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The Effect of Organizational Commitment, Decentralization and
Management Accounting Systems on Managerial Performance with
Organizational Culture as a Moderating Variable
Erwan Seti Nugroho, Siti Hamidah Rustiana, Haris Sarwoko
Master of Accounting Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Indonesia
Email: erwan[email protected]
Abstract
This study aims to determine the effect of organizational commitment, decentralization and management
accounting systems on managerial performance with organizational culture as a moderating variable. This
research method is included in quantitative research with primary data sources. Data analysis in this study used
the WarpPLS Version 7.0 data processing tool. The results showed that Organizational Commitment,
Decentralization and Management Accounting Systems had a positive and significant effect on Managerial
Performance, Organizational Commitment and Management Accounting Systems had a positive and significant
effect on Organizational Culture. Decentralization has no significant effect on Organizational Culture.
Organizational Culture has a positive and significant effect on Managerial Performance. Organizational Culture
does not moderate Organizational Commitment, Decentralization and Management Accounting Systems on
Managerial Performance.
Keywords
:
Organizational Commitment, Decentralization, Management Accounting System, Managerial
Performance, Organizational Culture.
INTRODUCTION
The role of Higher Education has a quite strategic position as the front guard for
producing quality human resources which are expected to contribute to the development of a
country. Therefore, adequate synergy is needed within the higher education institutions
themselves to achieve goals as an organization and as a development partner for a country
(Sabir et al., 2021). In general, the problems that are often faced by a country that is included
in the underdeveloped category are due to the factors of poverty, social inequality and a lack
of quality human resources. This is the main concern for universities to empower citizens so
they can have skills or competencies that will later become intermediaries to improve living
standards (Rana, Ahmed, Narayan, & Zheng, 2022).
The role of teaching staff at tertiary institutions has a quite strategic position, apart from
being lecturers they also act as managers of the institution so that there are multiple roles in
carrying out work in the same environment. The existence of this dual role causes role conflicts
to occur which affect managerial performance in achieving organizational goals (Sabir et al.,
2021).
Another phenomenon shows that there are still large gaps in managerial performance that
are often faced by universities in Indonesia, including budget program planning that is not yet
optimal, implementation in the investigation of recording daily activity reports that are not yet
comprehensive, obstacles in coordinating task units within the university, evaluation the
performance of lecturers or other employees is still not optimal, there is still a low form of
internal supervision from the university in anticipating various forms of violations both related
to academic and non-academic aspects, recruitment of employees which sometimes still
Injuruty: Interdiciplinary Journal and Humanity
Volume 2, Number 3, March 2023
e-ISSN: 2963-4113 and p-ISSN: 2963-3397
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ignores areas of competence and lack of university representation in the realm of community
service (Sabir et al., 2021).
With increasingly intense competition which automatically requires an organization to
continue to evaluate the performance of its organization, it is necessary to know several
activities that are directly related to the managerial performance of the organization (Roque,
Raposo, & Alves, 2021). For the world of education, especially higher education, the business
world which is always moving dynamically certainly brings enormous consequences in
managing its organizational units. Universities are required to continue to improve quality and
competitiveness and adapt quickly to various kinds of dynamics in the world of education
related to the use of technology, academic services and to prepare graduates who are competent
in their fields according to the needs of an increasingly competitive world of work (Zaki Ewiss,
2021).
In general, there are three problems faced by tertiary institutions in Indonesia, first of all,
the quality of the teaching staff, the number of doctors and professors in tertiary institutions is
still minimal. Second, the world of student affairs for expression and innovation in developing
knowledge, so far several campuses still lack teaching and learning facilities, thereby limiting
the space for students to develop their interests, talents and knowledge. Third, the academic
demands of students and lecturers are too dense. Students lack time to improve abilities outside
campus and organizations, lecturers lack time and opportunities to research and write scientific
papers (Roque et al., 2021).
To help improve managerial performance, organizational commitment is needed that
accommodates all kinds of interests from various parties who are actively involved in
advancing the organization that is formally designed in the form of policy. Organizational
commitment needs to get attention, so that it is hoped that it will make a positive contribution
in supporting the success of an organization's goals (Wahyudi, Hasanah, & Mushlihatun, 2021).
Organizations that have a clear commitment certainly have potential value to directly
contribute to increasing the motivation and role of each individual involved in the operational
activities of the organization so that cumulatively it will improve managerial performance
(Badu, Awaluddin, & Mas’ud, 2019).
Not only is organizational commitment needed to improve managerial performance, the
application of the concept of decentralization in an organization also has a big contribution to
improving managerial performance (Badu et al., 2019). Organizations are becoming more
complex to manage, making it nearly impossible to make decisions solely on top managers.
Besides creating a heavy workload, decisions may not be effective for the organization (Ewiss,
2021). Another reason why the concept of decentralization is very important to be implemented
in organizations is more appropriate decision making (Davila, Gupta, & Palmer, 2018).
After the implementation of organizational commitment and the concept of
decentralization has been carried out properly, then it is necessary to implement an adequate
management accounting system to optimize organizational operational activities so that they
are more effective and efficient in accordance with applicable standard operating procedures
(Afandi, Fatimah, & Martana, 2021). The reason for the need to implement a management
accounting system for an organization is because it can help make decisions regarding the use
of funds for organizational goals. This is because the management accounting system provides
an analysis of the profits and losses experienced by the organization and the factors that support
it (Dharu & Wahidahwati, 2021).
Organizational culture becomes a medium in the work environment that can be felt
positively and strengthened to maximize various kinds of things that are directly related to
improving managerial performance (Darwis, 2019). Organizational culture can determine how
the organization fulfills its various objectives related to the targets to be achieved by the
organization itself (Dharu & Wahidahwati, 2021). The application of organizational culture
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can be in line with organizational commitment which has been implemented directly in a
bottom-up manner to move all individual organizations to maximize their role in improving
managerial performance (Wahyudi et al., 2021). In making organizational decisions, the
concept of decentralization can certainly produce good decisions if each divisional unit carries
out its duties and authorities in a comprehensive and disciplined manner by paying attention to
everything within the divisional unit (Dharu & Wahidahwati, 2021). Organizational culture has
an attachment to how the pattern of the management accounting system is juxtaposed with
individual behavior within an organization to produce the maximum expected output as a form
of organizational achievement (Afandi et al., 2021).
Based on the explanation and on the reasons and problems, several formulations of the
problem were concluded, namely: Does organizational commitment affect managerial
performance? Does decentralization affect managerial performance? Does the management
accounting system affect managerial performance? Does organizational commitment affect
organizational culture?, Does decentralization affect organizational culture?, Does the
management accounting system affect organizational culture?, Does organizational
commitment affect managerial performance with organizational culture as a moderating
variable?, Does decentralization affect managerial performance with organizational culture as
a moderating variable?, Does the system management accounting affects managerial
performance with organizational culture as a moderating variable? Does organizational culture
affect managerial performance?
METHOD RESEARCH
The type of research used in this research is quantitative research because it aims
to use and develop mathematical models, test theories and hypotheses related to
phenomena. This research includes an associative explanatory research typology
because it aims to determine the influence or relationship between two or more
variables (Ghozali, 2018).
RESULT AND DISCUSSION
Outer Model Test
Table 1. Outer Loading
KO
DS
SAM
BO
KM
KO1
0.947
KO2
0.865
KO3
0.750
KO4
0.734
KO5
0.859
KO6
0.692
DS1
0.901
DS2
0.880
DS3
0.633
DS4
0.717
DS5
0.844
DS6
0.752
DS7
0.727
DS8
0.577
SAM1
0.823
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SAM2
0.790
SAM3
0.756
SAM4
0.740
SAM5
0.660
SAM6
0.788
SAM7
0.680
SAM8
0.660
BO1
0.887
BO2
0.980
BO3
0.805
BO4
0.657
KM1
0.798
KM2
0.795
KM3
0.812
KM4
0.653
KM5
0.728
KM6
0.755
KM7
0.823
KM8
0.850
KM9
0.845
KM10
0.686
KM11
0.496
KM12
0.693
KM13
0.620
Source: Primary Data Processed (2022)
Based on table 1. it can be seen that the obtained research indicators are valid. So testing
latent variables on indicators in research can be well understood.
Composite Reliability
Table 2. Composite Reliability
Variable
Composite Reliability
Organizational Commitment
0,706
Decentralization
0,720
Management Accounting System
0,741
Organizational culture
0,691
Managerial Performance
0,715
Source: Primary Data Processed (2022)
Based on table 2. it can be seen that the composite reliability value of each variable has
≥ 0.4, where the organizational commitment variable is 0.706, the decentralization variable is
0.720, the management accounting system variable is 0.741, the organizational culture variable
is 0.691 and the managerial performance variable is 0.715. This shows that the research
variables have good reliability.
Cronbach Alpha
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Table 3. Cronbach Alpha
Variable
Cronbach’s alpha
Organizational Commitment
0,507
Decentralization
0,561
Management Accounting System
0,621
Organizational culture
0,414
Managerial Performance
0,588
Source: Primary Data Processed (2022)
Table 3 shows the composite reliability value in the form of the Cronbach's Alpha value.
The organizational commitment variable has a value of 0.507 which is included in the sufficient
category, the decentralization variable has a value of 0.561 which is included in the sufficient
category, the management accounting system variable has a value of 0.621 which is included
in the high category, the organizational culture variable has a value of 0.414 which is included
in the high category moderate, and the managerial performance variable has a value of 0.588
which is included in the sufficient category.
The reliability value in this study has been demonstrated by the reliability of composite
reliability and Cronbach's alpha which have varying reliability according to each category of
value ranges, so that the data collected can be used for hypothesis testing.
Discriminant Validity
Table 4. Discriminant Validity
KO
DS
SAM
BO
KM
KO
0.542
DS
0.508
SAM
0.548
BO
0.613
KM
0.426
Source: Primary Data Processed (2022)
Based on table 4, it can be seen that the AVE value ≥ 0.4 this indicates that the indicators
for all research variables are valid.
Goodness Of Fit (Inner Model)
Table 5. Goodness of Fit
No.
Model Fit and Quality
Indices
Fit Criteria
Analysis
Results
Information
1
Average Path Coefficient
(APC)
p < 0.05
0,125,
p=0.018
Good
2
R-squared contribution
ratio (RSCR)
Acceptable if ≥ 5,
ideally = 1
0.979
Good
3
Average Adjusted R-
squared
p < 0.05
0.174,
p=0.003
Good
4
Average block VIF
(AVIF)
Acceptable if ≤ 5,
ideally ≤ 3.30
1.451
Ideal
5
Average full colliniearity
VIF (AFVIF)
Acceptable if ≤ 5,
ideally ≤ 3.30
1.332
Ideal
Source: Primary Data Processed (2022)
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Table 5 shows the general model elements used as indicators of the goodness of fit inner
model. The results of the analysis show that the Average Path Coefficient (APC) or average
path coefficient is 0.125 with a significance level of p-value = 0.018, meaning that the
coefficients in each path have a significant influence from exogenous variables on endogenous
variables and also mediation models on endogenous variables.
The R-squared contribution ratio is 0.979, meaning that it shows a significant 97.9%
influence of the independent variable on the dependent variable and also the mediation model
on the dependent variable. While the remaining 2.1% is influenced by other variables not used
in this study.
The VIF Average Block (AVIF) value of 1.451 < 3.30 < 5 is included in the ideal
category. The Average Full Colliniearity VIF (AFVIF) value of 1.332 < 3.30 < 5 is included
in the ideal category. This means that the results of this analysis indicate that each variable in
this study is free from multicollinearity. Free from multicollinearity, this indicates that each
variable is not related to each other or does not have a significant correlation so that each
variable used in this study stands alone or is independent of each other.
Hypothesis test
Figure 1 Structural Equation
Table 6. Direct Hypothesis Test Results
No.
Relations Between
Variables
Path
Coefficients
p-value
Significance Level
1
KO KM
0.214
< 0.001
Significant
2
DS KM
0.136
0.026
Significant
3
SAM KM
0.207
< 0.001
Significant
4
KO BO
0.154
0.013
Significant
5
DS BO
0.027
0.353
Not significant
6
SAM BO
0.257
< 0.001
Significant
7
BO KM
0.173
0.006
Significant
Source: Primary Data Processed (2022)
Table 6. shows the calculation of the influence of organizational commitment variables
on managerial performance. In this calculation, the path coefficient value is 0.214 with a
significance level of p-value <0.001. This calculation explains that the hypothesis that
organizational commitment has a significant effect on managerial performance is accepted with
a positive or unidirectional relationship. This means that organizational commitment directly
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has a significant effect on managerial performance, the higher organizational commitment, the
higher managerial performance.
Table 6. shows the calculation of the effect of decentralization variables on managerial
performance. In this calculation, the path coefficient value is 0.136 with a p-value significance
level of 0.026. This calculation explains that the decentralization hypothesis has a significant
effect on managerial performance accepted with a positive or unidirectional relationship. This
means that decentralization directly has a significant effect on managerial performance, the
more comprehensive the concept of decentralization is carried out, the more managerial
performance will also increase.
Table 6. shows the calculation of the effect of management accounting system variables
on managerial performance. In this calculation, the path coefficient value is 0.207 with a
significance level of p-value <0.001. This calculation explains that the decentralization
hypothesis has a significant effect on managerial performance accepted with a positive or
unidirectional relationship. This means that the management accounting system directly has a
significant effect on managerial performance, the better the management accounting system is
applied, the managerial performance will also increase.
Table 6. shows the calculation of the influence of organizational commitment variables
on managerial performance. In this calculation, the path coefficient value is 0.154 with a p-
value significance level of 0.013. This calculation explains that the hypothesis that
organizational commitment has a significant effect on organizational culture is accepted with
a positive or unidirectional relationship. This means that organizational commitment directly
has a significant effect on organizational culture, the higher the organizational commitment,
the better the implementation of organizational culture.
Table 6. shows the calculation of the effect of decentralization variables on managerial
performance. In this calculation, the path coefficient value is 0.027 with a significance level of
0.353 p-value. This calculation explains that the decentralization hypothesis has an effect on
organizational culture is rejected. This means that organizational commitment does not have a
significant effect on organizational culture directly.
Table 6. shows the calculation of the effect of management accounting system variables
on managerial performance. In this calculation, the path coefficient value is 0.257 with a
significance level of p-value <0.001. This calculation explains that the management accounting
system hypothesis has a significant effect on organizational culture accepted with a positive or
unidirectional relationship. This means that the management accounting system directly has a
significant effect on organizational culture, the better the application of the management
accounting system concept, the better the implementation of organizational culture.
Table 6. shows the calculation of the influence of organizational culture variables on
managerial performance. In this calculation, the path coefficient value is 0.173 with a p-value
significance level of 0.006. This calculation explains that the organizational culture hypothesis
(M1) has a significant effect on managerial performance (Y) is accepted with a positive or
unidirectional relationship. This means that organizational culture directly (X3) has a
significant effect on managerial performance (Y), the better the implementation of
organizational culture, the better managerial performance.
Table 7. Indirect Hypothesis Test Results
No.
Relations Between
Variables
Path
Coefficients
p-value
Information
1
BO*KO
-0.029
0.343
Not significant
2
BO*DS
0.018
0.400
Not significant
3
BO*SAM
0.035
0.310
Not significant
Source: Primary Data Processed (2022)
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Table 7. shows the calculation of the influence of organizational culture variables as a
mediating variable from organizational commitment to managerial performance. In this
calculation, the path coefficient value is -0.029 with a p-value significance level of 0.343. This
calculation explains that the hypothesis of organizational culture being mediation in managerial
performance is rejected. This means that indirectly organizational culture is not able to
moderate the effect of organizational commitment on managerial performance.
Table 7. shows the calculation of the influence of organizational culture variables as a
mediating variable from decentralization on managerial performance. In this calculation, the
path coefficient value is 0.018 with a p-value significance level of 0.343. This calculation
explains that the hypothesis of organizational culture being mediation in managerial
performance is rejected. This means that indirectly organizational culture is not able to
moderate the effect of decentralization on managerial performance.
Table 7. shows the calculation of the influence of organizational culture variables as a
mediating variable from the management accounting system on managerial performance. In
this calculation, the path coefficient value is 0.035 with a p-value significance level of 0.310.
The calculation explains that the hypothesis of organizational culture being a moderation in
managerial performance is rejected. This means that indirectly organizational culture is not
able to moderate the influence of management accounting systems on managerial performance.
The Effect of Organizational Commitment on Managerial Performance
Based on the results of hypothesis testing, it shows that the variable organizational
commitment has a positive and significant effect on managerial performance, so it can be
concluded that high organizational commitment can improve managerial performance. The
results of this study strengthen the results of research conducted by Ridwan & Sandy (2019),
Badu et al. (2019) and Syabila et al. (2021) which shows that organizational commitment has
a positive and significant effect on managerial performance. However, the results of this study
are different from research conducted by (Badzaly, 2021) which states that organizational
commitment actually has a negative and significant effect on managerial performance.
Having organizational commitment is an important element in working in an
organization. Someone who has high organizational commitment can be expected to have a
positive outlook and try to do or make the best contribution to achieving goals and better
performance for the organization. The results of this study are in accordance with the
involvement theory to explain that involvement and participation will contribute to the growth
of a sense of responsibility and ownership, and therefore also have an impact on the growth of
increased company performance, and of course the financial performance of the company, and
loyalty to the company. Involvement theory also states that effective organizations or
companies empower their employees, build their organizations or companies in the form of
teams, and develop their human resource capabilities at all levels. According to Involvement
theory, executives, managers and employees have a high commitment to their work and they
feel that they have become a part of the organization or company where they work. People at
all levels feel that they at least have the opportunity to provide some input or contribution to
the decision-making process within the company that will affect their work, and that their work
is directly related to the goals the organization or company wants to achieve.
Effect of Decentralization on Managerial Performance
Based on the results of hypothesis testing, the results of the decentralization variable have
a positive and significant effect on managerial performance. The results of this study strengthen
the results of research conducted by Sabir et al. (2021), Ewiss (2021) and Davila et al. (2018),
that decentralization has a positive and significant effect on managerial performance. However,
the results of this study are different from the research conducted by (Indriyanti, Malikah, &
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Junaidi, 2020) which states that the management accounting system actually has a negative and
significant effect on managerial performance.
The results of this study are in accordance with the institutional logics theory which is
used to explain that management control systems are used as a pattern or system, related to
organizational management control, which is socially structured and embedded in wider
cultural beliefs and rules within the organization, and therefore serves as the basis or basis for
the decision-making process at the micro level in an organization or company, where of course
the results of each decision-making process that takes place in the organization will have an
impact on the performance and financial performance of the organization or company.
Decentralization gives employees in each work department unit greater responsibility
and control over their activities, and greater access to the information needed. The better
decentralization is implemented, it will further improve managerial performance because
decentralization has the overall achievement of improving managerial performance.
Decentralization is necessary because there are administrative conditions that are increasingly
complex, as well as tasks and responsibilities that require the distribution of authority to lower
management. With the delegation of authority will help ease the burden on higher management.
The Effect of Management Accounting Systems on Managerial Performance
The existence of a positive influence between the management accounting system
variables on managerial performance illustrates that all the information needed by
organizational leaders is available or sufficient in decision making. The information provided
by the management accounting system helps users at all levels of the organization in the process
of making decisions or making a policy, be it decisions related to finance or other decisions
that concern the interests of the organization.
The results of this study are consistent with the consistency theory which explains that
organizations or companies tend to run effectively and efficiently in all of their operational
activities, if they have an integrated and systematic system while still combining it with the
existing organizational culture that is well coordinated within organization or company, which
will later form a good level of performance and financial performance.
Management accounting information systems that have the characteristics of timelines,
broad scope, aggregation, and integration are able to influence managerial performance. The
wider the scope of information, the more concise and complete the information, the more
complex the information and the timeliness in providing information shows the better each
individual organization is in improving its performance, resulting in better decisions in
planning, investigation, coordination, evaluation, supervision, staffing, negotiation and
representation.
A system can be said to be beneficial if the information presented is effectively useful in
a series of decision-making actions for users of that information. Information that is presented
correctly will influence decision making in managing the organization. Thus, various levels of
management within the organization can capture and detect more quickly when changing
conditions require a strategic response. The information received by management varies greatly
in form or function, so it is necessary to select and group specific information that can play an
important role in achieving managerial performance.
The results of this study strengthen the results of research conducted by (Kingazi, 2020),
Roque et al. (2021) and Rana et al. (2021) directly the management accounting system variable
has succeeded in showing a positive and significant influence on managerial performance.
However, the results of this study differ from research conducted by Amalia (2021) which
states that the management accounting system actually has a negative and significant effect on
managerial performance.
The Effect of Organizational Commitment on Organizational Culture
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Based on the results of hypothesis testing, it was found that the organizational
commitment variable had a positive and significant effect on managerial performance. The
results of this study strengthen the results of research conducted by Rana, et al. (2021), Badu,
et al. (2019) and Syabila et al. (2021), which states that organizational commitment has a
positive and significant effect on organizational culture. However, the results of this study are
different from research conducted by Ewiss (2021), which states that the variable
organizational commitment has a negative effect on organizational culture.
The results of this study are consistent with the involvement theory which explains that
involvement and participation will contribute to the growth of a sense of responsibility and
ownership, and therefore also have an impact on the growth of increased organizational
performance, and of course the financial performance of the organization, and loyalty to the
organization. Involvement theory also states that organizations or companies that effectively
empower their employees, build their organizations or companies in the form of teams, and
develop their human resource capabilities at all levels are accompanied by the implementation
of a good organizational culture, then will encourage increased performance for the
organization or company in general.
The application of organizational commitment and organizational culture is very closely
related. Organizational culture can support the implementation of organizational commitment
effectively which will ultimately affect performance, where performance will increase faster.
Organizational culture refers to a system of shared meaning held by members that differentiates
an organization from other organizations. Unfavorable organizational culture can certainly
affect the failure of the implementation of organizational commitments. This indicates that
there is a significant relationship between organizational culture and the implementation of
organizational commitment. The better the organizational culture in an organization, it will
have an impact on the resulting organizational commitment.
The Effect of Decentralization on Organizational Culture
Based on the results of hypothesis testing, it was found that the decentralization variable
had a positive and insignificant effect on organizational culture. This shows that the higher the
level of decentralization that is implemented, the more effective the organizational culture is
applied, but this does not happen completely in reality.
The results of this study are not in line with the consistency theory which states that the
management control of an organization or company, which is socially structured and embedded
in broader cultural beliefs and rules within the organization, will serve as the basis or basis for
decision-making processes at the micro level within the organization or company, where of
course the results of every decision-making process that takes place in the organization or
company will have an impact on the performance and financial performance of the organization
or company.
In general, decentralization has a close relationship with organizational culture, but this
study does not support the results of research conducted by Sabir et al. (2021), Ewiss (2021)
and Davila et al. (2018), which states that decentralization has a positive and significant effect
on organizational culture.
The Effect of Management Accounting Systems on Organizational Culture
Based on the results of hypothesis testing, it was found that the management accounting
system variable had a positive and significant effect on organizational culture. The results of
this study support research conducted by Ridwan and Sandy (2019), Kingazi et al. (2021) and
Roque et al. (2021), which states that the management accounting system has a positive and
significant effect on organizational culture. However, the results of this study are different from
the research conducted by Badu et al. (2019), which states that the management accounting
system actually has a negative effect on organizational culture.
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The results of this study are in accordance with the consistency theory which explains
that organizations or companies tend to be effective and efficient in all of their operational
activities, where of course this effectiveness and efficiency also contributes to a good level of
performance and financial performance, because it has an organizational culture. strong and
consistent, as well as well coordinated and integrated within the organization or company. The
behavior of an organization's or company's employees is rooted in a set of core values, where
leaders and followers of an organization or company are agile in reaching agreement regarding
a set of core values that are the basis of the beliefs of all these employees, even when they have
different views.
The management accounting system is a representation of the form of implementation of
standard operating procedures of an organization that is directly related to a clear strategy,
picture and mechanism in carrying out its routine operational activities. The application of the
management accounting system is expected to make a positive contribution to the organization
which can be translated as a routine when it produces organizational output in the long term so
that it is stated that the management accounting system is part of the organizational culture in
the form of systematic and comprehensive organizational operational implementation which
will ultimately contribute to survival of the organization itself.
The Effect of Organizational Culture on Managerial Performance
Based on the results of hypothesis testing, it was found that organizational culture
variables had a positive and significant effect on managerial performance. The results of this
study support the research conducted by Tangdialla et al. (2021), Dharu & Wahidahwati (2021)
and Wahyudi et al. (2021) which states that organizational culture has a positive and significant
effect on managerial performance.
The results of this study are in accordance with the consistency theory which explains
that organizations or companies tend to be effective and efficient in all of their operational
activities, where of course this effectiveness and efficiency also contributes to a good level of
performance and financial performance, because it has an organizational culture. strong and
consistent, as well as well coordinated and integrated within the organization or company.
Consistency in reaching agreement regarding a set of core values which then form an
organizational culture that is rooted in the organization or company, is a source of stability and
strong internal integration resulting from a number of common mindsets and a high level of
conformity, which can then create a high level of managerial performance. high anyway.
The results of this study are also in line with the theory put forward by Kreitner and
Kinicki (2002) in Tangdialla et al. (2021), who defines organizational culture as the adhesive
for various elements within the organization through values that must be adhered to, symbolic
equipment and social goals to be achieved. Every organization must have its own meaning for
the word culture itself which includes: identity, ideology, sources of information, vision and
mission of the organization. So it can be concluded that organizational culture is the rules of
the game that exist in an organization that become a guideline for human resources in the
organization when carrying out obligations and values that exist to behave in an organization.
The Influence of Organizational Commitment To Managerial Performance Is Moderated By
Organizational Culture
Based on the results of hypothesis testing, it was found that organizational culture has no
significant effect in strengthening or weakening the relationship between organizational
commitment and managerial performance with a coefficient value of -0.029 and a significance
value of 0.343. So it can be concluded that organizational culture is not a moderating variable
capable of influencing (strengthening or weakening) the relationship between organizational
commitment to managerial performance. The results of this study are not in line with the
research conducted by Wahyudi et al. (2021), Ramadhini et al. (2019) and Mayarani et al.
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(2021) which states that organizational culture is able to moderate (strengthen and weaken) the
relationship between organizational commitment to managerial performance.
The results of this study do not support involvement theory, namely because not all
members in an organization can implement a good culture. Organizations that have a high
organizational culture tend to do according to organizational habits. Because when an
employee tries to make the best possible contribution to the organization where he works, there
may be external technical matters that can affect his performance. Therefore, a good
organizational culture in a company does not necessarily guarantee the output of employee
loyalty when carrying out their duties to improve managerial performance.
The Effect of Decentralization on Managerial Performance Moderated by Organizational
Culture
Based on the results of hypothesis testing, it was found that organizational culture had
no significant effect on strengthening or weakening the relationship between decentralization
and managerial performance with a coefficient value of 0.018 and a significance value of 0.400.
So it can be concluded that organizational culture is not a moderating variable capable of
influencing (strengthening or weakening) the relationship between decentralization and
managerial performance. The results of this study are not in line with research conducted by
Dharu and Wahidahwati (2021), Ramadhini et al. (2019) and (Mustofa & Trisnaningsih, 2022)
who state that organizational culture is able to moderate (strengthen or weaken) the relationship
between decentralization and managerial performance.
The results of this study do not support the institutional logics theory, namely because
not all members in the organization can apply a good culture. Organizations that have a high
organizational culture tend to do according to organizational habits. This is because the form
of implementation of the concept of decentralization of work units applied in an organization
also depends on the regulations promulgated by that organization. Management control
systems may not be able to provide a major influence to encourage synergy in the application
of the concept of decentralization of work within organizational units.
The Effect of Management Accounting Systems on Managerial Performance Moderated
By Organizational Culture
Based on the results of hypothesis testing, it was found that organizational culture had
no significant effect in strengthening or weakening the relationship between management
accounting systems and managerial performance with a coefficient value of 0.035 and a
significance value of 0.310. So it can be concluded that organizational culture is not a
moderating variable capable of influencing (strengthening or weakening) the relationship
between management accounting systems and managerial performance. The results of this
study are not in line with the research conducted by Afandi et al. (2021), Tangdialla et al.
(2021) and (Silitonga, 2019) which state that organizational culture is able to moderate
(strengthen or weaken) the relationship between management accounting systems and
managerial performance.
The results of this study do not support the consistency theory, namely because not all
members in the organization can apply a good culture. Organizations that have a high
organizational culture tend to do according to organizational habits. Because the application of
a management accounting system related to the level of effectiveness and efficiency in
operational activities depends on how well it follows the existing standard operating procedures
of the organization. Therefore, a good organizational culture in an organization may not
necessarily be in line with the application of a management accounting system to improve
managerial performance.
CONCLUSION
The Effect of Organizational Commitment, Decentralization and Management Accounting
Systems on Managerial Performance with Organizational Culture as a Moderating Variable
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Organizational commitment has a positive and significant effect on managerial
performance. That is, the higher the organizational commitment possessed by employees, the
managerial performance at Prof. Muhammadiyah University. Dr. HAMKA is increasing. The
results of this study support the results of research conducted by Ridwan & Sandy (2019), Badu
et al. (2019) and Syabilla et al. (2021) which states that organizational commitment has a
positive and significant effect on managerial performance.
Decentralization has a positive and significant effect on managerial performance. That
is, the more comprehensively the concept of decentralization is implemented, the managerial
performance at Prof. Muhammadiyah University. Dr. HAMKA is increasing. The results of
this study support the results of research conducted by Sabir et al. (2021), Ewiss (2021) and
Davila et al. (2018) which states that decentralization has a positive and significant effect on
managerial performance.
The management accounting system has a positive and significant effect on managerial
performance. That is, the more adequate the application of the management accounting system
is implemented, the managerial performance at Prof. Muhammadiyah University. Dr. HAMKA
is increasing. The results of this study support the results of a study conducted by Kingazi et
al. (2021), Roque et al. (2021) and Rana et al. (2021) which states that the management
accounting system has a positive and significant effect on managerial performance.
Organizational commitment has a positive and significant effect on organizational
culture. That is, the higher the organizational commitment possessed by employees, the better
the organizational culture applied at Prof. Muhammadiyah University. Dr. HAMKA. The
results of this study support the results of research conducted by Rana et al. (2021), Badu et al.
(2019) and Syabilla et al. (2021) which states that organizational commitment has a positive
and significant effect on organizational culture.
Decentralization has no significant effect on organizational culture. That is, the level of
decentralization implemented at Muhammadiyah University, Prof. Dr. HAMKA has no
significant effect on the increase or decrease in organizational culture that has been running so
far. The results of this study contradict the results of a study conducted by Sabir et al. (2021),
Ewiss (2021) and Davila et al. (2018) which states that decentralization has a significant effect
on organizational culture.
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Copyright holders:
Erwan Seti Nugroho, Siti Hamidah Rustiana, Haris Sarwoko (2023)
First publication right:
Injurity - Interdiciplinary Journal and Humanity
This article is licensed under a Creative Commons Attribution-ShareAlike 4.0
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