McKinsey 7-S Based Organizational Alignment, Innovation Culture, and Learning Organization on Work Creativity: Evidence from Fish Auction Place (TPI) Sidoarjo

Abstract

Purpose: This study examines the effect of McKinsey 7-S based organizational alignment on work creativity, both directly and indirectly through innovation culture and learning organization as mediating variables, among managers and staff of Tempat Pelelangan Ikan (TPI/Fish Auction Place) Sidoarjo.

Design/methodology/approach: This quantitative study adopts an explanatory research design. The population consisted of managers and operational staff of TPI Sidoarjo, with a saturated sampling technique yielding 62 respondents. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS 4.0, encompassing both outer and inner model evaluation.

Findings: The model demonstrated good goodness-of-fit. McKinsey 7-S based organizational alignment was found to have a positive and significant effect on innovation culture and learning organization, both of which in turn positively and significantly influenced work creativity. Organizational alignment also exerted a direct, positive, and significant effect on work creativity. Mediation analysis confirmed that innovation culture and learning organization partially mediated the relationship between organizational alignment and work creativity.

Practical implications: TPI Sidoarjo managers are encouraged to prioritize strengthening innovation culture and learning organization practices as key pathways to enhancing employee work creativity and institutional competitiveness, alongside aligning the seven McKinsey 7-S elements: strategy, structure, systems, shared values, style, staff, and skills.

Originality/value: This study extends the McKinsey 7-S framework by integrating it with innovation culture and learning organization as mediating mechanisms in predicting work creativity, within the underexplored context of fisheries-sector MSMEs, offering both theoretical and managerial contributions.

Paper type: Empirical paper.