The impact of organisational culture and internal corporate governance on organisational performance in Indonesian companies

Abstract

The results of the research show that organisational culture is not a statistically significant determinant of organisational performance. Organisational culture, however, is a strong determinant of internal corporate governance. Lastly, internal corporate governance does not significantly impact organisational performance. The above results confirm that both organisational culture and internal corporate governance are positively related to performance, but are not statistically significant. This weak linkage to performance is contested with the mixed results identified in Western countries and may be explained by the different construct definition and measurement methods applied in the various studies. There is a need to look at the longitudinal view of the relationship of the constructs in future research to provide fresh evidence and also to reveal the extent to which the new concept of internal corporate governance has been embraced by corporate officers over time. There is also need to look at successful and unsuccessful companies to identify the best practices.