Manufacturing Strategy and Competitive Advantage: A Mediating role of Organizational Culture (A Case Study of Small Industry Batik Trusmi Indonesia)

Abstract

The effect of manufacturing strategy and competitive advantage has empirically resulted varied studies with regards to industry or service sectors as object of the study. Manufacturing strategy on one side directly affects competitive advantage in addition to giving an effect to competitive advantage mediated by organizational culture variable on the other side. Regarding this condition, this study aims to investigate the effect of organizational culture mediation toward the correlation between manufacturing strategy and competitive advantage in small industry batik Trusmi. 200 batik makers located in Trusmi, Cirebon, Indonesia were selected as respondents of the study. They consisted of 131 males and 69 females dominantly age 41 to 60. Correlation and regression analysis were employed as methods of the study. It can be concluded based on the regression test on manufacturing strategy and competitive advantage variables and on the presence of organizational culture as mediator variable that there is a significant correlation between manufacturing strategy and mediator variables (organizational culture) and competitive advantage variable altogether. It shows that there is no a direct effect of manufacturing strategy variable toward competitive advantage variable.