Organizational culture and organizational performance: does job satisfaction mediate the relationship?

Figures & data

Figure 1. Conceptual model of research.

Table 1. Constructs and measured variables.

S. No	Measured Variables	Constructs	Source
1	Consistency	Corporate Culture	Denison et al. (2006)
2	Involvement
3	Adaptability
4	Mission
1	Physical working condition	Job Satisfaction	Warr et al. (1979) and Herzberg (1966),
2	Relationship with coworkers
3	Relationship with supervisors
4	Rate of Pay
1	Customer	Organizational Performance	Kaplan and Norton (1992)
2	Learning and Growth
3	Internal Business
4	Finance

Source: Created by Authors.

Table 2. Items’ Scale for latent variables.

Likert Scale	Items’ Scale for:
	Organizational Culture	Job Satisfaction	Organizational Performance
1	Strongly Disagree	Not satisfied	Very Little Extent
2	Disagree	Somewhat satisfied	Little Extent
3	Neutral	Satisfied	Some Extent
4	Agree	Very satisfied	Considerable Extent
5	Strongly Agree	Extremely satisfied	Very Good Extent

Source: Created by Authors.

Table 3. Factor Loading, AVE and CR.

Construct	Items	Factor Loading	AVE	CR
Organizational Culture	Adaptability	0.845	0.532	0.819
	Consistency	0.822
	Involvement	0.805
	Mission	0.749
Job Satisfaction	Relationship with supervisor	0.819	.529	0.816
	Relationships with coworkers	0.775
	Rate of pay	0.762
	Physical working condition	0.749
Organizational Performance	Customer perspective	0.894	0.647	0.879
	Internal Business process	0.885
	Learning and growth	0.878
	Financial Perspective	0.745

Source: Created by Authors.

Table 4. Model fit Measure.

Measure	Estimate	Threshold	Interpretation
CMIN	113.791	--	--
DF	51	--	--
CMIN/DF	2.231	Between 1 and 3	Excellent
CFI	0.948	>0.95	Acceptable
SRMR	0.058	<0.08	Excellent
RMSEA	0.078	<0.06	Acceptable
PClose	0.010	>0.05	Acceptable
RMR	0.040	<0.080	Excellent
IFI	0.949	>0.90	Acceptable
GFI	0.909	>0.90	Acceptable

Source: Created by Authors.

Table 5. Multicollinearity Test^a.

Model		Collinearity Statistics
		Tolerance	VIF
1	Involvement	0.533	1.876
	Consistency	0.526	1.902
	Adaptability	0.454	2.200
	Mission	0.558	1.794
	Rate of Pay	0.623	1.606
	Physical working Condition	0.561	1.782
	Relationship with Coworkers	0.497	2.014
	Relation with supervisor	0.434	2.305

^a Dependent Variable: Organizational Performance.

Source: Created by Authors.

Table 6. Regression coefficients^a.

Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig
		B	Std. Error	Beta
1	(Constant)	0.181	0.233		0.776	0.439
	Involvement	0.318	0.068	0.275	4.700	0.000
	Consistency	0.003	0.074	0.002	0.039	0.969
	Adaptability	0.324	0.064	0.319	5.039	0.000
	Mission	0.039	0.054	0.041	0.713	0.477
	Rate of Pay	0.063	0.032	0.107	1.971	0.050
	Physical working Condition	0.088	0.036	0.140	2.453	0.015
	Relationship with Coworkers	0.030	0.036	0.050	0.821	0.412
	Relation with supervisor	0.081	0.039	0.133	2.051	0.042

^a Dependent Variable: Organizational Performance.

Source: Created by Authors.

Table 7. Direct and indirect effect analysis.

			Standardized Estimate	Unstandardized estimate	S.E.	C.R.	P
Job Satisfaction	<---	Organizational Culture	0.799	1.187	0.161	7.390	0.001
Firm Performance	<---	Organizational Culture	−0.032	−0.055	0.217	−0.252	0.801
Firm Performance	<---	Job Satisfaction	0.905	1.037	0.184	5.629	0.001
Organizational Culture – Job Satisfaction – Performance			0.723	1.231			0.001

Source: Created by Authors.

Figure 2. Causal Model.

Table 8. Summary of the hypotheses test.

S. No	Research Hypothesis	Tests used	Test Statistics value
1	Hypothesis 1: Organizational culture has a significant effect on organizational performance	t-Test	C.R = −0.252 P = 0.801 Rejected
2	Hypothesis 2: Job satisfaction has a significant effect on organizational performance	t-Test	C.R = 5.629 P < 0.001 Accepted
3	Hypothesis 3: Organizational culture has a significant effect on job satisfaction	t-Test	C.R = 7.390 P < 0.001 Accepted
4	Hypothesis 4: Job satisfaction significantly mediates the effect of organizational culture on organizational performance	Percentile bootstrap confidence interval	Lower value = 0.525 Upper value = 1.00 P-value < 0.001 Accepted

Source: Created by Authors.

Denison, D., Janovics, J., Young, J., & Cho, J. H. (2006). Diagnosing organizational cultures: validating a model and method. Documento de trabajo. Denison Consulting Group. 1–39.

 Google Scholar

Warr, P., Cook, J., & Wall, T. (1979). Scales for the measurement of some work attitudes and aspects of psychological well-being. Journal of Occupational Psychology, 52(2), 129–148. https://doi.org/10.1111/j.2044-8325.1979.tb00448.x

 Web of Science ®Google Scholar

Herzberg, F. (1966). Work and the nature of man. World Pub. Co.

 Google Scholar

Kaplan, R. S., & Norton, D. P. (1992). The balance scorecard-measures that drive performance. Harvard Business Review, 70(1), 71–79.

 PubMed Web of Science ®Google Scholar

Data availability statement

Data and materials supporting this work can be accessed by request