Strategic management and organizational culture of medical device companies in relation to corporate performance

Figures & data

Figure 1. Research model.

Table 1. The hypothesis of the research model.

Hypothesis 1	Strategic management will affect corporate performance.
Hypothesis 1-1	Differentiation strategies will have a positive (+) impact on corporate performance.
Hypothesis 1-2	A cost leadership strategy will have a positive (+) impact on corporate performance.
Hypothesis 2	Strategic management and investment in education and training will affect corporate performance through interaction effects.
Hypothesis 2-1	Differentiation strategies and investment in education and training will have a positive (+) interaction effect on corporate performance.
Hypothesis 2-2	Cost leadership strategies and investment in education and training will have a positive (+) interaction effect on corporate performance.
Hypothesis 3	Organizational culture will affect corporate performance.
Hypothesis 3-1	Innovation culture will have a positive (+) impact on corporate performance.
Hypothesis 3-2	Hierarchical culture will have a negative (−) impact on corporate performance.
Hypothesis 4	Organizational culture and investment in education and training will have a positive (+) interaction effect on corporate performance.
Hypothesis 4-1	Innovation culture and investment in education and training will have a positive (+) interaction effect on corporate performance.
Hypothesis 4-2	Hierarchical culture and investment in education and training will have a positive (+) interaction effect on corporate performance.

Table 2. Classification of medical device corporations.

KSIC	Items
	Manufacturing
26	Manufacturing businesses of electronic components, computers, videos, and sound and communication equipment
27	Manufacturing businesses of medical treatment, precision instruments, optical instruments, and watches
	Publishing, Videos, Broadcasting and telecommunication services, Information service
61	Communication business
62	Businesses of computer programming, and system integration and management
63	Information service business

Table 3. Measurement of variables.

Name of variable	Name of item	Unit
Differentiation strategy	Ability to develop new products	Likert five-point scale
	Quickly respond to customer needs
	Product diversity
	Management of brand image
Cost leadership strategy	Efficiency of business processes
	Securing competitive advantage through cost reduction
	Product quality
	Reduction of defect rate and improvement of production yield
Innovation culture	Encouraging change and new attempts
	Compensation for innovation
	Special treatment of creative people
Hierarchical culture	Emphasis on formal procedures, rules, and policies
	Top-down communication or information flow
	An organizational atmosphere that emphasizes awareness of rank
Satisfaction	Job satisfaction
	Wage satisfaction
	Satisfaction in relationship with coworkers
Commitment	Possibility of changing jobs (inverse coding)
	Consentience with the company
	Losing a lot after retirement
	Loyalty to the company

Table 4. Correlation between variables.

Variable	Average	Standard deviation	Correlation
			(1)	(2)	(3)	(4)
(1) Differentiation strategy	4.15	2.43	1
(2) Cost leadership strategy	4.21	1.78	0.78**	1
(3) Innovation culture	11.68	3.20	0.11**	0.15**	1
(4) Hierarchical culture	11.55	2.92	0.07*	0.15**	0.88**	1

*p < .01; **p < .05.

Table 5. Verification of validity and reliability.

Item		Commonality	Component
			1	2	3	4
Management strategy	Differentiation 1 Differentiation 2 Differentiation 3 Differentiation 4	0.866 0.924 0.903 0.882	0.960 0.950 0.939 0.930
	Cost leadership 1 Cost leadership 2 Cost leadership 3 Cost leadership 4	0.876 0.915 0.937 0.673		0.968 0.956 0.935 0.808
Organizational culture	Innovation 1 Innovation 2 Innovation 3	0.884 0.869 0.839			0.935 0.919 0.884
	Hierarchical 1 Hierarchical 2 Hierarchical 3	0.949 0.871 0.871				0.924 0.923 0.905
Cronbach’s α			0.968	0.947	0.933	0.887
Eigenvalue			7.16	4.08	3.32	1.66
Explain dispersion (%)			53.02	26.82	4.54	3.20
Cumulative dispersion (%)			53.02	79.83	84.37	87.57
KMO = 0.935, Bartlett’s $x^2$=12,580.271***

***p < .001.

Table 6. Results of regression analysis (dependent variable: Organization satisfaction).

Variable	Dependent variable: Organizational satisfaction
	Model 1	Model 2	Model 3	Model 4	Model 5
Constant	13.67 (75.355)	7.76 (9.413)	7.96 (9.574)	7.90 (9.458)	8.05 (9.686)
Differentiation strategy	0.14** (2.636)	0.08* (1.657)	0.08* (1.673)	0.28 (1.386)	0.35 (1.648)
Cost leadership strategy	−0.05 (−0.753)	−0.01 (−0.193)	−0.01 (−0.237)	−0.20 (−0.836)	−0.20 (−0.761)
Innovation culture		0.38*** (7.800)	0.38*** (7.923)	0.38*** (7.717)	0.80*** (4.353)
Hierarchical culture		0.08 (1.440)	0.07 (1.366)	0.08 (1.484)	−0.39** (-2.037)
Investment in education and training			−0.04 (−1.597)	−0.04 (−1.186)	−0.04 (−1.176)
Differentiation strategy * Investment in education and training				−0.05 (−1.021)	−0.07** (−1.386)
Cost leadership strategy * Investment in education and training				0.05 (0.804)	0.05** (0.814)
Innovation culture * Investment in education and training					−0.11** (−2.387)
Hierarchical culture * Investment in education and training					0.12** (2.549)
R^2	0.041	0.247	0.255	0.258	0.277
F-value	5.560**	21.444***	17.767***	12.844***	10.886***

**p < .05; ***p < .001.

Table 7. Results of the regression analysis (dependent variable: Organizational commitment).

Variable	Dependent variable: Organizational commitment
	Model 1	Model 2	Model 3	Model 4	Model 5
Constant	12.78 (62.395)	6.70 (7.034)	6.92 (7.198)	6.93 (7.163)	7.01 (7.323)
Differentiation strategy	0.15** (2.596)	0.10* (1.694)	0.09* (1.709)	−0.05 (−0.206)	0.17 (0.710)
Cost leadership strategy	−0.03 (−0.468)	0.01 (0.045)	0.01 (0.004)	0.17 (0.597)	0.38 (1.268)
Innovation culture		0.38*** (6.737)	0.38*** (6.850)	0.39*** (6.852)	0.71** (3.379)
Hierarchical culture		0.09 (1.427)	0.08 (1.356)	0.08 (1.240)	−0.43* (−1.943)
Investment in education and training			−0.05 (−1.509)	−0.05 (−1.397)	−0.06 (−1.609)
Differentiation strategy* Investment in education and training				0.03 (0.618)	−0.02 (−0.399)
Cost leadership strategy* Investment in education and training				−0.04 (−0.612)	−0.09 (−1.204)
Innovation culture* Investment in education and training					−0.08 (−1.604)
Hierarchical culture* Investment in education and training					0.13** (2.368)
R^2	0.047	0.211	0.218	0.219	0.245
F-value	6.473**	17.490***	14.516***	10.360***	9.247***

*p < .01; **p < .05; ***p < .001.

Table 8. Results of Hypothesis testing.

Hypothesis		Support hypothesis
		Organizational satisfaction	Organizational commitment
Hypothesis 1	Hypothesis 1-1	X	X
	Hypothesis 1-2	X	X
Hypothesis 2	Hypothesis 2-1	X	X
	Hypothesis 2-2	O	X
Hypothesis 3	Hypothesis 3-1	O	O
	Hypothesis 3-2	O	O
Hypothesis 4	Hypothesis 4-1	X	X
	Hypothesis 4-2	O	O

Abbreviations. O, Acceptance of the hypothesis; X, Rejection of the hypothesis.

Data availability statement

The data used in this study is available to individual researchers or institutions upon approval by the Korea Research Institute for Vocational Education and Training (KRIVET, https://www.krivet.re.kr/ku/ha/kuCCADs.jsp).