Absorptive Capacity, Organizational Culture, and Logistics Performance

Absorptive Capacity, Organizational Culture, and Logistics Performance

This study aims to identify the relationships between organization culture, absorptive capacity, and performance on the logistics company in Korea based on empirical analysis. This research adopts structural equation modeling (SEM) in order to test the validation of the measurement models and examine the relationships between the construct variables. The statistical analysis shows that (1) there commonly exists a significant positive relationship between the lower degree of power distance and a high level of absorptive capacity; (2) there is no positive relationship between the higher level of uncertainty avoidance and a high degree of absorptive capacity; (3) the hypothesis on relationship between the high level of masculinity and a high degree of absorptive capacity is supported; (4) the low degree individualism has no significant positive influence upon a high level of absorptive capacity; (5) the high level long-term orientation has a significant positive relationship with a high degree of absorptive capacity; (6) there exists a significant positive relationship between absorptive capacity and performance (non-financial performance and financial performance); and (7) the result of the analysis of inter-relationship between non-financial performance and financial performance on logistics industry is significant positive. In conclusion, this study suggests that managers in logistics companies bear in mind that the constructs of organizational culture have considerable influence over organization's absorptive capacity and business performance. They should face up to the reality and apply the appropriate strategies based on the comprehended weaknesses in order to effectively strengthen its competitive market position and long-term survival and success.