Organisational culture and quality management system implementation in Indonesian construction companies

Abstract

Purpose – The review of literature found that there is a significant correlation between a construction company’s organisational culture and the company quality performance. The purpose of this paper is to assess the organisational culture profiles of Indonesian construction companies, and to examine the influence of the companies’ organisational culture profiles on their quality management systems (based on QMS-ISO 9001:2008) implementation. Prior to conducting the examination, there are examinations of the relationships among the quality management system (QMS) variables. Design/methodology/approach – The methodology employed a survey questionnaire of construction industry practitioners who have experience in building and civil engineering works. The Organizational Culture Assessment Instrument was selected due to its suitability in assessing organisation’s underlying culture. Findings – Within the examination among the QMS variables, it was found that problematic issues associated with the implementation of QMS-ISO 9001:2008 in Indonesian construction companies can affect the implementation of the QMS and contribute to the lower level of companies’ business performance. It was also found that there is no significant relationship between the QMS implementation and the companies’ business performance. By using the Competing Values Framework diagram, it was found that most of the construction companies’ organisational culture is characterised by a Clan type which is reflected in how employees are managed, how the organisation is held together, and how the organisation’s success is defined; the leadership style is Hierarchy-focused, while the organisation’s strategy is Market type. It was also found that different culture profiles have different influences on the QMS implementation. Originality/value – A strong mixed Hierarchy and Market culture needs to be developed within the construction companies in Indonesia, as the driver to support proper and successful implementation of their QMS in order to enhance business performance in a quality performance-oriented Indonesian construction industry.