empat. (In Indonesian).
- Na-Nan, K., Kanthong, S., & Joungtrakul, J. (2021). An empirical study on the model of self-efficacy and organizational citizenship behavior transmitted through employee engagement, organizational commitment and job satisfaction in the Thai automobile parts manufacturing industry. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 170.
- Pesqueux, Y. (2005). Corporate governance and accounting systems: A critical perspective. Critical Perspectives on Accounting, 16(6), 797-823.
- Porter, L. W., Crampon, W. J., & Smith, F. J. (1976). Organizational commitment and managerial turnover: A longitudinal study. Organizational Behavior and Human Performance, 15(1), 87-98.
- Puspitaningrum, D., & Atmini, S. (2012). Corporate governance mechanism and the level of internet financial reporting: Evidence from Indonesian companies. Procedia Economics and Finance, 2, 157-166.
- Robbins, S. P., & Judge, T. A. (2015). Organizational behaviour (16th ed.). Pearson Education Inc.
- Rönkkö, M., & Cho, E. (2022). An updated guideline for assessing discriminant validity. Organizational Research Methods, 25(1), 6-14.
- Rusydi, A. R., Palutturi, S., Bahry Noor, N., & Pasinringi, S. A. (2020). The comparison of good corporate governance on human resources performance in regional general hospital of Labuang Baji and Ibnu Sina hospital Makassar, South Sulawesi. Enfermería Clínica, 30(2), 482-486.
- Sadaa, A. M., Ganesan, Y., Yet, C. E., Alkhazaleh, Q., Alnoor, A., & Aldegis, A. M. (2023). Corporate governance as antecedents and financial distress as a consequence of credit risk. Evidence from Iraqi banks. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100051.
- Shin, C., & Park, J. (2019). Classifying social enterprises with organizational culture, network and socioeconomic performance: Latent profile analysis approach. Journal of Open Innovation: Technology, Market, and Complexity, 5(1), 17.
- Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3), e06453.
- Wang, J. (J.), & Hooper, K. (2017). Internal control and accommodation in Chinese organizations. Critical Perspectives on Accounting, 49, 18-30.
- Wulandari, R. A., Khafid, M., & Wahyuningrum, I. F. S. (2021). The role of organizational culture in moderating budget performance determinants. Journal of Economic Education, 10(1), 42-50.
-
-
Conceptualization
Maya Sari
-
Data curation
Maya Sari, Dahrani, Nurul Aprilyani Sagala
-
Formal Analysis
Maya Sari, Dahrani
-
Investigation
Maya Sari, Dahrani, Nurul Aprilyani Sagala
-
Methodology
Maya Sari, Nurul Aprilyani Sagala
-
Supervision
Maya Sari, Dahrani
-
Visualization
Maya Sari, Nurul Aprilyani Sagala
-
Writing – original draft
Maya Sari, Nurul Aprilyani Sagala
-
Project administration
Dahrani, Nurul Aprilyani Sagala
-
Validation
Dahrani
-
Writing – review & editing
Dahrani
-
Conceptualization
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini , Arief Helmi , Meydia Hassan , Yevis Marty Oesman doi: http://dx.doi.org/10.21511/im.17(3).2021.02Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4453 Downloads: 1707 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana , Gede Suparna , I Gusti Made Suwandana , Sebastian Kot , Ismi Rajiani doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3495 Downloads: 825 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
-
Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3155 Downloads: 309 TO CITE АНОТАЦІЯThis paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.