International Journal of Education and Research Vol. 3 No.

9 September 2015

The Impact of Organizational Culture On Job Satisfaction, Organizational Commitment

And Job Performance : Study on Japanese Motorcycle Companies in Indonesia

Lies Putriana
Management Departement, Economic and Business Faculty
Pancasila University, Indonesia
Phone : +62 816 1767 5552 (mobile)
Email : [email protected]

Wibowo
Professor, Management Department of Economic and Business Faculty
Mustopo (Beragama) University, Indonesia

Husein Umar and Hanes Riady

Management Department of Economic Faculty
Kwik Kian Gie School of Business, Indonesia

Abstract
The purpose of this study aim to explore the relationship of organizational culture on job satisfaction
and commitment, job satisfaction on organizational commitment and organizational culture, job
satisfaction and organizational commitment to job performance. Data obtained from 214 employees of
a major Japanese motorcycle manufacturers in Jakarta. The majority of respondents were male (almost
91 percent), average age of 25.65 years old; and they worked on average 5.59 years in their current
jobs. Validity of the scale was ensured using factor analysis and internal consistency was checked
using cronbach's alpha, and partial least square-structural equation modeling (PLS-SEM) was utilized
to test the research hypotheses. The results showed that organizational culture was positively and
significantly related to job satisfaction and organizational commitment. And also, job satisfaction has
significantly effect on organizational commitment. These findings also suggest that the job satisfaction
and organizational commitment are important determinants of job performance. The implications of
these findings are discussed.

Keyword(s) organization culture, job satisfaction, organizational commitment, job performance

1. Introduction
Indonesia as a producer and largest motorcycle market in Southeast Asia. Based on data from the
Indonesian Motorcycle Industry Association (AISI), the average selling motorcycles since 2000 to 2013
amounted to 6.5 million units and an average growth of 9% per year over the past thirteen years. More
than 90 percent of the motorcycle market in Indonesia is dominated by the Japanese company.
Japanese company capabilities to manage and maintain a culture of management principles in
creating business success in the order of cross-cultural organizations have become a study that
attracted a lot of interest practitioners and academics. Organizational culture, managerial style and
their ability to adapt to the local culture becoming a key aspect of their success in developing
corporations in other countries, including Indonesia. Li-Ping Tang, Kim and O'Donald (2008) cites
some opinion states that one key to the success of Japanese companies in the world is believed to come
from the management philosophy that is directly derived from their culture. “some basic principles
which they believe: Trust employees, build employee loyalty to the company, invest in training, treat
employees as resources, recognize employee accomplishments, decentralize decision making, and

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employ consensual decision making” (p.538). Another concept that is widely believed to have made a
successful Japanese companies are known for simplicity principle 5S, initially based on the Japanese
Acronyms of seiri (organization), seiton (neatness), Seiso (cleaning), Seiketsu (Standardization) and
Shitsuke (discipline) (Gap, Fisher, & Kobayashi, 2008).
However, Indonesia has a different culture with Japan. Based on Hofstede’s studies (1991), the
cultural differences between Indonesia and Japan in five dimensions surveyed is quite far. For example
the distance power, Indonesia ranks 8-9 (high) which may mean that inequalities of power and wealth
tolerated in Indonesia, while Japan ranks 33 (medium). In terms of individualism, Indonesia ranks 47-
48 while Japan is in a position 22-23. The most fundamental difference is that Indonesia ranks
masculinity 30-31 while Japan ranks highest 1. While the avoidance of uncertainty, Indonesia ranks
41-42 while Japan is at number 7. From Hofstede's five cultural dimensions mentioned above can be
identified culturally Japan and Indonesia have considerable differences, so the question is how the
Indonesian employees can adjust to the Japanese company's organizational culture.
Prior studies demonstrated that organizational culture may influence employee job
satisfaction, organizational commitment and job performance. Organizational culture had significant
and positive associations with the job satisfaction (Bellou, 2010; Park and Kim, 2008; Silverstone,
2004; Lok and Crawford, 2004; Lund, 2003; McKinnon, Harrison, Chow, & Wu, 2003); organizational
commitment (Kwantes, 2009; Silverstone, 2004; Lok and Crawford, 2004; McKinnon et al., 2003).
Organizational culture proposed employees the way things should be done. Most of the time
people exercise the word culture to express the pattern of individual behavior. (Shahzad, Iqbal, Gulzar,
2013). Although the organizational culture is believed to influence employee behavior (job satisfaction
and organizational commitment), the relationship of organizational culture with individual
performance is still relatively limited investigated. Some recent studies found different results, such as
Sadasa (2014) has found a weak relationship between organizational culture to individual
performance, but Shahzad et al., (2013) find a moderate correlation between organizational culture
with performance of employee's job at selected software houses in Pakistan. Two studies specifically
conducted in Indonesia, Syauta, et al., (2012) and Sunadji., et al (2013) concluded the relationship
between organizational culture and employee performance are not significant.
This research focuses on organizational culture of Japanese motorcycle companies located in
Indonesia, and its impact on job satisfaction, commitment and performance. In addition, this study also
investigates the relationship between job satisfaction and commitment to, also relations job
satisfaction and commitment to employee performance. Results of this study are expected to provide
the latest reference mainly to the integration of organizational culture that comes from the two
countries (Japan and Indonesia).

2. Conceptual Framework and Hypoteses

2.1. Organizational culture and job satisfaction
Organizational culture is common values and behaviors of the people that considered as a tool
leads to the successful achievement of organizational goals (Schein, 1990). A cultural value that
constitutes a system could be a basic assumption of an organization to move in improving a
performance, one of which the formation of a strong culture that can affect. McKenna and Beech stated
that: a strong culture underlying the implementation of key aspects of the functioning of the
organization in terms of efficiency, innovation, quality, and support the proper reaction to accustom
them to the events, due to the prevailing ethos accommodate resistance (McKenna and Beech, 2000).
Each individual has a different level of satisfaction in seeing their work. Kreitner and Kinicki
(2008) stated that job satisfaction as effective or emotional response to various aspects of the job. This
definition implies that job satisfaction is not a single concept. Otherwise one can be relatively satisfied
with some aspects of the job and not be satisfied with one or several other aspects. Pleasant
organizational culture will lead to job satisfaction among workers in performing their duties in an
organization. Organizational culture has a function to "encourage the stability of the social system"
which is a result of the extent to which the extent of the work environment is considered as positive
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and supported by employees. This condition will then serve as a definite thing and increase job
satisfaction.
The relationship between organizational culture and job satisfaction has been proven empirically.
Silverstone (2004) found that the bureaucratic organizational culture resulted in the lowest levels of
job satisfaction, while the highest innovative culture and a supportive culture had the highest level of
employee job satisfaction and organizational commitment. Using Cameron and Freeman's (1991)
models of organizational cultures Comprising of a clan, adhocracy, hierarchy, and market, Lund (2003)
found that the clan culture and adhocracy culture elicited significantly higher levels of employee job
satisfaction than market culture and hierarchy culture. The relationship between organizational
culture and job satisfaction are also supported by other studies such as Bellou, (2010); Park and Kim,
(2008), Lok and Crawford, (2004), and McKinnon, Harrison, Chow, & Wu (2003) through studies
conducted in different countries. As a result, the anticipation of the current study is that:
Hypothesis 1: Organizational culture is significantly correlated with job satisfaction
2.2. Organizational culture and organizational commitment
Robbins and Judge (2013) defines commitment as a situation where an individual is an impartial
organization as well as the objectives and the desire to maintain its position in the organization.
Organizational commitment has been shown in numerous studies to be related to organizational
culture. Cultural organizations play an important role in generating commitment and improve
performance (Deal and Kennedy, 1982; Lok and Crawford, 2001). In particular, research in a variety of
industries and countries shows that the innovative culture and support the strong positive effect on
commitment, while the bureaucratic culture has a negative impact (Yiing and Ahmad, 2009). Thus, it is
assumed that both individuals and organizations to be more effective when the values of people and
organizations are congruent. Empirical studies provide convincing evidence that shows that the
suitability of individuals to organizational culture is an important determinant of long-term
consequences for employees. Some empirical support that examines the organizational culture and
commitment, such as Lok and Crawford (2004); Silverthorne, (2004); Kwantes, (2009); and Yiing and
Ahmad, (2009). Therefore, previous studies lead to proposing the following hypothesis:
Hypothesis 2 : Organizational culture is significantly correlated with organizational commitment
2.3. Job satisfaction and organizational commitment
One of the important targets in human resource management in an organization is to improve job
satisfaction of members of the organization concerned. Numerous studies have proved that most job
satisfaction was related to performance, organizational citizenship behavior (OCB), customer
satisfaction, absenteeism, employee turnover, and deviant behavior in the workplace (Robbins and
Judge, 2013). When the worker is not satisfied in the workplace, they are less committed and will seek
other opportunities to stop. If the opportunity is not available, they may be emotional or mental "pull"
of the organization. Thus, organizational commitment and job satisfaction are an attitude that plays an
important role in assessing the intention of the employee to quit and the overall contribution to the
organizations. Many studies in different industries and geographic regions that show a strong
correlation between organizational commitment and job satisfaction (Yousef, 2000). In general, job
satisfaction is viewed as causally antecedent to organizational commitment in theoretical models
(Mowday, Porter, and Steers, 1982)
Gunlu and Aksarayli (2010) in their study indicate that extrinsic, intrinsic, and overall job
satisfaction has a significant effect on normative commitment and affective commitment.
Organizational commitment was found to be significantly associated with job satisfaction (Yiing and
Ahmad, 2009). More recent studies conducted by Budiharjo (2013) also find that there is a correlation
between job satisfaction and affective commitment. Based on the empirical evidence, the hypothesis is:
Hypothesis 3 : Job satisfaction is significantly correlated with organizational commitment
2.4. Organizational culture and job performance
Organizational culture is the right way employees complete tasks and interact with each other
within an organization. Cultural paradigm consists of a variety of beliefs, values, rituals and symbols
that set the style of operation of the company. Binding corporate culture work together and provide
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direction for the company. Because organizational culture is a system of values as code of conduct of
individuals of behavior in the organization, the performance of employees may have relevance to the
organization's culture. For example, if the organization maintaining an open and competitive culture of
the organization may have competition between regions that may improve the functioning or
productivity of the entire organization. Conversely, a closed culture and do not provide an opportunity
for members to innovate is likely to be a vacuum and not innovative. Strong culture in the organization
is very helpful to enhance the performance of the employees that lead to the goal achievement and
increase the overall performance of the organization (Deal and Kennedy, 1982).
Several studies support the relationship of organizational culture and employee performance,
such as research Shahzad et al., (2013) which gives the conclusion that organizational culture has a
significant positive impact on employee performance. Sadasa (2014) has found a weak relationship
between organizational culture to individual performance. Based on these arguments, a hypothesis is
formulated as follows:
Hypothesis 4 : organizational culture is significantly correlated with job performance.

2.5. Job satisfaction and job performance

The relationship between satisfaction and performance is a debate that has continued until today, and
is still difficult to prove which way the causal relationship is, and even by the researchers, the
relationship between satisfaction and performance are considered as mythical management (Robbins
and Judge, 2013). At least 50 years of psychologists industries / organizations have been grappling
with the question of the relationship between job satisfaction and performance. Researchers have put
a tremendous amount of effort in an attempt to show that both are positively related in a certain way:
“a happy worker is a good performance worker”.
Although still controversial, the results of the empirical literature support the hypothesis that
job satisfaction leads to better performance or even that there is a positive correlation between the
two variables. On the other hand, some researchers argue that the results are equally inconclusive
with respect to the hypothesis that there is a relationship like that. As a result of this ambiguity, this
relationship continues to make curious to researchers and continue to re-tested. This can be seen in a
review of 300 studies conducted Judge et al., (2001) who found a fairly strong correlation between job
satisfaction and performance. More recent research conducted Maharani et al., (2013) found that job
satisfaction affects directly on employee performance. Relevant to these findings, Fu and Deshpande
(2014) concludes that job satisfaction had a significant direct impact on organizational commitment,
through which it also had a significant indirect impact on job performance. Based on these arguments,
a hypothesis can be formulated as follows:
Hypothesis 5 : job satisfaction is significantly correlated with job performance.
2.6. Organizational commitment and job performance
Organizational commitment expressed by Mowday et al., (1982) characterized the presence of: (1) a
strong belief and acceptance of the goals and values of the organization; (2) the readiness to work
hard; and (3) a strong desire to stay in an organization. This commitment is classified commitments or
affective attitude as it relates to the extent to which individuals feel their personal values and goals in
accordance with the values and goals of the organization. The greater the congruence between values
and goals of the individual with the values and goals of the organization, the higher the employees''s
commitment to the organization.
Empirical support on the relationship of commitment to performance that proves the existence
of a positive relationship between organizational commitment and performance. Riketta (2002)
through a meta-analysis was conducted to estimate the true correlation between attitudinal
organizational commitment, and job performance and to identify moderators of this correlation. One-
hundred and eleven samples from 93 published studies were listed. Research results find corrected
mean correlation was 0.20 between commitments and job performance. Rose, Kumar, and Pak (2009)
found organizational commitment and job satisfaction are positively related to work performance and
these variables partially mediate the relationship between organizational learning and work
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performance. Consistent with previous findings, the study Sani (2013) in Indonesia also concludes that
organizational commitments do positive influence job performance. Based on these arguments, a
hypothesis can be formulated as follows:
Hypothesis 6 : organizational commitment is significantly correlated with job performance.

3. Research Methods
3.1. Participants
The participants in this study were volunteers from four motorcycle manufacturing plants. Data
collected from 214 employees of a major Japanese motorcycle manufacturing in Jakarta. The majority
of respondents were male (almost 91 percent), and average age of 25.65 years old with a minimum age
of 20 to 35 years old. The majority of respondents (85 percent) graduated from senior high school,
diploma 8 percent, and 7 percent bachelor degrees.

3.2. Measures
All scales were developed after a comprehensive literature review of the area and based on the
previously validated scales. A panel of judges was attested to content validity of the instrument.
Furthermore, pilot test was conducted to validate the survey instrument using a group of participants
to examine the item wording, applicability, readability, understandability. All scales were tested with
exploratory factor analyses (EFA) and alpha coefficients and resulted in satisfactory discriminant
validity and reliability. All items of scales are a five-point Likert-type.
Organizational culture measured by adapting measurement model encompassing five
dimensions: family orientation and loyalty; open communication; team approach (the Japanese
organizational culture scale by Thomas Li-Ping Tang et al., 2000); power distance and masculinity
(Hofstede (1990) and the two dimensions from Denison Organization Culture Survey includes
tolerance of conflict and reward criteria. Factor analyses were conducted using a criterion of
eigenvalues greater than one, followed by the varimax rotation, and a scree-test. Items loaded very
strongly and consistently on specific factors in both samples were retained. Based on these
procedures, 17 items were selected for the final scale and grouped into 5 factors. All factors have a
Cronbach alpha coefficient above 0.789 - 898 (> 0.70), so it can be concluded that the instrument used
to measure the organizational culture has a fairly good level of reliability.
Job satisfaction was measured with total 14-items adapted and modified from Herzberg’s Two
Factor (1966), Minnesota Satisfaction Questionnaire (Weiss et al., 1967); Job Description index (Smith,
Kendall & Hulin, 1969) encompassing 8 dimensions include : wages, physical conditions of work,
colleagues, promotion, work space conditions, relationships with fellow colleagues, relations with
supervisors, satisfaction with the job itself. Based on analysis of variance explained EFA. Job
satisfaction construct shaped by three factors (eigenvalues value> 1). Factor 1 is able to explain the
construct of 57 012%, a factor of 2 for 10,680%, and the third factor is able to explain the construct by
77.99%. Overall, three factors were able to explain the construct is formed by 75.49%. Three new
factors are then renamed: social relations and promotion, wages, and working conditions. All of factors
have a Cronbach alpha coefficient above 0.70, so it can be concluded that the instruments used to have
a fairly good level of reliability
Organizational commitment was measured with total 14-items adapted and modified from Meyer
and Allen's (1991) model of organizational commitment. They determined that an employee
simultaneously experiences commitments to the organization that is based on emotional attachment
(affective commitment), a feeling of obligation to the organization (normative commitment and
perceptions that the costs of leaving the organization are prohibitively high (continuance
commitment). This study is to re-conceptualize organizational commitment into the feeling of having
an emotional connection - pride, having a career intentions and engagement with the organization. For
all measures, alphas were > 0.70.
Job performance is measured by adapting Dessler (2009) includes quality and quantity, reliability
and personal quality. A total of 12 items were developed based on the results of expert assessment,
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and through testing of EFA obtained three factors (eigenvalues values> 1). Factor 1 is able to explain
the construct of 49.67%, 11. 57% by a factor of 2, and 3 are able to explain construct factor of 10.22%.
Overall, three factors were able to explain the construct is formed by 71 474%. . All of factors has a
Cronbach alpha coefficient above 0.70, so it can be concluded that the instruments used to have a fairly
good level of reliability.

3.3. Analyses
Partial Least Squares Structural Equation Modeling (PLS-SEM) were utilized to hypotheses
testing. This technique is a wide class of methods for modeling relations between sets of observed
variables by means of latent variables. The partial least squares (PLS) approach to SEM offers an
alternative to covariance based SEM, which is especially suited for situations when data is not
normally distributed. The basic PLS-SEM algorithm (Lohmöller 1989) follows a two-stage
approach. In the first stage, the latent constructs’ scores are estimated, and the second stage
calculates the final estimates of the outer weights and loadings as well as the structural model’s path
coefficients (Hair et al, 2011).

4. Results and
4.1. Evaluation of Outer Model
An evaluation of outer model consists of convergent, discriminant validity and composite
reliability. In the studies involving PLS analysis, an overview of aspects related to the evaluation of
the measurement models are : composite reliability should be higher than 0.70; indicator reliability :
indicator loadings should be higher than 0.70; convergent validity : the average variance
extracted (AVE) should be higher than 0.50; Discriminant validity: the AVE of each latent
construct should higher than the construct’s highest squared correlation with any other latent
construct and an indicator’s loadings should be higher than all of its cross loadings (Hair et al, 2011,
pp. 145).
The results of composite reliability ranged from 0.880 to 0.917 (higher than 0.70);
reliability testing by coefficient of cronbach alpha generates the lowest value of 0.812 and the highest
value of 0.832 and thus can be concluded that all of the construct have good reliability (cronbach alpha
> 0.70). The AVE values were 0.596 – 0.788 (higher than 0.5), exceeding the threshold values
for satisfactory convergent validity (Table 1).
For construct validity, the loading and cross-loading of the items were investigated. Significant
loading is 0.5 or above. Table 2 shows that all the items representing one construct are loaded highly
on that construct while the other constructs are loaded much lower. Thus, the content validity of the
measurement, outer model was confirmed.
The discriminant validity is assumed if the diagonal elements are larger than other off-
diagonal elements in their rows and columns (Table 3). Correlations among the constructs are
presented in table 4. In Table 1, for each variable, the root of AVE value was larger than the
correlation coefficient values with any other variable (Table 4), thereby verifying the
discriminant validity. As Overall can be concluded that the evaluation of the outer model has
been fulfilled so the next evaluation is the evaluation of the inner model.

4.2. Evaluation of Inner Model

Having established the validity and the reliability of the measurement model, the next step was to test
the hypothesized relationship by running PLS algorithm and Bootstrapping algorithm in VisualPLS. Te
Goodness of Fit model is measured using R2 dependent latent variable with the same interpretation of
the regression. R² value of 0.75, 0.50 or 0.25 for endogenous latent variables in the structural model
can be described as substantial, moderate and weak. Q2 predictive relevance for the structural
model to measure how well the observed values generated by the model and parameter estimation. Q²

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value greater than zero indicate that the construction of exogenous have predictive relevance in
explaining endogenous. (Hair et al., 2011).
Hypotheses testing results are presented in Figure 1 and Table 5. The R2 value for job
satisfaction is 0.349, which explains that 34.90% of the variance of job satisfaction can be explained by
organizational culture. Also the R2 value for organizational commitment was 0.605 respectively which
indicates that organizational commitment has 60.05% can be explained by organizational culture and
job satisfaction. The R2 value for job performance was 0.609 respectively which indicates that 60.09
percent of job performance can be explained by organizational culture, organizational commitment
and job satisfaction.
Based on the analysis of SEM-PLS obtained R2 structural model in model 1 (job satisfaction)
0.349, model 2 (commitment) 0.605 and model 3 (job performance) 0.609. Thus the formulas and
calculations to test predictive relevance Q2 following :
Q2 = 1 – ( 1 – R21 ) ( 1 – R22) ( 1 – R23)
Q2 = 1 – ( 1 – 0.349) ( 1 – 0.605) (1 – 0.609)
Q2 = 1 – (0.651 (0.395) (0.391)
Q2 = 0.899

Hypotheses test results (Table 5) were suported of 5 from 6 hypotheses. Path coefficients the
relationship of organizational culture (OC) to job satisfaction (SAT) was 0.591 (t value 13.065 > 1.96).
The test results indicate that there was sufficient empirical evidence to accept the hypothesis 1 (H1).
OC and SAT significantly relationship to commitment to path coefficient and t values for OC is 0.437 (t
value 6.793) and SAT is 0.435 (t value 7.439), hence supporting the hypothesis 2 and 3. Path
coefficient of OC on performance (PERF) is equal to 0.106 (t value 1.632), so that the Hypothesis 4 is
rejected. The relationship of SAT and COM PERF generates with estimated path coefficient of 0.313
(SAT) and 0.447 (COM), with a t value of 4.147 (SAT) and 5.063 (COM). The test results indicate that
this was sufficient empirical evidence to accept the hypotheses 5 and 6.

5. Discussion and Implications

The results of this study generally support the hypothesized model, revealing the positive
relationship of organizational culture on job satisfaction and organizational commitment, however,
organizational culture has not significantly related to job performance. Furthermore, this study was
able to prove the existence of the relationship of job satisfaction with organizational commitment, and
positive relationship of job satisfaction and organizational commitment to job performance.
The relatively strong effect of organizational culture on job satisfaction and organizational
commitment. This coefficient is positive which means that when the organizational culture raises, their
job satisfaction and commitment will also improve. On the other hand, when the organizational culture
is low, their job satisfaction and commitment will also be less positive. Hence, these results are
consistent with previous research such as Bellou, (2010); Park and Kim, (2008), Lok and Crawford,
(2004), and McKinnon, Harrison, Chow, & Wu (2003) on the relationship between organizational
culture and job satisfaction, and the organizational culture and commitment relationships, such as Lok
and Crawford (2004); Silverthorne, (2004); Kwantes, (2009); and Yiing and Ahmad, (2009).
This study found that job satisfaction has a positive relationship with commitment and job
performance. Thus, this study successfully supported previous research that prove the relationship of
job satisfaction with organizational commitment (Gunlu and Aksarayli, 2010; Yiing and Ahmad, 2009;
Budiharjo, 2013), and Judge et al., (2001) who found a fairly strong correlation between job
satisfaction and performance, Maharani et al., (2013) found that job satisfaction affects directly on
employee performance, and Fu and Deshpande (2014) concludes that job satisfaction had significant
direct impact on organizational commitment, through which it also had a significant indirect impact on
job performance.
Organizational commitment can affect job performance. This finding is consistent with Riketta
(2002) through A meta-analysis was conducted to estimate the true correlation between attitudinal
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organizational commitment and job performance. Rose, Kumar, and Pak (2009) found organizational
commitment and job satisfaction are positively related to work performance and Sani (2013) also
concludes that organizational commitments do positive influence job performance.
The result of analysis shows that organizational culture does not have a significant impact on
job performance. These findings do not support previous research by Shahzad et al.. (2013) which
gives the conclusion that organizational culture has a significant positive impact on employee
performance, and Sadasa (2014) was found a weak relationship between organizational culture to
individual performance. However, the findings are relevant to Syauta, et al.. (2012) and Sunadji et al.,
(2013) was concluded that the relationship between organizational culture and employee
performance is not significant.

6. Limitations and future research

This study has some limitations. First, the sample employed in the present study is limited to the
production lines at four plants, and hence, it may cannot be generalized to all employees of the companies.
Further research is expected to take a larger sample by taking representative samples from various areas of
work. Second, this study only tested the direct effect without considering the indirect effects by placing job
satisfaction and commitment as a mediator in the relationship with the organizational culture of
performance. In the future, the present study would benefit by expanding the model with the use of
mediating analysis to explore whether or not job satisfaction and organizational commitment mediate the
relationship of organizational culture to employee's performance. Third, organizational culture is not shown
to be associated with the performance of employees. This relationship model is advised to be requested, or
an in-depth interview via qualitative method may be useful in the future to seek any unexplained findings.
Finally, because the data in this study were cross-sectional and not longitudinal in nature, some causal
relationships could only be inferred, rather than empirically supported. Longitudinal and experimental
studies need to be considered to give a more definite conclusion about the causal effect between each
variable.

7. Conclusions
This study confirmed the direct positive impact of organizational culture on employees’
organizational commitment job performance. Present study supports the understanding that is
worthwhile for managers to develop strategies to improve job satisfaction and organizational
commitment through increased organizational values (collaboration, reward criteria, family
orientation, team orientation, and masculinity and power distance). Research also suggests that
managers can also improve employee’s commitment and performance by providing job satisfaction
(social relations and promotion, wages, and working conditions). Finally, the results imply that
employees feel more committed to their Firm and have a better performance if they feel an emotional
connection and pride, having a career intentions and engagement with the organization.
This study contributes to the development of organizational culture scale, especially on
Japanese companies in Indonesia which successfully validate five indicators was collaboration and
control, reward criteria, family orientation, team orientation, and masculinity and power distance.
However, it still needs further testing to prove the validity and reliability of this scale developed.

Acknowledgements
Many thanks to Hendryadi (Economic Faculty of Attahiriyah Islamic University, Jakarta) for
constructive advice and suggestions in statistical data analysis.

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Appendix

Table 1. Composite Reliability

Composite Cronbach Root of the
Construct AVE
Reliability Alpha AVE
OC 0.880 0.596 0.812 0.772
SAT 0.917 0.788 0.832 0.887
COM 0.907 0.765 0.828 0.874
PERF 0.915 0.782 0.816 0.884

Table 2. Construct validity

Construct Indicator Stdev Loading Residual Weight

BO1 2.993 0.778 0.395 0.236

BO2 5.574 0.874 0.236 0.328
BO3 3.351 0.696 0.516 0.210
BO4 3.421 0.744 0.446 0.264
OC BO5 3.303 0.756 0.429 0.248
KK1 5.284 0.880 0.225 0.382
KK2 3.277 0.862 0.256 0.329
SAT KK3 6.439 0.919 0.156 0.414
KM1 6.303 0.863 0.256 0.382
KM2 4.409 0.885 0.216 0.390
COM KM3 4.475 0.875 0.234 0.372
KIN1 3.856 0.891 0.206 0.380
KIN2 2.837 0.892 0.204 0.367
PERF KIN3 5.502 0.870 0.243 0.384

Table 3. Cross-loading
Scale
OC SAT COM PERF
Items
BO1 0.778 0.407 0.482 0.429
BO2 0.874 0.550 0.681 0.597
BO3 0.696 0.393 0.428 0.348
BO4 0.744 0.476 0.567 0.423
BO5 0.756 0.429 0.474 0.484
KK1 0.564 0.880 0.603 0.608
KK2 0.430 0.862 0.553 0.537
KK3 0.566 0.919 0.678 0.671
KM1 0.595 0.631 0.863 0.641
KM2 0.649 0.611 0.885 0.647

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KM3 0.576 0.575 0.875 0.649

KIN1 0.541 0.584 0.674 0.891
KIN2 0.533 0.621 0.611 0.892
KIN3 0.522 0.615 0.671 0.870

Table 4. Correlation of Latent Variables

OC SAT COM PERF
OC 1
SAT 0.591 1
COM 0.694 0.693 1
PERF 0.602 0.686 0.738 1

Table 5. Path Analyses Results

Path
Model Coefficient Std. error t-statistic RSq
OC->SAT 0.591 0.045 13.065 0.349
OC->COM 0.437 0.064 6.793
SAT->COM 0.435 0.059 7.439 0.605
OC->PERF 0.106 0.065 1.632
SAT->PERF 0.313 0.076 4.147
COM->PERF 0.447 0.088 5.063 0.609

Figure 1. Structural Model

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