Investigating the Impact of Organizational Culture and Corporate Governance on Sustainability Performance with Strategic Posture as Mediating Variable

Abstract

Given the interconnection between organizational culture and corporate governance, then there are in some a case of organizational culture, the strategy looks at the suitability of organizational culture for adopting the sustainability activities in the organizations, which can eventually lead to the improvement of company performance in general. Thus, this study aims to investigate the role of strategic posture as an intermediate variable between organizational culture, corporate governance, and sustainability performance. Whereas, Bursa Indonesia mandated all Indonesian publicly listed companies to report their corporate social responsibility as from 2007. Such as business, climate, workforce and community activities in their annual reports, which marked the issuance of the Corporation Law No. 40 of 2007 (Ridho, 2018). For this analysis, the population is all companies listed for Indonesia Stock Exchange Technique sampling in this research is a purposeful sampling. The data were collected from www.idx.co.id and other relevant sources comprising the company's website for the 2009-2018 period. The data were collected, and the technical analysis used is Eviews programs. Based on the analysis and discussion, the conclusion is: there is a direct effect on organizational culture on strategic posture and sustainability performance. Also, there is an effect of corporate governance on strategic posture and sustainability performance, and there is a significant effect between strategic posture and sustainability performance. Strategic posture can be mediating variable the relationship between organizational culture and corporate governance on sustainability performance.