IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i3d10.1007_s10668-022-02125-9.html
   My bibliography  Save this article

The role of good corporate governance in mediating the effect of planning, coordination, supervision, and organizational culture on firm performance and firm sustainability

Author

Listed:
  • Benny Wendry

    (Brawijaya University)

  • Umar Nimran

    (Brawijaya University)

  • Hamidah Nayati Utami

    (Brawijaya University)

  • Tri Wulida Afrianty

    (Brawijaya University)

Abstract

This study aims to examine, analyze the effect of the planning, coordination, supervision, organizatinal culture on firm performance, firm sustainability. And the good corporate governance as mediating. This study uses a survey method with a quantitative approach, and the method used was a survey, so primary data collection was done using questionnaires. The study was conducted at a cement company known as PT Semen Indonesia Group that operates in Indonesia. Respondents in this study were 184 people. Data were analyzed using a descriptive analysis and Partial Least Square (PLS) employing the WarpPLS computer program. The results of the study indicate that there is significant influence between the planning function on GCG, that there is significant influence between coordination function on GCG, that there is not significant influence between supervision function on GCG, that there is significant influence between organizational culture on GCG, that there is significant influence between GCG on firm performance, that there is significant influence between GCG on firm sustainability. The development of the firm performance and firm sustainability model is basically an alignment of the theory of resource-based view (RBV) to companies in Indonesia, especially PT. Semen Indonesia. This is the renewed idea or ideas that become the novelty of this research.

Suggested Citation

  • Benny Wendry & Umar Nimran & Hamidah Nayati Utami & Tri Wulida Afrianty, 2023. "The role of good corporate governance in mediating the effect of planning, coordination, supervision, and organizational culture on firm performance and firm sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2509-2521, March.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:3:d:10.1007_s10668-022-02125-9
    DOI: 10.1007/s10668-022-02125-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02125-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02125-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. repec:eme:maj000:02686900510585609 is not listed on IDEAS
    3. Christian Homburg & Harley Krohmer & John P. Workman. Jr, 1999. "Strategic consensus and performance: the role of strategy type and market‐related dynamism," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 339-357, April.
    4. J. Scott Armstrong, 1982. "The value of formal planning for strategic decisions: Review of empirical research," Strategic Management Journal, Wiley Blackwell, vol. 3(3), pages 197-211, July.
    5. Christina James-Overheu & Julie Cotter, 2009. "Corporate Governance and Sustainability Disclosures and the Assessment of Default Risk," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 1(1), pages 3453-3453, December.
    6. Akbar, Saeed & Poletti-Hughes, Jannine & El-Faitouri, Ramadan & Shah, Syed Zulfiqar Ali, 2016. "More on the relationship between corporate governance and firm performance in the UK: Evidence from the application of generalized method of moments estimation," Research in International Business and Finance, Elsevier, vol. 38(C), pages 417-429.
    7. Ingrid Bonn & Josie Fisher, 2005. "Corporate Governance and Business Ethics: insights from the strategic planning experience," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(6), pages 730-738, November.
    8. Ciftci, Ilhan & Tatoglu, Ekrem & Wood, Geoffrey & Demirbag, Mehmet & Zaim, Selim, 2019. "Corporate governance and firm performance in emerging markets: Evidence from Turkey," International Business Review, Elsevier, vol. 28(1), pages 90-103.
    9. Mona A. ElBannan & Mohamed A. ElBannan, 2014. "Corporate Governance and Accounting Performance: A Balanced Scorecard Approach," Accounting and Finance Research, Sciedu Press, vol. 3(2), pages 1-60, May.
    10. Gillan, Stuart L., 2006. "Recent Developments in Corporate Governance: An Overview," Journal of Corporate Finance, Elsevier, vol. 12(3), pages 381-402, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    2. Florentina Melnic & Daniel Juravle, 2020. "Governance And Access To Finance," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 151-168, June.
    3. Marwan Mansour & Hamzeh Al Amosh & Ahmad Yuosef Alodat & Saleh F. A. Khatib & Mohammed W. A. Saleh, 2022. "The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure," Sustainability, MDPI, vol. 14(17), pages 1-25, August.
    4. del Carmen Briano-Turrent, Guadalupe & Poletti-Hughes, Jannine, 2017. "Corporate governance compliance of family and non-family listed firms in emerging markets: Evidence from Latin America," Journal of Family Business Strategy, Elsevier, vol. 8(4), pages 237-247.
    5. Corina Burunciuc & Halit Gonenc, 2020. "Reforms Protecting Minority Shareholders and Firm Performance: International Evidence," JRFM, MDPI, vol. 14(1), pages 1-24, December.
    6. Byung-Seong Min & Peter Verhoeven, 2013. "Outsider Board Activity, Ownership Structure and Firm Value: Evidence from Korea," International Review of Finance, International Review of Finance Ltd., vol. 13(2), pages 187-214, June.
    7. Lee, Shih-Cheng & Lin, Chien-Ting, 2010. "An accounting-based valuation approach to valuing corporate governance in Taiwan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 6(2), pages 47-60.
    8. Waseem, Fareeha, 2023. "Impact of Managerial Entrenchment on Firm Performance," OSF Preprints hmuab, Center for Open Science.
    9. Chrisostomos Florackis & Aydin Ozkan, 2009. "The Impact of Managerial Entrenchment on Agency Costs: An Empirical Investigation Using UK Panel Data," European Financial Management, European Financial Management Association, vol. 15(3), pages 497-528, June.
    10. Netter, Jeffry & Poulsen, Annette & Stegemoller, Mike, 2009. "The rise of corporate governance in corporate control research," Journal of Corporate Finance, Elsevier, vol. 15(1), pages 1-9, February.
    11. Mengyun Wu & Martha Coleman & Jonas Bawuah, 2020. "The Predictive Power of K-Nearest Neighbor (KNN): The Effect of Corporate Governance Mechanisms on Earnings Management," SAGE Open, , vol. 10(3), pages 21582440209, August.
    12. Katolnik, Svetlana & Kukec, Sandra K. & Schöndube, Jens Robert, 2015. "Board Incentives and Board Independence in Dynamic Agency," Hannover Economic Papers (HEP) dp-567, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    13. Takuriramunashe Famba & Lloyd Chiriseri & Grace Chituku-Dzimiro & Ophias Kurauone, 2024. "Two-tier corporate board structure, corporate governance reforms and financial performance of firms listed on the China stock market," SN Business & Economics, Springer, vol. 4(11), pages 1-32, November.
    14. Pedro Verga Matos & Miguel Coelho, 2016. "Short-Termism In Euronext Lisbon: An Empirical Analysis," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 21(1), pages 49-76.
    15. Shiguang Ma & Tony Naughton & Gary Tian, 2010. "Ownership and ownership concentration: which is important in determining the performance of China’s listed firms?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(4), pages 871-897, December.
    16. Ans Kolk & Jonatan Pinkse, 2010. "The integration of corporate governance in corporate social responsibility disclosures," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(1), pages 15-26, January.
    17. Helena Isidro & Márcia Sobral, 2015. "The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance," Journal of Business Ethics, Springer, vol. 132(1), pages 1-19, November.
    18. Aswini Kumar Mishra & Shikhar Jain & R. L. Manogna, 2021. "Does corporate governance characteristics influence firm performance in India? Empirical evidence using dynamic panel data analysis," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 71-82, March.
    19. Tolossa Fufa Guluma, 2021. "The impact of corporate governance measures on firm performance: the influences of managerial overconfidence," Future Business Journal, Springer, vol. 7(1), pages 1-18, December.
    20. Sanja Pekovic & Sebastian Vogt, 2021. "The fit between corporate social responsibility and corporate governance: the impact on a firm’s financial performance," Review of Managerial Science, Springer, vol. 15(4), pages 1095-1125, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:25:y:2023:i:3:d:10.1007_s10668-022-02125-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.