The Faculty of Psychology at UGM has launched a study examining how organizational values are translated into effective strategies that enhance company performance. The study stems from the observation that many organizations fail not only due to market pressures, but because shared values are not consistently operationalized in decision-making. “Shared values” here refers to core principles agreed upon and embraced across the organization, from leadership to employees, as a compass for thinking and acting. Examples include integrity, professionalism, innovation, service, and collaboration. Led by Dr. Bagus Riyono, M.A., Psikolog, the research team will test empirical evidence that values must be embedded in strategy to make a tangible impact on performance.
The study positions organizational values as the foundation shaping behavior, commitment, and work culture, and it tests Person–Organization Fit, which relates to work engagement, organizational citizenship behavior, and customer satisfaction. In practice, a gap often persists between declared values and actual strategy. Therefore, strategy is examined as a mediating variable that links values to performance, such as covering quality, quantity, and hard-to-measure intangible aspects.
The research aims to analyze the influence of organizational values on company performance with strategy as the mediator. The hypotheses tested are: values positively affect performance; values influence strategy quality; and an effective strategy mediates the values–performance relationship. The findings are expected to enrich the value-based management literature and offer practical guidance for leaders to assess the consistency between core values and strategy execution, while identifying areas to strengthen culture at both team and organizational levels.
The study employs a quantitative survey of employees with at least one year of tenure to ensure respondents understand the organization’s culture and strategy. Three constructs are measured: values (the extent to which values guide behavior), strategy (accuracy and effectiveness), and performance (quality and quantity of outcomes). The validated BOM-Q instrument is used. Data analysis applies a mediation model to examine how strategy translates values into performance. Research phases include literature review, study design, data collection, report writing, and submission to a reputable journal.
The team is housed in the Industrial and Organizational Psychology Group, chaired by Dr. Bagus Riyono, M.A., Psikolog, with faculty members Dr. Rizqi Nur’aini A’yuninnisa, S.Psi., M.Sc., and Wahyu Widhiarso, S.Psi., M.A, alongside junior researchers from undergraduate, master’s, doctoral, and alumni cohorts. The project is funded by the 2025 Research Grant, Faculty of Psychology, UGM. This cross-level collaboration strengthens methodological rigor and measurement quality. The study will run for six months in Indonesia with psychometrics expertise supporting instrument and analysis quality.
The outputs include a publication in an international journal (at least Sinta 2 equivalent) and coverage on the Faculty’s website aligned with Sustainable Development principles. The findings are expected to guide organizations in integrating core values into strategy formulation and execution, thereby sustaining and improving performance over time.
Writer: Raden Roro Anisa Anggi Dinda
Photo: https://ugm.ac.id