The Influence of Company Innovation Strategies and Organizational Culture on Employee Performance

Abstract

One of the key factors in creating competitive advantage is the company's innovation strategy. An effective innovation strategy can help companies identify new business opportunities, develop innovative products or services, and improve employee performance. In the current era of increasingly fierce competition and globalization, innovation is very important for business success and continuity. Companies that use a successful innovation approach can gain competitive advantage, improve operational efficiency, and meet changing market demands. In that context, this thesis aims to examine the influence of company innovation strategy (X1) and organizational culture (X2) on employee performance (Y) at a family corporate. This research uses a quantitative method using a questionnaire as a data collection instrument. Data obtained from 92 employee respondents at a family corporate were analyzed using multiple linear regression techniques to determine whether a dependent variable is influenced by one or more independent variables. The research results show that the significance value of the Innovation Strategy variable is 0.037, which is smaller than the significance level which is generally set at 0.05. This implies a partially significant influence between Innovation Strategy and Employee Performance. In other words, the Innovation Strategy variable makes a significant contribution to variations in Employee Performance. These findings provide a strong basis for concluding that organizations need to pay attention to and strengthen the implementation of Innovation Strategy as part of a broader management strategy. Therefore, an appropriate approach is needed in an effort to improve employee performance, so that all PT Rise Jaya employees can understand the innovation strategy and organizational culture so that they can be even better in the future.