Corporate governance, intellectual capital, and organizational culture: their influence on lean manufacturing and firm value

Abstract

This study aims to explore the relationship between the implementation of Corporate Governance, Intellectual Capital, Organizational Culture, and Firm Value, with lean manufacturing serving as an intervening variable. Previous research has identified that Corporate Governance, Intellectual Capital, and Organizational Culture have a positive and significant impact on firm value, as measured using Tobin’s Q. This research further investigates whether the implementation of lean manufacturing mediates the enhancement of this relationship. The study was conducted on 242 manufacturing companies listed on the Indonesia Stock Exchange. The data for this study were collected using primary data from survey questionnaires, resulting in 118 research samples, and secondary data obtained from financial reports published by the Indonesia Stock Exchange. The data were processed using Structural Equation Modelling through the Partial Least Square (PLS-SEM) approach. The findings reveal that intellectual capital and lean manufacturing have a significant positive effect on firm value, while organizational culture has a significant negative effect on firm value. Corporate governance, intellectual capital, and organizational culture have a significant and positive effect on the implementation of lean manufacturing. Lean manufacturing does not mediate the impact of corporate governance and intellectual capital on Firm Value but does mediate the significant effect of organizational culture on firm value.