ARTICLE | doi:10.20944/preprints202209.0158.v1
Subject: Social Sciences, Organizational Economics & Management Keywords: business turbulence; industrial connections; industrial connections climate; industrial connections instruments; organizational performance
Online: 13 September 2022 (05:02:46 CEST)
The year 2022 was characterized by several major events that impacted the business world in Indonesia and even globally after the COVID-19 pandemic devastated all business sectors in Indonesia and the world. The current business environment is experiencing accelerating turbulence characterized by increasing intensity of business competition, rapid changes in the market, and industrial connections climate. The industrial connection climate of an institution can be measured by the pattern of relationships that occur between workers and management. Industrial connections are fundamental to the sustainability of an organization and are understood as an important factor in influencing institutional performance. This research aims to look at the impact of the existence of industrial connections instruments, turbulence in the business environment on the industrial connections climate. Besides, how the industrial connections climate relates to firm performance. The research design is an inferential quantitative, using sampling and snowball sampling methods with total sample are 406. The data collected were analyzed using Structural Equation Model using LISREL version 8.70. This research used a survey to build an SEM model that tested the effect of organizational turbulence and industrial connections instruments on organizational climate directly, and tested mediation on organizational performance. All related indicators have outer loading more than 0.5 and T-value more than 1.96. Therefore, the conclusion is that all measurements are valid. Composite Reliability (CR) and VE for all indicators are >0.7 and >0.5 respectively. This research shows that industrial assosiation climate has a positive effect on business turbulence and industrial connections instruments. However, industrial connections instruments show a greater impact on the assosiation climate. This is because industrial connections instruments are the media used in the implementation of industrial connections in organizations. This research also confirms that industrial assosiation climate is positively related to organizational performance. The result of the indirect influence (IE) of 0.20 with t value is 8.47 means that the climate of Industrial connections is able to mediate the influence of Industrial connections Facilities on Organizational Performance.