The Influence of Organizational Culture on Employee Performance Mediated by Job Satisfaction and Employee Commitment

Purpose – The study aimed to analyze the influence of organizational culture on employee performance mediated by job satisfaction and employee commitment. Methodology – A quantitative approach was used on 167 employees with a minimum of one year of experience working in a coating company. The sample size was the population of the industry. Furthermore, the data analysis was carried out using the Partial Least Square Structural Equation Modelling (PLS-SEM). Findings – This study found that organizational culture influences and improves employee performance. It also affects organizational commitment and job satisfaction, which mediate the culture to improve employee performance. Moreover, employee performance could be improved by increasing job satisfaction and commitment. Satisfaction also increases and affects employee commitment. Originality – This is the first study to investigate the influence of organizational culture on employee performance. It analyzed the relationship of job satisfaction, employee commitment, and performance and used a mediation variable to expand the theory in previous studies. This study also complements the relationship of variables in the organization for different service industries.


Introduction
Organizations need to survive and grow, especially due to Covid-19 pandemic, which slowed growth. (Nikpour, 2017) stated that organizations attempt to gain rapid growth, profitability, and continuous improvement, as well as prepare for future and uncertain situations in global competition. Therefore, performance is important in increasing organizational growth during the pandemic. Pang & Lu (2018) stated that organizational growth could be measured based on employee performance. According to Soomro & Shah (2019), commitment and motivation must be built to achieve employee and organizational performance in a globalized world. Achieving this organizational objective requires maximum performance from the employees. Organizations must also make dynamic changes in their methods to achieve the best performance. Also, they are forced to use updated management to achieve the objective, though it is difficult to predict constant changes (Nikpour, 2017).
Employee performance closely relates to work and its results and is often associated with financial matters (Suwarto, 2020). Santos, Reis Neto, & Verwaal (2018) stated that performance impacts how employees contribute to the organization, including the quantity and quality of the results, work attendance, and cooperative behavior. Therefore, employee performance also relates to factors affecting a job and its results. It is also the accumulated achievements of all businesses or departments and relates to organizational goals within a period (Nikpour, 2017).
Organizational achievement relates to profit as the goal of the business. In line with this, employee performance is also heavily influenced by various variables. Studies show that performance is influenced by organizational culture (Nikpour, 2017;Pawirosumarto, Sarjana, & Gunawan, 2017;Shahzad, 2012). The culture has a massive expansion in the organization and attracts the management's attention to recognize the underlying dimensions and their impact on job satisfaction, employee commitment, and performance (Tsait, 2011).
Organizations must identify the factors that affect their performance. This performance is influenced by internal and external factors, such as the Covid-19 pandemic, which caused an economic crisis in Indonesia (Olivia, Gibson, & Nasrudin, 2020). For instance, the decline in the Indonesian economy in 2020 directly impacted the Gross Regional Domestic Product (GRDP) growth rate. The GRDP declined by -2.53% and -3.09% in the processing and other service industries, respectively. These data are recorded in the Indonesia Central Statistics Agency (BPS) GRDP Growth Rate based on Business Fields 2016-2020.
Organizations need a good employee or business performance to face global economic challenges (Eliyana, Ma'arif, & Muzakki, 2019) and uncertain conditions during the Covid-19 pandemic. These challenges disrupt processing and other service organizations, lowering their profits. The coating service industry is also classified into the processing and other service industries. Therefore, the regulations restricting people's mobility and movement make some coating service companies lose customers.
PT Untung Terus Sejahtera (UTS) is one of Indonesia's largest companies engaged in electro-static powder coating services. It is committed to providing reasonable prices, high-quality coatings, and the best service. Its goal is to satisfy customers by handling their custom coating needs. Furthermore, the company offers a spectrum of color, thickness, texture, softness, flexibility, smoothness, and temperature range. As its basic business principle, the company consistently delivers quality products to protect and color various metal surfaces.
During the Covid-19 pandemic, PT UTS standardized an optimal work culture to increase employee productivity. This facilitates exploring an organizational culture that is less profitable for the company because it is not regulated to achieve the best performance (Meng & Berger, 2019). Standardization also aims to transform and ensure that business is more structured in achieving organizational goals (Nikpour, 2017). Therefore, this study answers the literature gaps and provide recommendations for future studies from Berberoglu (2018), Jogaratnam (2017), Latan, Chiappetta Jabbour, Lopes de Sousa Jabbour, Wamba, & Shahbaz (2018), Meng & Berger (2019), Nazarian, Atkinson, & Foroudi (2017), Paais & Pattiruhu (2020), and Saha & Kumar (2018). Hypothesis differences occurred in a number of previous studies. For instance, Muhammad Arifin (2015) showed that the culture in educational organizations did not significantly affect job satisfaction. Paais & Pattiruhu (2020) also found that organizational culture does not significantly affect job satisfaction in the mining industry. However, (Pawirosumarto et al., 2017) showed that organizational culture and work environment influence job satisfaction. The relationship between these variables was tested separately in different studies.
This study also referred to past studies regarding the influence of organizational culture on employee performance (Pawirosumarto et al., 2017). It also reviewed studies on how commitment mediates the influence of organizational culture on employee performance (Nikpour, 2017). Other reference studies were those on how organizational commitment and job satisfaction affect performance (Eliyana et al., 2019), as well the relationship of job satisfaction and employee commitment (Ocen et al., 2017;Yousef, 2017). Therefore, the following hypotheses were formulated with the theories: Previous studies claimed that there is a positive and highly proven relationship between organizational culture and employee performance (Jogaratnam, 2017;Meng & Berger, 2019;Nazarian et al., 2017;Nikpour, 2017;Pawirosumarto et al., 2017). It can be concluded from the reference journals, that H1: Organizational culture positively influences employee performance.
There were studies which revealed that positive perceptions of organizational culture increase employee commitment, as well had positive impact (Al-Sada et al., 2017;González-Rodríguez et al., 2019;Nikpour, 2017;Saha & Kumar, 2018). It can be concluded from the reference journals, that H3: Organizational culture positively influences employee commitment.
It can be concluded from the reference journals, that H4: Job satisfaction positively affects employee commitment.
Previous studies claimed that there is a positive and highly proven relationship between employee commitment and employee performance (Eliyana et al., 2019;Griffin, Hogan, Lambert, Tucker-Gail, & Baker, 2010;Hettiararchchi & Jayarathna, 2014;Nikpour, 2017). So, it can be concluded from the reference journals, that H6: Employee commitment positively affects employee performance.
The study findings confirmed that job satisfaction was a mediator for the relationship of organizational culture to employee performance (Karakus et al., 2019;Mao, Li, Ye, & Cai, 2017;Paais & Pattiruhu, 2020;Pawirosumarto et al., 2017). It can be concluded from the reference journals, that H7: Organizational culture positively influences employee performance mediated by job satisfaction.
The findings of other studies confirm that organizational culture has a direct influence that has a positive impact on organizational performance, but also influences organizational performance using employee organizational commitment indirectly (Karakus et al., 2019;Nikpour, 2017). It can be concluded from the reference journals, that H8: Organizational culture positively influences employee performance mediated by employee commitment.

Research Methods
This study used a quantitative method (Malhotra & Birks, 2007) to measure the data and applied statistical analysis. A quantitative approach is also used to test assumptions and relationships between variables or forecasts statistical results in numbers. This study analyzed the influence of organizational culture on job satisfaction, employee commitment, as well as employee performance. It also examined the relationship of job satisfaction, employee commitment, and employee performance. The study further investigated the relationship between employee commitment and employee performance. Furthermore, it tested the role of job satisfaction and employee commitment in mediating the relationship of organizational culture and employee performance.
Total sampling was employed to determine respondents comprising 167 employees of PT UTS, which is all employees of the company. The operational measurement of variables referred to Saleem, Malik, Qureshi, Farid, & Qamar (2021) for employee performance with eight indicators and Nikpour (2017) for organizational culture with 25 indicators from four dimensions. Also, the measurement referred to Nikpour (2017) for organizational culture with multidimensions and reflective constructs, Griffin et al. (2010) for employee commitment with six indicators, and Karakus et al. (2019) with Griffin et al. (2010) for job satisfaction with five indicators. The study used a quantitative method and collected primary data through structured questionnaires filled out independently by respondents. The self-administered questionnaires consisted of closed questions according to each variable's measurement 5 Likert scale (Malhotra & Birks, 2007). The data processing was carried out using Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS software. PLS-SEM is an analysis method with good data assumptions for unsuitable data (J. F. Hair, Risher, Sarstedt, & Ringle, 2019).

Results and Discussions
The respondents comprised 139 or 83.2% men and 18 or 16.8% women. Based on age, 76, or 45.4% of the respondents, were 21 -30 years, while 61 or 36.5%, were aged 31 -40. In education background, 118, or 70.7%, had high school diplomas and 32, or 19.2%, had bachelor's degrees. For the work period, 81 or 48.5% of the respondents were employees with 3-5 years of work experience, while 35 or 21% had worked for 1-2 years. Furthermore, 117, or 70.1%, of the respondents were administrators or operators, while 28 or 16.8%, worked as staff.

Measurement Model
The first evaluation was to measure the convergent validity for each indicator and the average variance extracted (AVE). Convergent validity shows how the indicators explain the latent variables. This implies that the greater the convergent validity, the greater the indicator's ability to explain the latent variable. The measurement model is presented. Discriminant validity is associated with the principle that different construct measurements should not be highly correlated. In this case, the discriminant validity for the reflexive measurement model is estimated based on the cross-loading value of the manifest variable on each latent variable (Henseler, Ringle, & Sarstedt, 2015). All cross-loadings values of each indicator have a higher correlation with the variable than others. This shows that the placement of indicators on each variable or dimension is appropriate, as indicated in Appendix 2. The validity of all indicators is also discussed in Appendix 3 for the model.
A correlation meets convergent validity when its loading factor value exceeds 0.7. However, the measurement scale for loading values of 0.5 to 0.6 is deemed sufficient (Apriyanti, Surya, & Lutfi, 2017). For structural development, the outer loading value used is 0.4 -0.5, considered good by Hair et al. (2019). Therefore, this study used the limit value for validity as > 0.6 (J. F. Hair et al., 2019). Referring to the same factor loading provisions, the following was the result of the continued factor loading for each variable. These variables are the continuation of organizational culture, employee performance, employee commitment, and job satisfaction. Therefore, from each indicator even variable dimensions can be seen for the loading factor. Loading factor is a coefficient that describes the level of relationship between indicators and latent variables. The full model standardized loading factor values were also presented. This section showed the validity test of question items (indicators) in measuring each variable. The KO5 indicator had a standardized loading factor value < 0.6. The indicators in question were not yet valid so they can be reduced from the model. After that, a re-estimation was carried out. Based on the results of the outer loading values, it can be concluded that out of 44 (forty-four) statement items, there are 43 (forty-three) statement items that were considered valid and met the requirements for convergent validity and 1 (one) statement item that was considered invalid was omitted. Then the PLS Algorithm was repeated so that the final outer loading results are all valid as follows.

Figure 1. Measurement Model
From the results in the figure 1, it can also be found that each variable had the highest outer loading value. For the organizational culture variable, item B7 was the highest item for the involvement dimension, item B9 was the highest item for the consistence dimension, B14 was the highest item for the adaptability dimension, and B18 was the highest item for the mission dimension. However, for organizational culture variables, the dimension that had the highest outer loading was the consistency dimension with a magnitude of 0.909. For employee performance variable KA2 item was the highest item, for employee commitment variable KO1 item was the highest item, and for job satisfaction variable KK3 item was the highest item.
It was explained that discriminant validity is related to the basis that different components are not allowed to have a strong correlation, discriminant validity in the reflectometric model can be measured based on the manifest variable cross loading value for each latent variable. Discriminant validity testing was carried out with the aim of ascertaining whether an indicator is included as a good measure of the variable based on the principle that each indicator must have a high correlation with the variable alone. Discriminant validity that had a high value indicates that a variable is unique and able to describe the phenomenon being measured and this variable was completely different from other variables. All cross-loading values for each indicator had a higher correlation with the variable, when viewed with other variables. This explanation showed that the placement of indicators for each dimension or variable was correct. A composite reliability value for each latent variable is more than 0.70, meaning that the indicators consistently measure their latent variables (Sarstedt & Christian M. Ringle, 2017). Based on the results in Table 1, the Cronbach's alpha and composite reliability values of all latent variables exceed 0.7. Convergent validity is determined through a variable with reflective indicators based on the AVE value, which should exceed or equal to 0.5. This shows that the variable describes more than 50% of the item distribution (Sarstedt & Christian M. Ringle, 2017;Wong, 2013), signifying all indicators are valid and reliable.

Structural Model
The structural or inner model was analyzed to acquire R-Square (R 2 ), adjusted R-Square, and F-Square (F 2 ) values. An R-square value of 0.75 is deemed a strong model, 0.50 is moderate, while 0.25 is weak. Similarly, an R-square value of 0.67 indicates a strong model, 0.33 is moderate, while 0.19 is weak (Sarstedt & Christian M. Ringle, 2017). Table 2 shows that the R-square exceeding 67% of its value has a strong potential influence between all dimensions of organizational culture and latent variables. The independent variable strongly influences the dependent variable, except for the R-square of job satisfaction affected by the indicator items of 0.217 and the adjusted R-square value of 0.212. Therefore, job satisfaction is influenced by the indicator items by 21.7%, which exceeds 19%, implying a weak effect. The results of the F-Square (F 2 ), referring to Wong (2013) and Sarstedt & Christian M. Ringle (2017), showed that organizational culture significantly influences each of its dimensions. However, its influence on employee performance and commitment is insignificant but moderate on job satisfaction. The influence of job satisfaction on employee performance is insignificant but considerable on employee commitment. Additionally, employee commitment insignificantly affects employee performance (Sarstedt & Christian M. Ringle, 2017;Wong, 2013).
The Goodness of Fit model (GoF) value is acquired from the Average Variance Extracted (AVE) multiplied by the R 2 of the model. Tenenhaus GoF (Tenenhaus, Vinzi, Chatelin, & Lauro, 2005) value is 0.1, 0.25, and 0.36, respectively, meaning that the goodness of the structural model is small, medium, and large (Wetzels, Odekerken-Schröder, & Van Oppen, 2009). Based on Tenenhaus et al. (2005), the suggested geometric mean of the average communality and R 2 for the global GoF criterion is 0 < GoF < 1. Table 2 shows that the GoF value is 0.414, meaning it is large and the model is good at explaining empirical data (Tenenhaus et al., 2005).The SRMR value (n < 0.08-0.10 is declared quite fit for the model based on J. Hair, Hollingsworth, Randolph, & Chong (2017). However, a value above 0.10 denotes the model has fairly high goodness of fit.  Description: ***: Significant at 1% level, **: Significant at 5% level, *: Significant at 10% level Source: processed data, 2022

Direct Influence of Organizational Culture on Employee Performance
Based on Table 6, the parameter coefficient (O) for organizational culture on employee performance is 0.195. This implies organizational culture positively influences employee performance. A one-unit increase in organizational culture increases employee performance by 19.5%. The higher the organizational culture value, the better the employee's performance. Moreover, the influence of organizational culture on employee performance shows a p-value of 0.000 (<0.05), signifying that H0 is rejected. The results show that organizational culture has a significant and positive influence on employee performance at a significance of 5%. The estimated value is positive, inferring that better organizational culture improves employee performance (Jogaratnam, 2017;Meng & Berger, 2019;Nazarian et al., 2017;Nikpour, 2017;Pawirosumarto et al., 2017;Shahzad, 2012). Table 6 shows that the parameter coefficient value (O) for organizational culture on job satisfaction is 0.466. It suggests that organizational culture positively influences job satisfaction. Therefore, a one-unit increase in organizational culture increases job satisfaction by 46.6%. The higher the organizational culture value, the more job satisfaction. The influence of organizational culture on job satisfaction shows a p-value of 0.000 (<0.05), indicating that H0 is rejected. This implies a significant positive effect of organizational culture on job satisfaction at a significance level of 5%. The estimated value is positive, denoting that better organizational culture increases job satisfaction (Meng & Berger, 2019;Paais & Pattiruhu, 2020;Pawirosumarto et al., 2017;Shahzad, 2012). Table 6 indicates that the parameter coefficient value (O) for organizational culture on employee commitment is 0.067. This implies that organizational culture positively influences employee commitment. A one-unit increase in organizational culture increases employee commitment by 6.7%. Therefore, a higher organizational culture increases the commitment of employees. The influence of organizational culture on employee commitment shows a p-value of 0.000 (<0.05), contradicting H0. This implies a significant positive influence of organizational culture on employee commitment at the significance level of 5%. The positive estimated value means that better organizational culture increases the employee's commitment (Al-Sada et al., 2017;Amewokunu, 2015;Ghorbanhosseini, 2013;González-Rodríguez et al., 2019).

Direct Influence of Job Satisfaction on Employee Commitment
The findings showed in table 6, that the parameter coefficient (O) for variable job satisfaction on employee commitment is 0.943. This means that job satisfaction positively influences employee commitment. A one-unit increase in job satisfaction would increase employee commitment by 94.3%. Therefore, higher job satisfaction increases the commitment of employees. The influence of job satisfaction on employee commitment shows a p-value of 0.000 (<0.05), contradicting H0. It means that job satisfaction significantly and positively influences employee commitment at a significance level of 5%. The positive estimated value indicates better job satisfaction increases employee commitment (Ocen et al., 2017;Yousef, 2017). Table 6 indicates that the parameter coefficient (O) for variable job satisfaction on employee performance is 0.486. The results signify that job satisfaction positively influences employee performance. An increase in one unit of job satisfaction would increase employee performance by 48.6%. This denotes that higher job satisfaction increases employee performance. The effect of job satisfaction on employee performance has a p-value of 0.003 (<0.05), meaning that H0 is rejected. Therefore, job satisfaction significantly and positively influences employee performance at a significance level of 5%. The estimated value is positive, indicating that higher job satisfaction increases employee performance (Eliyana et al., 2019;Pawirosumarto et al., 2017).

Direct Influence of Employee Commitment on Employee Performance
The results in Table 6 show that the parameter coefficient (O) for employee commitment to employee performance is 0.309. This suggests there is a positive influence of employee commitment on employee performance. Therefore, a one-unit increase in employee commitment increases employee performance by 30.9%. The findings mean that a higher commitment increases the performance of employees. The effect of employee commitment on employee performance has a p-value of 0.043 (<0.05), rejecting H0. This demonstrates that employee commitment significantly and positively influences performance at a significance level of 5%. The positive estimated value indicates that better work commitment improves the employee's performance (Eliyana et al., 2019;Nikpour, 2017). Table 6 shows that the parameter coefficient (O) for organizational culture on employee performance through job satisfaction is 0.226. These results reveal that organizational culture has a positive and indirect influence on employee performance mediated by job satisfaction. A oneunit increase in organizational culture increases employee performance through job satisfaction by 22.6%. Therefore, higher organizational culture increases employee performance through job satisfaction. The indirect effect of organizational culture on employee performance mediated by job satisfaction has a p-value of 0.007 (<0.05), rejecting H0. This confirms that organizational culture significantly and positively affects employee performance mediated by job satisfaction at a significance level of 5% (Karakus et al., 2019;Pawirosumarto et al., 2017). Table 6 shows that the parameter coefficient (O) for organizational culture on employee performance through employee commitment is 0.021. These results indicate that organizational culture positively and indirectly influences employee performance mediated by employee commitment. A one-unit increase in organizational culture increases employee performance through employee commitment by 2.1%. Therefore, higher organizational culture increases employee performance mediated by employee commitment. The indirect effect of organizational culture on employee performance mediated by employee commitment has a p-value of 0.061 (< 0.10), rejecting H0. These results prove that organizational culture significantly and positively affects employee performance mediated by employee commitment at a significance of 10% (Karakus et al., 2019;Nikpour, 2017).

Discussion
Organizational culture has a significant and positive influence on employee performance, as shown by the parameter coefficient (O) of 0.195. These results indicate that a one-unit increase in organizational culture increases employee performance by 19.5% (Jogaratnam, 2017;Meng & Berger, 2019;Nazarian et al., 2017;Pawirosumarto et al., 2017;Shahzad, 2012). Higher organizational culture increases employee performance. When assisted with job satisfaction, the significance of the influence increases by 22.6% (Karakus et al., 2019;Pawirosumarto et al., 2017).
Employee performance is significantly improved by organizational culture through job satisfaction. In this case, management should provide tools and facilities that help create job satisfaction among employees. This would help establish an organizational culture that contributes to better employee performance in PT UTS. The influence of organizational culture on employee performance increases by 2.1% when mediated by employee commitment (Karakus et al., 2019;Nikpour, 2017). The culture also improves employee performance significantly when assisted by job satisfaction. Similarly, the influence of organizational culture through job satisfaction increases by 46.6% (Meng & Berger, 2019;Paais & Pattiruhu, 2020;Pawirosumarto et al., 2017;Shahzad, 2012). Job satisfaction also increases employee performance by 48.6% (Eliyana et al., 2019;Pawirosumarto et al., 2017). Therefore, job satisfaction significantly improves employee performance without mediation, but it is significantly affected by organizational culture.
Organizational culture increases employee commitment only by 6.7% (Al-Sada et al., 2017;Amewokunu, 2015;Ghorbanhosseini, 2013;González-Rodríguez et al., 2019). The influence of employee commitment on performance is also relatively smaller (Eliyana et al., 2019;Nikpour, 2017) than the influence of job satisfaction. Therefore, management could encourage employee performance by increasing their commitment. The only difference is that the impact is smaller than the influence of job satisfaction or organizational culture. However, employee commitment could be increased by job satisfaction (Ocen et al., 2017;Yousef, 2017), which has a positive effect of 94.3%, the largest influence in the study model. The commitment could be encouraged with higher job satisfaction to increase employee performance.
The organizational culture at PT UTS significantly influences employee performance because most employees are administrators and staff. Therefore, they mostly implement the culture from the managerial decisions. The respondents feel that a good organizational culture influences their performance and job satisfaction. Furthermore, job standardization also directly affects their satisfaction, as seen from the educational background of most respondents with high school diplomas and undergraduates, making them understand the correlations. Most respondents were 21-40 years old, meaning they were mature, vulnerable, and more committed to their work (Davies, 2017), which affects performance. The respondents 'gender also determines their commitment because most are men. According to (Chusmir, 1986), male workers are more committed than female employees. These findings mean that employee commitment affects their performance, whose relationship with organizational culture is mediated by job satisfaction.

Conclusions
This study found that organizational culture influences and improves employee performance. It also affects organizational commitment and job satisfaction, which mediate organizational culture to improve the performance of employees. Moreover, performance could be improved by increasing job satisfaction and employee commitment. Job satisfaction increased employee commitment, influencing performance during the Covid-19 pandemic. This implies that employee performance could be improved by different variables. PT UTS employees tend to improve their performance when there is a good organizational culture. They also increase their commitment and job satisfaction, resulting in better performance.
This study answered the gap from previous literature on job satisfaction, organizational culture, employee performance, and commitment. Therefore, the results could increase the validity of the difference in hypotheses between Muhammad Arifin (2015), Paais & Pattiruhu (2020), Pawirosumarto et al. (2017). This study also provided comprehensive answers to several suggestions by Saha & Kumar (2018) and Yousef (2017). It tested the coating service industry and found that organizational culture influences employee performance directly, as well as through employee commitment and job satisfaction. Moreover, the study gives contribution to the development of organizational theory with the validity of the relationship between organizational commitment, organizational culture, employee performance, and job satisfaction. It provides an overview of the management of PT UTS to apply the best organizational culture to improve employee performance.
This study was only performed in one coating service industry as well as cannot represent many organizations in proving the hypothesis. Respondents were also only selected from one company to test the relationship between variables. However, companies could use the results to improve work culture systems and employee performance. The respondents' different cultures and industries would influence future studies. This signifies that future studies should conduct larger observations involving employees from various industries and apply a mix-method methodology to build relationships between variables and have a more massive statistical influence. Furthermore, this study could be a reference in answering the gaps in Berberoglu (2018) Saha & Kumar (2018). It could also support theory development in building relationships between variables, though it should be updated. The study could help the company management improve employee performance with organizational culture, application, and related variables in other organizations.