
company uses several methods to boost the
performance of its employees, including by
creating a good company culture and motivating
employees. Saryano and Amboningtyas (2017)
found "organizational commitment has a positive
and significant effect on employee performance.
These results are different from the research
findings of Nongkeng (2012) which emphasized
that "organizational commitment can have an
indirect and insignificant influence on employee
performance."
All businesses and organizations want to have
employees with a high level of performance. The
work environment and organizational culture are
two components that influence employee
performance. The work environment must suit the
needs of employees so that they can do the best of
their work. Nitisemito (2011) states that "the
work environment includes everything that is
around workers and can influence how they carry
out the tasks assigned to them." According to
Suharyanto, Nugraha, and Permana (2014), "the
work environment is the internal and external
conditions that can influence work morale, so that
work can be expected to be completed faster and
better."
The company's innovation strategy includes
innovative policies and organizational structures
as well as an innovation culture that encourages
creativity and collaboration in the workplace. On
the other hand, a strong organizational culture
creates a work environment that supports
employee development, encourages improved
employee performance and increases their
productivity. Therefore, it is important to
understand the influence of innovation strategy
and organizational culture on employee
performance at A family corporate. By
understanding it, companies can find areas that
need to be improved to increase productivity,
work quality and employee satisfaction. This
research may also provide useful insights for
other companies in similar industries about the
importance of strategy and a healthy
organizational culture to achieve competitive
advantage.
2. Literature Review
2.1.Innovation
Strategy Innovation is adoption, according to
Damanpour (1991). These include tools, systems,
rules, products or services, new production
process technologies, new organizational
structures or systems, and new planning
initiatives that the organization accepts. However,
the type of innovation determines adoption and
innovation (Danampaour & Evan (1984),
Damanpour (1991), Damapour 1996, Kim et al.
(1998)). Innovation and product/process
development are key strategic objectives because
companies must improve their skills, knowledge
and capabilities to enter new markets. The main
hope is to improve company performance. In this
research, the importance of innovation strategy on
business performance is an important issue.
Innovation strategy can be measured using the
characteristics of leadership style and the type of
innovation used (Zahra and Das, 1993).
2.2. Organizatinal Culture
According to Ariany (2014), organizational
culture can be defined as the perception that each
member of the organization has. According to
Luthans (2006), "organizational culture consists
of standards and principles that direct how people
in the organization act." In order to be accepted
by their environment, each member will behave
in accordance with their culture. According to
Tika (2008), "organizational culture is the basis
for solving internal and external problems that are
carried out regularly by a group, and then passed
on to new members as the right way to
understand, think about and feel related
problems." Sutrisno (2010) states that
"organizational culture consists of a system of
values, norms (beliefs), assumptions and norms
that have been agreed upon and followed by
members of the organization to direct behavior
and resolve organizational problems.” In a
broader and deeper context, organizational
culture is the basis for creating an ideal work
environment.
2.3. Employee Performance
According to Handoko (2008), "employee
performance is defined as the behavior shown by
employees while carrying out the responsibilities
given by the company." Every company expects
its workers to do good things. They have many
employees, which allows them to make good
contributions to the company. Great employees
also have the potential to improve your business
performance; in other words, the survival of a
company is determined by the performance of its
employees. According to Rivai (2003), "work is
work that is based on motivation and ability to
complete certain tasks or assignments."
Moreover, to satisfy it, one must have a certain
level of desire and energy. Focusing attention on
training levels is a way to improve employee
performance.
International Journal of Applied Sciences & Development
DOI: 10.37394/232029.2024.3.8