The Relationship between Organizational Culture, Organizational Learning Capability and Organizational Effectiveness in Higher Education Institutions in Indonesia

The studies on the relationship between Organizational Culture and Organizational Effectiveness in Higher Education Institutions in US, Europe and Australia had been published, but still reveals a gap in the literature on the relationship between Organizational Culture, Organizational Learning Capability, and Organizational Effectiveness in Higher Education Institutions setting. Higher Education Institutions in Indonesia has undergone enormous growth and changes in recent years, and the competition has intensified both between Public and Private, and local and foreign Higher Education Institutions. Therefore, Higher Education Institutions need to identify which type of culture and learning that support Organizational Effectiveness in order to survive and to be ahead in the competition. These facts led to the objectives of this study, which is to identify the relationships between the type of Organizational Culture, Organizational Learning Capability and Organizational Effectiveness in Indonesian Higher Education Institutions. This study was based on the previous research on Organizational Effectiveness (Cameron, 1978; Quinn, 1983; Evan, 1993). Organizational Culture was based on the Competing Values Framework (Quinn, 1988; Cameron and Quinn, 1999) and the model of Organizational Learning Capability (Yeung et al., 1999). Research model was developed indicating the relationships among several culture and learning factor that have been argued as important to Organizational Effectiveness. The concepts of Organizational Effectiveness, Organizational Culture, and Organizational Learning Capability are operationalised and their relationships with each other are hypothesized. The instrument for ths research was developed based on the earlier work by Cameron’s (1978) research on Organizational Effectiveness for Higher Education Institutions; Cameron and Quinn (1999) and other researchers on Competing Values Framework for Organizational Culture in Hlgher Education Institutions, and Yeung et al., (1999) for Organizational Learning Capability and were pre-tested. Seven main hypotheses with twenty sub-hypotheses were developed and tested. This study has adopted survey research design method, by whch cross sectional data using the questionnaire that was collected by mail. The study has employed an area sampling approach, which is based on the Directory of Accreditation of Study Program (2002) for selecting sampling unit while data collection was conducted. Three hundred and two Study Programs in ten provinces in Indonesia participated in this study. Statistical analyses using SPSS version 11.5 employed Pearson-r Correlation, Levene’s test, and multiple regression. Descriptive statistics were also employed. The results of this study indicate that there are positively significant relationships between each type of Organizational Culture (Group Culture, Adhocracy Culture, Market Culture And Hierarchy Culture) and Organizational Effectiveness. Adhocracy Culture and Market Culture significantly explain the variability on the level of Organizational Effectiveness 50.3 % at 95% of confidence level with B coefficient: B0=0.610 (p=0.000); B3= 0.317 (p=0.000) of Adhocracy Culture; and B3=0.433(p=0.000) of Market Culture using stepwise regression. Group Culture And Hierarchy Culture was not significantly explained of the variance of Organizational Effectiveness. Furthermore, there are positively significant relationships between each type of Organizational Culture (Group Culture, Adhociracy Culture, Market Culture And Hierarchy Culture) and Learning Style. Adhocracy Culture and Hierarchy Culture significantly explain the variability on the level of Learning Style 47.9 % at 95% of confidence level with B coefficient: B0=0.886 (p=0.000); B2=0.283(p=0.000) of Adhocracy Culture and B4=0.425 (p=0.000) of Hierarchy Culture using stepwise regression. Group Culture and Market Culture are not significantly explaining the variance of Learning Style. There are also positively significant relationshps between each type of Organizational Culture (Group Culture, Adhocracy Culture, Market Culture and Hierarchy Culture) and Learning Capability. Adhocracy Culture, and Hierarchy Culture have highly significant and Market Culture has low significant explanation on the variability on the level of Learning Capability 56.5% at 95% of confidence level with B coefficient: Bo=0.521 (p=0.000); B2=0.346 (p=0.000) of Adhocracy Culture and B4 =0.266 (p-0.000) of Hierarchy Culture, and B3 = 0.138 (p0.044) of Market Culture using stepwise regression. Group Culture is not significantly explaining the variance of Learning Capability. Learning Style and Learning Capability were found to be the intervening variable but not as moderating variable as per research hypothesized. Learning Style and Learning Capability have significant influence to Organizational Effectiveness variability on the level of Organizational Effectiveness 51.3% at 95% of confidence level with B coefficient: B0=0.358 (p0.021); B1=0.209 (p=0.000) of Learning Style, and B2=0.680 (p=0.000) of Learning Capability. The result also revised the model of the relationships between the Organizational Culture, Learning Style, Learning Capability, and Organizational Effectiveness. The final model represents that Adhocracy Culture and Market Culture are positively influencing Organizational Effectiveness; and Adhocracy Culture and Hierarchy Culture are influencing Learning Style. On the other hand, Adhocracy Culture, Market Culture and Hierarchy Culture are influencing Learning Capability. While, Learning Style and Learning Capability are influencing Organizational Effectiveness. It was observed also that the Organizational Culture of Higher Education Institutions is somewhat dominated by Group Culture, and the Learning Style is somewhat dominated by the Competency Acquisition. Thus, in order to obtain a high level of Organizational Effectiveness, Higher Education Institutions must be changed to have higher level of Adhocracy Culture and Market Culture (external orientation both flexibility and control focus), and higher level of Learning Style and Learning capability.