ORGANIZATIONAL CULTURE, MANAGEMENT SYSTEM, CORPORATE CAPABILITY AND PERFORMANCE: INSIGHTS FROM OIL PALM COMPANIES IN INDONESIA

Studies in organizational culture, management system, corporate capability and corporate performance have been subject to debates due to various results between these variables. Hence, this study aims to analyze, firstly, the influence of organizational culture and management system on corporate capability and, secondly, the influence of corporate capability on corporate performance which was conducted on the oil palm companies both private and public companies registered on the middle tax office (Kantor Pelayanan Pajak Madya-KPP Madya) Jakarta Barat and KPP Perusahaan Masuk Bursa (PMB). Questionnaires were distributed to respondents during June to December 2016 period. Implementing average score method and structural equation modeling (SEM) with SMART PLS, the result shows that corporate culture and management system influence significantly on corporate capability. Meanwhile, corporate capability has no significant influence on corporate performance. This study is the first to evaluate the link between organizational culture, management system, corporate capability and performance. Therefore, this study contributes in providing empirical evidence on this particular field which is useful for managers and future studies in evaluating the factors influencing corporate capability and performance, particularly in oil palm companies.