The Impact of Organizational Culture to Environmental Strategic and Its Consequence on Environmental Disclosure and Performance - Part of an academic paper

Sep 8, 2026

This study examines how organizational culture affects environmental strategy and, in turn, how environmental strategy influences environmental disclosure and environmental performance in Indonesian listed companies. Data were collected by administering 141 questionnaires to Indonesian manufacturing firms listed on the Indonesia Stock Exchange, while environmental disclosure was derived from companies’ annual reports. Structural equation modeling (SEM) using AMOS tested the hypotheses under legitimacy theory.

LanguageEnglish

CategoryPresentations

FormatDOCX

Pages17

Reading Time6 min

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Abstract

Introduction

Literature Review and Hypotheses

The Impact of Organizational Culture to Environmental Strategic and Its Consequence on Environmental Disclosure and Performance Indonesian Listed Companies Nurna Aziza Economics and Business Faculty, University of Bengkulu, Indonesia HYPERLINK "mailto:izabkl.76@gmail.com" izabkl.76@gmail.com; nurna_aziza@unib.ac.id Andi Agus STIEM Bongaya Makassar, Indonesia HYPERLINK "mailto:andiagus.mks@gmail.com" andiagus.mks@gmail.com Abstract The purpose of this study is to examine the impact of organizational culture on environmental strategy. This study Also Investigate the influence of environmental disclosure on environmental strategy and performance of Indonesian Listed companies based on theory of legitimacy (Dowling and Pfeffer, 1975; O'Donovan, 2002) We collected the data for organizational culture, environmental strategy and environmental performance (primary data) by sending 141 questionnaires to Indonesian Manufacturing Companies that listed in Indonesia Stock Exchange. Mainwhile, environmental disclosure come from the company's annual report. We implemented structural equation models (SEM) through AMOS program for testing the hypothesis of this study. The study found all dimensions of organizational culture ie clan, hierarchy, adhocrary and market (Cameron and Quinn, 1999) influence the environmental strategy. This also provided the empirical evidence on the influence of environmental strategies on environmental disclosure and performance. Unfortunately, this study felt to find the effect of Environmental disclosure on environmental performance. Keywords: Organizational Culture, Environmental Strategy, Environmental Disclosure, Environmental Performance Introduction A Company has a responsibility not only to owners or shareholders, but also to concerned stakeholders that affected by the company’s existence (Patten, 1992). Company must respond to stakeholders’ demands and maintain legitimacy for social and environment care, if it wants to survive. O'Donovan (2002) argued that the legitimacy of the organization can be seen as something that is given from people to company and something that is desired or sought by company from people. If the company is able to maintain its legitimacy, then the company's environmental performance will increase. Environmental performance is the measurable results of the environmental management system (Andie, 2000). Improved environmental performance is a potential source of competitive advantage because it may lead to more efficient processes, improvements in productivity, and opportunities for new markets breakthrough (Porter, 1991; Porter and van der Linde, 1995; Schmidheiny, 1992). One way of the company's response to achieve environmental performance in order to remain trusted by stakeholders is through environmental disclosure. Environmental disclosure transparency is one of the important component of corporate governance principles issued by organizations around the world (OECD, 1999, 2003). The disclosure of comprehensive enterprise environment’s vastness sourced from company’s proactive and initiatives on the environment as stipulated in the environmental strategy set by the company. According to Thoyib (2005), the company's strategy is the company's strategy to achieve long-term goals. Environment oriented company would improve pollution control strategies and explore opportunities to develop environmentally friendly technologies (Klassen, 2000) and environmentally friendly products (Pujari, Wright and Peattie, 2003). Environmental strategies in this study are various ways of action at the environment oriented of operational level. Various studies have been done to research the factors that driving company’s environmental disclosure based on Lee and Hutchison’s study (2005), which are laws and regulations factors (Aziza, 2014), the pressure of public/stakeholder (Aziza, 2014; Suhardjanto 2008), attitude/company’commitment (Aziza, 2014, Henriques and Sadorsky, 1999), company’s cha

FAQs

What is the main purpose of this study?

To examine the impact of organizational culture on environmental strategy and to investigate how environmental disclosure affects environmental strategy and performance in Indonesian listed companies.

How were the data collected for the study?

Questionnaires were sent to 141 Indonesian manufacturing companies listed on the Indonesia Stock Exchange for organizational culture, environmental strategy, and environmental performance, while environmental disclosure was obtained from annual reports.

What research method was used to test the hypotheses?

Structural equation modeling (SEM) was implemented using the AMOS program to test the study hypotheses.

Sep 8, 2026

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