The Strategic Role of Organizational Culture in Enhancing Employee Performance: A Study of Multinational Corporations

Erfan Arsyad ()
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Erfan Arsyad: Hasanuddin University

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 357-368 from Springer

Abstract: Abstract This study examines the strategic role of organizational culture in mediating the relationship between leadership and employee performance in multinational corporations (MNCs). Employing a quantitative approach, data were gathered from 100 employees across different sectors. The results of structural equation modeling (SEM) analysis show that leadership has a significant positive impact on both organizational culture (t = 2.712, p = 0.011) and employee performance (t = 4.435, p = 0.000). Additionally, organizational culture significantly mediates the relationship between leadership and employee performance (t = 3.242, p = 0.004). These findings emphasize the critical role of cultivating a positive organizational culture that aligns with leadership efforts to enhance employee performance. The results provide valuable insights for MNCs aiming to improve global employee performance by leveraging leadership and organizational culture. However, the study’s relatively small sample size may limit the generalizability of the findings. Future research should aim to include larger and more diverse samples, as well as explore other potential mediating variables, such as employee engagement or job satisfaction, to further understand the dynamics between leadership, organizational culture, and performance. This broader exploration could deepen insights into how MNCs can optimize their global operations and workforce performance.

Keywords: Organizational Culture; Leadership; Employee Performance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-758-8_31

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