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value system that is believed to be a habit and all members of the organization in interaction or
employment relationship as a result of behavioral norms. Robbins 2013 states that organizational
culture refers to a system of shared meaning held by members that distinguishes the organization from other
organizations. Seven primary characteristics seem to
capture the essence of an organization’s culture: 1.
Innovation and risk taking. The degree to which employees are encouraged to be innovative and
take risks. 2.
Attention to detail. The degree to which employees are expected to exhibit precision, analysis, and
attention to detail. 3.
Outcome orientation. The degree to which management focuses on results or outcomes rather
than on the techniques and processes used to achieve them.
4. People
orientation. The
degree to
which management decisions take into consideration the
effect of outcomes on people within the organization.
5. Team orientation. The degree to which work
activities are organized around teams rather than individuals.
6. Aggressiveness. The degree to which people are
aggressive and competitive rather than easygoing. 7.
Stability. The degree to which organizational activities emphasize maintaining the status quo to
growth. Internal Marketing and Knowledge Management
Internal marketing promotes the establishment of outstanding relations between management and
employees, and its goal is to increase employee satisfaction
as well
as innovative
customers satisfaction.
For internal
marketing with
a consciousness of organizational commitment and
identity, it can also encourage employees to make effective innovations, dissemination, and applications
of knowledge and also to take their internally stable knowledge and transform it into effective wisdom
about knowledge management, which is favorable to organizations
Lee Chen 2005. H1: Internal Marketing
has a significant influence on knowledge management. Organizational Culture and Knowledge Management
Recent studies have expressed considerable interest in knowledge management practices and
organizational culture. Organizational culture exerts a powerful influence on how companies manage
knowledge. This influence is manifested in many ways. First, culture shapes the assumptions about what
knowledge is considered valuable and hence suitable for managing and exchanging. Second, culture defines
the
relationships between
individuals and
organizational knowledge. Third, culture creates the context for social interaction and determines how
knowledge will be used in various given situations. Finally, culture shapes the processes by which new
knowledge is created, legitimized, and distributed throughout
organizations. The
influence of
organizational culture on the success of knowledge management is so strong that
‘‘shaping organizational culture is central for a firm’s ability to manage its
knowledge more effectively’’ Durmusoglu et al 2013.
Consistent with this literature, it is expected that H2: Organizational culture has a influence on knowledge
management. Internal Marketing dan Organizational Culture
Groonross 1990 suggest that internal marketing can change employees’ attitude and
behaviors, and establish the corporate culture with customer service and satisfaction. In this research it is
expected that H3: Internal marketing has a significant influence on organizational culture.
3. METHODS
In accordance with the related literature, this study establish a conceptual framework to interpret the
relationship between the key factors of knowledge management and factors that were hypothesized to be
influencial, organizational culture, and internal
marketing at Figure 1: H3
H2
H1 Figure 1. Conceptual Model
This research is an explanatory research, that can explain the relationship between observation variables.
In this study, observation variables consist of endogenous and exogenous variables. Exogenous
variables include internal marketing, whereas the endogenous variable includes organizational culture
and knowledge management. The relationship between exogenous and endogenous variables become a focus
of this study. Moreover, this study is also wants to identifying the role of organizational culture as a
mediating variable in the relationship between internal marketing and knowledge management.
Internal Marketing
- Training - Development
- Communication - Reward
- Satisfaction Organizational
Culture -
Innovation
-
Attention to detail
-
Outcome orientation
-
People orientation
-
Team orientation
-
Aggressiveness
-
Stability Knowledge
Management -
Knowledge acquisition
- Knowledge
creation -
Knowledge utilization and
sharing
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Development of the Instrument The instrument contained the subscales of internal
marketing IM, Organizational Culture OC, and knowledge management KM. Items were initially
developed by consulting the relevant literature. Some modifications were made to suit this research context
based on preliminary study to obtain an accurate representation of the measurement indicators. Given
the latent character of the variables considered in this study, a five-point Likert scale was used for responses
1=
strongly disagree
and 5=
strongly agree
.
Design, Sampling, and Participants
This empirical study had a cross-sectional design.
The survey was based on voluntary participation. All responses were anonymous, and the
respondents and the researchers were not acquainted with each other. Questionnaires were distributed to 150
nurses working in three private hospital in the city of Bengkulu Raflesia Hospital, Tiara Sella Hospital and
University of Muhamadiyah Medical Center, and 111 valid questionnaires were returned response rate:
74. The entire process of distribution and return was completed between September and October 2014.
The participants of this research were all adult employees. The majority of subjects were 20-25 years
old 48,60.0 and were female 68,5. Of these, 56,7 have working for 1-3 years, and 81,1 had a
ColledgeD3 education Table 1.
Tabel 1. Participant Demographic n=111 No
Characteristic Number Persentase
1 Gender
a. Male
b. Female
35 76
31,5 68,5
2 Age years
a. 20 - 25
b. 26 - 31
c. 32
– 37 53
47 10
48,6 42,3
9,1 3
Educational Level a.
High School b.
Colledge c.
University 4
90 17
3,6 81,1
15,3 4
Tenure years a.
1 – 3
b. 4
– 6 c.
7 - 9 d.
10 – 12
e. 13
– 15 63
30 10
5 3
56,7 27,1
9,0 4,5
2,7 Data Analysis Methods
Descriptive statistics including the mean M and standard deviation SD of each item and construct
were generated
.
Data analysis was conducted using a Structural Equation Model SEM using software IMB
SPSS AMOS 16. Two-step approach to structural equation modeling was used in this study because this
study tested a model that has a lot of relationships between
latent constructs
simultaneously. The
attractiveness of SEM stems from the following: 1 it provides a straightforward method of dealing with
multiple relationships simultaneously while providing statistical efficiency; 2 it has the ability to assess the
relationships among laten variables;3 it has the ability to assess the relationship comprehensively and provides
a transition from exploratory to confirmatory analysis.
In a two-step approach to SEM, the measurement model was first estimated and then fixed
in the second stage when the structural model was estimated Anderson and Gerbing, 1988; Purwanto,
2003. Structual model in this study using a composite score on each of the latent variables were measured.
There were several reasons for using composite scores as indicators rather than individual items as indicators of
the laten variables. First, there were software computing limitations and difficulties fitting models with to many
manifest indicators. Second, composite score enabled the researcher to represent several variables by a single
indicator that reduced the difficulties of dealing with complex data. Finally, when dealing with moderate
sample size, as the case of the study, a parsimonious estimation strategy was necessary. Utilization of
composite scores reduced the number of parameters to be estimated and yielded an acceptable variable-to-
sample size ratio Garbarino and Johnson, 1999; Hair
et al.,
1998; Purwanto, 2003. Validity and Reliability of the Instrument
One hundred eleven 111 questionnaires represented three latent constructs for this study. After
reversed scores were adjusted, items representing the constructs and dimensions were subjected to reliability
and validity tests. This study used composite items from each dimension of variable. The validity and
reliability test of each variable represented by each dimension using composite scores. From the results of
tests carried out showed that one of the four dimensions of internal marketing does not significantly
represented internal marketing variable, so this dimension is eliminated from the data. Further, five of
the seven dimensions of service culture are also do not significantly represented service culture variable.
Because this study using composite score from each indicator, the multidimensional construct of each
variable in the model is considered as an indicator. Reliability
After purification of the model, the next stages is reliability testing, basically reliability test indicates
the extent to which the measuring instrument which can provide relatively similar results when measured
again on the same subject. Test reliability in SEM can be obtained through the following formula Ferdinand,
2002 Description:
Standard loading is obtained from the results of the standardized loading for each indicator is obtained
through the computer count. ΣEj is the measurement error of each indicator;
measurement error can be obtained 1-reliability
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 194
indicators. Variable said to be reliable if it has an alpha reliability coefficient of 0.5 or more. Table 1
below shows the reliability test results.
Table 1. Reliability Test Variable
∑ƛi ∑€i
Construct reliability
Internal Marketing 5.2258
1.86658 0.736819
Organizational culture 7.19312 1.9181
0.789479 Knowledge
management 5.45223 0.79791
0.872338 Based on the results of these calculations, because
there is no construct reliability value whose value is below 0.50 then all constructs used in this study
feasible. Discriminant Validity Test
The size of individual reflexive as valid if it has a value of loading factor ƛ with latent variables
wishing measured ≥ 0.5, if one indicator has a value factor ƛ ≤ 0.5, the indicator indicates that it was
issued because the indicator is not enough good to measure latent variables appropriately.
Table 2. Validity Test Variable
AVE AVE
Internal Marketing 0.485838
0.697021 Organizational Culture
0.485718 0.696935
Knowledge Management 0.697763
0.835322 Discriminate validity testing using ST values
is done by comparing the root of the AVE value of each construct with the correlations between constructs
with other constructs. AVE values should be greater than 0.5 Hair et al, 1998. Table 2 shows that the value
of the root of the AVE of each construct was greater with the correlation between the constructs with other
constructs. It can be concluded the data in this study have good discriminant validity.
Structural Model
Analysis of hypothesis testing criteria of goodness of fit of the estimated structural models can
be met; the next step is an analysis of the structural relationships hypothesis testing as shown in Figure 2,
the relationship between the constructs indicated by the regression weight Hair et al, 1998, in Haryono and
hartjo 2010. To analyze more clearly the influence of internal
marketing, organizational
culture and
knowledge management in private hospital in Bengkulu can be seen in Table 3.
Table 3. SEM Result Structural
Relation Estimate
C.R P
Structural Relation
Estimate C.R
P BO
--- IM
.590 5.289
0.000 KM
--- BO
.975 4.648
0.000 KM
--- IM
-.030 -.190
0.849 Chi-square
28.299 Probabilitas level
0.166 CMINDF
1.286 CFI
0.983 RMSEA
0.051 TLI
0.979 GFI
0.942 AGFI
0.905 Single Composite Score Indicator In Table 3 above
shows that the value of CMIN DF, RMSEA, CFI, GFI and TLI in accordance with the criteria, although
the value of AGFI is at marginal value, but according to Hair et al 1998 if the value of AGFI approaching
the recommended value, then the value is deserved to be nominated. It is clear that after a single composite
score on the model, the resulting model is fit enough and fit for use. The result of SEM at Figure 2.
Figure 2: The Result of SEM
The result show that internal marketing have significant influence toward organizational culture, and
have influence to knowledge management. Internal marketing must throug organizational culture to
influence knowledge management, it can say that have fully mediating for knowledge management.
4. DISCUSSION
