The Influence of the Corporate Management Commitment in Building Organizational Culture and Cross-Funtional Integration to Improve Company’s Business Performance

Abstract

Integration across management functions is a kind of an interaction that facilitates the coordination of various management function activities so that they can cooperate effectively and efficiently to reach the company's goals. The cross-function integration brings positive impacts to the company if it is supported by the top management, the organizational culture, and the strong teamwork to reach the company performance. This research has two main purposes. The first aim is to investigate whether the management commitment can bring impact to the forming of organizational culture and good teamwork in building the management function integration. The second aim is to investigate whether the cross-functional integration brings a positive impact to the company performance. The questionnaires are distributed among 94 manufacturing companies in East Java Indonesia. The data are processed with PLS. The result shows that there is a positive influence between the management commitment and the organizational culture formation. There is also a positive influence between the management commitment and the effective teamwork formation. Finally, it gives an impact to the company performance.