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

Author

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  • Uli Wildan Nuryanto

    (Doctoral Postgraduate Program, University Mercu Buana, Indonesia.)

  • Masyhudzulhak Djamil Mz

    (Doctoral Postgraduate Program, University Mercu Buana, Indonesia.)

  • Ahmad Hidayat Sutawidjaya

    (Doctoral Postgraduate Program, University Mercu Buana, Indonesia.)

  • Ahmad Badawi Saluy

    (Doctoral Postgraduate Program, University Mercu Buana, Indonesia.)

Abstract

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.

Suggested Citation

  • Uli Wildan Nuryanto & Masyhudzulhak Djamil Mz & Ahmad Hidayat Sutawidjaya & Ahmad Badawi Saluy, 2020. "The Impact of Social Capital and Organizational Culture on Improving Organizational Performance," International Review of Management and Marketing, Econjournals, vol. 10(3), pages 93-100.
  • Handle: RePEc:eco:journ3:2020-03-13
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    References listed on IDEAS

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    2. Jung Min Nam & SungHo Lee & Jae Hyeung Kang, 2023. "Multilevel Analysis of the Effect of Corporate Entrepreneurship and Learning Capabilities on the Attitudes of Key Personnel in Small and Medium Enterprises in Korea: The Moderating Effect of Social Ca," SAGE Open, , vol. 13(2), pages 21582440231, June.

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    More about this item

    Keywords

    Social Capital; Organizational Culture; Competitive Advantage; Organizational Performance; Chemical manufacturer sector;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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