THE ROLE OF ORGANIZATIONAL CULTURE IN STRATEGIC PLANNING TO ACHIEVE BANK RIAU KEPRI SYARIAH PERFORMANCE

Abstract

Organizational strategy and organizational culture are two of the most fundamental concepts in management science. In addition, strategy and organizational culture are two important things in every organization. This is evidenced by the many organizations. These are the two most basic concepts in management science. Various studies have been conducted, and empirically, the results of each study generally prove that organizational strategy and organizational culture have a very important relationship and provide benefits for the organization. Organizational culture can unite all elements in a company and be the right reason for people to work there. The specific objectives of this research are: (1) to empirically test and analyze the role of organizational culture in determining business strategy; (2) to empirically test and analyze the role of organizational culture in improving organizational performance; and (3) to empirically test and analyze the role of business strategy in improving organizational performance. Data collection techniques used was observation, documentation, and questionnaires to the heads of business units (shops) of Bank Riau Kepri Syariah. The population in this study was all of the leaders of Bank Riau's shops, totaling 41 people. The research was analyzed using partial least squares (PLS) with SmartPLS software. The results of the study show that: (1) A strengthened organizational culture has an important role in the business strategy of Bank Riau Kepri Syariah. (2) A stronger organizational culture has an important role in improving business strategy but does not have a significant direct impact on improving organizational performance. (3) The right business strategy will improve organizational performance