Organizational Culture, Decision of Funding and Financial Performance: An Evidence from Small and Medium Enterprises

Abstract

This study aims to examine the influence of organizational culture on Funding Decision and Company Financial Performance and the effect of Funding Decisions on Company Financial Performance. This research is conducted at the Small and Medium Enterprises (SME) in Bali province, including Wood Crafting and Woodworking Industry and Textile Industry and Textile Products. The study population consists of 173 business units. The sampling technique uses a random stratified proportional random sampling and obtains 121 business units. This study uses a quantitative method that is enriched with a qualitative approach, especially on Organizational Culture from the concept of local knowledge in Bali, which is Catur Purusa Artha. The study finds out that organizational culture form by local wisdom in Bali, which is “Catur Purusa Artha”, affects the owner or management of SMEs in the province of Bali in determining Decisions Funding and Financial Performance. This study confirm Resource Based View (RBV) Theory, where the organizational culture excavated from local wisdom (Catur Purusa Artha).

Keywords: Organizational Culture, Decision of Funding, Financial Performance