Nusantara Economics and Entrepreneurships Journals
VOl.3,N0.2, (AUGUST, 2025), IN PRESS

MISSION OVER ADAPTABILITY: HOW CULTURE AND ENVIRONMENT JOINTLY DRIVE PERFORMANCE IN TRADITIONAL SMES

Natsir, Uhud Darmawan (Unknown)



Article Info

Publish Date
12 Aug 2025

Abstract

Purpose: This study investigates the direct and interactive effects of organizational culture and the physical-psychosocial work environment on employee performance within small and medium-sized enterprises (SMEs), specifically in the traditional brick-making industry in Takalar Regency, Indonesia. Design/methodology/approach: A quantitative approach was employed using a cross-sectional survey. Data were collected from 150 employees across 20 brick-making units through structured questionnaires measuring organizational culture (adaptability, consistency, mission, involvement), work environment (safety, equipment, peer support), and performance (task, contextual). Data analysis used Structural Equation Modeling (SEM-PLS) to test the hypotheses. Findings: The results indicate that both organizational culture and work environment have significant positive effects on employee performance. Furthermore, a positive organizational culture was found to strengthen the positive impact of a conducive work environment on performance. The "mission" dimension of culture and "safety" aspect of the environment emerged as the most influential factors. Research limitations/implications: The study's cross-sectional design limits causal inferences. Future research should incorporate longitudinal data and expand to other labor-intensive traditional industries. Practical implications: Owners/managers of traditional SMEs should focus on building a clear, shared mission and values while critically investing in safer physical infrastructure and fostering peer support to enhance productivity sustainably. Originality/value: This study fills a critical gap by examining the under-researched context of informal, traditional manufacturing SMEs. It provides empirical evidence on how socio-cultural factors and physical conditions jointly influence performance in a resource-constrained setting, offering a nuanced perspective beyond mainstream organizational studies.

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Journal Info

Abbrev

necent

Publisher

Subject

Humanities Economics, Econometrics & Finance Education

Description

necent : Nusantara Economics and Entrepreneurships Journals E-ISSN: 2986-6197 published by the Publishing Agency Pusat Kewirausahaan Universitas Balikpapan. Publishing this journal aims to improve the quality of science, as well as channel interest in sharing and disseminating knowledge to ...