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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.
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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