Organizational Change Capacity, Environmental Uncertainty, and Organization Performance Studies on Traditional Retail Ownership of Chinese and nonChinese in Malang

Abstract

This study aims to show the effect of Organizational Change Capacity (OCC) and environment uncertain on traditional retail performance. In addition, this study also shows how cultural differences, reflected in ethnic differences in retail ownership of traditional Chinese and non-Chinese will affect organizational performance, and to differentiate the effect of OCC and environment uncertain on organization performance. This study uses a quantitative approach as the primary analysis method to explain the research results that supported by qualitative information of interview. The samples were 37 retails in Malang City. The respondents are the owner of retail. Data were collected directly by survey method using questionnaire instrument. Then the data is analyzed in two stages. The first stage is confirmatory factor analysis to determine the scores factor of each indicator. Furthermore, multiple regression analysis with dummy variables is used to test the research hypothesis. The findings of research is empirical evidence the effect of OCC on organizational performance, role of cultural differences on performance, and culture role to differentiate the effect of OCC on organizational performance. Uncertainty does not affect organizational performance and cultural differences do not make a difference in predicting the external environment in traditional retail.