Research Article Open Access

Manufacturing Strategy and Competitive Advantage: A Mediating role of Organizational Culture (A Case Study of Small Industry Batik Trusmi Indonesia)

Aam Amaningsih Jumhur1, Nik Hasnaa Nik Mahmood2 and Muchdie3
  • 1 Department of Mechanical Engineering Education, Universitas Negeri Jakarta, Indonesia
  • 2 Razak School of Engineering and Advance Technology, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
  • 3 Department of Management, Post Graduate School, Muhammadiyah University of Prof. DR. Hamka, Jakarta, Indonesia

Abstract

The effect of manufacturing strategy and competitive advantage has empirically resulted varied studies with regards to industry or service sectors as object of the study. Manufacturing strategy on one side directly affects competitive advantage in addition to giving an effect to competitive advantage mediated by organizational culture variable on the other side. Regarding this condition, this study aims to investigate the effect of organizational culture mediation toward the correlation between manufacturing strategy and competitive advantage in small industry batik Trusmi. 200 batik makers located in Trusmi, Cirebon, Indonesia were selected as respondents of the study. They consisted of 131 males and 69 females dominantly age 41 to 60. Correlation and regression analysis were employed as methods of the study. It can be concluded based on the regression test on manufacturing strategy and competitive advantage variables and on the presence of organizational culture as mediator variable that there is a significant correlation between manufacturing strategy and mediator variables (organizational culture) and competitive advantage variable altogether. It shows that there is no a direct effect of manufacturing strategy variable toward competitive advantage variable.

American Journal of Applied Sciences
Volume 14 No. 7, 2017, 711-717

DOI: https://doi.org/10.3844/ajassp.2017.711.717

Submitted On: 17 February 2017 Published On: 19 July 2017

How to Cite: Jumhur, A. A., Mahmood, N. H. N. & Muchdie, . (2017). Manufacturing Strategy and Competitive Advantage: A Mediating role of Organizational Culture (A Case Study of Small Industry Batik Trusmi Indonesia). American Journal of Applied Sciences, 14(7), 711-717. https://doi.org/10.3844/ajassp.2017.711.717

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Keywords

  • Manufacturing Strategy
  • Competitive Advantage
  • Organizational Culture