The Influence of Organizational Culture, Alliance Partners, Digital Capability on Firm Performance Mediated by Strategy Flexibility

Abstract

Aims: The study examines the effects of organizational culture, alliance partners, and digital capability on firm performance, mediated by strategy flexibility in the national automotive component industry in Indonesia. Study Design: The data collection technique was non-probability sampling with purposive sampling method in which the number of samples that met the criteria to be analyzed were 228 companies. Place and Duration of Study: The population of this study were all automotive component companies located in Jakarta, Banten and West Java, totaling 237. Each sampled company is represented by one respondent, namely a manager or senior manager of an automotive component industry company. Methodology: Structural Equation Model (SEM). Results: These findings suggest the importance of flexible strategies for leveraging internal and external resources to enhance performance. Strategy flexibility partially mediates the effects of organizational culture and digital capability on firm performance, and fully mediates the effect of alliance partners. Conclusion: This study shows the results of the positive influence of Organizational culture, Alliance Partners, Digital Capability, and Strategy Flexibility toward Firm Performance. Strategy Flexibility as a mediating variable can mediate the effect of Organizational Culture, Alliance Partners and Digital Capability on Firm Performance. The implications of this research can be an input for the leaders of the national automotive component industry companies in making a strategic decision to face the challenges of increasingly complex business competition through the implementation of a flexible strategy in the services and processes of the manufacturing industry which has implications for improving company performance.