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.
Highlights
Trusmi batik is produced by a small industry in Cirebon Regency, Indonesia on the basis of culture and tradition and made of raw material available in the country so that this product has a cultural value
This study aims to investigate the effect of organizational culture mediation toward the correlation between manufacturing strategy and competitive advantage on Indonesia’s Batik Trusmi industry
Three statistic analysis instruments were employed in this study, they are (1) correlation analysis, (2) simple linear regression analysis and (3) multiple linear regression. This multiple linear regression was used because it met the objective of the study that was to investigate the effect of mediation in organizational culture toward the correlation between manufacturing strategy and competitive advantage in Indonesia’s Trusmi Batik industry
Summary
Trusmi batik is produced by a small industry in Cirebon Regency, Indonesia on the basis of culture and tradition and made of raw material available in the country so that this product has a cultural value. This batik industry absorbs massive workforce and increases community empowerment because it has involved a number of small and medium even micro scale enterprises comprising a number of home industries. This study aims to investigate the effect of organizational culture mediation toward the correlation between manufacturing strategy and competitive advantage on Indonesia’s Batik Trusmi industry. Batik industry is an excellent product from Indonesia which has the economic potential and competitiveness should be developed and improved
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