TITLE:
The Influence of Hierarchical Bureaucracy and Bottom-Up Learning on Organizational Performance of Indonesian Territorial Military Institutions: The Mediating Roles of Strategic Change Speed and Organizational Learning
AUTHORS:
Andree, Willy Arafah, Syafri Mandai
KEYWORDS:
Speed of Strategic Change, Organizational Learning, Hierarchical Bureaucracy, Bottom-Up Learning, Organizational Performance, Military Institutions, Indonesian Military
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.14 No.11,
November
29,
2024
ABSTRACT: This study examines the effects of hierarchical bureaucracy, bottom-up learning, and the speed of strategic change on organizational performance within the context of the Indonesian military, specifically focusing on the Indonesian Army’s territorial commands. Utilizing contingency theory, this research explores how hierarchical structures and bottom-up communication influence organizational performance, with speed of strategic change and organizational learning as mediating variables. Data were collected from 50 high-ranking military officers through structured questionnaires and analyzed using Partial Least Squares (PLS) analysis. The findings indicate that hierarchical bureaucracy positively affects organizational learning but has a mixed effect on the speed of strategic change and organizational performance. Bottom-up learning, on the other hand, has a positive impact on both organizational learning and performance, as well as on the speed of strategic change. The results also confirm that the speed of strategic change and organizational learning mediate the relationship between hierarchical bureaucracy, bottom-up learning, and organizational performance. These insights suggest that while hierarchical structures provide control and discipline, integrating bottom-up learning and adaptability mechanisms enhances organizational performance in military contexts. This research contributes to the understanding of contingency theory in structured organizations and provides practical recommendations for improving strategic decision-making in hierarchical military organizations.