American Journal of Economic and

Management Business

e-ISSN: 2835-5199

Vol. 2 No. 3 March 2023

LITERATURE STUDY THE INFLUENCE OF CORPORATE

CULTURE ON EMPLOYEE PERFORMANCE AND INNOVATION

Ananda Tiara Khotimah, Sephia Tri Claudya, Pandya Pangestu

Pembangunan Jaya University, Indonesia

Email: [email protected],[email protected].id,

[email protected]

Abstract

Corporate culture has a relationship with employee performance; the better the corporate

culture, the higher the level of employee performance. Furthermore, it was found that

corporate culture has a relationship with employee innovation, and if the corporate culture

is better, then employees can contribute to the growth of innovation. This is consistent

with published theory and research and has served as a foundation for the notion that

innovation and collaboration within an organization have implications for overall

organizational health. Therefore, the authors are encouraged to be more detailed about

the relationship between the cultural business community and employee motivation and

performance, which can be revealed through several general indicators that will be

discussed in this article.

Keywords: Corporate Culture, Employee Performance, and Employee Innovation.

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0

International

INTRODUCTION

Every business has a significant impact on employee productivity and innovation.

Corporate culture is the values, norms and behaviors that are shared in the organization

(Asbari et al., 2020). It affects the way people work, social interactions, and the amount

of money the organization has. When a company's culture is supported by strong

management and consistent implementation, it can inspire employees to work harder and

innovate. This can be seen from the increase in productivity, product quality, customer

service, and operational efficiency. In addition, businesses that encourage innovation can

create a more conducive work environment and encourage employee creativity.

Innovation is the melting or introduction of things that are different from those that exist

or are known before, renewal, new discoveries that are different from those that exist or

have been known before (Rosyiana, 2019).

Employees who step in and are given the freedom to create and develop new ideas

will be more motivated to produce innovations that benefit the organization (Sidin &

Herno Della, 2021). However, if a company's culture doesn't encourage innovation and

employee productivity, it can lead to burnout and a lack of motivation to work hard. This

can have a negative impact on organizational performance at all levels. In addition, a good

company that encourages innovation can have a positive impact on employee productivity

Ananda Tiara Khotimah, Sephia Tri Claudya, Pandya Pangestu

and innovation, whereas a bad company can have a negative impact on employee

productivity and innovation. As a result, businesses must prioritize and develop a culture

that encourages innovation and employee productivity to increase organizational

productivity and growth. According to Hari Sulaksono (2019), performance is the result

of work and work behavior that has been achieved in fulfilling the duties and

responsibilities given during a certain period of time.

In today's competitive environment, every business must be able to grow and

develop by implementing various strategies outlined in employee productivity

improvement programs. There are many factors associated with improving business

operations (Tsauri, 2014). The single most important factor that businesses must pay

attention to in order to achieve their goals is the factor that affects human capital (HR).

According to Hari Sulaksono (2019), organizational/corporate culture is the values that

become human resources in carrying out their obligations and behavior in the

organization. Humans as business owners are a major factor because business depends on

the people who live around it. Human Resources are competent in carrying out the tasks

needed to be able to achieve the goals of the company.

Human resource management aims to improve the effectiveness of human

resources in the organization, thus forming an effective work unit (Bratton et al., 2021).

To achieve these goals, companies must evaluate various aspects related to things that

can provide motivation, passion, and desire to work harder, so that it has a positive impact

on the company. Increasing employee motivation to work is both a task and a necessity.

Community resource management. This results in human resource managers executing a

Long strategy. Among the many benefits are the ability to pursue a career, build a stable

work environment, improve organizational culture, and so on (Andriani et al., 2022).

community resource management. This results in human resource managers

executing a Long strategy. Among the many benefits are the ability to pursue a career,

build a stable work environment, improve organizational culture, and so on. Employees

will be more motivated and committed if their responsibilities are aligned with those of

the company. Successful business organization is essential to increase employee

productivity. An organizational culture that violates and acts for all employees. Work

motivation is one of the important things in employee performance at work. Motivating

employees is very important for their success in their work, because motivation is the

readiness of a special person to perform or continue a series of activities aimed at

achieving some predetermined goals.

RESEARCH METHODS

According to Sugiyono (2018), research using literature review is very important in

conducting research because scientific-based literature will not be used as a source of

research findings. This is because the study will not depart from scientific-based

literature. Data handling is carried out by explaining and linking with literature related to

the problems raised, especially literature on the role of village apparatus and village funds.

This section is considered a theoretical landing and a practical guide when analyzing a

problem. The author relies on literature research in the data collection process by

collecting information about how employee performance and innovation affect company

culture.

RESULT AND DISCUSSION

American Journal of Economic and Management Business

Vol. 2 No. 3 March 2023

In the research journal "The Effect of Innovative Behavior and Work

Involvement on Employee Performance" written by (Hadi et al., 2020) the purpose of

the study is to examine the influence of innovative behavior variables and work

involvement on employee performance.

The results of this study show that innovative behavior affects employee

performance, and work involvement affects employee performance. The success of one

company is inseparable from the performance of its employees, and today's companies

are also increasingly dependent on the efforts of employees. The focus of a business is

how to encourage, support, and cultivate innovative ideas from its employees. Companies

are also expected to have the ability to treat their employees fairly when they are fired.

In the research journal "The Influence of Organizational Culture and Work

Environment on Organizational Commitment" written by (Musmulyadi & Sari, 2020)

the purpose of the study is to analyze the influence of organizational culture variables

and work environment on organizational commitment.

The results of this study show that organizational commitment is not optimal, as

evidenced by the existence of recapitalization data at the expense of very low paid

workers and consequently lack of worker motivation to do their jobs well. Physical work

environment that does not support is work equipment and work equipment that does not

support because some of it has been damaged. Stacking files that are not neatly organized.

There is a significant difference between work done by religious organizations and work

done by diverse linguists in relation to organizational commitment. Instead, the majority

of them cited the importance of organizational diversity to organizational commitment

among key personnel. Some people say that work environment variables affect the

organization of employee committees.

In the research journal "The influence of corporate culture on work motivation and

its impact on employee performance" written by (Safitri, 2018) has the purpose of

research to know the extent of the influence of corporate culture on work motivation and

its impact on employee performance.

The results of this study show that Corporate Culture affects work motivation. This

means that if the company's culture is improved, then work motivation will increase as

well. Work motivation affects employee performance. This means that if work motivation

is increased, then employee performance will increase as well. Company culture affects

employee performance. This means that if the company culture is improved, then

employee performance will increase as well.

Based on the results of the research Business culture is growing rapidly, with

service excellence as the leading indicator. In addition, work motivation also changes

significantly (Johanson & Vahlne, 2003). Thus, business companies know more about

their work motivation. Based on the results of very strong work motivation research, the

most important indicator is recognition. However, the work done by the Karayawan

people is still very demanding. Thus, work motivation directed at improving employee

performance will increase. On the other hand, the working day is still developing very

fast . In this way, business practices are fair to the work of employees.

In the research journal "The influence of organizational culture and achievement

motivation on employee performance through innovative behavior" written by (Muslim

et al., 2021) has a research objective to determine and analyze the influence of

Organizational Culture and Achievement Motivation on employee performance through

innovative behavior.

Ananda Tiara Khotimah, Sephia Tri Claudya, Pandya Pangestu

The result of this study is that religious organizations harm the work of employees.

Motivation affects the work of employees. Innovative innovation affects employee

performance. Organizations in the business world are committed to innovation. The

Achievement Motive is based on innovative potential. Innovative Behavior partially

mediates the relationship between organizational culture and achievement motivation to

employee performance, with a stronger direct effect alongside its mediation.

In the research journal "The influence of corporate culture on employee

performance" written by (Awiara et al., 2022) has the purpose of research describing

Corporate Culture and employee performance, as well as to analyze the Influence of

Corporate Culture on employee performance.

The results of this study Corporate Culture affect performance. To maintain and

improve the existing Corporate Culture in the company and employee performance, so

that it remains at a very high criterion and must pay attention to other factors that can be

developed again.

Corporate Culture consists of 5 indicators, namely Quality, Integrity, Teamwork,

Innovative, Responsive which overall shows very high variable achievements, while

employee performance consists of Effectiveness, Responsibility, Discipline, Initiative

showing high variable achievements. The test results prove that the Corporate Culture

variable affects Employee Performance, which is supported by the disclosure that the

ability of the Corporate Culture variable to apply the Employee Performance variable is

relatively weak.

CONCLUSION

Based on literature studies obtained from several previous studies by looking at the

variables used in accordance with the title of our article, as well as indicators and some

provisions of these studies are the same and in accordance with the title for further study.

A company is able to have various innovation factors for employees at every level or

level. Every time, employees work harder to achieve set goals if they see themselves as

part of the company. Employee performance that affects the company's culture will

improve the quality of employees with the good culture built in the company.

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Ananda Tiara Khotimah, Sephia Tri Claudya, Pandya Pangestu (2023)

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