ANTECEDENTS AND CONSEQUENCES OF SERVICE CULTURE IN THE PUBLIC SECTOR SERVICES COMPANY IN BENGKULU

Anggarawati, Sularsih and Fachri , Eka Saputra (2015) ANTECEDENTS AND CONSEQUENCES OF SERVICE CULTURE IN THE PUBLIC SECTOR SERVICES COMPANY IN BENGKULU. In: The 2015 International Conference of Management Sciences, 23 April 2015, Universitas Muhammadiyah Yogyakarta.

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Abstract

Government services in public sector in Indonesia are perceived inefficient, slow, convoluted, and overlapping. Bad bureaucracy of public sector in Indonesia is believed to be the causes of the decline in the competitiveness of Indonesia's economic position. Problems associated with a convoluted bureaucracy can be resolved if the organization has an excellence service culture. The aims of the study are to develop service culture dimensions for public sectors and to examine the relationship between service culture, service innovation and organizational performances. Two hundred questionnaires were distributed and one hundred eighteen were returned and analyzed. Factor analysis and structural equation model using AMOS 16.0 software are employed to the dataset. The result of this study identifies that there are eight dimensions of organizational service culture in the public sector service organizations, namely: 1) relationship employee’s - customer, 2) employee’s competency, 3) benefit and salary, 4) work pressure, 5) mindset service and transferability, 6) preference of employee’s, 7) respect, and 8) feeling proud and honored. The result of the structural equation model concludes that service culture indeed influence service innovation and the last service innovation are influence organizational performance. Service innovation has a mediating role between service culture and organizational performance. This study contributed new finding regarding the construct of service culture specifically in the case of Public Sector Services Company. In addition, this study also contributes to the development of structural model between variables service culture, service innovation, and organizational performance.

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