CONCLUSION AND LIMITATION This study having two objectives that wants to achieve,

The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 188 convergent validity of the test earlier, this dimension will be eliminated from the data and are not included in the subsequent analysis. In addition, the low reliability value in the variable working pressure, employee preferences, and respect have a low reliability is influenced their indicators have a low coefficient of weighting factors in this variable. Judging from convergent validity testing in Table 1 it is known that there is an indicator variable that has a working pressure of 0.373 the value of the weight factor, there is an indicator on the employees who have a preference variable weighting factor value 0.453, and there is an indicator variable that has a value of respect coefficient weighting factor of 0.487. But throw measurement indicators used also become problematic issues for employees’ preference and courtesy, because the underlying variable has only two indicators measuring only. Removing indicator used the same measurement does not include these variables for further analysis. To overcome this problem, this study uses a single composite indicator on the next stage of analysis. Table 2 Construct Reliability, Cronbach alpha, and AVE Dimensions Construct Reliability Cronbach alpha AVE Relationship employee’s – customer 0.942148 0.936 0.673712 Employee ’s Competency 0.864019 0.845 0.564184 Benefit and Salary 0.841894 0.841 0.640027 Work pressure 0.657562 0.641 0.410377 Mindset service and transferability 0.730628 0.709 0.481517 Preference of employee ’s 0.63522 0.570 0.489805 Respect 0.668027 0.600 0.522685 Feeling Proud and Honored 91.31976 0.358 117.6426 Service Innovation 0.950454 0.950 0.73378 Organizational Performance 0.924267 0.933 0.709818 Source: data analysis 5.2 Structural Model Testing structural model is intended to test the suitability of the model-based hypothesis to theory-based empirical research data. Illustration testing structural models in the form of goodness of fit and the path diagram. Structural model testing in the early stages do not get results goodness of fit indices were good. Modification index of output results AMOS 16.0 advised to do respesifikasi structural model. Referring to the opinion of Anderson and Gerbing 1982, then re-specification of the models carried out, in order to obtain an alternative model that best fits the overall sample data obtained. Respecification is based on the index modification produced by the model tested in the overall sample. Modification index ≥ 4.0 gives an indication that if the coefficients are estimated, there will be a diminution or impairment of a significant χ2. Overall model modification indices in Table 3 indicate that the Chi-square value obtained can be improved by eliminating some appraisals based on the advice of the index modification in output Amos 16.0. The results showed that the improvement of structural models proposed structural model has had an index value of a good model fit. Thus, the model has to be interpreted. Table 3 Goodness of fit index Source: data analysis Table 4 Correlation on Structural Model Covariances Estimate S.E C.R P The relationship employee- consumer → Service innovation -0.103 0.140 -0.740 0.460 Employee competency → Service innovation 0.624 0.197 3.167 0.002 Benefit and salary → Service innovation -0.196 0.121 -1.618 0.106 Work pressure → Service innovation -0.159 0.107 -1.490 0.136 Mindset service and transfer- ability → Service innovation 0.147 0.138 1.060 0.289 Service innovation → Organiza tional performance 0.421 0.081 5.191 0.000 Source: data analysis

6. CONCLUSION AND LIMITATION This study having two objectives that wants to achieve,

namely: 1 identify the antecedents of organizational service culture in the public service industry; 2 examine the relationship between service culture variable toward service innovation and organizational performance. The results of data analysis showed that there are eight dimensions of organizational service culture constructs found in this study. Eighth-dimensional of service culture construct formed as follows: relationship employee - customer, employee competence, benefits and salaries, work pressure, the service mindset and transferability, employee preferences, courtesy, and a sense of pride and respect. The seven dimensions of cultural constructs formed services are consistent with the findings of previous Goodness of fit index Expected value Index Conclusion Absolute fit χ 2 Chi square RMSE of approximation Goodness of fit index Kecil 0.08 0.90 199.161 0.061 0.822 good good acceptable Incremental fit Adjusted Goodness of fit Comparative Fit Index Tucker Lewis Index 0.90 0.95 0.95 0.765 0.949 0.939 acceptable good good Parsimonious fit CMINDF ≤ 5.00 1.425 very good The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 189 studies, but there is a new factor that was found, namely courtesy. The test results also showed that the structural model of service culture have significant and positive effect on service innovation. Service innovation is also known having significant and positive effect on organizational performance. The results of this study provide additional insights in the field of marketing management regarding model development of the relationship between service culture, service innovation, and organizational performance. The effort to develop model of service culture in the business or public sector can be conducted in the future for further studies. Further studies can be conducted using a qualitative approach to obtain better results. The use of a qualitative approach in identifying the development of a service culture models are expected to provide good makesense in observational studies to describe the observed phenomena. Moreover, testing the relationship in the structural model is also used small sample size. Small sample size possible will be able to provide the results of measurement bias. Despite efforts to improve the model has been carried out using a composite score, but the verification of the model by using a good sample adequacy criteria are needed to further study observed the same phenomenon of observational studies. Finally, managerial recommendations are also given for public organizations that want to improve organizational performance are expected to be able to develop a good service culture within the organization. Strong service culture will enable employees internal marketing perform a variety of innovative services in accordance with the needs and desires of customers. Good service innovation can encourage improved performance in the eyes of the customer organization community public. REFERENCES [1] Bitner, M.J., Booms, B. dan Mohr, L.A. 1994, “Critical service encounter: The employee’s view,” Journal of Marketing, Vol. 58, p. 95-106 [2] Chin, W. 2001, “PLS-Graph Manual, Version 3.0, unpublished manuscript [3] Homburg, C., Hoyer, W. dan Fassnacht, M. 2002, “Service Orientation of A Retailer’s Business Strategy: Dimensions, Antecedences, and Performance Outcomes”, Journal of Marketing , Vol. 66, no. 4, p. 53-70 [4] Ivanncevich, K.M. 2005. Perilaku dan Manajemen Organisasi, Jakarta: Erlangga [5] Liu, B.S.C., Furrer, O. and Sudharshan, D. 2000. “The Relationships between Culture and Behavioral Intentions Toward Services”. Journal of Service Research , Vol.4, pp. 118-129 [6] Lytle, R.S., dan Fimmerman, J.E. 2006, “Service Orientation and Performance: An Organizational perpsective”, Journal of Services Marketing , Vol. 20, No. 2, p. 136-147 [7] Lytle, R.S., Hom, P.W., dan Mokwa, M.P. 1998, “SEROR: A Managerial Measure of Organizational Service- Orientation”, Journal of Retailing , Vol. 74, No. 4, p. 455-489 [8] Mangkunegara, A.P. 2011. Manajemen Sumber Daya Manusia Perusahaan . Bandung: PT. Remaja Rosdakarya [9] Mattila, A.S. 1999. “The Role of Cultural and Purchase Motivation in Service Encounter Evaluations”. Journal of Service Marketing , Vol.13, No.4, pp. 376-389 [10] Nelson, T.K. 2007. “Measuring Service and Serv ice Culture in The Tourism Industry”. Dissertation in the Hong Kong Polytechnic University [11] Peraturan Menteri Negara Pendayagunaan Aparatur Negara No.PER09M-PAN52001 tentang Pedoman Penetapan Indikator Kinerja Utama di Lingkungan Instansi Pemerintah [12] Rust, R.T., Anthony, J.Z dan Timothy, L.K. 1995, “Return on Quality ROQ: Making Service Quality Financially Accountable,” Journal of Marketing, Vol. 59, p. 58-70 [13] Schuler, J. 2005. Manjemen Sumber Daya Manusia Mengahadapi Abad Ke-21 . Jakarta: Erlanga [14] Teo, H.H., Kwok, K.W. dan Izak, B. 2003, “Predicting Intention to Adopt Interorganizational Linkages: An Institutional Perspective,” MIS Quarterly, Vol. 27, p. 19-49 [15] www.antaranews.comberita334795birokrasi-ha mbat-daya-saing-ekonomi-indonesia [16] www.merdekainfo.comwawancaraitem544-jamil -mubarok-koordinator-mti [17] Zeithaml, V.A, Bitner, M.J., dan Gremier, D.D 2009, Service Marketing: Integrating Customer Focus Across the Firm , Fifth Edition, McGraw-Hill Higher Education, Singapore The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 190 Structural Equation Modeling Organizational Culture, Internal Marketing and Knowledge Management in Private Hospital Company in Bengkulu Muhartini Salim 1 , Praningrum 2 , Nurhasanah 3 1 Faculty of Economic and Business, University of Bengkulu muhartini_salimyahoo.co.id 2 Faculty of Economic and Business, University of Bengkulu ningrum-bklyahoo.co.id 3 Faculty of Economic and Business, University of Bengkulu stikesbh03gmail.com ABSTRACT Knowledge management is increasingly gaining popularity to be studied by scholar and researcher. Knowledge management is believed to be a key competitive advantage for many companies. Unfortunately, research on knowledge management has not been done, especially in developing countries such as Indonesia. The aims of the study are to develop structural equation modeling the relationship between internal marketing, organizational culture, and knowledge management. One hundred and fifty questionnaires were distributed and one hundred eleven were returned and analyzed. Structural equation model using AMOS 16.0 software employed to the dataset. The result of this study identifies that organizational culture role as mediating variable between internal marketing and knowledge management. This study contribute that hospital company must be developing good organizational culture in order to strengthen the role of internal marketing to develop knowledge management. Keywords :Organizational Culture, Internal Marketing, Knowledge Management

1. INTRODUCTION