The Influence of Organizational Culture on Corporate Performance: Using Management Accounting System as the Mediating Variable

14 Pages Posted: 6 Feb 2017  

Gandhi Heryanto

Trisakti University - Department of Accounting

Yvonne Augustine Sudibyo

Trisakti University - Department of Accounting

Date Written: January 30, 2017

Abstract

Purpose: The purpose of this research is mostly to explore the influence of organizational culture on corporate performance at Indonesia Stock Exchange listed companies, with Management Accounting System (MAS) being the mediating variable.

Method/Design: The target population in this study consists of C-level at the existing 100 Indonesia Stock Exchange companies, selected using purposive convenience sampling. The linear Structural Equation Modelling (SEM) was adopted to verify the goodness-of-fit effects among the overall model, structural model and measurement model. This study focuses on the path coefficients between latent variables of the structural model, with the Bayesian Estimation used to test the significance of the model’s direct effect, mediating effect and total effect.

Findings: Findings from this research include:

(1) organizational culture has no direct influence on corporate performance; and

(2) organizational culture has a significantly positive influence on management accounting system, which in turn affects the organizational performance in a significant and positive manner. In summary, management accounting system has a fully mediating effect.

Implication: Good organizational culture will influence MAS which mediate fully to corporate performance.

Future Research: Each of organizational culture dimensions should be tested to find which is the strong influence MAS. Is there any possibility that after tested each dimensions, we can find the weakness and strongest has influenced corporate performance.

Originality and Value: Management Accounting system as a full mediating variable is a new finding which can be used to improve organizational success.

Keywords: Organizational culture, Management Accounting System, Organizational performance

Suggested Citation

Heryanto, Gandhi and Sudibyo, Yvonne Augustine, The Influence of Organizational Culture on Corporate Performance: Using Management Accounting System as the Mediating Variable (January 30, 2017). OIDA International Journal of Sustainable Development, Vol. 10, No. 01, pp. 35-48, 2017. Available at SSRN: https://ssrn.com/abstract=2911905

Gandhi Heryanto (Contact Author)

Trisakti University - Department of Accounting ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Yvonne Augustine Sudibyo

Trisakti University - Department of Accounting ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

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