International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue X, October 2019 | ISSN 2454–6186

The Effect of Organizational Structure, Organizational Strategy, and Change Management on Firm Performance with Organizational Commitments As Mediation Variables in Manufakturing Industries

Muhammad Donal Mon¹, Farida Jasfar², Willy Arafah³

¹Corresponding Author and Doctoral Candidate of Strategic Management, Faculty of Economics, Universitas Internasional Batam, Batam, Indonesia
²Professor of Sustainability Development Management, Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia
³Professor of Marketing Management, Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia

Abstract:-The purpose of this study is to analyze the relationship of organizational structure, strategy, and change management to firm performance with organizational commitment as mediation. The design used is hypothesis testing using Structural Equation Modeling (SEM) because the variables used in this study use mediating variables. The population and respondents in this study were Supervisor / Engineer, Manager, General Manager, and Director of manufacturing companies. The results of the study show that the organizational structure does not significantly affect to firm performance, organizational strategy and change management has significant effect on firm performance, organizational commitment has significant effect on firm performance. The results also show that organizational commitment does not mediate the organizational structure of firm performance, organizational commitment is mediation between organizational strategies and management changes in organizational commitment are mediation in performance. The results can be a reference for management and companies in making decisions that determine strategic steps in planning the company’s future work plans. Future research model can explain the role of organizational commitment in organizational structure, organizational strategy and management changes to firm performance.

Keywords: Organizational Structure, Organizational Strategy, Change Management, Organizational Commitment, Company Performance, Manufacturing

I. INTRODUCTION

The global manufacturing industry paradigm today sees the production process as a unity between the processes before production, the production process, and the results of production itself in other words the process of transformation in production. Manufacturing industry is an activity in applying machinery, equipment, and labor with the established methods for transforming raw materials or raw materials into finished goods or semi-finished goods that have a sale value, manufacturers usually produce large or large-scale production to be sold to customers.