Keywords: Organizational culture, Employee performance, Job satisfaction, Employee commitment, Coating industry
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.
Al-Sada, M., Al-Esmael, B., & Faisal, M. N. (2017). Influence of organizational culture and leadership style on employee satisfaction, commitment and motivation in the educational sector in Qatar. EuroMed Journal of Business, 12(2), 163–188. https://doi.org/10.1108/EMJB-02-2016-0003
Amewokunu, Y. (2015). Commitment Of Public-Sector. International Business & Economics Research Journal, 11(April 2012), 14.
Apriyanti, P., Surya, D., & Lutfi. (2017). Analisis Kualitas Layanan dan Citra Perusahaan terhadap Loyalitas Nasabah dengan Kepuasan Nasabah sebagai Variabel Intervening (Studi Empirik Nasabah Tabungan Tandamata Bank BJB Cabang Serang). Jurnal Riset Bisnis Dan Manajemen Tirtayasa, 1(2), 159–166. Retrieved from http://jurnal.untirta.ac.id/index.php/JRBM
Arif, S., Zainudin, Z., & Hamid, A. (2019). Influence of Leadership, Organizational Culture, Work Motivation, and Job Satisfaction of Performance Principles of Senior High School in Medan City. Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences, 2(4), 239–254. https://doi.org/10.33258/birci.v2i4.619
Berberoglu, A. (2018). Impact of organizational climate on organizational commitment and perceived organizational performance: Empirical evidence from public hospitals. BMC Health Services Research, 18(1), 1–9. https://doi.org/10.1186/s12913-018-3149-z
Chusmir, L. H. (1986). Gender differences in variables affecting job commitment among working men and women. Journal of Social Psychology, 126(1), 87–94. https://doi.org/10.1080/00224545.1986.9713574
Davidescu, A. A. M., Apostu, S. A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among romanian employees-Implications for sustainable human resource management. Sustainability (Switzerland), 12(15). https://doi.org/10.3390/su12156086
Davies, P. (2017). Northumbria Research Link (www.northumbria.ac.uk/nrl). Academy of Management, 51(September), 1–51.
Eliyana, A., Ma’arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144–150. https://doi.org/10.1016/j.iedeen.2019.05.001
Ghorbanhosseini, M. (2013). the Effect of Organizational Culture, Teamwork and Organizational Development on Organizational Commitment: the Mediating Role of Human Capital. Utjecaj Organizacijske Kulture, Timskog Rada i Razvoja Organizacije Na Predani Rad u Organizaciji: Posrednička Uloga Ljudskog Kapitala., 20(6), 1019–1025. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=93360282&site=ehost-live
González-Rodríguez, M. R., Martín-Samper, R. C., Köseoglu, M. A., & Okumus, F. (2019). Hotels’ corporate social responsibility practices, organizational culture, firm reputation, and performance. Journal of Sustainable Tourism, 27(3), 398–419. https://doi.org/10.1080/09669582.2019.1585441
Griffin, M. L., Hogan, N. L., Lambert, E. G., Tucker-Gail, K. A., & Baker, D. N. (2010). Job involvement, job stress, job satisfaction, and organizational commitment and the burnout of correctional staff. Criminal Justice and Behavior, 37(2), 239–255. https://doi.org/10.1177/0093854809351682
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management and Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130
Hamdollah, R., & Baghaei, P. (2016). Partial least squares structural equation modeling with R. Practical Assessment, Research and Evaluation, 21(1), 1–16.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Hettiararchchi, H. A. ., & Jayarathna, S. M. D. . (2014). The effect of Employee Work Related Attitudes on Employee Job Performance: A Study of Tertiary and Vocational Education Sector in Sri Lanka. IOSR Journal of Business and Management, 16(4), 74–83. https://doi.org/10.9790/487x-16447483
Jogaratnam, G. (2017). How organizational culture influences market orientation and business performance in the restaurant industry. Journal of Hospitality and Tourism Management, 31, 211–219. https://doi.org/10.1016/j.jhtm.2017.03.002
Karakus, M., Ersozlu, A., Demir, S., Usak, M., & Wildy, H. (2019). A model of attitudinal outcomes of teachers’ psychological capital. Psihologija, 52(4), 363–378. https://doi.org/10.2298/PSI181114008K
Latan, H., Chiappetta Jabbour, C. J., Lopes de Sousa Jabbour, A. B., Wamba, S. F., & Shahbaz, M. (2018). Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production, 180, 297–306. https://doi.org/10.1016/j.jclepro.2018.01.106
Loan, L. T. M. (2020). The influence of organizational commitment on employees’ job performance: The mediating role of job satisfaction. Management Science Letters, 10(14), 3307–3312. https://doi.org/10.5267/j.msl.2020.6.007
Malhotra, N. K., & Birks, D. F. (2007). an Applied Approach. In Open Journal of Business and Management. Retrieved from http://capitadiscovery.co.uk/cardiffmet/items/240307%0Awww.pearson.com/uk
Mao, P., Li, S., Ye, K., & Cai, H. (2017). A field theory based model for identifying the effect of organizational structure on the formation of organizational culture in construction projects. KSCE Journal of Civil Engineering, 21(1), 45–53. https://doi.org/10.1007/s12205-016-1233-7
Meng, J., & Berger, B. K. (2019). The impact of organizational culture and leadership performance on PR professionals’ job satisfaction: Testing the joint mediating effects of engagement and trust. Public Relations Review, 45(1), 64–75. https://doi.org/10.1016/j.pubrev.2018.11.002
Muhammad Arifin, H. (2015). The influence of competence, motivation, and organisational culture to high school teacher job satisfaction and performance. International Education Studies, 8(1), 38–45. https://doi.org/10.5539/ies.v8n1p38
Nazarian, A., Atkinson, P., & Foroudi, P. (2017). Influence of national culture and balanced organizational culture on the hotel industry’s performance. International Journal of Hospitality Management, 63, 22–32. https://doi.org/10.1016/j.ijhm.2017.01.003
Nikpour, A. (2017). The impact of organizational culture on organizational performance: The mediating role of employee’s organizational commitment. International Journal of Organizational Leadership, 6(1), 65–72. https://doi.org/10.33844/ijol.2017.60432
Ocen, E., Francis, K., & Angundaru, G. (2017). The role of training in building employee commitment: the mediating effect of job satisfaction. European Journal of Training and Development, 41(9), 742–757. https://doi.org/10.1108/EJTD-11-2016-0084
Olivia, S., Gibson, J., & Nasrudin, R. (2020). Indonesia in the Time of Covid-19. Bulletin of Indonesian Economic Studies, 56(2), 143–174. https://doi.org/10.1080/00074918.2020.1798581
Paais, M., & Pattiruhu, J. R. (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. Journal of Asian Finance, Economics and Business, 7(8), 577–588. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.577
Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and organizational performance: An empirical study of container shipping companies in Taiwan. Maritime Business Review, 3(1), 36–52. https://doi.org/10.1108/MABR-03-2018-0007
Pawirosumarto, S., Sarjana, P. K., & Gunawan, R. (2017). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador hotels and resorts, Indonesia. International Journal of Law and Management, 59(6), 1337–1358. https://doi.org/10.1108/IJLMA-10-2016-0085
Saha, S., & Kumar, S. P. (2018). Organizational culture as a moderator between affective commitment and job satisfaction: Empirical evidence from Indian public sector enterprises. International Journal of Public Sector Management, 31(2), 184–206. https://doi.org/10.1108/IJPSM-03-2017-0078
Saleem, F., Malik, M. I., Qureshi, S. S., Farid, M. F., & Qamar, S. (2021). Technostress and Employee Performance Nexus During COVID-19: Training and Creative Self-Efficacy as Moderators. Frontiers in Psychology, 12(October), 1–16. https://doi.org/10.3389/fpsyg.2021.595119
Santos, A. S., Reis Neto, M. T., & Verwaal, E. (2018). Does cultural capital matter for individual job performance? A large-scale survey of the impact of cultural, social and psychological capital on individual performance in Brazil. International Journal of Productivity and Performance Management, 67(8), 1352–1370. https://doi.org/10.1108/IJPPM-05-2017-0110
Sarstedt, M., & Christian M. Ringle, and J. F. H. (2017). Partial least squares structural equation modeling with R. In Practical Assessment, Research and Evaluation (Vol. 21).
Satuf, C., Monteiro, S., Pereira, H., Esgalhado, G., Marina Afonso, R., & Loureiro, M. (2018). The protective effect of job satisfaction in health, happiness, well-being and self-esteem. International Journal of Occupational Safety and Ergonomics, 24(2), 181–189. https://doi.org/10.1080/10803548.2016.1216365
Shahzad, F. (2012). Impact of Organizational Culture on Organizational Performance : An Overview. Interdisciplinary Journal of Contemporary Research in Business, 3(3), 975–985.
Sharma, P. (2017). Organizational Culture as a Predictor of Job Satisfaction: The Role of Age ...: University of Liverpool Library. Management, June 2017, v. 22, Iss. 1, Pp. 35-48, 35–48.
Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266–282. https://doi.org/10.1108/SAJBS-12-2018-0142
Suwarto, S. (2020). Factors Affecting Employee Performance. Jurnal Prajaiswara, 1(1), 68–90. https://doi.org/10.55351/prajaiswara.v1i1.5
Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48(1), 159–205. https://doi.org/10.1016/j.csda.2004.03.005
Tsait, Y. (2011). Relationship between organizational culture, leadership behavior and job satisfaction. BMC Health Services Research, 11, 98. Retrieved from http://ovidsp.ovid.com/ovidweb.cgi?T=JS&PAGE=reference&D=emed10&NEWS=N&AN=21569537
Usikalu, O., Ogunleye, A. J., & Effiong, J. (2015). Organizational Trust, Job Satisfaction and Job Performance Among Teachers in Ekiti State, Nigeria. Open Access 2. British Open Journal of Psychology, 1(1), 1–10. Retrieved from http://borpub.com/Journals.phphttp://borpub.com/Journals.php
Vujičić, D., Jovičić, A., Lalić, D., Gagić, S., & Cvejanov, A. (2015). The relation between job insecurity, job satisfaction and organizational commitment among employees in the tourism sector in Novi Sad. Economic and Industrial Democracy, 36(4), 633–652. https://doi.org/10.1177/0143831X14527017
Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS Path Modeling for Assessing Hierarchical Construct Models: Guidelines and Empirical Illustration Service Design for Innovation View project. MIS Quarterly, 33(1, March 2009), 177–195. Retrieved from https://www.researchgate.net/publication/228754673
Wong, K. K. K.-K. (2013). 28/05 - Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS. Marketing Bulletin, 24(1), 1–32. Retrieved from http://marketing-bulletin.massey.ac.nz/v24/mb_v24_t1_wong.pdf%5Cnhttp://www.researchgate.net/profile/Ken_Wong10/publication/268449353_Partial_Least_Squares_Structural_Equation_Modeling_(PLS-SEM)_Techniques_Using_SmartPLS/links/54773b1b0cf293e2da25e3f3.pdf
Yousef, D. A. (2017). Organizational Commitment, Job Satisfaction and Attitudes toward Organizational Change: A Study in the Local Government. International Journal of Public Administration, 40(1), 77–88. https://doi.org/10.1080/01900692.2015.1072217
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright (c) 2022 Bintang Bagaskara Korda, Riani Rachmawati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.