T. Review. Fitri Yanti Abd. Malik

TUGAS REVIEW JURNAL INTERNASIONAL
Dosen Pengampuh:
Dr. Adnan Rajak SE., M.Si
Disusun Oleh:
Nama: Fitri Yanti Abd. Malik

NPM: 02041911020
MK: Metodologi Penelitian
Judul Proposal:
Analisis Kinerja Pegawai Kantor Lurah
Dalam Memberikan Pelayanan
Kepada Masyarakat Kel. Koloncucu
PROGRAM STUDI MANAJEMEN

FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS KHAIRUN
TERNATE
2022
SEISENSE Journal of Management
Vol 4 No 3 (2021): DOI: https://doi.org/10.33215/sjom.v4i3.641 , 34-62
Research Article
The Influence of Employee Engagement, Work

Environment and Job Satisfaction on
Organizational Commitment and Performance of
Employees: A Sampling Weights in PLS path
Modelling
Isaac Ahakwa 1*, Jingzhao Yang2, Evelyn Agba Tackie 3, Samuel Atingabili 4
1,2,3,4 School of Management, Jiangsu University, Zhenjiang-China

* Corresponding author: isaacahakwa@gmail.com
Purpose- This paper explored the link between employee

Article History
engagement, work environment, and job satisfaction on
Received 2021-04-15
organizational commitment and employee performance in Ghana's
Revised 2021-05-02
Banking sector considering moderated-mediated interaction.
Accepted 2021-05-03
Published 2021-05-04 Design/Methodology- Data were obtained from seven hundred
and twenty (720) employees from selected financial banks in the
Keywords Greater Accra Region of Ghana through simple random
Employee performance probability sampling. However, seven hundred (700) responses
Organizational commitment were deemed accurate and therefore used in the analysis. In the
Work environment analytical process, Weighted Partial Least Squares (WPLS) and
Weighted partial least squares Partial Least Squares (PLS) based on Structural Equation Modeling
Ghana. (SEM) were employed.
Findings- From the findings, the studied data for both WPLS-SEM
How to cite? and PLS-SEM models met internal consistency reliability,
Ahakwa, I., Yang, J., Tackie, E. A., & convergent, and discriminant validity. Also, organizational
Atingabili, S. (2021). The Influence of commitment fully mediated the link between work environment
Employee Engagement, Work and employee performance in the WPLS-SEM model compared to
Environment and Job Satisfaction on PLS-SEM with partial mediation. It was statistically significant at
Organizational Commitment and p<0.01.
Performance of Employees: A Sampling Practical Implications- Based on the findings, it’s recommended
Weights in PLS path Modelling. that organizations and managers focus on developing the workers'
SEISENSE Journal of Management, workplace environment in numerous ways. This should entail
4(3), 34-62. doi: valuing workers' contributions, communicating the company's
10.33215/sjom.v4i3.641 progress and achievement to workers, thus instilling ownership in
workers, providing them with a work-life balance, providing the
Copyright © 2021 The Author(s)
requisite knowledge and tools for successful production, and
providing a stable atmosphere. The workplace of all these factors
could increase workers' morale and lead to increased productivity.
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Introduction
In light of challenging economic circumstances, any establishment's sustainable growth relies on workers'
increased performance. Employee performance (EP) is the successful and reliable execution of the duty in a
demanding environment using the stipulated period's tools. EP is linked to the activities carried out to achieve
organizations’ goals and objectives (Motowidlo, Lievens, & Ghosh, 2018). The organization’s creation is
primarily focused on the EP as it affects efficiency (Chikazhe, Makanyeza, & Kakava, 2020), and lack of required
productivity affects the organization’s sustainability (Anyakoha, 2019). EP is critical because it generates optimal
organizational efficiency (Abdirahman, 2018). Increased level of dedication serves as the driving force behind
EP. When evaluating the impact of organizational commitment (OC), several studies reinforce the belief that
OC inspires workers to perform to the highest efficiency standards (Berberoglu, 2015).
The importance of the results of the study cannot be devalued. First, this study's findings would allow
companies to build practical human capital management approaches to improve their corporations' overall
value. Next, the results of this study will encourage decision-makers to create tailored strategies and initiatives
that will positively inspire the development and survival of organizations around the world. Third, the research's
results could be used by controlling bodies such as the Bank of Ghana and other financial bodies to advance
their regulatory structure further. Finally, the research provides more modernized scientific data to current
human resource management literature in Ghana concerning OC and EP. This is of immense value to the
academic field, as it serves as reference material for students and scholars who may wish to do further
exploration on the current topic.
Several antecedents of employee performance have been examined and investigated by prior studies. For
example, leadership practices (Le & Tran, 2020); motivation (Ackah, 2014); training and development
(Ampomah, 2016; Boadu, Dwomo-Fokuo, Boakye, & Kwaning, 2014); leaders’ behavior (Obuobisa-Darko,
2019) and communication (Otoo, 2016). However, very little has been done on variables such as employee
engagement (EE), work environment (WE), and OC in the Ghanaian context. This research was conducted to
aid fill this gap. Studies on EP, OC, job satisfaction (JS), EE, and WE are abundant. The conclusions are,
however, inconsistent. For, e.g., (Cesário & Chambel, 2017) researched EP, OC, and EE in Portugal. As a
result, there was a positive correlation between EP and OC and between EE and EP. Eliyana and Ma’arif (2019)
have discussed the relationships between EP, JS, and OC in Indonesia. It was reported that there was a strong
association between JS and EP. There was, however, a negative correlation between OC and EP. Abdirahman
(2018) examined the influence of JS and OC on EP in Malaysia. The findings indicated a positive relationship
between JS and EP and amid OC and EP. In the public sector of Ghana, Amoako-Asiedu and Obuobisa-Darko
(2017) examined the interrelationship between EE and EP. A significant linkage between EE and EP was
obtained from the findings. Ahakwa, Yang, Agba Tackie, Afotey Odai, and Dartey (2021) delved into the
relationship between WE and OC among MMDAs employees in Ghana. From the finding, there was a
significant positive connection between the two variables. The studies as mentioned above, among others, are
deficient in scope as most human resource management studies related to OC and EP in Ghana are more
associated with organizations operating in the primary and industrial sectors, to the detriment of those operating
in the service field, to the best of our knowledge. By focusing on only accredited banking organizations in
Ghana, this study contributively fills that gap. The research adds in the following ways to the current body of
literature:
First, most previous studies studied the relations between OC, EE, WE, JS, and EP using partial least squares
focused on structural equation modeling (SEM). Most studies, however, neglect the Weighted PLS-SEM
(WPLS-SEM). WPLS-SEM uses weighed correlations and weighted regression results to estimate the PLS path
model (Becker & Ismail, 2016). The WPLS-SEM permits investigators to specify a weighting vector that
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determines the importance of each observation's results. This study employed WPLS-SEM and compared the
result with the original PLS-SEM. This study also used the current method of assessing the model's predictive
relevance, “the PLSpredict” proposed by (Hair et al., 2020; Shmueli et al., 2019), which is not common in
existing studies.
Second, numerous studies of OC, EE, WE, JS, and EP have been done. However, only a small number of those
studies considered the issue of common method bias (CMB). According to Kock (2015), a probable cause of
CMB is the implicit social desirability allied with answering questions in a questionnaire in a particular way,
again causing the indicators to share a certain amount of common variation. To help address CMB's issue, the
researchers provided appropriate reliability evidence, factor structures, and convergent and discriminant validity
as suggested by (Conway & Lance, 2010). A full collinearity assessment approach proposed by Kock (2015) was
also employed to deal with CMB's issue.
Third, numerous studies of OC, EE, WE, JS, and EP have been done. However, only a small number of those
studies considered either mediation or moderation in their analysis model. To the best of our knowledge, this
is the first study to report on this study’s variables in moderated-mediated interaction in the Ghanaian context
upon an extant review of the literature. Therefore, this research aims to fill the gap by creating an integrative
model that considers many variables and mechanisms relevant to EP, a moderated-mediated model.
Last, most existing studies end up using a small sample size for their analysis when using PLS-SEM. According
to Fornell and Bookstein (1982), when models contain several constructions and a wide number of objects,
PLS-SEM proposes better solutions with small sample sizes. Hair Jr, Hult, Ringle, and Sarstedt (2016) suggest
that “some researchers have wrongly and misleadingly used these features to produce studies with exceedingly
small sample sizes, even when the population is large and accessible without much effort.” Unlike other studies,
this research used a larger sample size of seven hundred (700) for the study’s analysis. Such a larger sample size
provides more accurate mean values and gives a smaller margin of error. Wamba et al. (2017) indicated that “a
greater number of prior studies on sample size requirements in PLS-SEM unnoticed the fact that the process
also proves valuable for evaluating large data quantities.”
The contributions mentioned above are novel since they are deficient in OC and EP studies undertaken in the
Ghanaian context. The study is eventually unique since the investigators themselves carried it out; the study's
hypothesis and intent are clearly defined; the techniques used are fully detailed; the findings are properly
represented, and the policy implications are properly explained. The rest of the report is organized as follows:
the "Review of Related Literature" section presents the literature promoting the subject under study. At the
same time, the "Method" part reflects the study technique. Empirical findings of the analysis are summarized
in the "Empirical Results" section, while discussions, practical implications, and conclusions are the final section
of the research.
Review of Related Literature

Employee Engagement
EE is an important term in an organization, which has gained substantial interest in scholarly study. Saks (2019)
referred to the EE as the degree that one is conscientious and involved in his/her work roles. Also, “EE is
perceived as a good and satisfactory behavior associated with work that is marked by three components: vigor,
interest and devotion” (Rothmann, 2017). “An engaged employee is projected to experience traits such as
socially, psychologically and cognitively” (W. Kim, Khan, Wood, & Mahmood, 2016). Kang and Sung (2017)
described EE as "the degree of participation, communication, intimacy and impact of an employee with a
specific brand, the involvement of an employee with a brand, irrespective of the medium where they make the
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decisions." Furthermore, (Hanaysha, 2016a) conceived of EE as the productive, interpersonal, emotional

conduct of work, motivating workers to mentally, cognitively, and physically express and plan for their duties.
To obtain valuable market success results for various organizations, the EE, according to Rothmann (2017), is
extremely significant. The authors have shown that it is important for companies to involve their workers, as
EE establishments have a greater degree of customer satisfaction and commitment, extra efficient, and
profitable than those with less EE (Rothmann, 2017). Hanaysha (2016a) has recommended cultivating EE's
idea as retrenchment reduces workers' motivation and devotion to their establishments. Therefore, low amounts
of dedication have a detrimental impact on the OC and retaining of workers. Jiony, Tanakinjal, Gom, and
Siganul (2015) suggested that a well-performing company is dependent on its ability to maintain a safe, engaged
and dedicated workforce through interaction.
Organizational Commitment
It is undoubtedly very required for all establishments to cultivate OC since personnel is the key foundation of
sustained achievement and efficiency. “OC is described as an emotional attitude that binds personnel to an
establishment in a way that decreases turnover intention” (Ahakwa, Yang, Agba Tackie, et al., 2021). Lee,
Ashford, Walsh, and Mowday (1992) proposed the most generally accepted definition for OC as “the level to
which a person's participation in his organization.” The authors added that loyalty is demonstrated by an
employee's ability to labor successfully in an establishment and the desire to sustain the relationship devoid of
attempting to turn to another (Lee et al., 1992). Organizations with greatly committed personnel, since it’s
widely agreed that OC might lead to countless organizational results; reduced turnover, greater motivation level,
enriched citizenship conduct, and continuous organizational support (Ahakwa, Yang, Agba Tackie, et al., 2021).
“The commitment of workers is a sign of greater devotion and improved efficiency” (Porter, Steers, Mowday,
& Boulian, 1974). Committed personnel often work assiduously to fulfill objectives of establishment and appear
to positively consent to their values (C. S. Cheah, Chong, Yeo, & Pee, 2016). Many positive behavioral outcomes
can be correlated with OC of employees, such as greater retention of workers, motivation, efficiency, quality of
work, and willingness to make sacrifices to enhance the reputation and performance of organizations (Somers,
1995). OC is a crucial element in assessing organizations' effectiveness, which increases employee morale and
EE (Hayat, Azeem, Nawaz, Humayon, & Ahmed, 2019; Hendri, 2019; Yousef, 2017). OC often has a clear
correlation with the actions and performance of employees. If an employee has an OC, there will be fewer
chances for absence and turnover (R. Ahmad, Islam, & Saleem, 2019; Igbaria & Greenhaus, 1992; Joe-Akunne
& Ezeh, 2019; Karunarathne & Wickramasekara, 2020). Therefore, it is crucial to regularly review employees’
commitment to resolving any problems that may occur and ensure that workers maintain a good attitude to
work, which is indispensable to overall organizational success.
Work Environment
The WE is a significant element that influences the JS and OC of employees to the organization. The WE refers
to the surrounding of an establishment where employees do their work. “The WE is linked to the atmosphere
of a specific company in which its workers conduct their duties” (Danish, Ramzan, & Ahmad, 2013).
Undoubtedly, since their needs are likely to be fulfilled, a facilitative and healthy work atmosphere will attract
employees. To succeed, companies should design their WE to enhance employees' dedication and motivation
that eventually contribute to promising results. A good WE include all the essentials of a job, such as the
amenities to perform responsibilities, a relaxed workspace, protection, and no noise. Hanaysha (2016a) found
that, relative to those who feel insecure, workers who feel relaxed with their WE are likely to work more
efficiently and enjoy the working process. Managers should also strengthen the elements of the WE to make
certain of the well-being of their workforces. Past research demonstrates that WE can be measured in many
respects. Ahakwa, Yang, Agba Tackie, et al. (2021) indicated that “the WE involves elements such as
participation; group cohesion; provision for supervisors; role direction; self-sufficiency; clarity; creativity,
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physical well-being, and management power.” Also, Ahakwa, Yang, Agba Tackie, et al. (2021) defined a range
of dimensions for assessing the WE, including: "job challenge, job autonomy, leader concern, and support,
leader work facilitation, working group cooperation, workgroup spirit, position uncertainty, fairness and reward
system equity. Therefore, the WE may be evaluated in terms of any factor that influences the actions of an
employee in his or her organization.
Employee Job Satisfaction
JS is the wonderful psychological state arising from the enjoyment of a person's own work experience (Liu,
Aungsuroch, & Yunibhand, 2016). It could also be perceived as workers' mindset towards their employers, the
environment of corporate, social, and physical work, and the benefits received (Yousef, 2017). JS implies how
a member of the organization feels about work (Qureshi & Hamid, 2017). Such emotions may be positive or
negative; more positive feelings indicate JS's degree is high. JS also defines a worker's optimistic feelings about
the workplace. Judge and Locke (1993) showed a strong correlation between the features of the work and
people's desires. There is also a consensus among scholars that Maslow's theory of needs clarifies this
association between work characteristics and human needs. Stajkovic and Luthans (1998) suggested that JS has
three components; first, JS refers to an employee's emotional reaction to WE. Second, JS may be calculated by
estimating how well results fulfill requirements. Last, JS can be assessed by many behaviors relevant to work.
The success management framework often stresses JS employees (N. Ahmad, Iqbal, Javed, & Hamad, 2014).
JS is to build optimistic feelings among employees regarding jobs Robbin and Judge's (2008). Greater JS
produces more optimistic thoughts about their jobs in the minds of workers. Badran and Youssef-Morgan
(2015) found out that JS induces optimistic emotional feelings arising from job appraisal.
Employee Performance
Performance is defined as the product of trained employees in some particular circumstances (Obicci, 2015).
EP is the product or degree of an employee as a whole's progress in executing the task over a given amount of
time relative to other things, such as the quality of work, objective, or standards that have been previously
defined and collectively decided upon (Obicci, 2015). Vrinda and Jacob (2015) observed a dispute between the
personal life and performance of workers. Dahie, Takow, Nur, and Osman (2016) examined that performance
effectively is the product of work with a fair corporate responsibility without interrupting any regulations and
organizational objectives. Darma and Supriyanto (2017) say that EP results from perfection and everyone's
quantity in directing his/her job obligations.
Hypotheses Development and Conceptual Framework

Employee Engagement and Organizational Commitment
Previous findings have uncovered that EE has a significant positive influence on OC (Hanaysha, 2016a; Imam
& Shafique, 2014; Nazir & Islam, 2017). Engaged workers make greater attempts to work assiduously, are highly
likely to drive further than their necessary and anticipated number of work assignments (Lockwood, 2007).
Also, engaged workers tend to find their working conditions and workplace principles positively impact their
physical and psychological security at work (Agyemang & Ofei, 2013). Schaufeli (2013) previous research has
indicated that EE influences the degree of OC.
H1: Employee engagement positively influences organizational commitment.
Employee Engagement and Employee performance
Past studies have made known that EE has a significant positive influence on EP (Anitha, 2014; Ayub & Islam,
2018; Sendawula, Kimuli, Bananuka, & Muganga, 2018). However, Kuruppuge and Gregar (2017) identified a
negative relationship between EE and EP. The level of loyalty strongly influences the degree of EP that an
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individual has to his company and its beliefs (Sendawula et al., 2018). A dedicated worker is mindful of the
corporate setting and partners with peers to enhance job efficiency for the organization's benefit (Anindita &
Seda, 2018). EE is regarded as capacity, interest, participation, effectiveness, vigor, motivation, excitement, and
a positive state (Men, O’Neil, & Ewing, 2020). Truss, Shantz, Soane, Alfes, and Delbridge (2013), revealed that
“committed workers have a healthy mindset and a work-based state of mind marked by vigor, commitment,
and interest, making staff mentally present at work, reducing their tendency to make mistakes and errors related
to work.” Employees who are engaged are more prepared to know new things, according to (Sugianingrat et
al., 2019). This demonstrates that engaged employees are able to put their ideas into motion and, as a result,
reach high levels of success at work (Sugianingrat et al., 2019). Kruse (2012) examined 28 research studies by
various scholars and discovered a connection between EE and operation, revenue, pricing, safety, productivity,
earnings, and overall profitability. Monica and Krishnaveni (2018), who expressed that engaged workers
frequently portray a strong positive emotional bond with their job and are frequently more active, efficient,
stronger, happier, and less likely to abandon their employer, all support the correlation between EE and EP.
This result is also in line with Dhir and Shukla (2018), who performed a meta-analysis and discovered that EE
is linked to higher performance, consumer retention, and therefore customer loyalty. Employees who are
engaged outperform their discontented colleagues (Shuck, Reio Jr, & Rocco, 2011).
H2: Employee engagement positively influences employee performance.
Work Environment and Organizational Commitment
A variety of studies have found that the WE has had a major positive impact on OC (Ahakwa, Yang, Tackie,
Odai, & Dartey, 2021; Hanaysha, 2016a; Khuong & Le Vu, 2014). Pitaloka and Sofia (2014) establish a positive
impact on JS and OC in a conducive WE. Haggins (2011) established that WE played an important role in
persuading OC. By Giffords (2009), one of the key contributors to OC is the WE. According to Rayton (2006),
a safe working atmosphere, clear connectivity, and an adequate workload are deciding factors in an employee's
OC. If this aspect is lacking, people no longer feel at ease; they only come to work and work when their thoughts
are elsewhere; they have no compelling excuse to remain and survive in the organization. Employees who work
in a pleasant environment feel more committed, according to (Zainudin, Rashid, Murugeesan, Che Zainal, &
Malek, 2019). Also, a comfortable WE will lead to increased employee commitment (Nwachukwu, Ezeh,
Ogochukwu, Nkechinyere, & Dumle, 2019). Among bankers, Karacsony (2019) discovered a negative
connection between employee environment stressors and organizational engagement. According to Hanaysha
(2016a), the WE has a significant impact on OC. According to Hanaysha (2016a), the workplace atmosphere
tailored to the workforce demonstrates commitment on the part of the company.
H3: Work environment positively influences organizational commitment.
Work Environment and employee performance
Past studies have shown that WE have a significant positive effect on EP (Badrianto & Ekhsan, 2020; Imran,
Fatima, Zaheer, Yousaf, & Batool, 2012; Nguyen, Dang, & Nguyen, 2015; Rorong, 2016). According to E. M.
Putri, Ekowati, Supriyanto, and Mukaffi (2019), WE are among the variables that impact EP. The study
conducted by E. M. Putri et al. (2019) indicated that the agency's WE could positively and significantly affect
EP. According to Rorong (2016), the office atmosphere's practical décor and design eventually helped enhance
workers' experiences and necessitate improved efficiency. Previous researchers stated that the physical working
environment helped to deter employees' ability to connect with their work roles and influence their behavior
(Al-Omari & Okasheh, 2017). A study had shown that a conducive physical working environment could reduce
absenteeism and enhance employee performance (Chandrasekar, 2011). Thus, to retain employee performance,
the organization had to improve the physical working environment. Nematchoua, Ricciardi, Orosa, Asadi, and
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Choudhary (2019), revealed that a suitable workplace temperature energizes an office occupier to work at the
employee’s best.
H4: Work environment positively influences employee performance.
Organizational commitment and employee performance
The OC and EP relationship is confirmed by historical research. Hidayah and Tobing (2018) clarify that OC
affects EP. The findings suggest that OC types, such as continuous, normative, and affective, are related to
employee job efficiency. Susanty and Miradipta (2013) reveal the effect of OC on EP. The results showed that
OC forecasts EP separately and jointly. The studies carried out on university teachers have concluded that OC
has a favorable association with EP. The OC and EP are being studied by Suliman and Iles (2000) in three
industrial units. This research has demonstrated that organizational participation is a three-dimensional
phenomenon and has a beneficial association with job efficiency.
Another research indicates that OC has a favorable association with work efficiency. Dixit and Bhati (2012)
observed that employee motivation is an essential concern because it can forecast EP, absenteeism, and other
activities. Employees with a high level of organizational responsibility are more efficient and profitable, which
benefits the organization as a whole (Paramita, Lumbanraja, & Absah, 2020). OC has a significant and
constructive association with performance. According to Ramli (2019) organizational commitment is an
antecedent that can function to determine job performance. According to (Paramita et al., 2020), OC is linked
to EP. According to Singh (2019), OC has a favorable relationship with overall job results. Barrick, Stewart,
and Piotrowski (2002) discussed and identified a constructive association and a precise effect between OC and
EP. Fu and Deshpande (2014) discovered that OC has an important and beneficial impact on EP. Similarly,
Jamal (2011) demonstrates that OC has a direct impact on employee success.
H5: Organizational commitment positively influence employee performance.
The link between Job Satisfaction and employee performance
Chaudhry, Jariko, Mushtaque, Mahesar, and Ghani (2017) suggested that satisfaction and EP are correlated to
one another, and the outcome of work efficiency is satisfaction. Platis, Reklitis, and Zimeras (2015) analyzed
employee satisfaction and efficiency and identified that work satisfaction provides workers with feedback for
improved performance. Better worker efficiency is the degree of employee satisfaction (Shah & Jumani, 2015).
The significant EP metrics at the recruiting level were studied by (Muntazeri & Indrayanto, 2018). They
concluded the degree of JS and motivation influences the employee's productivity. The low level of JS negatively
impacts employee motivation and sequentially affects the accomplishment of corporate goals and results
(NATH & Agrawal, 2015)
H6: Job satisfaction positively impacts employee performance.
The mediation role of organizational commitment
Previous studies have linked EE and OC (Anindita & Seda, 2018; Hanaysha, 2016a; Khalid & Khalid, 2015; W.
H. Putri & Setianan, 2019) and WE to OC (Badrianto & Ekhsan, 2020; Imran et al., 2012; Nguyen et al., 2015;
Rorong, 2016). Also, OC is a critical factor in influencing EP, resulting in high organizational performance.
Cesário and Chambel (2017) have linked OC and EP and found a significant link between the two variables.
Yuniarti and Prasetyaningtyas (2020), through OC, there is a positive connection between EE and EP. This is
because dedicated workers feel positive feelings that extend their thought, allowing them to become more
attentive and immersed in their job. Building on these, the present study theorizes that EE and WE can be
associated with higher OC levels, resulting in a higher level of EP.
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H7: Organizational commitment mediates the connection between employee engagement and employee
performance.
H8: Organizational commitment mediates the link between work environment and employee performance.
The Moderating Role of Job Satisfaction
Employees search for jobs and pursue organizations with unique goals and expectations (i.e., money, comfort,
personal growth, learning, etc.). Employees tend to be happy with their performance as reality meets
expectations. Satisfaction thereby encompasses employee behaviors linked to jobs (Chaudhary, Bidlan, &
Darolia, 2015). A widely theorized EP measure is the level of JS (Al-Ali, Ameen, Isaac, Khalifa, & Shibami,
2019; Inuwa, 2016). EE was linked with high OC (Hanaysha, 2016b) and JS (Abraham, 2012; Thakur, 2014;
Vorina, Simonič, & Vlasova, 2017). Also, WE have been significantly linked with OC (Abdullah & Ramay,
2012; Ahakwa, Yang, Tackie, Odai, et al., 2021; Hanaysha, 2016a; Khuong & Le Vu, 2014; Vanaki &
Vagharseyyedin, 2009) and job satisfaction (Agbozo, Owusu, Hoedoafia, & Atakorah, 2017; Raziq &
Maulabakhsh, 2015) OC exerted a significant EP (Syauta, Troena, & Margono Setiawan, 2012). (Pohler &
Schmidt, 2016) also linked commitment and satisfaction. The link between OC and JS has been widely
acknowledged (Eslami & Gharakhani, 2012; Kirk-Brown & Van Dijk, 2016; Rusu, 2013). In this view, we
contend that JS can strengthen these associations, such that higher levels of JS would strengthen the effect of
WE and EE on OC, thus increases EP.
H9: Job satisfaction moderates the association amid employee engagement and organizational commitment.
H10: Job satisfaction moderates the nexus amid work environment and organizational commitment.
H11: Organizational commitment will mediate the relationship between employee engagement and employee
performance, and the association will be stronger when job satisfaction is high.
H12: Organizational commitment will mediate the link between work environment and employee performance,
and the association will be stronger when job satisfaction is high.
The Conceptual Framework
Based on the literature reviewed, the conceptual framework for this study is presented below.
Figure 1: The Conceptual Framework
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Methods
Research Design
A research design is a collection of procedures and techniques used to capture and analyze the measurements
of factors recognized in a research problem (Ahakwa, Yang, Tackie, & Bankole, 2021). To evaluate classification
features, quantify numbers, and construct a predictive pattern to test hypotheses and explain results, the
research used quantitative approaches.
Target Population
The population is defined as a category of the research object, has one or more common characteristics, and is
the subject of interest to the investigator. Employees and supervisors from Ghana Commercial Banks (GCB),
Ecobank Ghana (EBG), Zenith Bank of Ghana, and Agricultural Development Bank (ADB) in the Greater
Accra Metropolis were used as the study’s population.
Research sampling and sample size.
The sampling applies to an approach to choosing a part of the sample population that will represent the whole
study population. This research followed a simple random sampling technique where every employee was given
an equal opportunity to answer the questions asked. The sample size used for the analysis was seven hundred
(700), all of whom were employees from the Greater Accra Metropolis banking sector.
Data instrument and collection
To achieve the objectives of the study, the researcher gathered information from the study population. The
research used the questionnaire as a medium to request information from the population. The questionnaire
included questions related to the participants’ demographic characteristics. There were questions in the second
part of the questionnaire that helped examine the variables to be evaluated. Participants were called upon to
rate the items based on the 5-point Likert with the scaling pole ranging from strongly disagree (1) to strongly
agree (5). Seven hundred and twenty (720) online questionnaires were sent to respondents through various
digital platforms. Seven hundred (700) were deemed fit and accurate, then used for discussion.
Measurement of Variables
OC was measured with eight items adapted from (Allen & Meyer, 1996), and EP was measured with six items
taken from (Cropanzano, Rupp, & Byrne, 2003; Lutwama, 2011). Also, EE and WE were measured with four
items, each adapted from (Hanaysha, 2016). Last, JS was also measured with four items adapted from (Clack
2020). All the items were measured on a scale of 1 to 5. Table 1 reveals the items used for each variable.
Table 1: Measurement of Variables
Constructs Indicator Measurement Items
Employee EE1 I feel energetic to do my job at this organization.
Engagement EE2 I find the work that I do full of meaning and purpose.
EE3 I am enthusiastic about my job.
EE4 I can proceed to work for a very long period at a time.
Work Environment WE1 My work environment is beautiful and visually attractive.
WE2 There is sufficient space amid my nearest co-worker and me.
WE3 I am satisfied with the space allocated for me to do my work.
WE4 My work environment is quiet.
Job Satisfaction JS1 I am rewarded for my dedication and commitment toward work.
JS2 My opinions are heard and valued by your superior(s)
JS3 My team provide support at work whenever I needed it
JS4 I do not struggle to get information to make better decisions at work
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Employee EP1 I managed to plan my work so that it’s done on time.

Performance EP2 I kept looking for new challenges in my job
EP3 I took on extra responsibilities.
EP4 I took on challenging work tasks when available.
EP5 I actively participated in work meetings.
EP6 I focused on the positive aspects of a work situation instead of on the
negative aspects.
Organizational OC1 I would be very happy to spend the rest of my career in this organization.
Commitment OC2 I do not feel a strong sense of belonging to this organization.
OC3 It would be very hard for me to leave my job at this organization.
OC4 I am proud to tell others that I am part of this institution
OC5 I am willing to put in high effort to help this institution be successful.
OC6 This organization deserves my loyalty.
OC7 For me, this is one of the best institutions for which to work.
OC8 I would feel guilty if I left this organization now
Data Analysis
The research involved exploratory and confirmatory studies in confirming the validity of the model. SPSS
version 26.0 was used to process descriptive statistics to measure the demographic profile of the samples. Partial
Least Squares (PLS) analysis using SmartPLS 3.0 software was used to evaluate the research model. The
measurement model was tested for validity and reliability of the constructs using both the PLS-SEM algorithm
and WPLS-SEM algorithm. The structural model was then analyzed in conjunction with the two-stage analytical
procedures suggested for SEM (Hair Jr et al., 2016). We used both PLS-SEM and WPLS-SEM to looked at the
R², path coefficient (β), and corresponding t-statistics through the 5000 resample bootstrapping process
suggested by Hair Jr et al. (2016). They also recommended that researchers report on predictive significance
(Q²) and effect sizes (f²) together with the basic measures. We also looked at assessing the prediction error
degree using PLSpredict as recommended by (Shmueli et al., 2019).
Empirical Results
Table 2: Age*Gender cross-tabulation
Gender Total
Male Female
Age 15-24 Counts 10 187 197
% within Age 5.08% 94.92% 100%
% within Gender 16.95% 29.17% 46.12%
25-34 Counts 27 284 311
% within Age 8.68% 91.32% 100%
% within Gender 45.76% 44.31% 90.07%
35-54 Counts 22 170 192
% within Age 11.46% 88.54% 100%
% within Gender 37.29% 26.52% 63.81%
Total Counts 59 641 700
% within Age 8.43% 91.57% 100%
% within Gender 100% 100% 100%
Table 2 reveals that for each age distribution, more females responded to the questionnaire than males. For
each group, 15-24, 187 females representing 94.92% answered the items compared to 10 males representing
5.08%. Also, age group 25-34 had 284 (91.32%) females and 27 (8.68%) males responding to this study's items.
Last, 35-54 age groups had 170 (88.54%) females and 59 (8.43%) males responding to this study's items. Overall,
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females representing 91.57% (641), and males representing 8.43% (59). This indicates that more females
responded to the items than males. The finding, therefore, reveals that more females than males dominate the
banking sector of Ghana. Hence researchers’ decided to apply weight to each observation to have an accurate
representative sample.
Table 3: Post-stratification weights of IndexMundi
Age Gender Sample Proportion of Population Proportion of Weight
(n) samples (PS) (N) population (PP) (PP/PS)
15-24 male 10 0.014285714 2717481 0.175050016 12.254
15-24 female 187 0.267142857 2752601 0.177312316 0.664
25-34 male 27 0.038571429 2841782 0.183057024 4.746
25-34 female 284 0.405714286 2186345 0.140836211 0.347
35-54 male 22 0.031428571 2034203 0.131035789 4.169
35-54 female 170 0.242857143 2991614 0.192708644 0.794
Total 700 15524026
Table 4: SPSS syntax

IF (age = 1 AND gender = 1) weight = 12.254.
EXE.
Age and gender distribution of the population of IndexMundi on the Ghana Demographics Profile
(www.indexmundi.com) was collected to compute each observation's sampling weight. We first separately used
the populations of the age group and gender parted by the population to measure the proportion of the
population. Next, we used each group sample separated by the sample's sum to produce 'Sample Proportion.'
Finally, we obtained the 'Weight' group findings on the 'Population Proportion' being split by the 'Sample
Proportion.' Table 3 compares the age and gender survey and demographic distributions. Next, using the values
described in Table3, we produced a weighting variable. For example, Table 4 uses the values described in Table
3 to display the syntax commands for producing the weighting variable. In the syntax, the collections of
observations whose sampling weights requisite adjustment are identified by age and gender, while weight defines
the weighting variable.
Table 5 displays the reflective measurement model for both PLS-SEM and WPLS-SEM for internal consistency
reliability, convergent, and discriminant validity. The indicator loadings, average variance extracted (AVE),
composite reliability (CR), and Cronbach alpha (CA) values of the latent constructs were extracted after
performing the confirmatory factor analysis on all the constructs. In both PLS-SEM and WPLS-SEM models,
the indicator loadings were above 0.6 as recommended by (Chin, Peterson, & Brown, 2008). The indicator
loadings for both PLS-SEM and WPLS-SEM ranged from 0.616-0.953 and 0.638-0.960, respectively. The
Cronbach alpha for WPLS-SEM ranged from 0.773-0.939, and for PLS-SEM ranged from 0.763-0.963; thus,
both PLS-SEM and WPLS-SEM met the suggested threshold of above 0.7 (Hair Jr et al., 2016). Moreover, we
test for the CR of all the constructs, and the value ranged from 0.796-0.948, exceeding the suggested figure of
0.7 or greater (Hair Jr et al., 2016), with OC bearing the highest value in the WPLS-SEM. In the PLS-SEM
model, CR ranged from 0.846-0.969, exceeding the suggested figure of 0.7 or greater (Hair Jr et al., 2016), with
OC bearing the highest value.
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Table 5: Construct Reliability and Validity

Model Constructs Indicators Indicator Loading Cronbach Composite AVE
(≥0.60) Alpha (≥0.70) Reliability(≥0.70) (≥0.50)
PLS-SEM EE EE1 0.821 0.763 0.846 0.581
EE2 0.743
EE3 0.792
EE4 0.685
EP EP1 0.773 0.896 0.917 0.650
EP2 0.862
EP3 0.858
EP4 0.766
EP5 0.801
EP6 0.770
JS JS1 0.750 0.883 0.920 0.744
JS2 0.910
JS3 0.870
JS4 0.911
OC OC1 0.827 0.963 0.969 0.798
OC2 0.893
OC3 0.914
OC4 0.953
OC5 0.949
OC6 0.752
OC7 0.951
OC8 0.889
WE WE1 0.848 0.782 0.854 0.599
WE2 0.718
WE3 0.883
WE4 0.616
WPLS-SEM EE EE1 0.834 0.789 0.859 0.561
EE2 0.708
EE3 0.723
EE4 0.852
EP EP1 0.638 0.836 0.873 0.536
EP2 0.806
EP3 0.835
EP4 0.690
EP5 0.700
EP6 0.706
JS JS1 0.666 0.869 0.909 0.717
JS2 0.925
JS3 0.844
JS4 0.926
OC OC1 0.778 0.939 0.948 0.660
OC2 0.820
OC3 0.860
OC4 0.882
OC5 0.878
OC6 0.895
OC7 0.905
OC8 0.820
WE WE1 0.820 0.773 0.796 0.504
WE2 0.960
WE3 0.849
WE4 0.892
Note: EE=Employee Engagement; JS=Job Satisfaction; WE=Work Environment; OC=Organizational Commitment; WE=Work Environment.
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All the constructs in both PLS-SEM and WPLS-SEM met the AVE's minimum required value of 0.5, as
suggested by (Hair Jr et al., 2016). AVE’s values for EE, EP, JS, OC and WE are 0.561, 0.536, 0.717, 0.660 and
0.504 respectively in the WPLS-SEM model. Likewise for PLS-SEM model, AVE’s figures for EE, EP, JS, OC
and WE are 0.581, 0.650, 0.744, 0.798 and 0.599 respectively. Having met the above minimum threshold
requirements proposed by (Hair Jr et al., 2016) and (Chin et al., 2008) for the internal consistency and reliability
checks, we can conclude that the model is accurate enough for the analysis in both WPLS-SEM and PLS-SEM.
Table 6: Collinearity Value Assessed by Outer VIF
Constructs PLS-SEM WPLS-SEM
Indicators VIF Values Indicators VIF Values
EE EE1 1.567 EE1 1.476
EE2 1.421 EE2 1.365
EE3 1.710 EE3 1.236
EE4 1.544 EE4 1.160
EP1 2.541 EP1 2.272
EP2 2.978 EP2 2.127
EP3 2.722 EP3 2.017
EP EP4 1.598 EP4 3.069
EP5 3.058 EP5 2.909
EP6 2.570 EP6 2.005
JS1 1.581 JS1 1.297
JS2 2.693 JS2 1.258
JS JS3 2.308 JS3 1.966
JS4 3.254 JS4 2.347
OC1 3.165 OC1 2.374
OC2 3.161 OC2 2.824
OC3 1.662 OC3 3.109
OC OC4 2.211 OC4 1.358
OC5 1.365 OC5 2.159
OC6 2.535 OC6 1.681
OC7 3.214 OC7 2.983
OC8 2.368 OC8 2.969
WE1 2.111 WE1 1.735
WE WE2 1.647 WE2 1.328
WE3 1.850 WE3 1.578
WE4 1.258 WE4 1.261
Note: EE=Employee Engagement; JS=Job Satisfaction; WE=Work Environment; OC=Organizational Commitment;
WE=Work Environment.
Table 7: Collinearity Value Assessed by VIF (Inner Values)
Variables PLS-SEM WPLS-SEM
EP OC EE OC
EE 1.527 1.437 1.785 1.258
JS 1.771 1.413 1.319 1.520
OC 1.967 - 1.876 -
WE 1.326 1.210 1.258 1.321
Tables 6 and 7 present the VIFs (outer values and inner values) assessments of the various constructs'
collinearity values. To better understand collinearity in the statistical model, Dormann et al. (2013) state that it
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is used to estimate the linkage amid a dependent variable and a group of independent (predictor) variables.
Grewal, Cote, and Baumgartner (2004) argue that the collinearity problem among variables may occur just by
chance, especially when the sample size used for the analysis is low. However, perfect collinearity can arise if
all the variables used in the study are of the same linear qualities (Dormann et al., 2013). According to J. H.
Kim (2019), if the VIF figures are more than 5, there is a collinearity problem in the model. However, if the
VIF figures are lower than 5, then the model is free from the problem of collinearity. Our VIF assessment for
both PLS-SEM and WPLS-SEM revealed values less than five (5), suggesting no collinearity problems in the
model (Tackie et al., 2020).
Also, the occurrence of a VIF greater than 3.3 is proposed as an indication of pathological collinearity and
indicates that the model may be contaminated by common method bias. Therefore, if all VIFs resulting from a
full collinearity test are equal to or lower than 3.3, the model can be considered free from common method
bias (Kock, 2015). Hence our VIFs (outer and inner values) in both PLS-SEM and WPLS-SEM as presented in
Tables 6 and 7 suggest that our model is free from CMB.
Table 8: Fornell-Larcker Discriminant Validity
Latent Variables PLS-SEM WPLS-SEM
EE EP JS OC WE EE EP JS OC WE
EE 0.762 0.700
EP 0.546 0.806 0.519 0.732
JS 0.495 0.551 0.863 0.512 0.524 0.847
OC 0.471 0.549 0.673 0.893 0.522 0.574 0.622 0.812
WE 0.334 0.388 0.316 0.368 0.774 0.372 0.381 0.352 0.472 0.710
To weigh the discriminant validity, which represents the degree to which the measures are not replicating some
other variables, low correlations between the measure of interest and other constructs’ measures are indicated.
Table 8 shows that each construct’s AVE square root (diagonal values) is greater than its corresponding
correlation coefficients, suggesting sufficient discriminant validity (Fornell & Larcker, 1981) in the PLS-SEM
and WPLS-SEM.
Table 9: Heterotrait-Monotrait Ratio (HTMT) for Discriminant Validity
PLS-SEM WPLS-SEM
Latent Variables
EE EP JS OC WE EE EP JS OC WE
EE
EP 0.625 0.639
JS 0.567 0.557 0.599 0.522
OC 0.519 0.552 0.722 0.595 0.598 0.674
WE 0.379 0.441 0.310 0.384 0.493 0.530 0.420 0.570
We also used the Heterotrait-Monotrait (HTMT) criterion to measure discriminant validity. Compared with
Fornell-Larcker’s Criterion, the HTMT gives a more rigorous outcome. (Henseler, Ringle, & Sarstedt, 2015)
debunked Fornell-Larcker Criterion because the researchers believed that it is not reliable enough to distinguish
lack of discriminant validity in ordinary research. Therefore, a multitrait-multimethod matrix analysis tool; thus,
the HTMT ratio of correlations is considered more reliable. Table 9 gives the values for the discriminant validity
measured using the Henseler et al. (2015) alternative approach. According to (Kline, 2011) when the HTMT
value is larger than the threshold figure of 0.85, there is a problem with discriminant validity. However, as
presented in Table 9, the discriminant figures for all the constructs (EE, WE, JS, OC, and EP) were below the
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HTMT threshold value of 0.85 in the PLS-SEM and WPLS-SEM. Therefore, using the Heterotrait- Monotrait
criterion, our analysis is free from discriminant validity problems (Kline, 2011) in PLS-SEM and WPLS-SEM.
Assessment of the Structural Model
Figure 2: The Structural Model (PLS-SEM)

Table 10: Hypotheses testing (Direct Relationship)
Model Hypotheses Path Co-efficient (β) t-value p-value Decision
PLS-SEM H1: EE → OC 0.148 4.170 0.000ᵅ Supported
H2: EE → EP 0.321 8.906 0.000ᵅ Supported
H3: WE → OC 0.143 4.362 0.000ᵅ Supported
H4: WE → EP 0.174 5.387 0.000ᵅ Supported
H5: OC → EP 0.211 4.454 0.000ᵅ Supported
H6: JS → EP 0.338 10.134 0.000ᵅ Supported
WPLS-SEM H1: EE → OC 0.214 4.285 0.000ᵅ Supported
H2: EE → EP 0.298 5.406 0.000ᵅ Supported
H3: WE → OC 0.243 3.951 0.000ᵅ Supported
H4: WE → EP 0.131 1.538 0.124ᵇ Unsupported
H5: OC → EP 0.289 4.353 0.000ᵅ Supported
H6: JS → EP 0.316 4.647 0.000ᵅ Supported
ᵅ, ᵇ Indicate significance at the 1% and the 5% levels, respectively; Critical t-value is 1.96
We assessed the direct relationships in the study’s model. Table 10 reveals, first H1 [EE → OC] in the PLS-
SEM and WPLS-SEM; is supported (β=0.148; t-value=4.170, p < 0.01) and (β=0.214; t-value=4.285, p < 0.01)
respectively. This finding indicates that EE positively and significantly influence OC. Second, H2 [EE → EP]
in the PLS-SEM and WPLS-SEM; is supported (β=0.321; t-value=8.906, p < 0.01) and (β=0.298; t-value=5.406,
p < 0.01) respectively. This finding implies that EE positively and significantly influence EP. Third, H3 [WE
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→ OC] in the WPLS-SEM and PLS-SEM; is supported (β=0.243; t-value=3.951, p < 0.01) and (β=0.143; t-
value=4.362, p < 0.01) respectively. This finding denotes that WE positively and significantly influence OC.
Fourth, H4 [WE → EP] in the WPLS-SEM is unsupported (β=0.131; t-value=1.538, p < 0.05), however, H4
[WE → EP] in the PLS-SEM is supported (β=0.174; t-value=5.387, p < 0.01). This finding suggests that WE
positively and significantly influence EP in the PLS-SEM but does not in WPLS-SEM model. Fifth, H5 [OC
→ EP] in the PLS-SEM and WPLS-SEM; is supported (β=0.211; t-value=4.454, p < 0.01) and (β=0.289; t-
value=4.353, p < 0.01) respectively. This finding infers that OC positively and significantly influence EP. Last,
H6 [JS → EP] in the PLS-SEM and WPLS-SEM; is supported (β=0.338; t-value=10.134, p < 0.01) and
(β=0.316; t-value=4.647, p < 0.01) respectively. This finding reveals that JS positively and significantly influence
EP.
Comparing the two models (WPLS-SEM and PLS-SEM), we discovered three path coefficients varying more
than 0.05. First, in the WPLS-SEM, the path coefficient for EE → OC is 0.214, and, in the PLS-SEM, the path
coefficient is 0.148. The variation is 0.066. Second, the path coefficient for WE → OC varies by 0.100 amid
the two models, with the WPLS-SEM path equal to 0.243 and that of PLS-SEM is 0.143. Third, the path
coefficient for OC → EP in the WPLS-SEM is 0.289, and that of the PLS-SEM model is 0.211. The difference
is 0.078. Finally, these relationships were all significant at 1% level in both the PLS-SEM and WPLS-SEM. The
WPLS-SEM model has a larger path coefficient (β) values than the PLS-SEM model, making the WPLS-SEM
more preferred. However, all direct relationship in the PLS-SEM model was supported.
Table 11: Hypotheses testing (Indirect Relationship)
ᵅ Indicate significance at the 1% level; Critical t-value is 1.96
Model Hypotheses Path Co-efficient (β) t-value p-value Decision Mediation
Type
PLS-SEM H7: EE → OC → EP 0.031 3.219 0.001ᵅ Supported Complementary
(partial
mediation)
H8: WE → OC → EP 0.030 2.815 0.005ᵅ Supported Complementary
(partial
mediation)
WPLS-SEM H7: EE → OC → EP 0.062 2.945 0.003ᵅ Supported Complementary
(partial
mediation)
H8: WE → OC → EP 0.070 2.608 0.009ᵅ Supported Indirect only
(full mediation)
We assessed the indirect effect; thus, mediation analysis. First, table 11 reveals that H7 [EE → OC → EP] in
the PLS-SEM and WPLS-SEM; is supported (β=0.031; t-value=3.219, p < 0.01) and (β=0.062; t-value=2.945,
p < 0.01) respectively. This finding indicates that OC positively and significantly mediates the association
between EE and EP. Second, H8 [WE → OC → EP] in the PLS-SEM and WPLS-SEM; is supported (β=0.030;
t-value=2.815, p < 0.01) and (β=0.070; t-value=2.608, p < 0.01) respectively. This finding implies that OC
positively and significantly mediates the link between WE and EP.
Comparing the two models (WPLS-SEM and PLS-SEM). First, in the WPLS-SEM, the path coefficient for EE
→ OC → EP is 0.062 and, in the PLS-SEM, the path coefficient is 0.031. The variation is 0.031. Second, the
path coefficient for WE → OC → EP varies by 0.040 amid the two models, with the WPLS-SEM path equal
to 0.070 and that of PLS-SEM is 0.030. Also, OC fully mediates WE → EP in the WPLS-SEM model as
compared to PLS-SEM with partial mediation. Finally, these relationships were all significant at 1% level in
both the PLS-SEM and WPLS-SEM. The WPLS-SEM model has larger path coefficient (β) values and better
mediates relationships than the PLS-SEM model, making the WPLS-SEM more preferred.
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Table 12: Hypotheses testing (moderating relationship)

Model Hypotheses Path Co-efficient (β) t-value p-value Decision
PLS-SEM H9: JS*EE → OC 0.072 2.977 0.003ᵅ Supported
H10: JS*WE → OC -0.059 1.881 0.060ᵇ Unsupported
H11: JS*EE → OC → EP 0.015 2.396 0.017ᵇ Supported
H12: JS*WE → OC → EP -0.012 1.745 0.081ᵇ Unsupported
WPLS-SEM H9: JS*EE → OC 0.096 3.190 0.001ᵅ Supported
H10: JS*WE → OC 0.002 0.055 0.956ᵇ Unsupported
H11: JS*EE → OC → EP 0.028 2.524 0.012ᵇ Supported
H12: JS*WE → OC → EP 0.001 0.055 0.957ᵇ Unsupported
ᵅ, ᵇ Indicate significance at the 1% and the 5% levels, respectively; Critical t-value is 1.96
We assessed the indirect effect; thus moderation analysis. First, table 12 reveals that H9 [JS*EE → OC] in the
PLS-SEM and WPLS-SEM; is supported (β=0.072; t-value=2.977, p < 0.01) and (β=0.096; t-value=3.190, p <
0.01) respectively. This finding indicates that JS positively and significantly moderates the connection between
EE and OC. Second, H10 [JS*WE → OC] in the PLS-SEM and WPLS-SEM; is unsupported (β= -0.059; t-
value= 1.881, p < 0.05) and (β=0.002; t-value=0.055, p < 0.05) respectively. This finding implies that JS does
not significantly moderates the link between WE and EP. Third, H11 [JS*EE → OC → EP] in PLS-SEM and
WPLS-SEM; is supported (β=0.015; t-value=2.396, p < 0.05) and (β=0.028; t-value=2.524, p < 0.05)
respectively. This finding indicates that JS positively and significantly moderates the connection between EE
and OC resulting in high level of EP. Last, H12 [JS*WE → OC → EP] in the PLS-SEM and WPLS-SEM; is
unsupported (β= -0.012; t-value= 1.745, p < 0.05) and (β=0.001; t-value=0.055, p < 0.05) respectively. This
finding infers that JS does not significantly moderates the link between WE and OC leading to low level of EP.
Figure 3: Interaction effect of JS on EE and OC

Figures 3 and 4 reveal the interaction effect of JS on EE and OC in PLS-SEM and WPLS-SEM. The interaction
reveals the significant effect of the moderating variable (JS) on EE and OC in both the PLS-SEM and WPLS-
SEM models.
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Figure 4: Interaction effect of JS on EE and OC
Table 13: Effect Size

Relationships PLS-SEM WPLS-SEM
f square (f²) Effect Size f square (f²) Effect Size
EE → OC 0.031 Medium 0.062 Medium
EE → EP 0.106 Medium 0.064 Medium
WE → OC 0.035 Medium 0.096 Medium
WE → EP 0.031 Medium 0.016 Medium
OC→EP 0.041 Medium 0.073 Medium
JS→EP 0.045 Medium 0.029 Medium
JS*EE→OC 0.009 Small 0.025 Medium
JS*WE→OC 0.004 Small 0.052 Medium
Effect size measures the exogenous latent construct on the endogenous construct using the f². Cohen (1988)
guidelines were used to measure the effect size, which are 0.02 for small effects, 0.15 for medium effects, and
0.35 for large effects. Table 13 revealed that all relationships had a medium effect in the WPLS-SEM. All
relationships had a medium effect in the PLS-SEM except [JS*EE→OC] and [JS*WE→OC] with small effects.
The exogenous latent construct in the WPLS-SEM better influences the endogenous construct than that of the
PLS-SEM.
Table 14: Predictive Relevance
Constructs PLS-SEM WPLS-SEM
R Square (R²) Adjusted R² Q square (Q²) R Square (R²) Adjusted R² Q square (Q²)
EP 0.451 0.448 0.261 0.423 0.420 0.193
OC 0.501 0.494 0.377 0.506 0.502 0.304
Table 14 discloses the R², which is the total amount of explained variance in the endogenous constructs'. With
the WPLS-SEM, the R² figure of EP is 0.423, whereas the R² figure of OC is 0.506. In the PLS-SEM, the R² of
EP and OC are 0.451 and 0.501, respectively. These outcomes signpost that when relating the two models
(PLS-SEM and WPLS-SEM), the R² of both endogenous constructs does not vary much in size.
Table 14 reveals the blindfolding procedure, which determines the predictive significance Q² of PLS path
models (Hair Jr et al., 2016). We acquired our Q² figure through cross-validated redundancy procedures. A Q²
figure bigger than zero means that the model has predictive relevance; however, a Q² figure beneath zero
indicates the model’s predictive significance lacks. For this assessment criterion, we also discovered a variation
of more than 0.05 in the two models. In the PLS-SEM and WPLS-SEM, the Q² figure of EP is 0.261 and 0.193,
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respectively, leading to a variation of 0.068. The variation amid the two model's Q² figures of OC is 0.073. With
the WPLS-SEM, the Q² figure of OC is 0.304, while with PLS-SEM, the Q² figure of OC is 0.377. Both PLS-
SEM and WPLS-SEM model has predictive relevance; however, PLS-SEM better predicts the model's
relevance.
Table 15: PLSpredict
PLSpredict Organizational Commitment Employee Performance
WPLS-SEM PLS-SEM WPLS-SEM PLS-SEM
RMSE 0.547 0.546 0.548 0.492
MAE 0.414 0.406 0.430 0.386
Q² predict 0.378 0.416 0.304 0.324
Note: Bold means represents better result on its criterion; mean absolute error (MAE); root mean square error (RMSE)
We performed “PLSpredict” on the two models (Shmueli et al., 2019). Table 15 revealed that for both OC and
EP constructs, the PLS-SEM study resulted in marginally lower prediction errors for both targets constructs
given MAE and RMSE and high Q² predict figure. Generally, our PLSpredict test showed that the model
calculated using PLS-SEM matched the data better and realized a higher predictive power.
Discussion
Our study support and advance previous studies wherein EE significantly impact OC (Hanaysha, 2016a; Imam
& Shafique, 2014; Nazir & Islam, 2017) and EP (Anitha, 2014; Ayub & Islam, 2018; Sendawula et al., 2018).
This outcome proposes that the more workers are engaged in the workplace, their commitment and
performance to the establishment will be high. An employee who displays good working behavior by
engagement is likely to express greater commitment and success to the company due to the great zeal and
bravery for accomplishment, which justifies this study’s finding (Schaufeli & Bakker, 2004). The author further
indicated that engaged workers appear to encourage meaningful interactions and efficiency in their
organizations. Also, WE positively influence OC (Ahakwa, Yang, Tackie, Odai, et al., 2021; Hanaysha, 2016a;
Khuong & Le Vu, 2014) and EP (Badrianto & Ekhsan, 2020; Imran et al., 2012; Nguyen et al., 2015; Rorong,
2016). This finding discloses that WE are a critical element that can impact employees' commitment and
performance in an organization. Therefore, this result's practical implication suggests that authorities in charge
of organizations have to be mindful of the value of creating a conducive environment by enhancing OC among
their workforces, therefore leading to increased performance. For example, the provision of leisure facilities
and preserving a green and sanitary environment can play a central role in coaxing employees' actions.
Moreover, the outline of the workplace and organizational philosophy is also fundamental to enhance OC and
performance.
Furthermore, JS positively contributes to previous studies by impacting EP (Chaudhry et al., 2017; Platis et al.,
2015), and OC also positively influence EP (Hidayah & Tobing, 2018; Susanty & Miradipta, 2013). This result
means that the presence of JS and OC in an establishment leads to improved EP. Individuals with a high degree
of company loyalty and happiness can reflect the organization's good behavior, offer the best of their abilities,
sacrifice, be faithful to the organization and still have a desire to stick with it. This implies that an individual
with a high degree of OC and satisfaction aims to demonstrate high level of work performance. On the other
hand, an individual with low level of organizational commitment and satisfaction tend to show no care and
irresponsibility to the accomplishment of the work (low level of work performance). It is therefore crucial to
regularly review employees’ commitment and satisfaction to resolving any problems that may occur make sure
that workers maintain a favorable attitude to work which is crucial for total organizational success.
Also, the finding supports our overarching proposition that OC will mediate the link between EE and EP. This
is in line with the study conducted by Yuniarti and Prasetyaningtyas (2020), who indicated that through OC,
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there is a positive connection between EE and EP, and this is because dedicated workers feel positive feelings
that extend their thought, allowing them to become more attentive and immersed in their job. Also, the finding
supports our overarching proposition that OC will mediate the link between WE and EP. Existing empirical
evidence show that WE have a positive correlativity with OC (Ahakwa, Yang, Tackie, Odai, et al., 2021;
Hanaysha, 2016a; Khuong & Le Vu, 2014) and positive correlativity with EP (Badrianto & Ekhsan, 2020; Imran
et al., 2012; Nguyen et al., 2015; Rorong, 2016). This implies that OC is the mechanism through which EE and
WE use to increase EP. Implying that lack of EE and poor WE in one’s organization and its presence in another
organization serves as a push factor towards EP.
This study revealed that JS positively moderates the association between EE and OC. This is in line with
previous research that found JS to positively influence EE (Chaudhry et al., 2017; Platis et al., 2015) and OC
(Eslami & Gharakhani, 2012; Kirk-Brown & Van Dijk, 2016; Rusu, 2013). However, JS failed to moderate the
connection between WE and OC. This study contradicts existing studies that found that JS positively affects
WE (Agbozo et al., 2017; Raziq & Maulabakhsh, 2015) and OC (Eslami & Gharakhani, 2012; Kirk-Brown &
Van Dijk, 2016; Rusu, 2013). The study results indicate that OC is a mediator between EE and EP and that the
relationship is stronger when employee job satisfaction is high. The present finding supports what scholars
highlighted, that EE and JS have positive impacts on EP (Anitha, 2014; Ayub & Islam, 2018; Chaudhry et al.,
2017; Platis et al., 2015; Sendawula et al., 2018) and positive impact on OC (Eslami & Gharakhani, 2012;
Hanaysha, 2016a; Imam & Shafique, 2014; Kirk-Brown & Van Dijk, 2016; Nazir & Islam, 2017; Rusu, 2013).
The study results indicate that OC is a mediator between WE and EP and that the connection is stronger when
employee job satisfaction is high. The present finding contradicts what scholars highlighted, that WE and JS
have positive impacts on EP (Badrianto & Ekhsan, 2020; Imran et al., 2012; Nguyen et al., 2015; Rorong, 2016)
and positive impact on OC (Ahakwa, Yang, Tackie, Odai, et al., 2021; Eslami & Gharakhani, 2012; Hanaysha,
2016a; Khuong & Le Vu, 2014; Kirk-Brown & Van Dijk, 2016; Rusu, 2013). The same findings were reported
by Albalawi et al. (2019), who observed the variables inversely, where JS failed to moderate the link between
perceived organizational support and OC. Our outcome adds to the literature's inconsistent findings; we
attributed this to our approach and context; more research is needed to uncover why such association exists.
Theoretical Implications
In line with our expectations, we found that both EE and WE have a significant relationship with organizational
commitment, which positively influences the performance of employees in every organization. Also, JS has a
significant relationship with the performance of employees. This study will significantly contribute to the extant
literature on the influence of EE, WE, and JS on OC and EP. Previous studies have equally researched into
factors influencing OC and EP in different countries and firms and have recorded varying conclusions, for
more reviews, see (Abdirahman, 2018; Cesário & Chambel, 2017; Eliyana & Ma’arif, 2019). However, this study
will add to the literature on determinants of EP and OC in the banking sector of Ghana and other developing
countries. Again, the result will add the scanty literature available and serve as a guide to other researchers
about the use of sampling weights in PLS-SEM path modeling analysis.
Managerial Implications
There are several managerial implications of this study. First, our research findings advocate that managers
should be familiar with the factors that influence EE and OC. This is mostly applicable in many sectors,
including the service providers companies (e.g., banking) where employees are constantly facing job fatigue,
which is likely to increases employee’s decision to turnover. Importantly, it is prudent for managers to
implement policies that will enhance OC and thus lead to EP. These policies should consider congruency
between employee’s JS, performance, WE, and organizational goals and aspirations. Moreover, managers
should involve employees in decision-making processes to establish the factors that will increase EP and OC
in their respective organizations.
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One significant managerial implication is seen in the finding that JS positively contributes to previous studies
by impacting EP (Chaudhry, Jariko, Mushtaque, Mahesar, & Ghani, 2017; Platis, Reklitis, & Zimeras, 2015).
This finding suggests that managers must consider the most effective factors that bring employees JS, which
has a positive impact on the EP in an organization. Also, the study found that OC positively influences EP.
Our result proposes that organizations may benefit more by promoting EP among workers dedicated to their
organization.
In general terms, employees with higher levels of loyalty and fullness in an organization can mirror the positive
behavior of their organizations and develop strong interests to continually work for their organizations. We
suggest managers must promote employee satisfaction to win their loyalty and bring about organizational
growth and development. However, employees who have less desire to be loyal to their organization may come
as a result of managements’ inability to provide good working conditions for employees and thus leads to poor
organizational performance. It is therefore crucial for managers to maintain a good work atmosphere to
encourage employees. Organizations and managers should then focus on developing the workers' workplace
environment in numerous ways. This should entail valuing workers' contributions, communicating the
company's progress and achievement to workers, thus instilling ownership in workers, providing them with a
work-life balance, providing the requisite knowledge and tools for successful production, and providing a stable
atmosphere. Management must have a place of work that guarantees the above. This will enable employees to
give in their all and be committed to their organizations which serves as a driving force for organizational
success and growth.
Conclusion
To a great extent, the exact estimation of people's beliefs, expectations, and values relies on how investigators
choose respondents from a given population (J.-H. Cheah, Roldán, Ciavolino, Ting, & Ramayah, 2020). PLS-
SEM users should be sufficiently conscious of sample collection factors, specifically when they intend their
results to be relevant to the real world. Nevertheless, it is always unrealistic to obtain a sample that is reflective
of a group of people. Also, the attainment of representativeness in sampling complicates problems, for instance,
uneven selection probabilities, non-response, and non-coverage (Kalton & Flores-Cervantes, 2003).
Investigators using PLS-SEM should participate in an ex-post modification of the sampling weights to resolve
this problem and implement the WPLS-SEM algorithm of Becker and Ismail (2016), which applies the sampling
weights throughout the model estimation. Our analysis of the WPLS-SEM calculations and the normal PLS-
SEM evaluations makes little discrepancy in the assessment model outcomes compatible with Becker and
Ismail's. However, our analysis indicates that major variations will exist if WPLS-SEM in the structural model
assessment is not considered. The importance of the outcomes and the severity of the path coefficient, and the
mediation effect assessment could be biased. Therefore, we propose that if investigators are interested in
drawing population inferences, using the WPLS algorithm to build on less biased findings or assumptions, they
should address the sampling discrepancies of their data collection. However, PLS-SEM better predicts the
model in terms of Q² and the PLSpredict (RMSE, MAE, Q² predict), irrespective of both models (WPLS-SEM
and PLS-SEM) having predictive relevance. All in all, our comparison reveals the weighting of the WPLS-SEM
analysis of the sampling units and how they could achieve results that vary from a normal PLS-SEM analysis.
This variability may have a significant effect on the empirical and managerial implications of the research and
outcomes.
Limitations and Recommendations
The research did not involve people outside of Ghana. Future research may also be performed to address the
limitations described by expanding the research to other settings and countries to achieve an extensive
generalization of the analysis using WPLS-SEM and PLS-SEM. Future studies should also utilize the WPLS-
54
Research Article
SEM technique's effectiveness in accessing importance-performance map analysis (IPMA), multi-group analysis
(MGA), and permutation analysis.
Abbreviations: EP (Employee Performance); OC (Organizational Commitment); JS (Job Satisfaction); WE
(Work Environment); EE (Employee Engagement); PLS (Partial Least Squares); WPLS (Weighted Partial Least
Squares); SEM (Structural Equation Modelling)
Funding: This research received no external funding.
Conflicts of Interest: The authors declare no conflict of interest.
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Version of Record: https://www.sciencedirect.com/science/article/pii/S0378720618306645
Manuscript_0c3bf1e37a594e5e3061af38651da9ac
Impact of the usage of social media in the workplace on team and employee performance
Author team
1. Qi Song, School of Business Administration, Southwestern University of Finance and
Economics, Chengdu, China, songqiswufe@163.com
2. Yi Wang, School of Business Administration, Southwestern University of Finance and
Economics, Chengdu, China, wangyi63@swufe.edu.cn
3. Yang Chen, School of Business Administration, Southwestern University of Finance and
Economics, Chengdu, China, chenyang@swufe.edu.cn
4. Jose Benitez (corresponding author), Rennes School of Business, Rennes, France,
jose.benitez@rennes-sb.com; Department of Management, School of Business, University of
Granada, Granada, Spain, joseba@ugr.es
5. Jiang Hu, All in Pay Network Service Co., Ltd., Chengdu, China, hujiang@allinpay.com
Acknowledgments
This project was sponsored by the Southwestern University of Finance and Economics
Fundamental Research Funds for the Central Universities (16CXR032812, JBK1802046), the
European Regional Development Fund (European Union) and the Government of Spain
(Research Project ECO2017-84138-P), the Regional Government of Andalusia (Research Project
P11-SEJ-7294), and the COVIRAN-Prodware Chair of Digital Human Resource Strategy at the
University of Granada.
© 2019 published by Elsevier. This manuscript is made available under the Elsevier user license
https://www.elsevier.com/open-access/userlicense/1.0/
Impact of the usage of social media in the workplace on team and employee performance
ABSTRACT
How does the usage of social media in the workplace affect team and employee performance?
To address this cutting edge and up-to-date research question, we ran a quasinatural field
experiment, collecting data of two matched-sample groups within a large financial service firm
in China. We find that work-oriented social media (DingTalk) and socialization-oriented social
media (WeChat) are complementary resources that generate synergies to improve team and
employee performance. The instrumental value provided by work-oriented social media is
reinforced by the expressive value provided by socialization-oriented social media, which help
firms to create business value from information technology investments.
Keywords: Social media in the workplace, work-oriented social media, socialization-oriented
social media, team performance, employee performance, IT consumerization, business value of
IT.
INTRODUCTION
Social media tools have increasingly penetrated workplaces, and companies have been
strategically implementing such tools to support their employees and improve their business
activities (Huang et al. 2015a, Braojos et al. 2019). For example, companies use popular, public,
and personal social media, such as Facebook, Twitter, and LinkedIn, to enhance employee
engagement, knowledge sharing, innovation, customer service, marketing, and talent
recruitment (Dong and Wu 2015, Pan et al. 2015, Rueda et al. 2017). This trend of social media
in the workplace refers to the use of emergent social software platforms by companies in pursuit
1
of their goals and business activities (McAfee 2006, Benitez et al. 2018a), and it is considered
not only beneficial to employees but also promising for superior firm performance (Chui et al.
2012, Kumar et al. 2016). One of the most salient trends of social media in the workplace is that,
in addition to the extension of general and public social media platforms (e.g., Facebook,
Twitter) into work domains (Harris et al. 2012, Koffer et al. 2014), more specific and
professional social media technologies are being developed and implemented in the workplace,
such as Microsoft Yammer, DingTalk, Facebook Workplace, Slack, Jive, IBM Connections, etc.
Consequently, different types of social media platforms can coexist in companies and both can
be used by employees for work or in the work time, which may be perceived sometimes by
executives and companies as controversial. How does the usage of these different social media
in the workplace affect team and employee performance? This is the core and general research
question this study addresses and answers.
The usage of social media by companies is a new phenomenon, and therefore the theoretical
and empirical understanding of business value of social media is still in initial stages (Leonardi
2015, Benitez et al. 2018a, Braojos et al. 2019). Although this research topic is emerging and is
receiving considerable attention, few studies have focused in examining the usage of multiple
social media tools in the workplace (Forsgren and Bystrom 2018). Most Information Systems
(IS) research on social media in workplace has primarily focused on a single social media
technology (e.g., blog, wiki, or microblogs), often in isolation (Rode 2016). Our own review of
prior IS literature shows a limited understanding about how multiple social media can be used
in combination in the workplace and whether this joint usage enables or constrains the
2
performance of teams and employees. As that most people interact with multiple technologies
to fulfill tasks (Lyytinen and Yoo 2002, Kane and Alavi 2008), it is rational to suggest that more
effort should be undertaken to address the challenges and implications of social media in the
workplace. Such effort is necessary to uncover the differences and the relationships between
social media, as well as understanding how the joint use of multiple social media may influence
employee practices and outcomes.
Social media are heterogeneous as there are corporate/enterprise social media (e.g.,
Microsoft Yammer) and personal social media (e.g., WhatsApp and WeChat). However,
contemporary employees do not draw a line between corporate and personal social media.
Motivated by the impact of the social media in the real world and based on this heterogeneity,
we classify social media that can be potentially used in the workplace into work-oriented social
media and socialization-oriented social media. Work-oriented social media refer to web-based
platforms that can be used in the workplace to facilitate the creation of resources, collaboration,
and the exchange of core work-related information and content, such as task management, the
tracking of work and events, and formal internal corporate communication (Benitez et al.
2018a). Socialization-oriented social media refer to the web-based platforms that enable the
exchange of social and personal information and facilitate expressive ties that influence
individual identity through social and emotional support, and normative expectations.
This paper tries to answer the following specific research questions: 1) Does the combined
usage of work-oriented and socialization-oriented social media generate synergies in the
workplace? 2) Do these synergies influence team and employee performance? The core
3
theoretical proposition (thesis) of this study is that work-oriented social media and
socialization-oriented social media can co-exist in the workplace and can positively influence
team and employee performance. Work-oriented social media are a work instrument that may
be complemented by socialization-oriented social media by providing expressive value (social
and emotional support).
We use a qualitative grounded theory approach to uncover the underlying complementarity
of social media technologies and to understand the synergistic effects of these technologies in
the workplace. As IS research on the role of social media in the workplace is still in its infancy
(Forsgren and Bystrom 2018), a qualitative study is recommendable. A grounded theory
approach is viable given the paucity of theories that address the complementarity between
social media and how the combined use of multiple social media in the workplace may affect
team and employee performance. By doing so, we can identify and compare the heterogeneous
elements of multiple social media and understand how these social media may be
complementarily used to improve team and employee performance.
Specifically, we ran a quasinatural field experiment, collecting data of two matched-sample
groups within a large financial service firm in China. We find that: 1) social media are
heterogeneous in terms of their technical features and affordances, and this heterogeneity has
critical implications for the behavior and performance of employees, 2) work-oriented
(DingTalk) and socialization-oriented (WeChat) social media are complementary resources that
generate synergies to improve team and employee performance. The instrumental value
provided by work-oriented social media is reinforced by the expressive value provided by
4
socialization-oriented social media, which help firms to create business value from IT
investments. This paper contributes to IS research by classifying social media that can be used
in the workplace into work-oriented and socialization-oriented social media, illustrating, and
providing anecdotal evidence on how the usage of multiple social media in the workplace
improves team and employee performance.
THEORETICAL BACKGROUND AND DEVELOPMENT
Conceptualization and classification of social media in the workplace
Social media are web-based platforms that allow individuals share, post, edit, sort, and keep
different types of messages, information, and knowledge (text, pictures, videos, documents, etc.)
with other individuals. Social media have collaborative nature and are flexible, agile,
spontaneous, unstructured, and informal (McAfee 2006). The usage of social media by
companies and individuals has become a core trend for business activities (companies) and fun
(individuals).
Social media that can be used by employees in the workplace are heterogeneous. We need to
further understand the implications of this heterogeneity because such an understanding
provides a theoretical base for the mechanism of “social homogeneity” (Kane et al. 2014), i.e.,
the phenomenon wherein users of the same social media behave similarly or achieve similar
outcomes. In doing so, we can delineate the generic effects and implications associated with
particular types of social media and their interactions in the workplace.
5
From the network content perspective, a typology consisting of social media focusing on
either instrumental or expressive value (Ibarra 1995) has been widely adopted (Luo et al. 2018).
Drawn on this framework, this study distinguishes between work-oriented social media and
socialization-oriented social media. Work-oriented social media refer to web-based platforms
that can be used in the workplace to facilitate the creation of resources, collaboration, and the
exchange of core work-related information and content, such as task management, the tracking
of work and events, and formal internal corporate communication (Benitez et al. 2018a, Braojos
et al. 2019). The content conveyed through work-oriented social media includes task advice,
work-related documents, and information (Ibarra and Andrews 1993, Podolny and Baron 1997).
By using a work-oriented social media, employees can achieve positive job-related outcomes
such as improved communication effectiveness, greater work-related knowledge, and enhanced
work performance (Ali et al. 2015, Huang et al. 2015b, Lu et al. 2015). Related to their nature,
work-oriented social media are private, corporate, and with less degree of informality or even
being formal in some companies (Risius and Beck 2015). Examples of these social media are
Microsoft Yammer, DingTalk, Facebook Workplace, Slack, WhatsApp Business, and IBM
Connections.
On the other hand, socialization-oriented social media refer to the web-based platforms that
enable the exchange of social and personal information and facilitate expressive ties that
influence individual identity through social and emotional support, and normative expectations.
These social media convey social expectations, social support, friendship, and deference (Xu et
6
al. 2012, Ali et al. 2015). Related to their nature, socialization-oriented social media are popular,
public, personal, and very informal (e.g., Facebook, WeChat, Twitter, and WhatsApp).
Beyond their conceptualization and nature, we distinguish work-oriented and
socialization-oriented social media along three dimensions, i.e., technical features, affordances,
and supported ties. First, we need to differentiate social media in terms of their technical
features. The technical features of social media are manifested in computer code, data,
algorithms, protocols, interfaces, and platform-supported applications. From the system
perspective, platform designers have control over the characteristics of the nodes and ties on a
particular social media platform (Ibarra 1995). These technical decisions homogenize user
behavior in common ways and likely have profound implications for the formation and
outcomes of the networks developing on social media platforms. In other words, social media
with different technical features can cultivate networks with different normative features and
objectives. From the user’s perspective, a social media tool presents technical features by
offering a variety of technological applications and functions. Work-oriented social media are
designed to present more technical features affording and reinforcing efficiency in
communication and collaboration. For example, work-oriented social media allow users to be
aware of the read/unread statuses of messages for improving communications efficiency.
Message senders can send a notification to remind targeted recipients to read or respond to the
message. Also, work-oriented social media facilitate more structured and accurate
communication by offering communication tools based on organizational or team structures.
Socialization-oriented social media, on the contrary, focus on the scope, richness and flexibility
7
of communication, and knowledge sharing. For example, WeChat allows users to create their
personal emoticons and smiley faces to enrich communication and interaction. Users can easily
share posts, files, and videos to others and view contents that are “liked” by their contacts.
These technical features of social media can shape the patterns of user interaction on the
platforms in different directions.
Second, work-oriented and socialization-oriented social media are different in terms of
affordance flexibility. According to the theory of socio-materiality, technological affordances do
not exist a priori but rather emerge through social practices (Orlikowski and Scott 2008). While
technology represents a set of material features influencing its usage (Leonardi and Barley
2008), technological affordances – represented by technological performance – are subject to
human interpretation and contextual influences. Social media enable various affordances, i.e.,
actions and what social media can achieve in practice, but the flexibility of these affordances,
i.e., the degree to which affordances vary among users and contexts, differs among specific
social media technologies. Work-oriented social media, designed and implemented by
organizations for work purposes, usually have relatively rigid policies or rules on the use and
functionality of these technologies, including what these technologies are used for and how to
use these technologies and in what contexts these technologies can or should be used. In other
words, the affordances of work-oriented social media are aligned with structures, norms, and
formal policies or rules formally articulated by organizations (Jarrahi and Sawyer 2015) and
remain relatively fixed. On the other hand, socialization-oriented social media allow flexible
affordances and diverse interpretations of users when they are using these technologies to
8
engage in diverse social activities across personal life and work life. Take the affordance of
availability as an example, both work-oriented and socialization-oriented social media afford
users’ availability, i.e., the extent to which a user can be reached by others on the platforms.
Users of work-oriented social media may form a commonly shared definition of availability,
and this could turn into a pressure for employees to respond immediately to work-related issues
even during off work time at home (Golden 2013). However, users of socialization-oriented
social media may have very diverse and even conflicting interpretations of availability and
tolerate different degrees of responsiveness of others.
Third, work-oriented and socialization-oriented social media are different in supporting ties.
Prior research (e.g., Borgatti et al. 2009, Kane et al. 2014) has identified four basic types of ties
on social media: proximities, relations, interactions, and flows. Proximities, termed
“similarities” in Borgatti et al. (2009), indicate shared physical or social spaces and attributes,
such as physical distance, co-membership in groups, or shared attitudes toward one subject.
Relations are ties that reflect persistent social connections between nodes, such as role-based
connections (family, friends, and colleagues) or affective relations (likes and dislikes).
Interactions include discrete, transitory, and relational events, such as liking or posting a
comment on social media. Flows refer to tangible and intangible material (e.g., digital content
such as information, knowledge, and emotion) that can be shifted during interactions. The
different types of ties represent fundamentally different network environments, influencing
network formation in distinct and predictable ways (Kane and Alavi 2008).
9
Despite social media support all of these types of ties, work-oriented social media and
socialization-oriented social media facilitate these ties in different ways. Work-oriented social
media emphasize the proximities among users based on their physical distance or on their
shared work-related social spaces (organizations, departments, and teams). Instead of affective
relationships, role-based connections – such as those between supervisor and subordinate,
business partners, and colleagues – are more salient in work-oriented social media. With
different purposes, work-oriented social media develop technical and normative features to
support work-related and professional interactions among users. For example, functions are
typically incorporated to enable synchronous, efficient, and interactive communication.
Communication indicators such as last seen, message read notification, message delivery status,
and message typing notification are added to maintain awareness of conversations and increase
users’ control over communication.
In a different way, socialization-oriented social media focus on the informal and expressive
ties that influence individual and organizational identity, thus emphasizing social support and
normative expectations (Chang and Chuang 2011, Shang et al. 2011). These social media
convey the expectations of significant others, social support, friendship, and deference (Ibarra
and Andrews 1993, Podolny and Baron 1997). As employees’ activities in expressive networks
help them obtain social support, share feelings, and cultivate trust, the psychological distance
among employees can be reduced (Luo et al. 2018). For example, employees’ blogging
activities can contribute to their feeling “at home” within the organization and enhance their
10
organizational commitment (Luo et al. 2018). Table 1 presents a summary of the nature and ties
supported by work-oriented and socialization-oriented social media.

Table 1: Classification of social media in the workplace
Ties between users
Type of social media Nature Human Examples
Proximities Social interactions Flows
relationships
Work-oriented social Private and Physical Role-based Work-related/professional Workflows Microsoft
media corporate social spaces. connections interaction focusing on Yammer,
media. Less Work-related (e.g., efficient and interactive DingTalk,
degree of social spaces supervisor and communication Facebook
informality (organization, subordinate) Workplace,
(formal in some department, Slack, Jive,
companies). and team) IBM
Focused on the Connections,
employee WhatsApp
Business,
Microsoft
Video
Socialization-oriented Popular, public, Social spaces. Affective Personal interaction (e.g., Information, Facebook,
social media and personal Reduced relationships sharing, gaming, and beliefs, WeChat,
social media. psychological (friends, expressing) with hedonic moods, and Twitter, and
Very informal. distance followers, etc.) and social purposes emotions WhatsApp
Focused on the
individual and
customer.
Complementarity between work-oriented and socialization-oriented social media
The resource complementarity perspective suggests that the differential effect in explaining
business benefits is the complementarity/interaction/interplay among the resources appropriated
and/used by the firm. Complementarity between resources exists where the existence of a
resource allows other resources exert their value (Benitez et al. 2018a). These complementary
relationships are a potential driver of team and employee performance, and the joint outcome
may differ from the sum of the individual effects treated in isolation (Benitez et al. 2018a). The
11
whole is more than the sum of its parts. Our central thesis is that the positive effect of
work-oriented social media in the workplace can be amplified if the organizational members
also use and capitalize socialization-oriented social media in the workplace. We argue that
work-oriented and socialization-oriented social media are complementary resources in the
workplace for the following reasons. First, the resource complementarity perspective suggests
that the differential effect in explaining business benefits is the
complementarity/interaction/interplay among the resources appropriated and/used by the firm.
Work-oriented social media are an example of resource that can be deployed deliberately by a
company, and the use of work-oriented social media is limited within the company. In that case,
employees may find it difficult to contact or share relevant information with customers or
external partners through the technology. Socialization-oriented social media are an example of
resource that can be used at work through the self-initiative of employees and used across the
boundary of a company. The openness of socialization-oriented social media complements
work-oriented social media by expanding the scope of communication and networking of users.
Complementarity between work-oriented and socialization-oriented social media may occur
when two types of social media co-exist to form a balanced whole in the company (Huang et al.
2015b) and help improve communication and exchange across organizational boundaries.
Second, work-oriented social media and socialization-oriented social media have several
technical features and affordances that facilitate instrumental and expressive ties, respectively,
which can be critical in the workplace. Both types of social media are closely intertwined and
informal discussions on both social media are a lubricant for more utilitarian purposes. The
12
socialization-oriented usage of social media, such as casual conversations with colleagues, can
smooth other social interactions, reinforce perceptions of social capital (Ali et al. 2015), and
thus ultimately lead to increased utilitarian usage. In this sense, the instrumental value provided
by work-oriented social media is reinforced by the expressive value provided by
socialization-oriented social media, which helps firms to create business value from IT
investments.
Third, despite various social media are expanding their functional profiles by adding similar
technical features and overlapping with one another, the users’ interpretation and behavior when
using specific social media are usually socially influenced and remain stable. This cognitive and
behavioral rigidity provides room for the co-existence of multiple social media technologies. In
other words, users tend to interpret and use one specific social media in a fixed way, no matter
how many new material functions are added to the platform. For example, if users focus on the
social use of a technology at the very beginning, then this behavioral propensity may shape
their cognition and perception of the technology and remain unchanged. In the social media
context, this rigidity in technology use may be more salient because norms and rules are often
formally or informally established to eliminate deviant usage. Facebook, for example, is
specifically designed for personal use and even adding new business-oriented features
facilitating work use cannot easily shift its strong image as a tool for social and personal use.
Therefore, technological convergence does not necessarily generate a corresponding
convergence of user behavior. Work-oriented and socialization-oriented social media may be
used simultaneously for different purposes.
13
The fourth reason underlying the complementarity between work-oriented and
socialization-oriented social media is associated with the reinforced multiplexity of network ties
afforded by multiple social media. Originating from median theory, multiplexity refers to the
phenomenon wherein users may participate in latent social relationships by using social
technologies (Huang and Liu 2017). A multiplexity of relationships can arise from different
modes of interaction (Huang and Liu 2017). The manifestations of multiplex social media entail
coworkers socializing outside of the workplace (Ibarra 1995), juxtaposing the different ties of
family, friendship, and organization (Wellman and Wortley 1990), or nurturing mentoring and
working relationships. In a single online social network, members can form explicit friendships
and business relations, exchange content, and communicate with one another (Ansari et al.
2011). A single social media can afford various types of ties, but these ties are decoupled in
IT-enabled social networks (Kane et al. 2014). For example, a user can follow another person’s
content without regard to any interaction or proximity. By jointly using various social media
simultaneously, the activities of following or liking may ignite other types of ties, including
interaction and developing additional relationships among users. In other words, the
multiplexity of relationships can be intensified in the context of concurrent social media.
Work-oriented social media afford communication opportunities for the development and
maintenance of work-related relationships. Also, communication patterns are designed to
maximize the efficiency, speed, and accuracy of communication, rather than provide for deep,
intensively interactive, or affective communication. With the help of the organizational registry
embedded in work-oriented social media, employees can easily search for and contact the
14
coworkers with whom they are less acquainted or with whom they have little opportunity to
meet in person (e.g., colleagues in a distributed team). Furthermore, the communication
features of work-oriented social media facilitate efficient communication, as does the message
read notification feature. In contrast, socialization-oriented social media can complement
work-oriented social media by focusing on affective communication and relationship
development. For example, employees can use socialization-oriented social media to share their
personal interests on sports, music, or other subjects. It is useful for employees to find
colleagues with similar interests and to develop social relations based on those interests because
this can shorten their emotional or psychological distance. While multiple social ties are
decoupled in every single social media, a coupled and intertwined multiplexity can be found in
the context of concurrent social media (Ansari et al. 2011). In this sense, work-oriented and
socialization-oriented social media are complementary because the joint use of these two
technologies helps employees engage in multiplex relationships with peers.
RESEARCH METHODOLOGY
Research context and design
We collected data by conducting a quasinatural field experiment (Shadish et al. 2002) at SW
Payment (a pseudonym for anonymity), a large financial service company in Western China.
SW Payment is a major financial outsourcing and integrated payment service provider
operating in approximately 20 cities in Western China. SW Payment was chosen as an
information-rich case (Patton 1990) of a contemporary knowledge-intensive company having
15
integrated both work-oriented (DingTalk) and socialization-oriented social media (WeChat) into
the workplace.1
Before the field study, all employees at SW Payment had been voluntarily using WeChat,
one of the most popular social media in China with 1 billion active users (Statista 2019). The
use of WeChat for work purposes was completely a bottom-up initiative with no single call
from senior management. The group chat function of WeChat had been extensively used for
internal communication and collaboration by employees.
In May of 2016, the company decided to introduce and implement DingTalk, a
business-oriented social media app (https://www.dingtalk.com/en) for organizational
communication and collaboration. DingTalk has more than 100 million individual users and
over 7 million enterprise users (Liao 2018). DingTalk consists of various functional modules
such as “DING,” task management, calendars, group charts, and attendance systems. The
features of these modules are illustrated in Table A1 (in the appendix). By reviewing the major
features of DingTalk, we can argue that the nature of DingTalk is as a work-oriented social
media. Compared with WeChat, a socialization-oriented social media with strong features
supporting social functions and providing expressive value, DingTalk supports work-related
activities and delivers instrumental value.
1
As SW Payment did not exhibit a high degree of usage of others work- and socialization-oriented social media,
we only were able to focus on DingTalk and WeChat.
16
Before the formal investigation, two preliminary studies were conducted. First, we
randomly invited some top and middle managers to answer the open-ended survey questions
about the roles of social media in the workplace. Through this survey, we learned that various
social media could be jointly used and play multiple roles in the workplace. Then, we
interviewed two top executives (the Chief Executive Officer (CEO) and one Vice President) and
two middle managers (one marketing manager and one human resource manager who were
excluded from the following formal investigation) to understand the company’s strategic
planning about implementing social media in the workplace. These interviews lasting 30 to 70
minutes each were recorded and transcribed verbatim. The analyses of the interview transcripts
indicated that WeChat was extensively used among employees and supported our proposition
regarding the dichotomy between instrumental and expressive value created by work- and
socialization-oriented social media, respectively.
To address our research questions, we implemented a pretest/posttest control group design to
explore whether and how the usage of multiple social media generates synergies. In early June
2016, the IT Department at SW Payment decided to randomly select one group (i.e., Marketing
Service Unit, in short Service) from the Marketing Division to participate in a pilot study before
the formal enterprise-wide launch of DingTalk. This provided us an opportunity to conduct a
field experiment to explore the differences between the stand-alone effects of
socialization-oriented social media (WeChat) and the synergistic effects of
socialization-oriented (WeChat) and work-oriented social media (DingTalk). By using a pre
implementation/postimplementation research design, we evaluated the possible effects of the
17
use of DingTalk together with WeChat by comparing how the members of the Service group
performed their work before and after the implementation of DingTalk.
Additional tests were required to control the possible effects of time and other unexamined
influential factors. To this end, another Market Development group (in short, Development)
from the same Marketing Division was selected as a control group. These Development and
Service groups formed a matched sample because the two groups share the same roles,
responsibilities, and had nearly identical demographic profiles with regard to age, gender,
tenure at the company, job titles, and team and employee performance ratings. The members of
Service were required to keep silent about the pilot study of DingTalk during the experimental
period to reduce possible spillover effects.
Data collection and analysis
Data collection: In August 2016, two months before the pilot implementation of DingTalk in
Service, the first round of semistructured interviews was conducted with 10 employees from
Service and 12 from Development. These informants were purposively selected to focus on
their expected knowledgeability for the study topic and ensure sample diversity. Table 2 shows
the demographic characteristics of these participants. To statistically test the demographical
difference between the two groups, independent samples t-tests were conducted. The results
show that all p-values of t-tests for demographic variables are greater than 0.05 (p = 0.22 for
age, 0.51 for gender, 0.90 for education, 0.86 for organizational tenure, and 0.78 for job
position), indicating no significant differences between two samples. In addition, the sample
shows a mixture of age, gender, education, organizational tenure, and job position (Forsgren
18
and Bystrom 2018). The diversity of informants provided a rich understanding of the usage of
work- and socialization-oriented social media and could avoid possible bias in single-informant
retrospective interviews (Eisenhardt and Graebner 2007). The interviews followed a
semistandard protocol comprised of four major sections. First, the informants were asked to
describe their daily routines at work. Questions such as “What do you usually do in your daily
work?” and “How are your team and employee performance evaluated and measured?” were
designed to solicit understanding about the critical skills used for their work. Second, we asked
them about the work activities oriented toward achieving team goals. The questions “What
activities do you think are helpful for completing tasks and achieving team objectives at daily
work?” and “What digital technologies do you prefer to support your work activities and why?”
were asked. The third section asked informants about how they interact with teammates and
build social resources at work. The fourth section included questions about the general
perceptions of the roles of different social media in supporting their work. Each interview lasted
between 35 and 75 minutes, with an average length of 45 minutes.
In April 2017, six months later after the pilot launch of DingTalk in Service, the second
round of interviews was conducted with the same 10 employees from Service and the same 12
employees from Development. The same interview protocol used in the first round of
interviews was repeated for all employees; however, additional questions were included
regarding specific similarities and differences between work-related and socialization-related
information since the last interview. The Service informants were also asked about how they
used DingTalk for work over the last six months. In total, 44 interviews were conducted across
19
the two rounds (August 2016 and April 2017). With the consent of the informants, all
interviews were audio-recorded and transcribed verbatim, producing a total of 407 pages
(352,379 Chinese words) of transcripts for data analysis. The timeline of the data collection is
presented in Figure 1.
Table 2: Demographic characteristics of informants
Tenure
Group Name Age Gender Education Position
(Year)
Aaron 35 Male Bachelor 8 Team leader
Ablett 25 Male Bachelor 3 Sales representative
Bruce 25 Male Associate 2 Sales representative
Barret 30 Male Bachelor 4 Sales representative
Alice 27 Female Bachelor 4 Sales representative
Service
Blake 31 Male Bachelor 5 Department Head
Calvin 29 Male Bachelor 4 Sales representative
Emily 25 Female Bachelor 4 Administrative staff
Chad 27 Male Bachelor 4 Sales representative
Daniel 27 Male Bachelor 4 Team leader
Evan 35 Male Bachelor 3 Sales representative
Gary 25 Male Bachelor 2 Sales representative
Basia 29 Female Bachelor 5 Sales representative
Harry 30 Male Bachelor 8 Department Head
Herbert 32 Male Bachelor 7 Team leader
James 28 Male Bachelor 4 Sales representative
Development
Carol 26 Female Bachelor 2 Sales representative
Jeremy 26 Male Bachelor 4 Sales representative
Lambert 38 Male Bachelor 6 Sales representative
Matt 30 Male Associate 4 Sales representative
Dana 27 Female Bachelor 4 Administrative staff
Grace 36 Female Bachelor 3 Team leader
Note: All names of informants are pseudonyms for anonymity.
20
Figure 1: Timeline of data collection
Preliminary study 1
Data collection method:
Open-ended survey
Participants: Selected top and June 2016
middle managers
Objective: To learn about the
roles of social media in the
workplace Preliminary study 2
Data collection method:
Open-ended interviews
Participants: Two top
July 2016 executives and two middle managers
Objective: To acquire
information about the company’s
strategic planning about social media
at work
Interviewee selection
Design semistandard Late July 2016
protocol
Quasinatural field
experiment First-round interview
Data collection Participants: 10 members of
method: August 2016 (T1) Service and 12 members of
Semistructured Development
interviews
Participants:
Service and
Development The pilot launch of Ding
Objective: Talk in Service October 2016
To explore whether
and how the use of
work- and Second-round interview
socialization-orient Participants: The same interviewees
ed social media
April 2017 (T2) of the first-round interview
generate synergies
Asked interviewees to
review and confirm the After May 2017
coding results
21
Prevention of positive bias in retrospective interviews: We prevented the appearance of
potential positive bias in retrospective interviews in several ways. First, we interviewed
informants at multiple levels and from multiple positions of the Marketing Division (Martin and
Eisenhardt 2010). Second, we used open-ended questioning of highly knowledgeable
informants focusing on recent, important activities to limit recall bias and enhance accuracy
(Golden 1992). Third, we encouraged the informants to indicate if they did not remember
information rather than forcing them to respond (Zhang et al. 2010). Fourth, we encouraged the
informants to provide accurate information by granting confidentiality letters, visiting them at
their convenience, and explaining the value of the project in detail (Zhang et al. 2010). Fifth, we
used “courtroom questioning” that focused on factual accounts of what informants did or
observed others doing (e.g., when, where, how, and who) (Huber and Power 1985) and avoided
informant speculation. Finally, we triangulated our central proposition by using archival sources
(such as the firm’s internal documents and employee performance data) (Kumar et al. 1993).
This research design allows us to isolate the individual and joint effects of DingTalk and
WeChat through a two-way comparison (Shadish et al. 2002). The diachronic comparison (i.e.,
comparison over time) was beneficial for understanding the changes in work and social
activities that occurred in Service after the implementation of DingTalk. The synchronic
comparison (i.e., comparison between two groups at the same time) between the Service and
Development groups at T1 (before the implementation of DingTalk) and T2 (six months after the
implementation) aimed to examine the changes in the Service group associated with the
simultaneous use of DingTalk and WeChat by ruling out the effects of unexamined factors.
22
Data analysis: The data analysis was composed of three stages. The first stage aimed to
uncover the different impacts of work-oriented and socialization-oriented social media.
Interview data were analyzed by using multiple iterations of coding (i.e., open, axial, and
selective coding) to uncover the different impacts of work-oriented and socialization-oriented
social media. An open coding technique with no preconceived frameworks or theoretical
concepts in mind was used for this purpose (Strauss and Corbin 1990, Glaser and Strauss 1999).
We began by examining the transcripts of the Service (the treatment group) interviews at T2.
and identified instances demonstrating the roles of two types of social media in the workplace.
We applied codes to each instance related to three themes: 1) how employees use social media
to conduct work activities toward team goals, 2) how teams create and use social resources at
work, and 3) the existence of synergies created by using work-oriented and
socialization-oriented social media. When conducting coding analysis, the codes evolved (e.g.,
new codes were added and some codes were revised) on the basis of iterative comparisons
between the newly analyzed and previously coded data (Strauss and Corbin 1998). Forty-three
codes and 21 first-order concepts were generated from this open coding analysis. Axial coding
was then conducted to find connections and relations between these emergent open codes
(Corbin and Strauss 2008) by reassembling the coded data based on conceptual similarity
(Charmaz 2006). Axial coding resulted in three second-order themes indicating how
work-oriented social media facilitated work activities toward team goals (i.e., team reflexivity,
team monitoring, and team effort), two second-order themes indicating how
socialization-oriented social media promoted the formation and development of social resources
23
among teammates (i.e., social exchange and social support), and three second-order themes
indicating the complementarities between socialization-oriented and work-oriented social media
(i.e., differentiated market positioning, heterogeneous features and affordances, and
complementary usage). After settling on a set of second-order themes, we identified two core
categories – instrumental value and expressive value – emerging from second-order themes and
serving as the basis of our conceptual model. The analysis of this stage shows that
work-oriented social media create instrumental value, and socialization-oriented social media
create expressive value. Following Miles and Huberman (1994), we asked the interviewees to
review and check coding analysis results to ensure the accuracy and reliability of data
interpretations. Our coding analysis results are shown in Figure 2, and the coding process
details are illustrated in Table 3.
24
Figure 2: Data coding structure
First-order concepts Second-order themes Core categories
Reflection
Team reflexivity
Adaptation
Work-related information visibility

Instrumental value
Observe the actions of teams Team monitoring
Identify performance discrepancies
Provide feedback
Intrinsic motivation for team

engagement Team effort
Extrinsic motivation for team
engagement
Organizational citizenship behaviors

Social exchange
Leader–member exchange
Team–member exchange Expressive value
Perceived supervisor support

Social support
Perceived coworker support
Perceived organizational support
Differentiated market
Market positioning
positioning
Social interactions Complementarities

Heterogeneous features between work- and
Flows
and affordances socialization-oriented
Relations
social media
Motivations for instrumental and Complementary

expressive use usage
Not substituting but complementing
25
Table 3: The results of open coding, axial coding, and selective coding
Second-order First-order
Core categories Initial codes
themes concepts
Employees reflect on their past work
Evaluate and review team work
Reflection
An employee’s work logs are accessible to
coworkers and supervisor
Team reflexivity Adjust work methods to fit the corporate’s overall
strategy
Adapt work and management methods to external
Adaptation
changing environment
Adjust team work plans according to the outcomes of
previous work
Visualize employees’ work progress
Work-related Visualization of task assignment and workload
information Clock in/out in the field
visibility Streamline approval processes
Write and upload work logs
Track work progress timely
Team Observe the actions Track the status of receiving and sending
Instrumental value monitoring of teams information
Give detailed reports about tasks
Identify Benchmarking
performance Summarize employees’ performance indicators
discrepancies Review performance discrepancies
Provide prompt feedback
Provide feedback
Provide assistance when needed
Intrinsic motivation
for team Intrinsic motivation to engaging in team tasks
engagement
Eliminating hindrance stressors to inspire teams
Extrinsic motivation
work harder
for team
Team effort Enhancing challenger stressors to inspire teams work
engagement
harder
Teams devote more time to complete team tasks
Behavioral
Teams overcome difficulties to complete team tasks
manifestations of
Teams work harder even when others are holding
team effort
back
Organizational Focus on team goals instead of personal interests
citizenship
Fight for the whole team’s honor
behaviors
Leader–member
High-quality leader–member exchange
Social exchange exchange
Share happiness and sorrow
Expressive
Emotional attachment to the team
value Team–member
Establish reciprocity between members and teams
exchange
If one member suffers, all suffer together; if one
member is honored, all rejoice together
Leaders give support to subordinates (e.g. giving
Perceived
Social support encouragement and inspiration when there is a sign
supervisor support
of low staff morale)
26
Receive support and assistance from team members
Perceived coworker
when encountering difficulties
support
Instruct, help, and guide new staff
Perceived
organizational Family feeling within the team
support
Differentiated
DingTalk is a work-oriented social media. WeChat is
market Market positioning
a socialization-oriented social media
positioning
Social interactions on DingTalk are formal and
Social interactions efficient. Social interactions on WeChat are informal
and casual
Heterogeneous The flows on DingTalk are mainly work-related
features and Flows materials. The flows on WeChat are diverse,
Complementarities
affordances including information, emotion, and jokes
between work- and
DingTalk contributes to role-based interactions at
socialization-orient
Relations work. WeChat is conducive to establishing and
ed social media
maintaining affective relations
Motivations for
DingTalk is used for satisfying instrumental needs.
instrumental and
WeChat is used for meeting expressive needs
expressive use
Complementary
WeChat is the complement of DingTalk in
usage
Not substituting but conducting work
complementing WeChat is a lubricant or “refresher” for utilitarian
purposes
27
The second stage aimed to confirm that the improvement in instrumental and expressive
values that arose from using DingTalk and WeChat was limited to the Service group at T2.
Following an analytical induction process (Glaser 1965), we examined the other transcripts
(Development at two points of time and Service at T1) to ascertain whether the changes that the
Service informants experienced after using DingTalk were similar to their experiences before
DingTalk, and whether the same was true for the Development participants at either time. To
verify that Development was an acceptable comparative set to Service, we compared the
coverage percentages of second-order themes generated from the T1 interviews with the two
groups. Both groups shared similar coverage percentages of the second-order themes in the T1
interviews. This indicated that the Development group was truly an appropriate and reliable
comparative set. Then, we were able to compare the changes that occurred naturally over time
in Development with the changes that occurred over time in Service. We then concluded that
the changes in Service at T2 were associated with the joint usage of DingTalk and WeChat.
We compared the coverage percentage of five codes in two groups at T1 and T2 to ensure
whether the changes regarding the instrumental value and expressive value in Service may be
attributed to the simultaneous use of DingTalk and WeChat. The coverage percentages of team
effort, team monitoring, and social exchange of Service at T2 were 60.57%, 50.28%, and
40.69%, respectively, almost double the figures for Service at T1 and for Development at T1 or
T2 (see Figure 3). In addition, the coverage percentage of team reflexivity in Service increased
sharply from T1 (15.67%) to T2 (33.26%), while improved slightly from T1 to T2 in
Development (from 21.36% to 29.71%). Lastly, the percentages of social exchange and social
28
support in Service also increased from 19.99% to 40.69% and from 25.06% to 33.03%,
respectively. The analysis of the second stage shows how instrumental and expressive values
are generated by the complementarity between work-oriented and socialization-oriented social
media and how the synergies between instrumental and expressive values improve team
performance. Figure 4 shows the conceptual research model built from the second stage
analysis. In the third stage, we analyzed archival data to examine whether the instrumental
value and expressive value created by the joint use of DingTalk and WeChat contributed to
employee performance. Independent samples t-tests were conducted to examine whether the
employee performance of two groups differed significantly. Table 4 presents a summary of the
stages of the data analysis.
29
Table 4: Data analysis
Coding procedures Comparison procedures
Stage Goal Data Analytic Percentage Findings
Open Axial and selective t-test
induction coverage
1 To explore the research 10 interviews with 43 codes and 21 1) Three second-order NA NA NA 1) Instrumental
question about how Service employees first-order concepts themes showing how value includes
work-oriented social at T2 describing how instrumental value is team reflexivity,
media (DingTalk) and employees use created by team
socialization-social social media to work-oriented social monitoring, and
media (WeChat) create conduct work media team effort.
value in the company activities for team 2) Two second-order Expressive value
goals, how teams themes indicating how includes social
create and use expressive value is exchange and
social resources, generated from social support
and how the joint socialization-oriented 2) Work-oriented
usage could result social media social media
in synergies 3) Three second-order create
themes illustrating the instrumental
complementarities value.
between work- and Socialization-ori
socialization-oriented ented social
social media media create
expressive value
2 To confirm that 1) 20 interviews NA NA Compare Examine the NA Instrumental and
findings from stage 1 with Service coverage coverage expressive value is
were limited to those informants percentages of percentages of driven by the
who used DingTalk (10 at T1 and second-order five complementarity
and WeChat 10 at T2) themes generated second-order between
simultaneously at work 2) 24 interviews from Service and themes work-oriented and
30
with Development indicating socialization-oriented
Development interviews at T1 changes of social media. The
employees instrumental synergies between
(12 at T1 and and expressive instrumental and
12 at T2) value in expressive values
Service at T2 improve team
and compared performance
to the ratios in
all other
transcripts
3 Examining the research All participants NA NA NA NA Calculate the The difference in
question about whether performance data difference in quarterly and
the instrumental value from Service and employee monthly salary of
and expressive value Development performance between employee
created by the during T1 and T2 T1 and T2 for all (performance)
simultaneous usage of informants and between treatment
DingTalk and WeChat conduct t-test to verify and control groups is
contributed to whether treatment and statistically and
employee performance control groups are significantly different
significantly different
in term of employee
performance
(employee salary)
31
Figure 3: Coverage percentages of codes generated from interviews
Figure 4: Conceptual research model2
Instrumental value
Work-oriented social (+) Team reflexivity
media (DingTalk) Team monitoring (+)
Team effort
(+++) (+++)
Team and employee
performance
Expressive value
Socialization-oriented (+) (+)
Social exchange
social media (WeChat)
Social support
Coders and data saturation point: Following Butterfield et al. (1996), one of the authors
who did not participate in the field study was responsible for coding. We used NVivo QSR 10
to keep track of all the open, axial, and selective coding described above. After coding 40
interviews, we found no new codes to emerge, indicating some evidence for “theoretical
2
Figure 4 shows the conceptual research model that was built from the second stage of the data analysis.
However, this figure should be understood with caution as our research design and data analysis are only able to
present anecdotal evidence. Future IS empirical research should test whether this conceptual model is supported
through causal inference.
32
saturation” – the point at which “subsequent data incidents that are examined provide no new
information” (Locke 2000, p. 53). To verify the accuracy of our coding results, a Ph.D.
student, well-trained and with expertise in both coding and the research topic, repeated the
same coding procedure independently. The Ph.D. student was not informed about the study
before coding. To ensure consistency, we initially reviewed the codes generated by the Ph.D.
student after she coded four randomly assigned transcripts. Then, we held an in-depth
discussion with the Ph.D. student about the understanding of these codes, especially
regarding their divergence. This helped to reach a consensus on the proper interpretation and
application of each code. The Ph.D. student then recoded the four and all remaining
transcripts. After finishing all of the transcripts, we calculated the consistency of the two
coders (one of the authors of the team and the Ph.D. student) using Cohen’s kappa embedded
in NVivo QSR 10. The final Cohen’s kappa, 0.84, was well above the 0.70 threshold,
indicating acceptable inter-coder consistency (Fleiss 1971, Leonardi 2014).
KEY FINDINGS
These key findings are mainly extracted from the interviews of the 10 Service informants
conducted after the joint implementation of DingTalk and WeChat. The additional 34
interviews that were analyzed allowed us to attribute the changes occurred in Service to the
subsequent use of DingTalk. Key findings are illustrated by following the sequence of the
research model of Figure 4. Consistent with other qualitative research, we present power
quotes throughout the main text to support our points (Pratt 2008, Sonenshein et al. 2014).
33
Work-oriented social media and instrumental value
Work-oriented social media and team reflexivity: Team reflexivity is a process in which
team members collectively reflect on their team’s objectives, strategies, and processes, and
then adapt accordingly (West 2000). Prior research has found that team reflexivity (i.e., team
debriefings or after-event reviews) (De Rue et al. 2012) is positively related to team
performance (Schippers et al. 2015). Team reflexivity requires team members to periodically:
1) review past performance processes, events, and outcomes; 2) evaluate and review the work
of others; and 3) expose themselves to direct and public review (Chen et al. 2018). The
visibility afforded by social media makes profiles, content, and activities transparent and
available to employees themselves and others (Van Osch and Steinfield 2016).
With the help of DingTalk, employees create or review schedules to guide their activities
more frequently via writing daily logs. Daily writing and uploading work logs can reinforce
team reflexivity by: 1) exposing employees to other members’ review, and 2) enabling
employees to evaluate the work status of others.
In addition, teams need to respond and adapt to the uncertain and dynamic business
environment. DingTalk can enable team members to modify their objectives, task schedules,
and reports with DingTalk. Specific examples indicating the role of DingTalk in enhancing
team reflexivity are summarized in Table 5.
34
Table 5: Examples of the impact of DingTalk on team reflexivity
Problem Why this problem exists Consequences How DingTalk addresses the problem Benefits
Employees sometimes repeat the Employees do not periodically reflect on Loss of efficiency Writing daily logs enables employees to Preventing employees
same mistakes at work their past work practices reflect on work methods used in the past from reinventing the
and outcomes wheel
Employees fail to recognize the Employees have no chance to fully No improvement in Writing daily logs can visualize Exposing employees to
discrepancy between current communicate with other team members work methods and work-related information other members’ direct
performance and expectations regarding their own work progress and work processes and public review
methods
Teams have insufficient No proper tools exist to afford the visibility Social loafing and Supervisors can review employees’ work Enabling supervisors and
knowledge about what others are into other’s work progress ineffective data (e.g., logs) at any time or even in their employees to evaluate
doing benchmarking spare time. They also share their work the work status of others
methods and experience by distributing and provide instant
work logs to all team members feedback
Existing managerial practices The competition in the financial industry is Requiring Writing logs, clock in/out, task Adjusting management
cannot contribute to the so intense and teams are required to fine-grained management, and other functions on methods to adapt to
company’s competitive continuously innovate and update their updates in DingTalk enable teams to reassess what external changing
advantages managerial practices management and how they have done and how their environment
behaviors relate to the outcomes in a more
detailed way
What employees are doing is off No proper tools to enable employees Cannot ensure Teams use candlestick charts to keep Ensuring the alignment
track regularly assess whether their efforts are on effective goal employees on track with corporate strategy. between actual work
track or in the right direction achievement When deviations occur, they adapt work practices and the
methods and pace of work to achieve team company’s goals and
goals helping team members
better understand
expectations on them
Lack of the ability to develop Team members do not receive sufficient Cannot improve Via DingTalk, employees can easily Adjusting work practices
effective solutions to emerging feedback about their performance and also work practices understand what they are doing, what they by reviewing outcomes
problems and challenges do not regularly reflect on the past work need to do next, what others are doing, in the past and analyzing
processes why others are doing better, and how they emerging conditions
should change to follow others’ schedule
35
Work-oriented social media and team monitoring: Team monitoring involves observing
the actions of team members, watching for discrepancies in performance, and providing
feedback and assistance to team members in need (De Jong and Elfring 2010). Despite the
team leaders at SW Payment had been encouraged to perform effective team monitoring, the
result was not satisfactory. The challenge in this area is related to the difficulties in
visualizing work-related information, i.e., tracking and monitoring the behavior, progress, and
performance of on-site team members. This became evident during the interviews: “We
wanted to improve our management methods for a long time but lacked the proper tools. If
employees perform their duties in the field, we have no way to track what they are doing”
(Blake, supervisor from Service). “Every Monday morning we have a departmental meeting
to discuss the questions or issues we encountered in the previous week. Everyone contributes
to the discussion and helps to make a quick solution to the questions. You know, however, the
meeting is too short to learn about the detailed work progress of other colleagues” (Barret).
The challenge of team monitoring lies in observing and tracking the behavior and work
progress of others. Despite being powerful in enhancing communication and collaboration,
the socialization-oriented social media WeChat is inappropriate for work-related
communication because it hardly affords the effective tracking and following of messages. In
addition, WeChat does not offer an attendance function, making it difficult for team leaders to
check whether field employees have met their responsibilities. For example, as Daniel
explained: “For some sales representatives, they prefer to hold business meetings with clients
in places like cafes or teahouses. Sometimes, I wonder whether every member in our team
engages equally in the work. I find some colleagues spend the whole afternoon in a teahouse
36
or cafe, but I am not sure whether they are meeting clients or just relaxing. It is hard to tell
considering the flexibility of sales work.”
Without DingTalk, team leaders must resort to traditional ways, such as oral reports,
written work logs, and standing meetings, to gather information about the status and progress
of team members. Employees can get information about the work progress of other
colleagues through informal talk or regular meetings. The drawbacks of these traditional
ways are obvious. Comparing how the Service group conducted team monitoring before and
after the implementation of DingTalk and considering the changes in team monitoring in
Development over time, we can see that employees can obtain information about teammates’
behavior and progress more effortlessly by using DingTalk. In addition, team leaders can
easily check whether team members follow the planned task schedule and provide feedback
on time using DingTalk.
DingTalk can enable employees to write and submit their daily logs so that team leaders
can follow up subordinates’ status and performance data in real time. The increased
awareness of who is doing what and what progress has been achieved can significantly
improve team monitoring, including observing the actions of teammates, watching for
performance discrepancies, and providing feedback and assistance to those in need. Specific
examples indicating the role of DingTalk in enhancing team monitoring are summarized in
Table 6. This analysis shows that work-oriented social media enable team monitoring.
37
Table 6: Examples of the impact of DingTalk on team monitoring
Problem Why this problem exists Consequences How DingTalk addresses the problem Benefits
Some of employees may go No technique or system afforded Inducing social Employees can check in when Eliminating employee
off to do their personal supervisor and coworker the ability to loafing performing field duties on the app with cheating and increasing
business when performing track field staff’s behavior or task status location tracking feature. Managers or the effectiveness of
field duties efficiently. It is difficult for a manager or team leaders can track the location of monitoring
team leader to monitor whether staffs are field staff and the status of their tasks in
performing on-target real time
The company used a SW Payment is well-known for its’ Inefficient work Employees can clock in/out on the Time-saving and
biometric fingerprint responsiveness in customer service and and complaints DingTalk app at anytime and anyplace. high-efficiency in
attendance system for requires employees to deal with among employees With the detailed information of conducting tasks, and
employees including field customers’ problems quickly. It is often location where employees clock in or efficient and accurate
staff. It is inconvenient and the case that a customer encounters a out, managers can track employee’s job attendance
time consuming for field staff technical problem at 3-4pm and attendance management
to go back to the business employees need to go to the customer’s
location for clock out location 30 miles away and return to the
company’s location for clock out even in
the late night
Important work-related Some employees miss the important Employees do not Message read notification on DingTalk Ensuring the delivery
messages or notices on notices or messages distributed in the respond to notices indicates whether the receivers have and reading of
WeChat or QQ (another group chat of WeChat, which are usually or messages on read the message. The DING message important messages
socialization-oriented social flooded with massive messages. Senders time function can allow users to send
media) are often missed by of the message or managers have no idea important messages by using push
employees about whether employees without notification
response intentionally ignore or simply
miss the information
The company used to process Paper works are distributed to several Wasting time and With the approval system on DingTalk, Reducing time lag and
manually the approval of managers for personal signatures inefficiency employees can submit their applications increasing efficiency
business trips, leaves, and for leaves, business trips, and
reimbursements, causing reimbursement and be notified the
time-delay and low-efficiency status of approval at any time.
Employees can also push their
applications to managers by using
DING message if it is an emergency
Managers cannot track team Managers get the information about team Low efficiency of Task management and planning Increasing the
progress and whether work via weekly meetings and private supervision and functions on DingTalk enable managers efficiency of task
employees perform their one-to-one communication increased to assign tasks, monitor task status in management and
activities in an immediate and management cost real time monitoring
efficient way
38
Managers cannot keep close Employees write and submit work logs Inconvenient for Log function on DingTalk enables Beneficial to monitor
track of whether everyone every week which may neglect some supervisors to employees to write and upload logs progress for managers
performs as expected important details in the work and cannot provide feedback very easily. As a result, SW Payment in an efficient and
enable managers to identify and respond and assistance to requires employees to upload daily logs, timely way and
to problems on time those staff in need which is beneficial for supervisors to providing support to
monitor work progress. In addition, the those in need timely
app can generate employee’s
performance indicator report
automatically
Effective benchmarking has Employees are unable to observe how Field employees Managers can share the work diaries of Enhancing peer
not been implemented within colleagues behave in the work and have do not have many star employees and other learning comparison and
the team no way to learn from each other opportunities to materials timely and conveniently by employee learning.
improve their using DingTalk Potential to implement
skills by learning digital gamification
from each other (being fun and
competition are two
key principles in
gamification) projects
in the future
39
Work-oriented social media and team effort: Team effort refers to the extent to which team
members devote their resources (i.e., energy, attention, and time) to team tasks (Yeo and Neal
2004, De Jong and Elfring 2010). Also, team effort involves maintaining and demonstrating
individual motivation to exert effort toward realizing team goals, even when one experiences
frustration or when others are holding back. The main goal of SW Payment is to “explore
potential clients and maintain existing clients,” which is largely decided upon by the efforts
of employees and by their influence on team performance. However, how to inspire team and
employee effort remains a managerial challenge. Daniel (team leader in Service) highlighted
the importance of inspiring and motivating teams and employees: “We have accumulated
extensive knowledge and skills in the traditional payment field. After the transformation of
our business, we need to spend a lot of time and energy to learn new knowledge and skills
related to online payment and financing services to reach the company’s objectives. Most
employees experience pressure related to this. We need to do a lot of things to inspire them to
work harder and eliminate their inertia in exploring new things.”
DingTalk can be used to enhance challenge stressors and thereby push employees to work
hard, which is beneficial for teams seeking to reach their goals and improve team and
employee performance. As Daniel said: “Our performance data are displayed on DingTalk,
and everyone in our team can have access to others’ performance data. I will feel shamed if I
lag behind. As a result, I try my best to complete my tasks.” Calvin expressed a similar
opinion: “DingTalk is not only a data collection system but also a real-time locating and
recording system. I can edit, revise, and submit daily logs by using my mobile phone and
40
record my work status with photos when performing a task at the customers’ location. These
functions push me to concentrate on my work during work hours.”
DingTalk can also be used to reduce employees’ hindrance stressors to conducting new
tasks, which encourages employees to exert more time, energy, and attention in reaching team
goals: “DingTalk provides strong abilities of enhancing communication and coordination,
which are useful for eliminating or resolving problems at work. We can easily search for
colleagues with specialties on DingTalk and directly phone or message them to get
information or knowledge we want. As sales representatives, we often need to contact
office-based technical staffs to resolve the technical problems at our customers’ locations.
DingTalk helps a lot” (Blake).
From managers’ perspectives, DingTalk with affordances of instant feedback and prompt
rewarding can also inspire employees to exert more effort. According to Blake: “Employees
are required to submit important documents and applications for customer discounts for
approval. We used to ask employees to hand in the written application forms in person and
finish the entire procedure, which requires the signatures of multiple managers at different
levels. The process was time-consuming and lowered responsiveness in customer service.
Sometimes the long approval process negatively affected employees’ performance and thus
lowered their morale. With the help of DingTalk, we can process applications in real time…
In addition, we can share information about best practices or the excellent performance
achieved by star employees. This encourages our employees and motivates them to stay on
the right track.”
41
The function of instant communication and strong coordination enabled by DingTalk has
reduced emotional resistance to performing tasks, and created an atmosphere inspiring
employees to devote more effort and create highly efficient workflows, resulting in instant
feedback and rewards. In this sense, this provides anecdotal evidence to the impact of the
usage of work-oriented social media on team effort. Overall, we find that the usage of
DingTalk has a positive influence on team reflexivity, team monitoring, and team effort, thus
providing instrumental value.
Socialization-oriented social media and expressive value
Socialization-oriented social media and social exchange: Social exchange is defined as
voluntary, beneficial actions that are expected to create a desire to give back on the part of the
other (Blau 1968). Blau (1964) categorized social associations into social exchange and
economic exchange, arguing that social exchange represented a relationship based on -and
motivated by- unspecified obligations, over an open-ended and long-term timeframe (Colquitt
et al. 2014). Exchange partners can use social media to establish and sustain social capital and
thereby obtain many benefits, such as assistance, advice, and appreciation. For instance, if
one provides support to the other, then subsequent acts of giving advice by the other could
constitute reciprocal behavior, defined here as voluntary, beneficial actions by one that are
believed to be mutually reinforcing.
WeChat, as a widely used social media with a strong ability for association, allows
personal connections among employees. These personal associations in the workplace can
build rapport, establish high quality working relationships, and generate organizational
citizenship behavior (Koch et al. 2012). As Calvin highlighted: “The high association
42
afforded by WeChat helped our team members to develop friendships. Our team is like a
family, and our team members are brothers and sisters. We have developed an emotional
attachment to our colleagues and our team. So, I often share my work experiences and
information with the team members with whom I have built good personal relationships. In
addition, we are not concerned over who takes this task and who does not because we
understand that we need to work as a team.”
These activities enabled by WeChat can further enhance employee attachment and
belonging, which are positively associated with affective commitment to the team or the
company: “Our team members share a vision: we need to work hard to become outstanding
and not pull down the whole team. Some members are willing to fight for the team’s honor to
support its growth and success” (Barret).
Regarding the interaction between team leaders and members, employees can perceive
high-quality social exchange relationships when their leaders continuously offer help and
inspiration, value their contributions, value their goals, and care about their well-being.
WeChat is a useful and appropriate platform for high-quality social relationships between
managers and employees: “I usually send red envelopes [monetary gifts] on WeChat to my
team members as a small reward for their achievements or improvements. Even though the
amount of money in the red envelopes is small, I just want them to know that we value any
contributions our employees make” (Blake). Barret said: “If I find some colleague is not in a
good mood, I will privately message or chat with him/her on WeChat or simply send emoji to
cheer him/her up. Sometimes a non-face-to-face way is much easier for communication.
43
When employees go out to work in the hot sun, I will send messages in group chat to remind
them of sunstroke and to drink water.”
High-quality social exchange relationships, enabled by the use of WeChat, can induce
proactive work behavior among employees. Employees who feel an affective commitment to
their teams and the company eventually perform more productively, achieve higher
performance, and show strong loyalty and low turnover intention. In this sense, the
WeChat-enabled social exchange in the workplace can be converted in greater team
performance.
The joint use of DingTalk and WeChat can further enhance social exchange among users.
One informant in Service who simultaneously uses DingTalk and WeChat said: “Last month,
by reviewing my team members’ daily logs, I found that Barret had encountered a problem
when his first deal with one client (Bank A) was stuck because the senior manager of this
client did not trust Barnett. Bank A has a good partnership with Bank B, with which I have
had a strong relationship for many years, and was highly satisfied by our company’s
high-quality products and services. To tackle the problem, I recommended Barret to the
manager of Bank B, who referred Barret to Bank A with a professional endorsement of our
company’s high-quality products and services. Ultimately, Barret successfully sealed the deal
with Bank A.”
Support from team leaders helps employees to develop an emotional attachment to their
teams and feel like a family. The visibility and transparency of employees’ work status can
allow managers to exert timely feedback, correction, and support, which, in turn, can benefit
employees and make them build stronger social exchange relationships with their leaders and
44
colleagues (Langfred and Moye 2004). In this sense, we find that socialization-oriented social
media affect social exchange, thus providing expressive value. This effect is positively
reinforced in the presence of work-oriented social media.
Socialization-oriented social media and social support: Social support has been defined as
“the availability of helping relationships and the quality of those relationships” (Wang et al.
2010). Social support in workplace has different forms, such as supervisor support,
coworker’s support, and organizational support (Shanock and Eisenberger 2006, Liaw et al.
2010). Perceived social support can influence individuals’ appraisal of stressful situations,
whereby difficulties and setbacks at work are appraised as more manageable and less
threatening (Lu et al. 2015, Maier et al. 2015, Kuem et al. 2017). Employees can use social
media to establish social relationships and obtain social supports from others. For instance,
sharing entertaining jokes or positive life experiences on social media can create mutual
enjoyment among individuals. These connections can lead to strong socially supportive
relationships (e.g., enduring friendship). Prior research has illustrated that supportive
relationships can prevent negative responses and maladaptive coping behaviors when
employees feel frustrating and enhance positive experience at work (Wang et al. 2010). As a
result, social support can contribute to superior employee and team performance.
The interactions and flows on socialization-oriented social media focus on affective
communication and relationship development. WeChat, as a socialization-oriented social
media, enables employees to build high-quality social relationships with supervisors and
coworkers, and these social bonds can benefit them. Specifically, supervisors can initiate
casual conversations or show a personal concern for the wellbeing of one subordinate on
45
WeChat, which can strengthen the perceived support among the employee and others. As
Grace (team leader in Service) indicated: “When employees encounter setbacks or
frustrations in their work life and in their personal life, I inspire them by sending WeChat
messages. When team morale is low, I instill positive emotional energy into employees by
sharing some encouraging materials and jokes in our group chat.”
In addition, WeChat can enable employees to take some breaks from work during
particular busy work schedules and thus build a sense of togetherness. This sense of
community can enable coworkers to provide employees with work-related assistance to aid in
the execution of job tasks. Such effects were reflected by Grace: “The annual motor show is
an important event for us to expand our markets and maintain customer relationships. After
five or six hours of intensive work, we talk about interesting topics in our WeChat group,
which helps us temporally escape from the pressure of work. Chatting on WeChat provides a
balance between work and social activity, recharges us, and allows us to carry on
efficiently.” Furthermore, the supportive team climate on WeChat can obtain socioemotional
benefits such as caring: “Employees invest effort and dedication to their organization for
social benefits such as a sense of community and belonging.”
For employees, the joint use of DingTalk and WeChat can exert a complementary effect on
social support. Informants has noted that “WeChat can be used as a channel to provide social
support as well as entertainment and the affordances of DingTalk enable us to provide instant
feedback and assistance to those who need a favor.” Perceived social support can enhance the
in-role and extra-role behaviors of employees, and then increase their productivity.
46
Complementarity of work-oriented and socialization-oriented social media and business
benefits
Impact on team performance: We find anecdotal evidence on the complementarity between
DingTalk and WeChat, and its effect on team performance. In workplace, employee uses
work-oriented social media to obtain instrumental value such as gathering professional
information and promoting successful team monitoring (Kim et al. 2013, Leftheriotis and
Giannakos 2014). Employee’s use of socialization oriented-social media, on the other hand, is
to satisfy their expressive needs, for example, the need for entertainment, social support, and
community feelings. DingTalk and WeChat represent work- and socialization-oriented social
media, respectively, which they have the following heterogeneous features (Table 7).
Table 7: Quotations for the heterogeneous features among DingTalk and WeChat
Barret: “The social interactions on DingTalk are formal and we usually use it for approval, write
and upload daily work diaries, and do some reviews of previous work”
Social Alice: “The communications on WeChat are casual and relaxing. We can send emoji and
interactions animation characters, such as Tuzki. We sometimes use WeChat as a “refresher” by making
some jokes and sharing some office gossip… The interactions on DingTalk are formal compared
with WeChat”
Daniel: “DingTalk is more professional than WeChat (in office automation). Specifically, WeChat
is a ‘large and all-inclusive’ platform and we share various contents on this platform. On the
contrary, DingTalk focuses on improving office efficiency and we usually share work-related
Flows materials, like work diaries, on this platform”
Bruce: “Apart from work-related interaction, we also share things unrelated to work on WeChat,
like motivational nonsense (chicken soup for the soul) and gossipy news. For DingTalk, we just
use it for work-related purposes”
Emily: “DingTalk is used for role-based interactions in work (such as cross-sectoral linkages
Relations
and relationships) and WeChat is useful to establish and maintain affective relations”
Although DingTalk and WeChat have heterogeneous features that promote instrumental
and expressive ties, respectively, these ties are conducive to completing work tasks.
Socialization-oriented apps can complement work-oriented apps by enabling employee to
relax and refresh, leading to a greater concentration and higher efficiency for a day’s work
47
and, as a result, increased productivity: “We use WeChat as a refresher by making some jokes
and sharing some office gossip. DingTalk is a formal platform by which we keep close track
of work progress and improve work efficiency… The social interactions between employees
smoothed by the causal and informal activities in WeChat serve as the lubricant for more
instrumental and utilitarian goals at work enabled by DingTalk.”
On the other hand, work-oriented social media can complement socialization-oriented
social media in daily work and task management. It is impossible for DingTalk to replace
WeChat and vice versa: “Either WeChat or QQ are instant messaging tools that can be used
to communicate and share information. It is worth noting that some functions on DingTalk
are conductive to improve work efficiency and productivity. For example, online clock-in
allows employees to check in online instead of going back to the company’s location. The
message ‘read’ identifier enables me to know who does not read the messages. Online
approval, location track, corporate chart, and other tools are useful for improving
management and achieving higher performance. DingTalk is supplementary to WeChat at
work.”
In addition, the cognitive and behavioral rigidity serve as another reason for the
complementary relationship between work- and socialization-oriented social media. As Barret
argued: “We use WeChat to satisfy our social needs at the very beginning, and then this
behavioral propensity has shaped our perception of this platform which remains unchanged.
Although we use DingTalk frequently at work, it is unrealistic that we use DingTalk for social
use.” Alice expressed the same view: “Although many functions of DingTalk and WeChat are
overlapped, it’s not the wastage of resources. The most important reason is that we become
48
accustomed to using WeChat for informal interactions and using DingTalk for work-related
exchanges.” This inertia in using heterogeneous social media provides room for
complementarity rather than substitution.
Finally, employee’s choices about using heterogeneous social media are motivated by their
desire to gratify a wide range of needs in workplace (Park 2010, Joo and Sang 2013). Hence,
studying employee’s motivation to use heterogeneous social media can shed light on the
complementarity between work- and socialization-oriented social media (Kim et al. 2013,
Leftheriotis and Giannakos 2014). In the workplace, employees use DingTalk to “obtain
instrumental value such as gathering professional information and promoting teamwork.”
The use of WeChat, on the other hand, is to “satisfy their expressive needs, for example, the
need for entertainment, social support, and community feelings.”
These statements describe how employees use work-oriented and socialization-oriented
social media for different purposes at work and how both types of social media are
complementary and beneficial for team and employee performance. DingTalk is a formal
work-oriented platform on which employees can perform various activities to achieve their
collective goals, such as team monitoring. In contrast, WeChat is an informal
socialization-oriented platform on which employees can talk about a multitude of interesting
topics and build social relationships. In this sense, DingTalk and WeChat play different roles
at work and complementarily contribute to team and employee performance.
Test of robustness: Impact on employee performance: As a test of robustness, we further
use employee salary as a proxy of employee performance to evaluate whether the
complementarity of work-oriented and socialization-oriented social media had affected
49
employee performance. However, salaries in different years may be incomparable because the
change in the annual salary of employees largely depends on the growth of firm’s revenues.
Thus, we calculated the ratio of total annual salary (2.28 million RMB) to the total annual
revenue (30 million RMB) contributed by all marketing employees in 2016, which is 7.6% in
comparison to 6.35% in 2017. We then discount the performance data in 2017 (T2) back to
the data in 2016 (T1) by using an appropriate discount rate3 so that the performance data at
the two points of time are comparable. Furthermore, we used quarterly salary instead of
monthly data, as the informants explicitly illustrated that they sometimes took more than one
month to close a deal, and quarterly performance data have high reliability and objectivity4.
Therefore, we used all of the informants’ performance data in the third quarter of 2016 and
the second quarter of 2017 as raw data at T1 and T2 separately after the first round of
interviews were conducted in August 2016 and second round in April 2017.
Because our research method is a pretest/posttest design, we first calculated the difference
between time points for all informants, and then we used an independent t-test to verify
whether there are significant differences in employee performance (salary) between the
treatment and control groups. A statistically significant difference was detected between the
pretest and posttest in the experimental group and the control group (t = 3.99, p ≤ 0.001) (the
t-test using monthly performance data also shows a significant result, t = 3.22, p = 0.004).
This test of robustness shows that the difference in quarterly employee salary between the
experimental group and the control group is statistically significant, thus illustrating that the
3
The discounted performance data at T2 = (Original performance data at T2 * 228 * 3100) / (3000 * 197).
4
We also repeated this analysis by using monthly performance data, which yields identical results (see Table
A2 in the appendix).
50
complementarity in the usage of work-oriented and socialization-oriented social media had
improved employee performance in the experimental group significantly. In other words,
compared with informants in Development only using socialization-oriented social media,
informants in Service who simultaneously use work- and socialization-oriented social media
have higher employee performance.
Table 8: Quarterly employee’s salary in experimental and control group

Informant Experimental Experimental Difference Informant Control Control Difference
group at T1 group at T2 (T2 - T1) group at group at (T2 - T1)
T1 T2
Aaron 37200.50 43532.78 6332.28 Evan 16106.06 18328.86 2222.80
Ablett 18474.00 23211.98 4737.98 Gary 12578.69 13812.54 1233.85
Bruce 8220.00 10177.44 1957.44 Basia 16551.25 14947.81 -1603.44
Barret 16107.00 19920.76 3813.76 Harry 43777.81 37498.18 -6279.63
Alice 15007.00 18473.67 3466.67 Herbert 31539.55 27876.14 -3663.41
Blake 37319.00 54903.77 17584.77 James 17068.59 19035.93 1967.34
Calvin 18357.00 21896.45 3539.45 Carol 21580.12 24851.51 3271.39
Emily 16865.00 20104.33 3239.33 Jeremy 21861.11 18855.27 -3005.84
Chad 16107.00 20279.54 4172.54 Lambert 29079.47 20108.23 -8971.24
Daniel 23098.25 28820.94 5722.69 Matt 19111.26 21603.72 2492.46
Aaron 37200.50 43532.78 6332.28 Dana 30727.58 23684.45 -7043.13
Grace 29471.14 26590.79 -2880.35
Evan 16106.06 18328.86 2222.80
Mean 20675.48 26132.17 5456.69 24121.05 22266.12 -1854.93
S.D. 9485.12 13277.63 4442.10 8941.45 6456.66 4142.95
Note: Salary is expressed in RMB.
DISCUSSION AND CONCLUSIONS
Discussion of results
How does the usage of social media in the workplace affect team and employee performance?
To address this critical IS research question, we ran a quasinatural field experiment,
collecting data of two matched groups within a large financial service firm in China. We find
that work-oriented social media (DingTalk) and socialization-oriented social media (WeChat)
are complementary resources that generate synergies to improve team and employee
51
performance. This general research question was divided in two specific research questions.
The first question is whether the combined usage of work-oriented and socialization-oriented
social media generates synergies in the workplace. To answer this question, we classified
social media in the workplace into work-oriented and socialization-oriented social media and
elaborate the rationale behind this complementarity. Work-oriented social media (e.g.,
Microsoft Yammer and DingTalk) refer to web-based platforms that can be used in the
workplace to facilitate the creation of resources, collaboration, and the exchange of core
work-related information and content, such as task management, the tracking of work and
events, and formal internal corporate communication. Socialization-oriented social media
(e.g., Facebook, WhatsApp, and WeChat) refer to the web-based platforms that enable the
exchange of social and personal information, and facilitate expressive ties that influence
individual identity through social and emotional support, and normative expectations.
Work-oriented social media are corporate, private, “formal,” and for professional interactions.
Differently, socialization-oriented social media are personal, public, very informal, and for
personal, social, and emotional interactions.
The usage of social media by companies and individuals has become a core trend for
business activities (companies) and fun/socialization (individuals). Most employees expect
both work-oriented and socialization-oriented social media can co-exist in the workplace. The
joint use of both work-oriented and socialization-oriented social media has greater value
because socialization enabled by social media becomes a routine and necessity in employees’
work and complement and smooth instrumental activities at work. This suggests that
52
work-oriented and socialization-oriented social media complementarily co-exist and create
synergies in the workplace.
The second question is whether these synergies influence team and employee performance.
We find that the interaction between work-oriented and socialization-oriented social media
generates synergies that improve team and employee performances. The instrumental value
provided by work-oriented social media is reinforced by the expressive value provided by
socialization-oriented social media, which helps firms to create business value from IT
investments. Specifically, work-oriented social media provide specific business benefits such
as more effective communication, better work-related information, job monitoring, and
formal and instrumental ties. These benefits have a greater positive impact on team and
employee performance when employees also have social and emotional connections,
affective relationships, trust, and less psychological distance, which are enabled by
socialization-oriented social media.
Contributions to IS research
The usage of social media by companies is a new phenomenon, and therefore, the theoretical
and empirical understanding of business value of social media is still in initial stages (Benitez
et al. 2018a, Braojos et al. 2019). First, our study contributes to the literature on social media
in workplace in the following ways by highlighting the heterogeneous types of social media
and categorizing social media into work-oriented and socialization-oriented social media. Our
own review of prior IS literature shows a limited understanding about how multiple social
media can be used in combination in the workplace and whether this usage enables or
constrains the performance of teams and employees. One exception to this scarcity of
53
research is Forsgren and Bystrom’s (2018) work. They perform a case study in a
Scandinavian software development company and find that the usage of multiple social
media brings coherence in work activities in a decentralized work environment in terms of
sharing work-related information and improving ambient awareness. Among studies on the
roles of social media at work mainly from a single technology perspective, Forsgren and
Bystrom’s (2018) work is one exception recognizing the co-existence of multiple social
media at work. They examine internal social media (Dokuwiki, Microsoft Yammer, and
Vanilla Forum) and external social media (LinkedIn, Facebook, Twitter, and Misc). However,
the co-existence of multiple social media is only viewed as the contextual factor in their study.
There is only literal meaning, rather than theoretical implication of the term “multiple” as no
efforts have been conducted to theorize the differences and interrelationships among various
social media. Drawn on the Forsgren and Bystrom’s (2018) work, we examine the impact of
the usage of social media in the workplace on team and employee performance. In a different
way to Forsgren and Bystrom (2018), we focus on the usage of DingTalk (work-oriented
social media) and WeChat (socialization-oriented social media) in a large financial service
company in China. We classify social media in the workplace into work-oriented and
socialization-oriented social media. This classification of social media in the workplace
allows us to distinguish heterogeneous value created by these social media and surface the
interaction between them. This is the primary contribution to IS research5. The categorization
5
Forsgren and Bystrom (2018) find that knowledge employees of a Scandinavian software development use
Microsoft Yammer (a work-oriented social media in our study) informally and in a similar way to Facebook (a
socialization-oriented social media in our study), which improves the employee’s sense of community,
togetherness, and family. In a different way, the employees of SW Payment (the company of our study)
perceived the usage and narrative of DingTalk as formal, and they brought the informal, emotional, family
(personal) sense through WeChat. These interesting differences (informal vs. formal narrative and usage) may
be based on the different industries (software development vs. financial services) and/or different national
54
of work- and socialization-oriented social media provides a framework to analyze the
complexity and dynamics of social media use and impacts.
Worldwide IT investment has been projected to total $3.7 trillion in 2018, an increase of
4.5% from 2017, according to the latest forecast by Gartner Inc. (Gartner 2018). In this sense,
companies invest millions Euros/Dollars/RMB in IT resources, but not all of them generate
the expected business benefits (Benitez et al. 2018b, Benitez et al. 2018c, Benitez et al.
2018d). Prior IS research on business value of IT has argued that it is more important how
firms use IT resources and initiatives than how much they invest in IT resources and
initiatives (Chen et al. 2015, 2017). Our study contributes to the research on business value of
IT by showing the theoretical arguments and the anecdotal evidence on how firms can
capitalize their efforts and capabilities to deploy work-oriented social media (corporate
emphasis: DingTalk) in combination with socialization-oriented social media (personal
emphasis: WeChat) to create business value. In particular, this study uncovers the mechanism
of value creation of social media by identifying that work-oriented social media generate
instrumental value and socialization-oriented social media provide expressive value. The
approach to differential value created by various social media not only offers further evidence
for the heterogeneity of social media but also serves as a theoretical base to understand the
synergistic effect of social media in improving performance. This is the second contribution
of this study to IS research.
cultures (Scandinavia vs. China). Exploring how the impact of the social initiatives on companies differ by
industries and national cultures (attitude toward job) seems to be a fantastic research line to explore in IS
research and to develop our study.
55
The finding of the synergistic effect of the joint usage of work- and socialization-oriented
social media at work further contributes to IS research on social media. This body of IS
literature has long questioned the legitimacy of nonwork-related use of social media at work
and considered it as a typical form of IT misuse, which could bring negative impacts on
productivity and should be deterred by companies (D'Arcy and Hovav 2007). On the contrary,
some scholars propose the nonwork-related use of social media is a new form of business
value creation (e.g., McAfee 2006) as this may help form an expressive network and bring
affective benefits for employees (Ibarra and Andrews1993, Podolny and Baron 1997). This
study contributes to this body of IS research by theorizing the mechanisms through which
work-oriented social media (affording instrumental ties) and socialization-oriented social
media (affording affect-laden expressive ties) jointly contribute to improve team and
Lessons learned for the real world
Heterogeneous information technologies coexist and are jointly used by individuals and
companies, which has substantial implications for IT usage, management, governance, and
value appropriation. The ubiquitous coexistence of multiple social media in a single company
is one of the most salient demonstrations of IT democratization. This study provides lessons
learned for the modern financial service company and executives. First, social media that can
be used in the workplace are heterogeneous as they have different technical features,
affordances, and supported ties. We classify them in work-oriented social media and
socialization-oriented social media. The implementation of work-oriented social media
depends on firms’ strategy related to IT, human resource, and knowledge workplace design.
56
On the contrary, socialization-oriented social media are personal, and its usage depends on
the self-initiative of employees. Financial service companies should implement work-oriented
social media by considering the alignment between social media and user characteristics, task
demands, and usage contexts, as this is critical for the success and value appropriation of
social media in the workplace. Second, we study the usage of one work-oriented social media
(DingTalk) and one socialization-oriented social media (WeChat) in the workplace in a large
financial service in China. Our analysis shows that the joint usage of DingTalk and WeChat
generates positive synergies, which, in turn, help to improve team and employee performance.
Viewing socialization-oriented social media as an obstacle to work productivity, some
companies may forbid the usage of socialization-oriented social media at work. In our study,
we find that its usage complements the usage of work-oriented social media as it brings the
social support and social exchange that complement team reflexivity, team monitoring, and
team effort facilitated by work-oriented social media. This co-existence of work-oriented and
socialization-oriented social media improves team and employee performance and creates
business value in the financial service company.
Limitations and future directions for IS research
This study has the following limitations. First, although the absence of prior IS research on
this topic highly recommended running a case study, the research focused only on one
company and its results is less generalizable. Second, although the study focuses on two very
relevant social media in the Chinese workplace (DingTalk and WeChat), the findings on the
usage of multiple social media in the workplace can be only extended to these specific social
media. We see the following promising avenues for future research to develop this topic and
57
study. First, our understanding on the conceptualization, design, and effects of the digital
workplace is in its infancy. Future IS research should aim to clarify what a digital workplace
is and how it affects employee engagement and performance. Second, although the usage of
both work-oriented and socialization-oriented social media has been shown to positively
affect team and employee performance, future IS research should run empirical, and
econometrics studies to explore how this effect evolve if we add more collaboration tools to
the equation (e.g., Microsoft Office 365). Can knowledgeable employees suffer technological
overlap at work? What type of policies should companies design to avoid this possible
technological overlap? Companies should select carefully the collaboration tools to
implement at work by considering the digital skills of the organizational members, the
integration user’s demand and challenges, and the firm’s IT investment budget. The study of
the role of social media and other IT-enabled collaboration tools in the workplace seems to
come with very promising research questions to explore in our field.
Key conclusions
How does the usage of social media in the knowledge workplace affect team and employee
performance? Motivated by this critical research question, we ran a quasinatural field
experiment on a large financial service firm in China. We theorize and classify social media
in the workplace into work-oriented social media and socialization-oriented social media. The
analysis of DingTalk (work-oriented social media) and WeChat (socialization-oriented social
media) in our study shows that both social media are complementary at work and generate
positive synergies to improve team and employee performance. This is explained because the
combination of instrumental value and expressive value as a whole is better than the sum of
58
its parts in terms of team and employee performance. In this sense, social media at workplace
work.
59
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APPENDIX
Table A1: Major features of DingTalk
Features Description
Communication features
All types of messaging display read/unread status for improving communications
Message read
efficiency. The system also presents the number and the list of receivers who do not read
identifier
the sent message
Phone Allow users to make free in-system phone calls
Group chat Allow users to freely form groups
View organization’s structure in a glance, find people and contacts by their names, job
Organization chart
positions, and departments
Corporate/department
Enrolled employees are automatically enlisted as members
group chat
Video-conferencing Allow users to make multi-party video conferences on the group chat
Send a traceless secret message which will be automatically deleted 30 seconds after
Secret chat being read. No copy and paste is allowed during secret chat mode. Both profiles of users
within the secret chat are masked, hence the identities remain concealed
Office automation features
Employees can submit their requests for leaves, applications for business trips or
Approval
reimbursements, which will be processed in real time
Employees can write and submit their daily work reports with the app, and the system
Log
can generate individual employee performance reports automatically
Managers can follow up the work data (such as attendance and log) of employees at any
Calendar
time
An attendance system tracking employees’ GPS-based location information and
Clocking-in and out
allowing user-friendly, remote clocking-in and out
The cloud-based file system that makes file saving and sharing quick and easy between
DING-drive
mobile devices and computers
Members will receive notifications once organizational or departmental announcement
Announcement
has been posted
Collaboration features
DING message Send important messages via SMS, phone, or in the app
DING tasks Create and assign work tasks to self or others
Allow users to add external contacts to DingTalk by importing phone contacts, scanning
External contacts
business cards or adding manually
DING meetings Book offline meetings, videoconferences and conference calls
65
Table A2: Monthly employee’s salary in experimental and control group
Control Control
Experimental Experimental Difference Difference
Informant Informant group at group at
group at T1 group at T2 (T2 - T1) (T2 - T1)
T1 T2
Aaron 12433.50 13195.39 761.89 Evan 5596.71 6542.66 945.95
Ablett 6158.00 6641.05 483.05 Gary 3857.50 5075.99 1218.49
Bruce 2760.00 3408.43 648.43 Basia 5877.03 5396.14 -480.89
Barret 5319.00 5942.62 623.62 Harry 15274.12 11372.72 -3901.40
Alice 4909.00 5320.73 411.73 Herbert 10964.13 9289.89 -1674.24
Blake 12532.00 16826.26 4294.26 James 5394.94 6540.93 1145.99
Calvin 5619.00 6342.06 723.06 Carol 7692.97 5982.12 -1710.85
Emily 5627.00 5938.44 311.44 Jeremy 7665.77 5582.44 -2083.32
Chad 5319.00 5942.62 623.62 Lambert 9618.14 7602.85 -2015.29
Daniel 7832.75 8291.45 458.70 Matt 6642.70 6592.22 -50.48
Dana 10405.13 8997.55 -1407.58
Grace 10263.61 7839.56 -2424.06
Mean 6850.93 7784.91 933.98 8271.06 7234.59 -1036.47
S.D. 3216.28 4083.70 1189.27 3171.20 1874.91 1602.52
Note: Salary is expressed in RMB and the names of informants are pseudonyms for anonymity.
66
Heslina & Andi Syahruni, Golden Ratio of Human Resource Management, Vol.1, Issue. 1 (2021)
https://doi.org/10.52970/grhrm.v1i1.100
Website: https://goldenratio.id/index.php/grhrm ISSN [Online] 2776-6365
HUMAN RESOURCE MANAGEMENT | RESEARCH ARTICLE
The Influence of Information Technology, Human

Resources Competency and Employee
Engagement on Performance of Employees
H. Heslina1*, Andi Syahruni2
1,2
Magister Program, Sekolah Tinggi Ilmu Ekonomi Makassar (STIEM) Bongaya, Makassar,
Indonesia. Email: heslina@stiem-bongaya.ac.id
Abstract: This study was conducted with the following objectives to analyze the influence of
Information Technology, Human Resources (HR) and work engagement on performance of the
Makassar Regional Revenue Agency employees. The research method used in this research is
Received: August 18, 2020 descriptive analysis and analysis of multiple linear regression, with a total sample of 142
Revised: December, 2020 respondents. Multiple regression analysis is the method used to answer the relationship between
Accepted: January 07, 2021 independent and dependent variables. After the regression coefficient is obtained, testing is carried
out to determine the independent variables on the dependent variable using the Fisher's test, t-
*Corresponding author: H. Heslina, test, and the coefficient of determination. Based on the multiple linear regression analysis results,
Sekolah Tinggi Ilmu Ekonomi
the results showed that Information Technology, HR competence, and work Engagement have a
Bongaya, Makassar, Indonesia
positive and significant effect on the Performance of Regional Revenue Agency Employees of
Makassar City, which can be proven from partial and simultaneous testing. With these results, all
E-mail:heslina@stiem-bongaya.ac.id
hypotheses in this study can be proven or accepted. The results of this study suggest that the
information technology used must provide benefits and be supported by human resources who
have the expertise to create a work climate that can support employee and organizational
performance in Regional Revenue Agency Office of Makassar City.
Keywords: Information Technology, Human Resources Competence, Job Engagement, Employee

Performance
JEL Classification Code: 015, L20, L30
1. INTRODUCTION
Government organizations or public organizations get the most attention because government
organizations are synonymous with more minor good things. For example, they are less productive,
unprofessional, full of gratuities, do not have optimal services, and have very wasteful budgets, unlike
private organizations that have professionally managed management (Bercu & Grigoruţă, 2012; Farouk
et al., 2018; Harlie, 2012). However, in line with the demands for quality international public services,
employees who work in government must prepare themselves and respond to global challenges
increasingly integrated into every cross country in the world. In the general explanation of Government
Regulation number 30/2019, it is stated that one of the considerations for the formation of Law
Number 5/2Ol4 concerning the State Civil Apparatus (ASN), after this abbreviated as the ASN Law,
is to create a professional, competent and competitive State civil apparatus as part of reform
bureaucracy. The State Civil Apparatus as a profession should manage and develop itself and is obliged
to account for its performance and apply the principle of merit in implementing the management of
the state civil apparatus.
Based on this thought, the ASN Law regulates performance appraisal, which aims to ensure the
objectivity of civil servant development based on the achievement and career systems. The ASN Law
also mandates that the performance appraisal of civil servants be carried out in an objective, measurable,
accountable, participatory, and transparent manner. The regulation regarding the performance
appraisal of civil servants in the ASN Law needs to be further regulated in a Government Regulation as
mandated in Article 78. The performance appraisal aims to ensure the objectivity of civil servant
2021 The Author(s). This open-access article is distributed under a Creative Commons Page 1 of 12
Attribution (CC-BY) 4.0 license.
development, which is carried out based on the achievement and career systems. Performance appraisal
is a series process in the ASN Performance Management System, starting from preparing performance
plans, which is preparing Employee Performance Targets, abbreviated as Employee performance unit
(SKP). The implementation of the SKP measurement is done by comparing the actual performance
with the set targets. Then a performance assessment is carried out, a combination of the SKP assessment
and the Work Behavior assessment using the data from the performance measurement. In conducting
the assessment, an analysis of the obstacles to the implementation of the work is carried out to obtain
feedback and develop recommendations for improvement and determine the assessment results. Many
factors affect employee performance and organizational performance. This study looks at several
factors that can affect the performance of Makassar City Revenue Agency employees. In addition to
employee performance, organizational performance is also the basis for the success of an organization
in carrying out the mandate of performance appraisal as referred to in the spirit of Government
Regulation number 30/2019. As an overview, the Makassar City Revenue Agency, as an organization
that has the authority to manage revenue in Makassar City, also has duties and responsibilities a
tremendous responsibility in managing local taxes. Regional Tax Revenue as a regional financial
instrument strength is not as easy as imagined—illustration of local revenue from tax sources managed
by the Makassar City Regional Development Planning, Research and Development Agency
(BAPEDA).
Based on data from the Makassar City Revenue Agency in 2019, it is known that of the 11 types of
regional taxes managed by the Makassar City Regional Revenue Agency, the GDP target from taxes
was only reached 81.55% in 2017, and in 2018 it only reached 79.27%. Separately, only two types of
taxes meet the target, namely the restaurant tax and advertisement tax for 2017 and 2018, while the
Street Lighting Tax (PPJ) only reached the target in 2018. several factors both internally and externally.
Externally the compliance and awareness of taxpayers or the public who become taxpayers in Makassar
City is strongly influenced by economic conditions and taxpayers' ability. Meanwhile, internally, it is
closely related to employee HR competency issues, internal transfers, and behavioral factors, including
organizational leadership issues, because these are closely related to the involvement or engagement of
employees. The problem found in the Regional Revenue Agency Office is the lack of mastery in
technology by employees. It is necessary to have human resources in information technology who
master IT to support organizational performance. Organizational performance, in this case, is the
achievement of GDP targets in Makassar City. Another problem is the unconnected integrated service
system between fellow Regional Apparatus Organization (OPD) who collect taxes and regional levies.
Besides that, another phenomenon is the involvement of employees in every activity of optimizing the
tasks and functions of the organization as revenue collectors, which is still minimal. This phenomenon
impacts the difficulty of realizing the achievement of GDP targets and realizing taxpayer awareness and
taxpayer compliance in fulfilling their tax obligations. Some of the gap phenomena that can be stated
here are the lack of understanding of the duties and functions of each work unit so that it can have an
impact on the implementation of tasks that are less directed and have an effect on increasing GDP.
From the researchers' initial observations, the Makassar City Regional Revenue Agency has adopted
several innovative products in technology, one of which is the installation of Tapping Boxes and MPOS
in every restaurant and hotel. The problem is that there are still many taxpayers who are less responsive
to this technology. This problem then impacts the potential loss of GDP revenue because it increasingly
opens the way for tax fraud and tax evasion. It then encourages organizations to innovate technology.
These innovations must be managed by a more competent apparatus and have engaged behavior,
namely behavior that can encourage individual performance and organizational performance
improvement.
2. Literature Review
Expectancy theory argues that the strength of a tendency to act in a certain way depends on an
expectation that a specific outcome will follow the individual's action and attractiveness. In more
practical terms, expectancy theory says an employee is motivated to carry out a high level of effort if he
believes the effort will lead to a good performance appraisal (Luo & Chea, 2018; Wang et al., 2020).
The human ego always wants good results. Of course, the driving force that motivates one's work spirit
is contained in the expectations obtained in the future. If expectations can come true, employees will
tend to increase their work enthusiasm. Conversely, if expectations are not achieved, employees will
become lazy. This theory was put forward by Vroom & Yetton (1973), who based his theory on three
important concepts, namely: a) expectancy, b) Valence, c) Instrumentality. The author uses this theory
because expectancy theory has become one of the contemporary motivational theories whose
explanations are the most widely accepted and inspire many researchers. Despite criticism but most of
the available evidence supports this theory. One of the advantages of expectancy theory is that it
provides a framework for understanding how motivation works (Luo & Chea, 2018; Sudana, 2015;
Wang et al., 2020). Expectancy theory explains why many workers are unmotivated and only put forth
minimum effort to achieve goals even though they are given high rewards. The second reason for using
this theory is because to detect in detail the problem of employee engagement at the Regional Revenue
Agency, and many are related to variables such as work environment (Frederiksen et al., 2017),
leadership (Zimmermann et al., 2019), job satisfaction (Sikora & Ferris, 2014), compensation (Werner,
2000), cooperation, career development (Sotomayor, 2020), and even mutations are factors related to
behavior employee engagement. Information technology has an essential role in the engineering of most
business processes. Speed, information processing capabilities, and connectivity of computers and
internet technologies can increase the efficiency of business processes (Hassan & Wood, 2020; Lestari
et al., 2020). Information technology is a set of tools to facilitate tasks through the information process
(Ayyagari et al., 2011). Meanwhile, according to Hock-Doepgen et al. (2020), information technology
is limited to computer technology (a set of hardware and software tools) used to process and store
information and includes information technology to transmit information. Information technology de
facto has become the basis of business activities.
Ajzen first coined this theory in 1980 (Liao & Huang, 2016). This theory is structured using the
basic assumption that humans behave consciously and consider all available information. In this TRA,
Ajzen (1980) states that a person can perform or not perform a behavior depending on the person's
intentions. Furthermore, Ajzen (1980) suggests that two primary determinants influence the intention
to perform or not to perform a particular behavior. The first relates to attitudes (attitude towards
behavior), and the other relates to social influences, namely subjective norms. To reveal the influence
of subjective attitudes and norms on the intention to do or not do the behavior, Ajzen completes this
TRA with beliefs. He stated that attitudes come from behavioral beliefs, while subjective norms come
from normative beliefs. Schematically, The Theory of Planned Behavior (TPB) is a further
development of TRA. Ajzen (1988) added a construct that does not yet exist in TRA, namely perceived
behavioral control. This construct is added to understand individuals' limitations in performing certain
behaviors (Commer Soc Sci et al., 2016). In other words, whether or not a behavior is carried out is
determined by subjective attitudes and norms and the individual's perception of the control he can do,
which is based on his belief in the control (control beliefs) (Ajzen & Fishbein, 2012; Mainardes et al.,
2020). More fully, Ajzen (2005) adds individual background factors into perceived behavioral control,
schematically perceived behavioral control. The theoretical model of the Planned Behavior Theory
contains various variables, namely: (a) behavioral beliefs, namely things that are believed by individuals
about behavior in terms of positive and negative, attitudes towards behavior or tendencies to react
effectively to behavior, in the form of liking or dislike the behavior. (b) normative beliefs directly related
to environmental influences, which Lewin explicitly states in Field Theory. Ajzen also confirmed
Lewin's opinion through TPB. According to Ajzen, social and environmental factors can influence
individual decisions, especially people who influence individual lives. (c) Beliefs in control beliefs are
beliefs about factors that can facilitate or hinder behavioral performance. Then these three factors lead
to an intention which will then determine whether the individual will use the system or not (behavior).
Davis (1989) developed a model to explain the acceptance of technology to be used by technology users
called C (Ajzen & Fishbein, 2012). In this model, Davis uses TRA as a grand theory in formulating
TAM but does not adopt all components of TRA theory. The primary purpose of adopting TAM
theory is to explore usability and convenience for technology users in tax service activities at the
Makassar City Regional Revenue Agency Office. TAM is the result of further development of the
Theory of Reasoned Action (TRA), which was previously developed by Fishbein and Ajzen (1980),
which explains that user reactions and perceptions of an information system or technology will
determine the attitudes and behavior of users. According to Davis in Ramdhani (2007) explains the
behavior of individuals to use IT (Information Technology) starting from the perception of the
benefits (usefulness) and the perception of the ease of using IT (ease of use). These two elements, when
associated with TRA, are part of Belief. Perception of usefulness is defined by Davis based on the
definition of functional, namely capable of being used advantageously or can be used for profitable
purposes. Individuals believe that perceived usefulness can provide benefits if individuals use IT.Task
Technology Fit (TTF) was developed by (Bondarouk, 2011). TTF is the degree to which technology
assists individuals in carrying out their duties or job duties. More specifically, TTF is an adjustment
between tasks, individual abilities and technology functions. The priority of TTF is the interaction
between tasks, technology, and individuals. A wide variety of definite tasks require a definite variety of
technological functions. This model indicates that performance will improve when technology
provides the right features and support associated with the task. For example, e-tax and e-GDP systems
that function as a means of tax reporting can assist taxpayers' obligations in reporting taxes online and
in real-time. Davis (1989) found that the relationship between perceived usefulness and use was more
substantial than any construct. (Gunasekaran et al., 2009) also found a significant relationship between
the two constructs.
Organizational goals can be achieved if there is an effort by the organization's actors. The
relationship between individual performance with institutional performance or company performance
(individual performance) is very close to the understanding that if the employee's performance
(individual performance) is good, it is likely that the company's performance (individual performance)
is also good. Haerani et al. (2020) reveals that an employee succeeds or does not succeed in carrying out
his duties, then the leader must give sincere recognition and appreciate it with various forms of
appreciation. Because human instincts are sometimes more likely to get praise or praise when he
performs, it can be seen from various points of view, depending on the goals of each organization (for
example, for-profit or for customer satisfaction) and also depending on the form of the organization
itself (organization) (Löffler et al., 2018). Public, private, business, social or religious). The assessment
of the implementation of the work of civil servants is stated in the form of a List of Appraisals for the
Implementation of the Work of Civil Servants or better known as SKP PNS, and from now on
regulated in Government Regulation No. 10/1979. closed objectivity is often questioned because the
assessment is confidential, and the appraiser has absolute authority in assessing a person's performance.
With the confidential assessment, it is possible that the assessed employee is not satisfied with the
assessment results because there are no clear indicators used. For the current condition, many things
make SKP not suitable to be implemented in assessing the performance of civil servants. One of them
is that SKP tends to assess the performance of civil servants only from the appraiser's point of view, not
based on work performance. SKP cannot assess and measure the productivity and contribution of civil
servants to the organization. The assessment of employee performance using the SKP method is not
based on a specific target. The measurement and assessment of work performance are not based on a
specific target, so the assessment process tends to be subjective. Seeing the many weaknesses that exist
in the PNS assessment system in the form of the SKP, as well as the embodiment of Article 12 and
Article 20 of Law Number 43/1999, the government tried to create a new way of assessing the work
performance of civil servants, namely by using the Work Performance Assessment method approach.
Article 20 of Law Number 43/1999 concerning the main points of staffing mandates that the purpose
of performance appraisal is to ensure greater objectivity in considering appointments and promotions.
Employee Work Target (SKP) is a work plan and targets to be achieved by a civil servant and carried
out based on a specific period. Employee work targets include elements (a) Quantity measures the
amount or amount of work achieved by an employee. (b) Quality is a measure of the quality of each
work achieved by an employee (Valentine, 2010). (c) Time is a measure of the length of the process of
each work achieved by an employee (Ogbeibu et al., 2020). (d) Cost is the amount of the budget used
by each employee's work. The numerical value of the level of achievement of the Work Target of Civil
Servants is stated with the designations and numbers as follows: (a) Very Good: 91- and above; (b)
Good: 76-90; (c) Enough: 61-75; (d) Less: 51-60; (e) Bad: 50-under. The value of the work behavior of
civil servants is expressed by numbers and designations as follows: a) 91 - 100: Excellent; b) 76 - 90:
Good; c) 61 - 75: Moderate; d) 51 - 60: Less; e) 50 and Low.
Information Technology
Human Resources Employee Performance
Employee Engagement
Figure 1: Research Model
H1: Information Technology has a positive and significant effect on the performance of Makassar City
Revenue Agency employees.
H2: Human Resources competence affects the performance of Makassar City Regional Revenue
Agency employees.
H3: Employee Performance has a positive and significant effect on the performance of Makassar City
Revenue Agency employees.
3. Research Method and Materials
3.1. Data Samples
The research approach used in this study is quantitative. This quantitative approach was chosen
because, according to the basic assumptions of axiology, the quantitative approach seeks to explain the
relationship between the variables studied. Based on the quantitative approach above, the research
method used is quantitative analysis, which aims to explain or further describe the correlation pattern,
the relationship between two or more variables studied. This research was conducted at the Regional
Revenue Agency Office of Makassar City. The variables studied were Information Technology, HR
Competence, and Employee Engagement on employee performance. To obtain the information
needed in this study, the authors use several techniques: 1) Questionnaire, which is a technique of
collecting data through a list of written questions to respondents to obtain accurate and valid data. 2)
Observation, namely data collection by direct observation of the object under study. 3) Interview is a
method of collecting data through direct processing to obtain information from selected respondents.
4) Documentation, namely the method of collecting data with written data in the form of documents
available at the Makassar City Regional Revenue Agency Office. The data types used in this study are
as follows: (1) Primary data is data obtained directly through interviews with respondents and other
officials related to the problem under study. (2) Secondary data is data in documents and written
reports such as organizational structure, number of employees, and other information related to this
research problem.
3.2. Measurement
The population in this study were civil servants (ASN) of the Makassar City Regional Revenue
Agency, with as many as 142 employees. All of them were used as research samples (census method).
The data analysis methods used in this study are as follows: 1) Descriptive analysis is used to analyze the
effect of Information Technology, HR Competence, and Employee Engagement on employee
performance. 2) Multiple regression analysis is the method used to answer the relationship between
independent and dependent variables. The model used is, as stated by (Ghozali, 2011) as follows:
Y = a+ b0 + b1X1 + b2X2 + b3X3 + e
Description :
Y = Employee performance
X1 = Information Technology
X2 = Competence SDM
X3 = Employee Engagement
e = Error factor
b0 = Constanta
b1-b3 = Regression coefficient for independent variable
Furthermore, after the regression coefficient is obtained, testing is carried out to determine the
independent variables on the dependent variable using Fisher's test, t-test, and the coefficient of
determination simultaneously (R2) and partially (r2).
4. Results and Discussion
4.1. Statistical Result
Descriptive analysis in this study is a description or explanation of the results of primary data
collection in the form of questionnaires that have been filled out by respondents, which is a personal
statement about questionnaires.
Table 1: Data Demography of Respondent

Gender Total %
Male 85 60
Female 57 40
Education Level
Doctor /S3 0 0
Magister/S2 22 15,49
Bachelor/S1 77 54,22
Diploma/D3 29 20,42
Age (years-old)
20-35 33 23,2%
36-40 29 20,4%
41-45 25 17,60
46 and above 55 38,7
Work experience (Years)
<5 16 11,26%
6-10 58 41%
11-15 14 9,8%
>20 54 38,0
Total 142 100
Table 1 shows that from 142 respondents, 85 were male or (60%), and 57 respondents were female
(40%). It means that the number of employees is dominated by men spread across seven parts of the
organization. The education level of the respondents consists of the junior high school level up to the
highest level, namely Masters. The respondents with the lowest education level were 1 junior high
school (0.70%), high school level 13 respondents (9.5%), Diploma as many as 29 respondents (20.42%)
Undergraduate level as many as 77 people (34, 72%), while the master's education level is 22 people or
(15.49%). In 2016, there was one employee with the title of Doctor, namely the Head of the Service,
who was serving. The table above shows that the most dominant undergraduate graduates are civil
servants in the Regional Revenue Agency with a percentage of 54.22%, followed by Diplomas with
20.42%. The age composition of respondents aged 46 and over was 55 respondents or 38.7%,
respondents aged between 41-45 years were 25 respondents or 17.60%, aged 36-40 years were 29
respondents or 20.4 %, and respondents aged between 20-35 years as many as 33 respondents or 23.2%.
Respondents with less than five years of work were sixteen respondents or 11.26%, respondents who
worked 6-10 years were 58 people or 41%.
Table 2: Validity Test

Variable Item r-calculated r-estimated Info
1 0,552
2 0,698
3 0,683
4 0,620
5 0,684
X1 (Information 6 0,568
Technology) 7 0,342
8 0,315
9 0,594
10 0,494
11 0,490
12 0,378
1 0,541
2 0,731
X2 (Competence SDM) 3 0,745
4 0,588
5 0,542 Valid
0,159
1 0,601
2 0,767
3 0,746
X3 (Employee
4 0,708
Engagement)
5 0,775
6 0,645
7 0,406
1 0,502
2 0,687
3 0,592
4 0,718
5 0,573
6 0,502
7 0,687
8 0,592
9 0,718
10 0,573
Table 2 shows that the questionnaire items for variable Information Technology, HR Competence
and Work Engagement and Employee Performance in this study are valid, it is indicated by the
calculated r-value for each item more significant than the r-table (0.159), meaning that all questions can
be used as research instruments. Furthermore, a reliability test is carried out to determine how the
measurement results remain consistent if two or more measurements are made on the same object with
the same measuring instrument. Furthermore, to determine the reliability of the questions in the
questionnaire, Cronbach's Alpha technique was used. An instrument is said to be reliable if the alpha
coefficient is above 0.6. The statistical program does the calculation of reliability tests. The reliability
test results in table 3 show that all of the question items have a Cronbach Alpha value that is more
significant than 0.6, so it can be concluded that all research question items have met the reliability
requirements or this questionnaire is reliable as a research instrument.
Table 3: Reliability Test Results

Variable Cronbach Alpha Info
Information Technology 0,746 Reliable
HR Competence 0,827 Reliable
Employee engagement 0,879 Reliable
Employee Performance 0,883 Reliable
Based on the table 4, the multiple linear regression model can be obtained as follows:
Y= 0,668 + 0,271 X1 + 0,407 X2 + 0,162 X3
The constant value of 0.668 indicates that if the independent variable is constant or equal to zero,
then the Makassar City Regional Revenue Agency Employee Performance is 66.8. Information
Technology regression coefficient β1 is 0.271, indicating that when held with both Information
Technology and increases, Local Revenue Agency Employee performance Makassar City will increase
by 27.1 or vice versa, assuming that X2, X3 is constant. The magnitude of the regression coefficient β2
is 0407, indicating that when the HR Competency increases, the Regional Revenue Agency Employee
Performance will increase 40.7 or vice versa. Assuming the variables X1 and X3 are constant. The
magnitude of the regression coefficient β3 is 0162, which shows the Work Engagement increases. The
Regional Revenue Agency Employee Performance will increase by 16.2 or vice versa, assuming that the
variables X1 and X2 are constant. The value of the multiple correlation coefficient (R) is 0.787, and
this shows that the magnitude of the relationship between the independent variables X1, X2, X3, and
the Dependent Variable (Y), namely Employee Performance is 0.787, and this indicates that the
information technology variable (X1), HR Competence (X2) and Work Engagement (X3)
simultaneously have a solid relationship for the Performance of Makassar City Revenue Agency
Employees. The value of the coefficient of determination (R2) is 0619, and this shows that the influence
of the independent variable (X) on employee performance (Y) Regional Revenue Agency Makassar was
0619 or (61.9%). The remainder of 0381 or 38.1 % is influenced by other factors or variables not
included in this research model.
Table 4: Processed Results of Multiple Linear Regression Data

Unstandardized Standardized
Correlations
Model Coefficients Coefficients t Sig.
B Std. Error Beta Zero-order
(Constant) .668 .530 1.260 .210
Information
.271 .085 .234 3.193 .002 .277
1 Technology
HR Competence .407 .073 .406 5.537 .000 .452
Employee Performance .162 .073 .161 2.205 .029 .180
R = .787a | R Square = .619 | Adjusted R Square = .44724 | Std. Error of the Estimate = .44724 | R Square
Change = .619 | F Change = 17.661 | df1 = 3
4.2. Discussion
The Information Technology variable in this study has a significant on performance. By looking at
the results of the questionnaire data processing, the Employee Information Technology in Makassar
City BAPENDA, in general, has started to be in the development stage. It can be seen from the mean
value of each indicator in the questionnaire. Wherefrom the 12 questions, three statements have an
excellent category, namely in item 1, item 7, and item 10. While on item 8, the respondents' answers are
included in the reasonably good category. Based on the respondents' answers from the distributed
questionnaires, in this discussion, the authors describe them based on indicators developed from theory
and organizational dynamics in the Regional Revenue Agency, which has now started the starting point
for using online systems in services in the field of taxation. This writer needs to put forward so that the
selection of information technology variables affects the problems faced at the Makassar City Regional
Revenue Agency Office. The existence of information technology has given so much influence to an
organization, not only the organization, but the influence extends to business processes and corporate
transactions. However, can all information technology systems applied to the organization be
categorized as successful? Then how the organization can find out the success of the information
technology system that is applied and how to make the information technology system a success.
Questionnaire answers in this variable will be discussed based on the following indicators:
This indicator consists of three questions: first, information technology has become a necessity for
modern society. This question received a very high response with a mean value of 4.42 and was included
in the excellent category and an index value of 88. It shows that theoretically, the theory used in this
study is very appropriate. Several models were built to analyze and understand the factors that influence
the acceptance of the use of technology, including those recorded in various literature and references to
research results in the field of information technology, such as Theory of Reasoned Action (TRA),
Theory of Planned Behavior (TPB), and Technology Acceptance Model (TAM). The TAM model is
adopted from the TRA model, a theory of reasoned action with the premise that a person's reaction
and perception of something will determine that person's attitude and behavior. Reactions and
perceptions of Information Technology (IT) users will affect their acceptance of the technology. One
of the factors that can influence it is the user's perception of the usefulness and ease of use of IT as a
reasoned action in the context of technology users so that the reason someone sees the benefits and ease
of using IT makes the person's actions/behaviors a benchmark in the acceptance of technology. The
TAM model more clearly illustrates that the usefulness and ease of use influence the acceptance of IT
use. It shows that BAPENDA employees know that information technology is part of modern human
needs and is the organization's strength in responding to business dynamics that make technology the
commander in chief.
The second question, Information technology provides support in carrying out the task.
Respondents who gave answers to the questionnaires provided had an average value of 4.0. It means
that information technology will improve employee performance. This finding has solid academic
reasons, as stated in the Expectancy Theory theory from Victor Vroom. The Performance Expectancy
Theory proposed by Venkatesh et al. (2003) asserted that performance expectancy strongly believes that
using information technology will improve performance. This question has a less exciting response than
the previous question. It means that information systems and technology in the field of taxation at the
Makassar City Regional Revenue Agency have not been fully guaranteed in terms of tax determination.
Many factors become challenges, such as taxpayer awareness, human resource capabilities, and various
other determinations. However, the first indicator has an average responsive value of 4.0. The first
question is, tax technology facilities are very accurately used in tax services. The indicator has two
effects. The first is the effect on the organization, and the second is the effect on employees or users.
This statement is following the theory of acceptance of technology by its users or in a theoretical review
is the technology acceptance model (TAM) proposed by Davis (1992), and the theory of Delone and
MC clean with the Information System Success Model, with business expectations. So overall this
second indicator has an average value of 4.0. This indicator is very familiar in technology adoption
research, especially technology-intensive organizations, including organizations that provide tax
services such as BAPEDA. In the laws of nature, we can be sure that if a technology is easy to use, it will
positively affect—for example, the use of mobile banking facilities in banking services. In the following
two questions, each Service, with the help of technology, effectively provides satisfaction to taxpayers,
and Users are accustomed to rapid advances in technology. The result is that these two questions get an
average response of three; this means that the TAM theory is very suitable for detecting the level of
satisfaction of technology users in services in the field of taxation. The first question, employees must
have the ability in the IT field. Respondents answering the first question indicate that BAPENDA
employees have not fully mastered IT information technology, with an average score of 3.0 with a
reasonably good category. It means that employees or users of information technology must receive
training and skills in understanding and using IT. Moreover, still related to the next question, the
organization, in this case, the Makassar City BAPEDA, needs to prepare users in the IT field to make a
significant contribution to the application of technology in taxation. The two questions in this last
indicator have excellent and perfect responsiveness scores.
Based on the study results, it was found that HR competence had a positive and significant effect
on the performance of Makassar City Revenue Agency employees. The regression coefficient value is
0.407, meaning that every time there is an increase in HR competence, it will automatically increase the
performance of Makassar City Regional Revenue Agency employees by 40.7.Technical competence is
competence regarding the field that is the main task of the organization. Suppose this competency is
described in the implementation of daily tasks. In that case, this competency is manifested in the form
of mastery of the tasks and functions of the organization as a Regional Apparatus Organization, which
is authorized to manage regional income through the utilization of potential exploration and
optimization of regional original income (GDP). Based on the answers to the questionnaire on
indicators of technical competence, it is found that with an average responsiveness value of 4.0 and an
index value of 88.0, this indicator is included in the excellent category. It means that the Makassar City
Regional Revenue Agency employees already know their field of work, especially those related to
Regional Taxes. Based on the results of descriptive analysis on this indicator, it was found that
responsively respondents' answers showed that the overall average value of employee responsiveness was
4.0 and had excellent criteria for statements that employees always cooperate in carrying out income
collection tasks. It means that employees in carrying out their duties always prioritize cooperation
among related fields. In the following statement, employees prioritize persuasive communication in
carrying out service tasks, with an average of 4.0 and good. This indicator has two statements. Namely,
first, employees can describe the organization's vision. Respondents' answers indicate that this
statement has an excellent level of responsiveness, with an average value of 4.0. It means that the
Makassar City Regional Revenue Agency employees have sensitivity to the organization's vision as an
OPD that manages Revenue. This competency is also essential so that BAPENDA employees, even
though the target is a matter of organization and leadership, but as part of BAPENDA, of course, must
have an engaged, shared commitment to achieving the target of Regional Original Revenue.
Based on the results of SPSS processing, it was found that work engagement had a positive effect on
the performance of Makassar City Revenue Agency employees. The regression coefficient value is
0.162, meaning that every time there is an increase in work engagement, it will automatically increase
the performance of Makassar City Regional Revenue Agency employees by 16.2%. Employee
engagement chosen as the variable studied in this study focused on five indicators proposed by Fleming
and Asplund (2007) and adopted by Retnoningtyas (2014), namely aspects of leadership, work
environment, work motivation, Commitment, and satisfaction. If it is observed the tendency of
respondents' attitudes on the first indicator, namely the leadership aspect, then the first statement of a
leader must pay attention to the welfare of employees. The employees' perception in this statement is
excellent or strongly agrees with a leader like this. It means that this is closely related to leadership style.
Leadership is the most common factor influencing employee attitudes and behavior, including
providing motivational tools to motivate employees by one's leadership. Organizations need employees
who are motivated in their work to contribute to the organization's survival. This indicator has two
statements. Namely, the leadership can maintain solidity, respect, and maintain organizational balance.
The results of the tabulation of answers to the questionnaire showed that only ten employees disagreed
with this statement and two people strongly disagreed, and two people said they did not agree, with an
average value of 4.0, which means that it is included in the excellent category.
The next question is the leadership can foster employee involvement. This question received a
response from employees in the excellent category. It means that engaged employees are those who feel
there is a leadership role that supports their contribution. The indicators in this study are different from
Salanova (2005) and Schaufeli (2006), which convey the dimensions of employee engagement: vigor is
a state characterized by high energy, resilience, persistence, and the desire to give more effort.
Dedication is enthusiasm, feeling of purpose, inspiration, pride in the work. Absorption is
concentration, attachment to work roles, happiness with working conditions. Leaders who can foster
their employees will have a positive effect on the performance of their employees. Furthermore, this
motivation indicator contains two statements: first, organizational leaders appreciate employees' work.
The results of the questionnaire answers showed that 14 employees disagreed and four more people
strongly disagreed. It means that of the 142 respondents in this study, 18 employees did not feel any
appreciation from the organization for their contribution so that their role had no effect. The next
question is the leadership promoting employees to participate in education and training. The
respondent's answer in this question is the same as the previous question, with an average value of 4.0
and a good category. The next indicator is satisfaction, with the question of organizational policies and
leadership providing satisfaction to employees. The results of respondents' answers indicate that
employees feel reasonable satisfaction. However, there were still 38 employees who did not agree with
the perceived satisfaction and 22 employees who stated that they did not agree that they felt a sense of
satisfaction. The last indicator in this variable is Commitment, with the question that the policies and
leadership of the organization have not given equal satisfaction to employees. Respondents' answers in
this statement indicate that the leadership does not yet commit to providing proportional satisfaction
to employees. Based on the analysis and discussion above, it can be concluded that the employee
engagement variable has a strategic role in an organization. Leaders must understand this problem so
that with this experience, they can easily understand the problems in staffing in the organization they
lead. Based on the results of research and discussion, the authors can conclude as follows: (1)
Information Technology has a positive and significant effect on the Performance of Makassar City
Revenue Agency Employees. With these results, the first hypothesis, which states that Information
Technology affects employee performance, can be proven (H1 is accepted. Thus, the problems and
hypotheses in this study can be proven theoretically and practically. (2) HR competence has a positive
and significant effect on employee performance. This study indicates that the second hypothesis, which
states that HR competence has a positive and significant effect on employee performance, can be
proven (H2 is accepted). (3) Employee Engagement has a positive and significant effect on employee
performance at the Makassar City Revenue Agency. The results of this study justify problems and
hypotheses stating that Employee Engagement has a positive and significant effect on employee
performance can be proven (H3 is accepted).
5. Conclusion
The information technology used must provide benefits, can be used efficiently, and human
resources must be prepared for those who can use it. HR, in this case, the Makassar City Regional
Revenue Agency employees, must have expertise in using information technology. It can be done by
providing training and skills to employees. It is recommended that the leadership pay attention to
employee competence, create a work climate that can support employee and organizational
performance, and encourage employee involvement in carrying out their work.
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Volume 1, Issue 3, July 2020 E-ISSN : 2721-303X, P-ISSN : 2721-3021
LITERETURE REVIEW FACTORS AFFECTING EMPLOYEE PERFORMANCE :

COMPETENCE, COMPENSATION AND LEADERSHIP
Phong Thanh Nguyen1 Az Zahra Tania Arifani2, Azzalia Yuniar Susanti3, M. Rizky
Mahaputra4
1)
Department of Project Management, Ho Chi Minh City Open University, Vietnam.
23)
Student of Politeknik Keuangan Negara STAN, Tangerang Selatan, Indonesia
4)
Student of Magister Management, Universitas Mercu Buana, Jakarta, Indonesia
ARTICLE INFORMATION Abstract: The rapid development of the times

Received: 25 July 2020 accompanied by increasingly sophisticated technology
Revised: 13 August 2020 has an impact on various company activities, especially
Issued: 23 August 2020 on managerial aspects. Even though companies and
organizations have modern technology, companies are
Corresponding Author: First still tied to human labor. Human resources are an
author important factor in an organization so that humans are a
E-mail: strategic factor in organizational management. Human
azzahrataniaa@yahoo.com resources are very important to be given direction and
azzaliayuniar@gmail.com guidance from human resource management in order to
rizkymahaputra55@gmail.com produce optimal performance. Employee performance is
an individual matter depending on the level of different
qualifications of each individual which reflects the
quantity and quality of something that is produced or
done by the worker. This research was conducted by
looking at the three factors that are considered to have an
effect on employee performance, namely competency,
compensation, and leadership style factors through
DOI:10.38035/DIJEFA various relevant research methods and can explain in
detail the relationship between performance factors.
Keywords: Competence, Compensation, Leadership

Style, Performance
INTRODUCTION
Human resources are an important factor in an organization, so that humans
are a strategic factor in organizational management. The company cannot be separated from
human labor even though the company already has modern technology. Employees are the
main asset for the company, so that human resources are very important to be given direction
and guidance from human resource management so that they can improve their abilities,
produce work productivity, and produce the expected output.
Available Online: https://dinastipub.org/DIJEFA Page 538

To meet expectations of future employee productivity levels, there are several factors
that influence this, namely job satisfaction factors, communication factors, work experience
factors, discipline factors, motivation factors, leadership factors, competency factors,
compensation factors, and work environment factors.
In this case, we want to raise three factors that influence employee performance,
namely competency factors, compensation factors, and leadership styles in the organization.
The selection of these factors is based on that these factors have a major effect on employee
performance. This study aims to analyze the influence of competency factors, compensation
factors, and leadership styles in the organization by looking at the point of view of good
human resource management. We will cover all of these sections in this article.
Based on the background of the problem above, the problem formulation of this
article is to review the theory of the influence of the independent variable on the dependent
variable:
1) Does Competence affect Employee Performance
2) Does Compensation affect Employee Performance
3) Does Leadership affect Employee Performance
LITERATURE REVIEW
Employee performance
Performance is the result of work both in quality and quantity achieved by a person in
carrying out tasks according to given responsibilities (Mangkunegara, 2002). Employee
performance is a performance as a result of performance that can be achieved by a person or
group of people in an organization both qualitatively and quantitatively, in accordance with
their respective authorities, duties and responsibilities in an effort to achieve the goals of the
organization concerned legally, does not violate the law and in accordance with morals or
ethics (Moeheriono, 2012). Achievement or performance is a record of the results obtained
from certain job functions or activities during a certain period of time (Bernadin & Russel,
2006).
The performance has been examined by many previous researchers, including: (Ali,
Limakrisna, et al., 2016), (Prihartono & Ali, 2020), (Ansori & Ali, 2017), (Harini et al.,
2020), (Riyanto , Pratomo, et al., 2017), (Brata, Husani, Hapzi, 2017), (Agussalim, Kristin, et
al., 2016), (Agussalim, Kristin, et al., 2016), (Ali, Limakrisna, et al., 2016), (Desfiandi et al.,
2017), (Sulaeman et al., 2019), (Ansori & Ali, 2017), (Djojo & Ali, 2012), (Riyanto,
Sutrisno, et al., 2017 ), (Prayetno & Ali, 2017), (Ridwan et al., 2020), (Djoko Setyo Widodo,
P. Eddy Sanusi Silitonga, 2017), (Agussalim, Ayu Rezkiana Putri, et al., 2016),
From several theories regarding performance, it can be concluded that performance is a
result of work or the level of success achieved by workers in their field of work which can be
directly reflected in the output produced both in terms of quantity and quality, according to
the criteria applied to the job. Which can be measured through 1) technical ability; 2)
Conceptual skills; 3) Responsibility; 4) Initiatives; and 5) Interpersonal relationship skills.
Competence

Competence is a fundamental factor that exists in someone who has more abilities and
makes him different from other people with average abilities (Mangkunegara, 2002).
Competence is an ability or the capacity of a person to perform various tasks in a job, where
this ability is determined by intellectual and physical factors (Robbins & Coulter, 2018). Job
competence is the work ability of each individual which includes aspects of knowledge,
skills, and work attitudes in accordance with established standards (Law No.13 of 2003 on
Manpower). Previous researchers have examined many competencies, including: (Ansori &
Ali, 2017), (Ridwan et al., 2020).
From some of the above opinions, it can be concluded that competence is a
specification of knowledge and skills and the application of these knowledge and skills in a
job or company or across industries, in accordance with the required performance standards.
Competence is broadly divided into two, namely technical competence and non-technical
competence. Where technical competence can be measured through: 1) level of education; 2)
work experience; and 3) ability to analyze. Meanwhile, non-technical competencies can be
measured through: 1) Self-Control; 2) Self Confidence; 3) Flexibility; and 4) Attitude.
Compensation
The compensation system is a part (partial) of the reward system which is only related
to the economic part (Long & Sigh, 2017). Compensation is everything that employees
receive in return for their work (Handoko, 2003). Compensation is all income in the form of
money, direct or indirect goods received by employees in return for services provided to the
company (Hasibuan, 2000). Compensation has been researched by many previous
researchers, including: (Riyanto, Pratomo, et al., 2017), (Purba et al., 2017).
This article explains that if the compensation provided by a company or organization can
be given well, either in the form of financial compensation or non-financial compensation.
Then this will also be followed by an increase in employee performance in the form of
technical skills, conceptual abilities, responsibilities, initiatives; and interpersonal
relationship skills.
Leadership
Leadership is the ability to influence a group to achieve goals (Robbins & Coulter,
2018). Leadership is something that is inherent in a leader in the form of certain traits such as
personality, ability, and capability (Wahjosumidjo, 1987). Leadership is a series of
structuring activities in the form of the ability to influence the behavior of others in certain
situations so that they are willing to work together to achieve predetermined goals (Sutarto,
1998).
Leadership has been studied by many previous researchers, including: (Limakrisna et
al., 2016), (Bastari et al., 2020), (Anwar et al., 2020), (Ali, Mukhtar, et al., 2016), (Djoko
Setyo Widodo, P. Eddy Sanusi Silitonga, 2017), (Chauhan et al., 2019), (Elmi et al., 2016).
From some of the above opinions, it can be concluded that leadership is someone who
uses authority and responsibility to influence members of the organization in order to achieve
goals. Which can be measured through 1) Intelligence (Intelligence); 2) Awards; 3) Motivate;
and 4) Cooperating with subordinates.

RESEARCH METHODS
The method of writing scientific articles is by qualitative methods and literature study
or Library Research. Reviewing literature books in accordance with the theory discussed,
especially in the scope of Human Resource Management (HRM). Besides, it analyzes
reputable scientific articles as well as scientific articles from journals that are not yet
reputable. All cited scientific articles are sourced from Mendeley and Google Scholar.
In qualitative research, literature review should be used consistently with
methodological assumptions. This means that it must be used inductively so that it does not
lead to the questions posed by the researcher. One of the main reasons for conducting
qualitative research is that it is exploratory in nature (Ali & Limakrisna, 2013).
Furthermore, it is discussed in depth in the section entitled "Related Literature" or
literature review ("Review of Literature"), as the basis for formulating hypotheses and will
then become the basis for making comparisons with the results or findings revealed in the
research. (Ali & Limakrisna, 2013).
RESULTS AND DISCUSSION

Result
1. Employee Competence and Performance
Competence is an ability or the capacity of a person to perform various tasks in a job,
where this ability is determined by intellectual and physical factors (Robbins & Coulter,
2018). Thus, competence shows the skills and abilities acquired intellectually and physically
in a job.
Based on Windows Theory, each individual has competencies that can be observed from
four sides in the form of windows, namely: education, skills, work experience, and mastery of
technology.
Organizations and companies must be required to have employees who are superior in
their fields so that the resulting work practices are maximized as expected. According to
Robbins & Coulter (2018), there are eight activities which are processes in producing high-
performance work practices. The first three activities ensure that competent employees are
identified and selected, the next two activities provide employees with up-to-date skills and
knowledge, while the last three activities ensure that the organization retains competent and
high-performing employees.

Source : Robbins & Coulter (2016)

Figure 1. HRM Process
Competency Characteristics
Competence describes the ability of a person at work to carry out duties and
responsibilities effectively so as to achieve professional quality standards. Spencer and
Spencer (1993) quoted by Wibowo stated that "competence is the basic foundation of
people's characteristics and indicates how to behave or think, equate situations and support
for a long period of time". There are five types of competency characteristics according to
(Wibowo, 2007):
1) Motives are things that people consistently think or want that cause one's actions.
2) Traits are physical characteristics and consistent responses to situations or information.
3) Self-concept (self-concept) is the attitudes, values, or image of a person's self-image.
4) Knowledge (knowledge) is information that a person has in a certain specific field.
5) Skills are the ability of a person to do certain physical or mental tasks.
Based on the description above, competence contains the inherent personality abilities
of a person which can be applied to tasks at work. Competencies possessed by employees
must be able to support the implementation of strategies in achieving organizational goals. So
that competence has an effect on employee performance because the higher the competence
of the employee, the demand for the role in his job will also increase.
2. Employee Compensation and Performance
In an organization, a motivated and performing workforce is needed high in order to
meet the needs of the organization. One way to increase employee performance motivation is
to get compensation. Compensation is all income in the form of money, direct or indirect
goods received by employees in return for services provided to the company (Hasibuan,
2000).
Compensation Indicator
According to Simamora (2004), indicators for measuring employee compensation are:

1) Wages and salaries

Wages are the basis of remuneration for production and maintenance workers. The
difference between wages and salaries is that wages are generally in the form of hourly
rates while wages apply weekly, monthly or annual rates.
2) Incentives
Incentives are additional compensation beyond the amount of salary or wages provided
by the company.
3) Allowances
Allowances are health and life insurance, pension plans, and other benefits related to
employment relationships.
4) Facilities
Facilities generally relate to something that employees can enjoy.
Compensation Objectives
The objectives of compensation include cooperation, job satisfaction, effective
procurement, motivation, employee stability, discipline and influence from labor unions and
the government. Hasibuan (2012: 121) suggests compensation objectives, namely:
1) Cooperation ties
In conducting a cooperation agreement, employees must do their job well, while the
leadership is also required to pay compensation in accordance with the previously agreed
agreement.
2) Job satisfaction
When getting compensation, employees can meet their needs so that they will get job
satisfaction from their position.
3) Effective procurement
Procurement of qualified employees will be easier when the company provides
compensation to employees who are large enough.
4) Motivation
Managers will find it easier to motivate employees when they are given compensation.
5) Employee stability
Providing compensation based on the principle of fairness, the stability of employees is
more guaranteed because turnover is relatively small.
6) Discipline
The provision of large enough compensation will make employees to be disciplined and
be better and comply with applicable regulations.
7) Trade union influence
Giving good compensation will reduce the influence of the union and employees will
focus on their work.
8) Government influence
If compensation is provided in accordance with the applicable labor law, government
intervention can be avoided.
Type of Compensation
The compensation provided by the company to employees has several types. According
to Sofyandi (2008) compensation is generally divided into two types, namely:
1. Direct Compensation

Direct compensation is compensation given to an employee in return for the work he does
for the company. Examples are salaries, incentives, bonuses and job allowances.
2. Indirect Compensation
Indirect compensation is the provision of compensation to employees as a company effort
to improve employee welfare. Examples are the allowances, facilities and services
provided by the company.
One way to increase employee motivation and performance is through compensation
for employees. Then the greater the compensation the company provides to its employees, the
more employee performance will be in achieving organizational goals.
Leadership and Employee Performance
Leadership is the ability to influence a group to achieve goals (Robbins & Coulter,
2018). Leadership is a series of structuring activities in the form of the ability to influence the
behavior of others in certain situations so that they are willing to work together to achieve
predetermined goals (Sutarto, 1998).
Leadership is the ability to influence other people, namely the group in order to direct
their behavior and ability to achieve organizational or group goals.
Leadership Style
Leadership style is a way for leaders to influence their subordinates. There are three
kinds of leadership styles, namely autocratic, democratic or participatory, and laiszes-faire.
Autocratic leadership faces more problems giving orders to subordinates, whereas democratic
leadership tends to follow the opinion of leaders and employees. In laiszes-faire leadership
the leader will provide leadership if asked.
According to Feriyanto and Triana (2015: 94) the leadership style possessed by a leader
can be explained through three theoretical lines, namely:
1) Genetic theory (heredity)
This theory states that "leaders are born not made". Adherents of this theory argue that a
leader will become a leader because he has been born with leadership talents.
2) Social theory
The essence of social theory is "leaders are made or educated rather than natural".
Adherents of this theory argue that anyone can become a leader if equipped with
knowledge.
3) Ecological theory
The essence of this theory is that a person will only succeed in being a good leader if he
has leadership talents.
The leader will have a strong character and identity. These characters are used as special
characteristics that distinguish a person from others. Employee performance cannot be
separated from the leadership style possessed by the leader. Leaders who carry out their
duties properly will become role models and role models for their members. And with the
existence of a good relationship between the leader and its members will improve
performance in achieving organizational goals. Therefore, leadership attitude has an effect on
The development of an increasingly modern era from any point of view, especially in the
field of technology, has made many jobs in companies replaced by modern technology.

However, besides all that, the role of employees cannot be replaced because it is a basic need
that will continue to exist in organizations and companies. From the analysis we have done, it
can be concluded that there are factors that greatly affect employee performance, especially
three points, namely the competency factor, compensation factor, and leadership style.
Competence contains the inherent personality abilities of a person which can be applied to
tasks at work. Competencies possessed by employees must be able to support the
implementation of strategies in achieving organizational goals. So that competence has an
effect on employee performance because the higher the competence of the employee, the
more demands on the role in his job will increase.
One way to increase employee motivation and performance is through compensation for
employees. Then the greater the compensation the company provides to its employees, the
more employee performance will be in achieving organizational goals. In addition, the leader
will also have a strong character and identity. These characters are used as special
characteristics that distinguish a person from others. Employee performance cannot be
separated from the leadership style possessed by the leader. Leaders who carry out their
duties properly will become role models and role models for their members. And with the
existence of a good relationship between the leader and its members will improve
performance in achieving organizational goals. Therefore, leadership attitudes affect
employee performance. So it can be concluded that these three factors are very influential on
employee performance. **** (taken from the conclusion)
Conceptual Framework
Based on a theoretical study and the relationship between variables, the model or
Conceptual Framework of this article in order to construct a hypothesis is as follows:
1) The Effect of Competence on Employee Performance based on research results: (Ansori
& Ali, 2017), and (Ridwan et al., 2020).
2) The Effect of Compensation on Employee Performance based on research results:
(Riyanto, Pratomo, et al., 2017), (Purba et al., 2017), and (Paul & Resources, 2000)
3) The influence of leadership on employee performance based on research results:
(Limakrisna et al., 2016), (Bastari et al., 2020), (Anwar et al., 2020), (Ali, Mukhtar, et al.,
2016), (Djoko Setyo Widodo, P. Eddy Sanusi Silitonga, 2017), (Chauhan et al., 2019),
and (Elmi et al., 2016).
From theoretical studies and previous research and based on research objectives, the
framework of this article for further research is as follows.

Figure 2. Conceptual Framework

Discussion
This article analyzes and discusses the variables of Human Resource Management
(HRM), namely: Employee Performance, Competence, Compensation and Leadership Style.
1) Competence has a relationship and affects employee performance
Competence affects employee performance, this statement is based on articles from
relevant and reviewed research, including: (Ansori & Ali, 2017), (Ridwan et al., 2020).
This explains if a company or organization can assign employees according to their
competencies, both technical and non-technical competencies. Then this will also be
followed by an increase in employee performance in the form of technical skills,
conceptual abilities, responsibilities, initiatives; and interpersonal relationship skills.
2) Compensation has a relationship and affects employee performance
Compensation affects employee performance, this statement is based on articles from
relevant and reviewed research, including: (Riyanto, Pratomo, et al., 2017), (Purba et al.,
2017), (Paul & Resources, 2000) ).
This article explains that if the compensation provided by a company or organization can
be given well, either in the form of financial compensation or non-financial
compensation. Then this will also be followed by an increase in employee performance in
the form of technical skills, conceptual abilities, responsibilities, initiatives; and
interpersonal relationship skills.
3) Leadership Style has a relationship and affects employee performance
Leadership affects employee performance, this statement is based on articles from
relevant and reviewed research, including: (Limakrisna et al., 2016), (Bastari et al., 2020),
(Anwar et al., 2020), (Ali, Mukhtar, et al., 2016), (Djoko Setyo Widodo, P. Eddy Sanusi
Silitonga, 2017), (Chauhan et al., 2019), (Elmi et al., 2016).
This article indicates that if a leader in a company or organization has intelligence,
respect for his subordinates, is able to motivate, and is able to have good cooperation with
his subordinates, this will also be followed by an increase in employee performance, both
in the form of technical abilities and abilities. conceptual, responsibility, initiative; and
interpersonal relationship skills.

CONCLUSIONS AND RECOMMENDATIONS

Conclusions
Based on the formulation of the article, the results and discussion that are reviewed and
discussed in this article, it can be concluded that to build a hypothesis for further research is:
1) Competence Influences Employee Performance
2) Compensation Affects Employee Performance
3) Leadership Style Influences Employee Performance
Recommendations
In relation to the results of the analysis above, it is hoped that all companies and
organizations can maximize employee performance by increasing various supporting factors
that affect employee performance. In addition, it is also hoped that the company will continue
to improve the quality and quantity given in relation to the company's output in order to
advance the company's development. This paper can also be developed again with more
detailed methods both qualitative and quantitative in nature.
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Journal of Ethnic and Cultural Studies Copyright 2021
2021, Vol. 8, No. 2, 296-315 ISSN: 2149-1291
http://dx.doi.org/10.29333/ejecs/801
Cultural Reconstruction and Organization Environment for Employee

Performance
Tehubijuluw Zacharias 1
Universitas Kristen Indonesia, Maluku, Indonesia
Mohamad Arsad Rahawarin

Universitas Pattimura, Maluku, Indonesia
Yusriadi Yusriadi
Sekolah Tinggi Ilmu Administrasi Puangrimaggalatung, Makassar, Indonesia
Abstract: This study examined cultural and organizational motivations

for success through organizational engagement and work motivation in
the Department of Public Works in the province of Maluku, Indonesia.
The approach used for this study was quantitative, using a survey. The
Department of Public Works of the Province of Maluku was the
research site with a sample of 149 participants. The analysis method
used in this study was Generalized Structured Component Analysis
(GSCA). The main findings were 1) organizational culture has a direct
effect on organizational engagement and a direct contribution to
employee performance, 2) organizational culture impacts company
performance, 3) organizational environment has a direct effect on
employee motivation and employee performance, and 4) organizational
environment supports company performance. The results indicate that
the organizational environment can be increased by formulating
regulatory policies and establishing rules and strategies for employees
to carry out their duties. Motivation for work can be boosted by giving
awards that match the results of work. In building an organizational
culture, attention needs to be paid to the values contained in
organizational culture, consisting of corporate empowerment, team
management, clarity of vision, direction, and corporate goals.
Keywords: cultural, engagement, environment, employee, Indonesia
motivation, performance.
The effective and efficient use of human resources is beneficial for supporting sustainable
national development. Thus, existing human resources must be used optimally (Tarman, 2018).
Providing the community with reliable human resources requires quality education, offering
various social facilities, adequate employment (Yusriadi et al., 2019), but weaknesses in delivering
these facilities will cause social unrest, affecting public safety.
One challenge facing the Indonesian people today is the low quality of human resources
(Umar et al., 2019). Currently, human resources are still low in terms of intellectual skills and
technical skills. One element that affects employees' interactions is the corporate culture that
surrounds it. As social beings, employees are inseparable from the values and norms that exist
within a company. Culture can affect how employees behave, how they think about their work,
1
Corresponding Author E-Mail: tehubijuluwzacharias@yahoo.com
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Zacharias, T.
how they work with their colleagues, and how they look to the future with broad insights that their
norms, values, and beliefs determine (Karakuş, 2018).
Substantial human resources will help a company achieve its goals; on the other hand, weak
human resources can impede or interfere with achieving an organization's goals (Závadská &
Závadský, 2020). Organizational culture includes standards for deciding what to do and how to do
it. As a result, a corporate culture is a management tool that affects and acts as an incentive for
employees to work positively and productively (Tamsah et al., 2020). Cultural principles become
evident and become a guiding force in human resources to produce employee success. A healthy
and optimistic culture has a significant impact on employee actions and the effectiveness of
company success.
Changes in technology with online service-based necessitate that all elements keep up with
the changes that continue to occur at the Maluku Province Public Works Office, which is necessary
to provide good services to the community. The changes that arise are problems that require the
government's serious attention to strengthen organizational management (Mustafa et al., 2020).
Currently, globalization has entered a new era called the Industrial Revolution 4.0, which is a
change in the way humans think, live, and relate to one another, a significant difference in the field
of technology (Závadská & Závadský, 2020). In the age of the Fourth Industrial Revolution,
information technology requires all government components as institutions constantly prepare
themselves, especially the quality of human capital, in facing the challenges of new globalization,
in public services. The information technology in question is applied in the form of electronic
government or e-Gov. The e-Government superstructure includes, among others, institutional
management leadership (e-leadership), human resources (human resources), and regulations at the
institutional level related to the development of e-Government (principle) (Manoharan et al., 2021).
Service changes are not something new in the current era of globalization, and the
government has invented several to provide convenience in terms of services. Many new ideas
were created to face the transition, including the Department of Public Works in the Maluku
province. Each local government aims to provide better service by introducing new ideas (Jung et
al., 2009). New ideas can be seen in everything from enhancing service quality to offering services
for the community's convenience.
The formulation of technical policies on government affairs in the public works sector and
the housing and residential areas are needed. As a result, the Public Works Office plays an essential
role in meeting the growing demand for residential space. The Public Works Office in Maluku
Province is one of the departments that offers housing and residential area services. In this area,
service is described as a process of assisting the community. The interconnection of these service
processes must complement the settlement area processes to operate smoothly and comply with the
government's procedures. Human resources and organizational culture are significant challenges
for management because their effectiveness depends on human resource quality.
Ostroff et al. (2012), organizational culture often plays an active role in deciding its
strategies, structures, procedures, and objectives. Achieving objectives is possible without
employees' active participation, and the funding of facilities and sources of funds held by an
organization would be of no benefit to the company if it did not include the active participation of
employees. This argument illustrates that human resources are the primary keys of corporate
culture and must be considered for all their needs. As a result, the government must pay attention
to the human element to function more efficiently and meet the organization's goals.
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Literature Review
Human Resources
Professional human resource management in companies is now embodied in administration

as an open framework, including human resource management activities integrated and highly
affected by environmental changes (Chatman & O’Reilly, 2016). As a result, human resources in
public services must constantly cope with shifts in organizational culture. Continuously updating
information is necessary because the evolution of the human resource paradigm shifts rapidly,
necessitating proactive and adaptive knowledge to respond to changes (Becker & Huselid, 2006).
Building the capacity to navigate the change process is often essential because organizational
climate changes highly affect the role of human resources in executing their duties in an open
system.
Human resources (HR) must contribute to and participate in a strategy's implementation
(Tracey, 2014). An organization cannot use HR efficiently if its operations do not contribute to
achieving its strategic objectives. As a result, the HR role inside an organization must be involved
in executing the company strategy. Any company is responsible for human resources. The
improvement and maintenance of HR quality is the responsibility of all internal departments and
local governments (Svetlik & Stavrou–Costea, 2007). The orientation of current HR thinking, such
as work requirement problems, job requirements, HR preparation, hiring processes, placement,
employee assessment, and compensation structures, cannot be ignored in this approach.
The HR approach is based on the premise that workers' needs would improve job motivation
and satisfaction. In other words, an approach must match organizational needs with employee
needs. Individual performance is expected to strengthen as job motivation improves, resulting in
increased organizational efficiency (Vardarlıer, 2016). Through HR growth, a company-oriented
HR approach achieves success. HR is the secret to productivity because it prioritizes employee
happiness. By predicting threats and opportunities, HR will make more significant contributions to
an organization's interests. The new period of globalization presents a challenge in increased
competition, forcing the government to restructure for organizational productivity and
effectiveness (Lam et al., 2021).
Organizational Culture
Organizational culture comprises common perceptions that all company participants share.
Corporate culture is a system of shared meanings that participants share, distinguishing one
organization from another (Buch & Wetzel, 2001). Organizational culture is a pattern of actions
that an organization forms that have been proven to be good and are taught to new members
regarding how they understand, think, and feel (Martinez et al., 2015). Any of these characteristics
occur on a scale from low to high.
A strong organizational culture will have a more significant effect on employees than a
weak culture. Culture should have a powerful and positive influence on employee behavior
(Prajogo & McDermott, 2011). Corporate culture starts from current habits, traditions, and general
ways of doing work that has been carried out before and the success of the efforts that have been
made. Organizational culture comprises public perception that executive members believe in
(Baumgartner, 2009). The more that leaders accept an organization's positive values with the ranks
about these values, and feel very attached to them, the stronger a culture will be.
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Zacharias, T.
Organizational culture clearly distinguishes one company from another. Culture gives
corporate members a sense of belonging, making it easier to contribute to something larger than
personal interests (Linnenluecke & Griffiths, 2010). This culture contributes to a social system's
stability. Culture is the social glue that helps groups collaborate by defining what community
members can say and do. Organizational culture serves as a meaning-making and regulating tool,
guiding, and shaping executive members' attitudes and actions (Naranjo-Valencia et al., 2011).
The more members of a company who understand the core values, the greater an
organization's culture. The fewer members of the organization who recognize and enforce the
organization's rules and regulations, the weaker the organizational culture (Bunch, 2007).
Employee loyalty to an organization is lower when there is a lack of corporate culture. A
comparison is often made between solid and weak cultures for organizations. A strong culture's
specific outcome is that its members have a high consensus on its objectives (Alavi et al., 2005).
Attachment, loyalty, and organizational dedication can result from unanimity against goals (Miller,
2018). This condition reduces the likelihood of workers leaving and having a sense of belonging
in the organization. Based on this, the questions in his research are as follows:
1) Does organizational culture affect organizational engagement?

2) Does organizational culture affect employee performance?
3) Does organizational engagement affect performance?
Thus, the following hypotheses are posited:
• H1: Organization culture affects organizational engagement

• H2: Organizational culture affects performance
• H3: Organizational engagement affects performance
Organizational Environment
An excellent organizational atmosphere is a state or a good workplace that includes both

physical and non-physical elements that can offer the impression of being friendly, safe, serene,
and so on (Aktaş et al., 2011). Organizational climate consists of all material conditions in and
around the workplace that can impact workers directly or indirectly. A non-physical corporate
setting is a friendship with coworkers, supervisors, and others (Boyd, 1990). Any business should
be concerned about maintaining a healthy organizational atmosphere (secure, comfortable, and
clean). In such a work environment, workers can avoid unnecessary distractions that can hurt
morale and impede efficiency (Lockrey, 2015). Environmental cleanliness should be a joint duty,
with all workers required to keep their environments clean. A company can gain many advantages
if its working atmosphere is well managed (Singh et al., 2011), not only for the business but also
for that outside of it.
An organizational climate affects all circumstances around employees, so that it can affect
employees in carrying out their assigned duties directly or indirectly (Luo, 2005). A healthy and
friendly work environment will generate excitement and enthusiasm for work, while an imperfect
and unpleasant work environment will decrease confidence and enthusiasm for work (Eby &
Rothrauff-Laschober, 2012). Every employee desires a friendly organizational atmosphere, as well
as a comfortable work climate. Workplace protection is improved using silence and quiet sound
(Boiral & Paillé, 2012). Based on this, the questions in his research are as follows:
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1) Does the organizational environment affect motivation?

2) Does the organizational environment affect performance?
3) Does motivation affect performance?
Thus, the following hypotheses are posited:
• H4: Organizational environment affects motivation

• H5: Organizational environment affects performance
• H6: Motivation affects performance
Organizational culture and organizational environment are assumed to influence employee

performance; thus, if corporate culture and the organizational environment are linked to employee
performance, they will have a higher impact (Budiharso & Tarman, 2020). The influence between
organizational culture and organizational environment on employee performance is described as
follows:
The influence of organizational culture on performance and every corporate culture is
effective if the organization is well disciplined. Discipline can be successful if the culture of the
organization applies all procedures consequently. Organizations must avoid favoritism that can
give rise to prejudice, resentment, and social jealousy. The framework of thinking about the
influence of organizational culture on performance is also supported by research (Goula et al.,
2021). The findings of the research show that corporate culture can positively and significantly
affect employee performance. For example, Wang and Lounsbury (2021) found a positive and
significant impact on employee performance.
Mahrous et al. (2020) explained that an organizational environment is an environment for
respecting, obeying, and obeying administrative rules, carrying out and receiving sanctions if it
violates duties and authorities. Kuenzi et al. (2020) argued that the organizational environment is
an orderly state of the organization in which employees are happy to obey the rules. This framework
of thinking about the influence of the corporate environment on employee performance is also
supported by Paais and Pattiruhu (2020). The study's findings show that the organizational climate
has a positive and significant effect on employee performance.
The conceptual framework in Figure 1 illustrates the direct and indirect relationship
between variables.
Figure 1
Organization
Culture Organization
Engagement
Success
Organization Motivation
Environment
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Zacharias, T.
Methodology
Research Design and Approach
This study used a survey to provide information to answer the main problems posed. The
survey had 5 sections. The sections included 6 statements concerning organizational culture, 5
statements concerning organizational culture, 5 statements organizational engagement, 5
statements concerning motivation, and 5 concerning success. Potential responses used a Liker-type
scale of 1-10, with responses ranging from 1 = totally disagree to 10 = strongly agree. See Table 1
for the statements used.
Table 1
Statements Used
Scale Source(s)
Organizational Culture
Organizational culture is a pattern of behavior developed (Schein, 1990)
by an organization's employees learned when faced with
problems of external adaptation and internal integration.
Organizational Environment
Good management thinks of a good and pleasant (Machado & Carvalho,
organizational environment because its workforce needs 2008)
it.
Organizational Engagement
The level of employee involvement in the organization (Albrecht et al., 2018)
and have the same identity as the organization.
Motivation
Something that encourages someone to work. The (Lindner, 1998)
strength and weakness of a person's work motivation will
also determine the size of the employee's performance.
Success
Work results that can be achieved by a person or group (Hameed & Waheed,
people in the organization. 2011)
Six statements about organizational culture: 1) The organization provides opportunities for
employees to develop themselves; 2) The organization provides the opportunity to make decisions
according to Main Duties and Functions. 3) The organization provides opportunities for
achievement; 4) The organization prioritizes teamwork orientation. 5) The Organization Has a
Strong Vision; 6) Employees understand the direction of the organization.
Five statements about the organizational environment: 1) The formal organizational policy
is communicated; 2) Organization provides a comfortable workspace. 3) The workload is adjusted
to the abilities and competencies; 4) Suitability of wages and workloads. 5) The organization
provides rewards for work performance.
Five statements regarding organizational involvement: 1) Employees are willing to accept
challenges in carrying out work; 2) Employees are willing to be supervised. 3) Employees provide
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periodic reports to the leadership in stages; 4) Employees are interested in the organization. 5)
Employees have positive feelings towards the organization.
Five statements about motivation: 1) Employees are motivated to get high performance in
carrying out their work; 2) Employees are motivated to provide good services to the community.
3) Employees are encouraged to build communication with colleagues; 4) Employees are motivated
by efforts to meet physical needs. 5) Employees feel safe working as civil servants.
Five statements about success: 1) Work on target; 2) Work following Standard Operating
Procedures. 3) Work results are accepted and acknowledged by colleagues and leaders; 4) Work
on time. 5) Having good relationships with colleagues and leaders.
Participants and Sampling
The population comprised all 149 employees of the Public Works Office in Maluku
Province.
Data Collection Technique
For an adequate response in a population of 149, the necessary number of respondents is

105 people, for a confidence level of 95%, according to the sample size table of Isaac and Michael
(1995) namely determining the error tolerance limit, this error tolerance limit is expressed as a
percentage. The smaller the fault tolerance, the more accurate the sample describes the population.
A total of 105 surveys were distributed via email, and the data collection period lasted from April
2020 to June 2020. In total,102 useable responses were received for a response rate of 97,14%.
Data Analysis
This study used the Generalized Structured Component Analysis (GSCA). Generalized
Structured Analysis (GSCA) is a modern component-based Structural Equation Modeling (SEM)
approach that is important for the estimation of scores (not scales) and small samples. GSCA can
also be used in structural models using variables with reflexive and or formative indicators.
In this study the structural model specifications were as follows:
Y1 = f (X1)
Y2 = f (X2)
Y3 = f (Y1, Y2, X1, X2)
Equations (Y1), (Y2) and (Y3) can be analyzed and made into a regression equation as
follows:
y1 = α0+ α1X1+μ1
y2 = α0+ α2X2+μ2
y3 = β0+ β 1Y1 + β 2Y2 +β 3X1+ β3X2+μ3
Equations (y2) and (y3) are two simultaneous equations so that it can obtain the reduced
form assumption by rewriting equation (Y3) by substituting equation (y2) to equation (y3) then the
reduced form is obtained as follows:
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Zacharias, T.
Y3 = Ω0+ Ω1X1+ Ω2X2+V
Where:
Ω0 = β0 + β 0α0 is a constant
Ω1 = β1 α1 + β2 is the direct effect of X1 to Y3 (β2) and the indirect effect of X1 to Y3 through
Y1 (β1 α1)
Ω2 = β1 α2 + β2 is the direct effect of X2 to Y3 (β2) and the indirect effect of X2 to Y3 through
Y2 (β1 α2)
V = random error μ1 and μ2
Equation (Y3) explains that the exogenous variables are organizational culture (X1) and
organizational environment (X2), and the endogenous variables are organizational engagement
(Y1), motivation (Y2), and performance (Y3).
Figure 2
Path Diagram of the Theoretical Model
X1.1 X1.2 X1.3 X1.4
Organizational culture (X1)
Y1.1
Y1.2 Organizational engagement (Y1)
Y1.3
Performance (Y3)
Y1.1
Y1.2 Motivation (Y2) Y3.1 Y3.2 Y3.3 Y3.4 Y3.5
Y1.3
Y1.4
Organizational Environment (X2)
X1.1 X1.2 X1.3 X1.4 X1.5 X1.6
Results
Structural Equation Model (SEM) is a multivariate statistical technique using a combination

of factor analysis with regression analysis (correlation), aiming to examine the relationship
between variables in a model, including indicators with constructs or relationships between
constructs. The predictor is the variable measured (the index is used as the operation of the
calculation of the latent variable). After the designs and indicators set out in the plan, validation
and reliability tests are carried out. Model-checking was used to determine the level of suitability.
Table 2 indicates the seven parameters used to determine the viability of a model that
satisfies all the specifications that have been met, so there is no need for adjustment. The model
was acceptable, which means a match between the model and the data.
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Table 2
Conformance Index Model
Criteria Cut-off value The calculation Information
results
Chi-Square Expected to be 38,39 X2 of 86,39
small
Significance Probability ≤ 0,05 0,001 Good
RMSEA ≤ 0,08 0,032 Good
GFI ≥ 0,90 0,97 Good
AGFI ≥ 0,90 0,94 Good
NFI ≥ 0,95 0,96 Good
CFI ≥ 0,95 0,99 Good
*** = x.
In addition to using the independent variable (X), this study also used intervening variables.
The path analysis method is used to test the effect of the intervening variables. The following is a
path analysis to examine the influence of organizational culture and organizational environment on
employee performance (Y), then whether the effect of corporate culture and organizational
environment on employee performance is mediated by organizational engagement and motivation
in Figure 3 below:
Figure 3
Path Analysis Model
The coefficient values are arranged in Table 3 to make it easier to analyze the functional
relationship between variables. Based on the second model above, it is possible to interpret each
path coefficient.
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Table 3
Performance of Direct Effect Research
Relationship Structure Coefficient P Significance
Value
Organizational culture Performance 0,078 0,056 Sig.
Organizational culture Engagement 0,414 0,001 Sig.
Organizational Environment Performance 0,021 0,000 Sig.
Organizational Environment Motivation 0,231 0,001 Sig.
Organizational Engagement Performance 0,022 0,001 Sig.
Motivation Performance 0,234 0,001 Sig.
The beta coefficient of organizational culture (X1) on organizational engagement (Y1) is

0.414 at a significance level of 0.001. The coefficient shows that organizational culture (X1)
positively affects organizational engagement (Y1). The beta statistical value of the coefficient of
the influence of X1 on Y1 is 0.414 with a significance of 0.001 or below 0.05. That organizational
culture (X1) positively and significantly affects organizational engagement (Y1). Thus, hypothesis
1, which posits that corporate culture and significantly would impact organizational engagement at
the Public Works Office in Maluku Province, is accepted.
The coefficient beta of organizational culture (X1) on performance (Y3) is 0.078 at the
significance level of 0.056. The coefficient shows that X1 has a positive effect on Y3. The beta
statistical value of the influence coefficient of X1 on Y3 is 0.078 with a significance of 0.056 or
below 0.05. This means that organizational culture (X1) has a positive and significant effect on
employee performance (Y3), so hypothesis 2, which posits that corporate culture would positively
and significantly impact employee performance in the Public Works Office in Maluku Province, is
accepted.
The coefficient beta of organizational engagement (Y1) on performance (Y3) is 0.022 at a
significance level of 0.001. This coefficient shows that organizational engagement (Y1) positively
affects employee performance (Y3). The beta statistical value of the influence coefficient of Y1 on
Y3 is 0.022 with a significance of 0.001 or below 0.05. This means that organizational engagement
(Y1) positively and significantly affects employee performance (Y3). Then hypothesis 3, which
posits that organizational engagement would have a positive and significant impact on employee
performance in the Public Works Office in Maluku Province, is accepted.
The beta coefficient of the influence of the organization environment (X2) on motivation
(Y2) is 0.231 at a significance level of 0.001. The coefficient shows X2 has a positive effect on
Y2. The beta statistical value of the influence coefficient of X2 on Y2 is 0.231 with a significance
of 0.001 or below 0.05. This means that the organizational environment (X2) positively and
significantly affects motivation (Y2). So, hypothesis 4, which posits that environmental
organization would have a positive and significant effect on the basis in the Public Works Office
in Maluku Province is accepted.
The coefficient beta of the organizational environment (X2) influence employee
performance (Y3) is 0.021 at a significance level of 0.000. The coefficient shows X2 has a positive
effect on Y3. The beta statistical value of the influence coefficient of X2 on Y3 is 0.021 with a
significance of 0.000 or below 0.05. That the organizational environment (X2) has a positive and
significant effect on employee performance (Y3), then hypothesis 5, which posits that
environmental organization would have a positive and significant impact on employee performance
in the Public Works Office in Maluku Province, is accepted.
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The beta coefficient of the influence of motivation (Y2) on performance (Y3) is 0.234 at a
significance level of 0.001. The coefficient shows that Y2 has a positive effect on Y3. The beta
statistical value of the influence coefficient of Y2 on Y3 is 0.234 with a significance of 0.001 or
below 0.05. This means that motivation (Y2) has a positive and significant effect on employee
performance (Y3), so hypothesis 6, which posits that motivation would have a positive and
significant impact on employee performance in the Public Works Office in Maluku Province, is
accepted.
Figure 4 presents the structural model. Testing was carried out to determine the significance
of the indirect effect; if the T-model value is greater than the value of 1.96, it can be concluded that
there is a mediating effect.
Figure 4
T-Model of Interest
The direct effect is an independent variable's influence on an accepted variable or a

direction model defined by a single arrow. The indirect path is through the intermediate variable
or the intermediate variable. Intervening variables are referred to as control variables, which may
shift direction, and a coefficient how’s the degree of importance of an ability or a compilation
relationship or one or more variables used in a model. Table 4 shows the indirect effect between
the variables examined based on the causal relationship and the structural model.
Table 4
Indirect Effect Analysis Results
Number Indirect Effect Value
1 The indirect influence of X1 on Y3 by Y1 0,211
2 The indirect influence of X2 on Y3 by Y2 0,728
*** = x.
Based on Table 4, the T model value of the indirect influence of organizational culture (X1)
on employee performance (Y3) through organizational engagement (Y1) is 0.211 with T model
1.977> 1.96. Thus, hypothesis 2, which posits that organizational culture would positively and
significantly affect employee performance through organizational engagement at the Public Works
Office in Maluku Province, is accepted. The value of the T model, the indirect effect of the
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organizational environment (X2) on employee performance (Y3) through motivation (Y2), is 0.728
with the T model 2.011> 1.96. Thus, hypothesis 5, which posits that environmental organization
would positively and significantly affect employee performance through motivation at the Public
Works Office in Maluku Province, is accepted.
Discussion and Conclusion
The Influence of Organizational Culture on Organizational Engagement
This research shows a positive and significant effect of organizational culture on corporate
engagement, which is seen from the direct influence path analysis results. The results of this study
are in line with Harwiki (2016) that every culture is said to be effective in the organization if the
employees have good organizational engagement. According to Mitic et al. (2016), engagement
can be successful if the culture is wise, exemplary, disciplined, and applies all procedures
consequently and avoids favoritism that can lead to prejudice, resentment, and social jealousy.
Employee performance will improve if the corporate culture and organizational
engagement is appropriately implemented (Silverthorne, 2004). Every work done requires
standards and the ability to measure oneself or subordinates' performance, compare performance
with standards under existing provisions, and continuously evaluate the activities' results to
determine the need for corrective action in future activities. Employee loyalty to the company is a
behavioral factor that can be used to determine and evaluate employees' ability to survive and carry
out their duties and responsibilities to the organization (Arumi et al., 2019). Commitment is
perceived as a value orientation toward the organization, demonstrating that individuals seriously
consider and prioritize their work and the organization. Individuals will continue to give their all
to help the company accomplish its goals (Acar, 2012).
The managerial implication of the influence of organizational culture on organizational
engagement is the attitude of employees who are obedient to the norms and regulations set by the
workplace by increasing togetherness utilizing analysis, namely a culture that can determine and
analyze steps for achieving goals (Goula et al., 2021; Zeb et al., 2021). Then, a dynamic culture
will be able to adapt to achieve goals in a programmed, structured, and conceptual manner.
Furthermore, in the implementation of decision-making in organizations, innovation and
opportunities are related to policy (Namli, 2021; Sapta et al., 2021).
The Influence of Organizational Culture on Employee Performance
The influence of organizational culture variables on employee performance was positive.

An improvement will follow an increase in corporate culture in employee performance if other
factors that affect organizational culture are considered constant. This research shows a positive
and significant influence of corporate culture on employee performance. The results of this study
are in line with Ogbonna and Harris (2000), explaining that employee performance is the result of
performance that can be achieved by a person or group of people in an organization, following their
respective authorities, duties, and responsibilities to achieve goals. An organization concerned
legally does not violate the law and has appropriate morals and ethics. Özçelik and Ferman (2006)
argued that employee performance is an attitude of discipline; employee discipline is vital for the
smooth running of a company.
The managerial implication of the influence of organizational culture on employee
performance is the attitude of employees who are obedient to the norms and regulations that the
workplace has established (Giberson et al., 2009; Hamid & Durmaz, 2021). By improving the
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organizational culture via a benefits orientation, management focuses on results or benefits rather
than just techniques. Moreover, the process can be used to obtain these benefits and then expose
people to office management decisions and consider the effect of services on people in an
organization. Furthermore, team orientation is organized based on teams and stability and not
individually (Kantabutra, 2021).
The Influence of Organizational Engagement on Employee Performance
The influence of the organizational engagement variable on employee performance was

positive. An increase in organizational engagement will be followed by improvements in employee
performance, assuming other factors that affect organizational engagement remain constant. This
research shows a positive and significant influence of organizational engagement on employee
performance. The results of this study are in line with Bunch (2007). Solid engagement can
significantly affect individuals and performance; even in a competitive environment, this influence
is better than other factors such as organizational structure, financial analysis tools, leadership, and
others. Organizational engagement that is easy to adapt to changing times (adaptive) is what can
improve performance.
The managerial implication of the influence of organizational engagement on employee
performance indicates that a well-implemented engagement will improve employee performance
in the Public Works Office in Maluku Province. The results of this study align with Gambi et al.
(2015) in that a working system with engagement positively impacts employee performance. To
improve the application of a work engagement system that has a motivational impact on employee
performance, the Public Works Office of Maluku Province must pay attention to the clarity of work
agreements, years of service, and employee wages. For example, if an employee understands the
work that is his responsibility and the company hire employees according to the agreement
contained in a work engagement, this will encourage employees to work per the provisions set by
the office (Ipinazar et al., 2021; Sawan, 2021). Thus, employee performance will increase
andimprove office performance (Sugiono et al., 2021).
The Influence of Organizational Environment on Motivation
The influence of organizational environmental variables on motivation was positive. This

means that an improvement will follow an increase in motivation in the organizational environment
if other factors that affect the organizational environment are considered constant. This research
shows the positive and significant influence of the organizational environment on motivation. This
indicates that the organizational environment is a force that encourages employee morale, which
includes rewards and punishment.
This consists of a physical work environment and a non-physical work environment.
Employees are motivated to complete work because their needs to exist, establish relationships,
and develop are met (Sugiartha et al., 2021). This study supports the opinion of Buch and Wetzel
(2001), which states that factors creating work motivation include excellent working conditions,
especially in terms of the physical work environment. The feeling is included in all administrative
and management processes and applies to all levels and positions (Koc et al., 2021). Work
motivation is also influenced by a humane way of disciplining that every member of the
organization is an ordinary human being who is not free from weaknesses, deficiencies, and even
mistakes (Maswadeh & Zumot, 2021). An attitude should be considered objectively, and the
punishment given should be proportional to the mistakes made (Silverthorne, 2004). Motivation is
308
Zacharias, T.
also related to awarding rewards for carrying out tasks well (Asree et al., 2010).
The Influence of Organizational Environment on Employee Performance
The influence of organizational environmental variables on employee performance was

positive. An improvement in employee performance will follow an increase in the organizational
environment if other factors that affect the organizational environment remain constant. This
research shows the positive and significant influence of the organizational environment on
employee performance. If lighting, air circulation, noise, safety in the workplace, employee
relations at the Public Works Office of Maluku Province have been fulfilled, employee
performance will improve. Jung et al. (2009) stated that a safe and comfortable work environment
is proven to affect employee productivity. The more the Public Works Office of Maluku Province
pays attention to the work environment factors of employees, the more employees will show an
increase in performance in serving clients. Based on the respondents' responses, the impact of the
work environment is high. The highest work environment indicator felt by the staff of the Public
Works Office of Maluku Province indicates that the Public Works Office has good information and
supports the provision of services.
Feeling comfortable and happy will influence employees to be more active, diligent, and
eager to work, and if the work environment is terrible, this will result in decreased employee
performance. Thus, the organization should always strive for more adequate facilities and
infrastructure to make working comfortable. An organization that does so is likely to create a
harmonious relationship with employees so that they think that they are treated fairly in the work
environment (Top et al., 2013). A bad work environment will adversely affect workers because
they feel disturbed in their work, so that they cannot pay attention to their work, resulting in
decreased employee performance (Gambi et al., 2015).
The Influence of Motivation on Employee Performance
The influence of motivation variables on employee performance was positive.

Improvements will follow increased motivation in employee performance if other factors that
influence motivation are considered constant. This study shows a positive and significant influence
of motivation on employee performance. The results of this study support the research of
Silverthorne (2004) that work motivation has a significant effect on employee performance. Work
motivation is essential in increasing work effectiveness. Because people who have high work
motivation will try their best to be successful, if their personal needs are met, they can work harder
and be more enthusiastic (Asree et al., 2010).
Some high work motivation is required to improve employee performance. Therefore, work
motivation has a very close relationship with employee performance. With individual work
motivation, employees will work optimally in a company (Ridlwan et al., 2021). Work motivation
is formed from the attitude of employees facing working conditions. Work motivation is a
condition that encourages employees to be focused on achieving their goals (Dwivedi et al., 2014).
An organizational environment should provide appropriate work motivation by looking at the
behavior shown by employees and choosing ways that it can use to motivate employees to work
(Imron et al., 2021).
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Conclusion
The results showed that the variables of organizational culture and organizational
environment had a direct and indirect influence on increasing organizational engagement,
motivation, and employee performance. These variables need to be maintained significantly to
improve employee performance. The organizational environment and organizational culture can
be a reference for the Public Works Office of Maluku Province in making policies related to
improving employee performance.
Every organization must have a culture. Organizational culture and environment are
significant for the company's long-term survival. Company culture is a foundation that contains
norms, beliefs, how workers work, and behaviors that contribute to the quality of the organization's
success. Due to the diversity of highly respected cultures, the deep local wisdom of Indonesia, with
different cultures and religions, can flourish. The most successful way to respond to changing times
is to create a culture and organizational environment that reflects Indonesia's superior diversity.
The government will have sufficient resources to succeed as a developing country in globalization
if it has a distinctive and acceptable organizational culture.
It is, of course, impossible to make general conclusions when applied to other factors
outside the objectives of this research. Future research is recommended to add additional
independent variables besides organizational culture, organizational environment, organizational
engagement, and motivation, which can affect the dependent variable of employee performance.
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Notes on Contributors
Tehubijuluw Zacharias is a lecturer in Social Science at the Social Welfare Science

Department of Universitas Kristen Indonesia Maluku. His work focuses on teaching, learning,
research, and community services. He works and teaches primarily social sciences. His areas of
interest and research include social sciences, political science, sociology, legal studies, and public
administration. He has published books and many articles in national and international journals.
Mohamad Arsad Rahawarin is a lecturer in Public Administration at Public
Administration Graduate Program of Universitas Pattimura, Maluku, Indonesia. He is also chair of
the Postgraduate Public Administration study program at Universitas Pattimura, Maluku. His work
focuses on teaching, learning, research, and community services. He works and teaches primarily
public administration. His areas of interest and research include social sciences, political science,
sociology, legal studies, and public administration. He has published books and many articles in
national and international journals.
Yusriadi Yusriadi is a lecturer in Public Administration at Public Administration Graduate
Program of Sekolah Tinggi Ilmu Administrasi Puangrimaggalatung, Makassar, Indonesia. He is
also the chancellor at Sekolah Tinggi Ilmu Hukum Pengayoman, Makassar, Indonesia. His work
focuses on teaching, learning, research, and community services. He works and teaches primarily
public administration. His areas of interest and research include social sciences, political science,
sociology, legal studies, and public administration. He is a reviewer and editor of local and
international journals. https://orcid.org/0000-0001-7908-1525
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Print ISSN: 2685-8835 / Online ISSN: 2655-2035
DOI: https://doi.org/10.32535/apjme.v4i2.1149
Analysis of Employee Performance in The Department

of Education and Culture, Lubuklinggau City
Jefirstson Richset Riwukore1, Yohanes Susanto2, Jekki Pilkandis3, Fellyanus
Habaora4
Indo Global Mandiri University1
629, Jend. Sudirman Street, No.4, 20 Ilir D. IV, Ilir Timur I, Palembang City, South
Sumatra, 30129, Indonesia
University of Bina Insan Lubuklinggau2,3
Street of HM Soeharto, Lubuk Kupang Subvillage, Village of Lubuk Linggau
Selatan I, Lubuklinggau City, South Sumatera, 31626, Indonesia
Bogor Agricultural University4
IPB Campuss, Raya Dramaga Street, Babakan, Dramaga District, Kota Bogor,
Jawa Barat, 16680, Indonesia
Correspondence Email: jefritson@uigm.ac.id
ORCID ID: https://orcid.org/0000-0001-8757-3220
ABSTRACT
The aims of this research are to determine the impact of incentivizing, motivation
and discipline on the performance of The Department of Education and Culture of
Lubuklinggau City employees simultaneously and partially. Qualitative method was
used in this research, with 57 employees at The Department of Education and
Culture of Lubuklinggau City as a sample. Multiple linear regression test, coefficient
of determination test, f-test and t-test were used in this research as data analysis
technique. The results obtained from partial test (t-test) proved that incentivization,
motivation, and discipline each had a partially significant impact on employee
performance at the office of The Department of Education and Culture of
Lubuklinggau City where t (count) > t (table) and also sig 0,001 < 0,05. Incentives,
Motivation, and Disciplines have simultaneously significant impact on employee
performance, where t (count) > t (table) and also sig is 0,000 < 0,05. This research
is an important contribution to the regulation of human resources in The Department
of Education and Culture of Lubuklinggau City so. The determination of discipline,
incentives, and motivation tends to be neglected in improving performance so that it
is necessary to examine the relationship to performance in human resources, which
is an important contribution of research.
Keywords: Disciplines, Employee Performance, Incentives, Motivation
INTRODUCTION
Zhang, Zhang, Forest, & Chen (2018) and Leitao, Pereira, & Goncalves (2019)
described that the result of a series of worker behaviors that have positive and
negative contribution to the achievement of organizational tasks is performance.
Performance output is strongly influenced by ability, motivation, and opportunity
(Vermeeren, et al., 2014). Employee performance is a display of business
achievement level and the goals or objectives of implementing the vision, mission,
and strategic plans of organization indicating the successful implementation of the
activities and policies set. To achieve good employee performance requires
discipline because employee discipline affects the order in their main tasks and
functions to achieve the organization’s goals and objectives that have been set.
Discipline can be carried out well if it is supported by a conducive and consistent
organizational environment from employees and leaders (Thaief, Baharuddin,
Priyono, & Idrus, 2015).
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Self-discipline has a very big role in achieving organizational goals. Through self-
discipline, an employee not only respects himself but also respects others. For
example, employees carry out their duties and authorities without supervisory,
basically, the employees are aware of carrying out the responsibilities they have
assumed. Self-discipline will also have an impact on the work environment, by
applying self-discipline it will facilitate group activities. Indiscipline in one work field
will hamper other work fields which in turn will have an impact on the performance
of a field and organization (Mankunegara & Waris, 2015).
The State Civil Apparatus (in Indonesia: ASN) as the main human resource for
national development has not been able to fulfill the responsibilities due to poor
performance. Riwukore (2010) stated that the quality of human resources in
Indonesia who are not able to compete, having low motivation and discipline, having
a weak and uneven work culture is an accumulation of poor ASN performance. The
Ministry of Administrative and Bureaucratic Reform of the Republic of Indonesia
reported the achievement of ASN performance until 2018, there were still 30% or
1.35 million ASN whose performance is classified as poor (Antoni, Angga, & Akmal,
2018). This report does not seem that different from the research report PERC
(Political and Economic Risk Consultancy) in 1999 that Indonesia became one of
the worst countries in the field of bureaucracy in the world with a score of 8.0 out of
10 for the worst (Komara, 2019). Institute for Management of Development, Swiss,
World Competitiveness Book in 2007 reported the results of a survey related to work
productivity in relation to performance in 2005 which resulted in Indonesia's labor
productivity ranking at position 59 out of 60 countries surveyed, or even lower than
in 2001 which reached 46, far from other Asian countries like Singapore (1),
Thailand (27), Malaysia (28), Korea (29), China (31), India (39), and the Philippines
(49). Low discipline also affects performance so that Indonesia is only in the last
rank, namely 60th based on economic performance in 2005, Business Efficiency
(59), and Government Efficiency (55). One of the dominant factors affecting is the
payroll system for ASN which is applied in Indonesia which refers to the very low
basic salary system. Prasojo (2010) and Kumorotomo (2011) stated that the low
salary of ASN that is not in accordance with the workload has an impact on welfare
and ultimately affects the performance and discipline of these ASN.
One of the ways taken by the Indonesian government to improve the achievement
and quality of performance and employee welfare is through salary increases and
allowances. Based on the Decree of the Minister of Administrative and Bureaucratic
Reform Number B / 3563 / M.PANRB / 11/2005 in accordance with Presidential
Decree Number 15 of 2015 concerning the Bureaucratic Reform Steering
Committee and the National Bureaucratic Reform Team in 2015-2019, Article 3
Paragraph (3), The Bureaucratic Reform Team has accepted the proposal for an
increase in allowances. The total allowance fund for several government
ministries/agencies in Indonesia is Rp. 1.9 million - 26 million per month (Annas,
2015). Additional income guarantee for ASN in the form of compensation and
remuneration is also guaranteed in Government Regulation Number 58 of 2005,
Regulation of the Minister of Home Affairs of the Republic of Indonesia Number 13
of 2006, and Minister of Home Affairs Regulation Number 59 of 2007 concerning
Regional Financial Management. The point of these regulations is local
governments can supply additional income to civil servants based on objective
considerations, paying attention to regional financial capacity, obtaining approval
from The Legislative Office, and paying attention to ASN performance needs. With
this compensation, it is hoped that employees can work optimally with good service
and performance.
Based on the regulations described above, The Lubuklinggau City Government

issued the Lubuklinggau Mayor Decree Number 61/KPTS/BKD/2018 about change
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the Lubuklinggau Mayor Decree Number 50 of 2013 Regarding the Additional

Income of Lubuklinggau City Government Employees. The issuance of this
regulation aims to increase the welfare of ASN based on workload, place of duty,
working conditions, scarcity of professions, and work performance. One of the
Regional Apparatus Organizations as the implementer is The Department of
Education and Culture who have reviewed and implemented the provision of
additional employee income for CPNS and ASN. This agency has 57 employees
outside of the teaching staff who are assigned and work to provide services related
to the education sector in the City of Lubuklinggau. The choice of this agency as a
place and object of research is because The Department of Education and Culture
of Lubuklinggau City is the largest user of the APBN and APBD budgets. According
to Riwukore, Susanto, Manafe, Habaora, & Miramangngi (2019) that education
funds but education salaries and official education costs must be allocated a
minimum of 20% of the state expenditure budget and regional revenue budget. This
is also stated in Article 49 paragraph (1) of Constitutions 20 of 2003 concerning the
National Education System.
ASN in the Regional Work Units in the Lubuklinggau City Government according to
the results of the assessment of the Ministry of State Apparatus Empowerment and
Bureaucratic Reform to the performance accountability of the Lubuklinggau City
Government agencies resulted in poor performance (category C) of the target to be
achieved, namely B (good category) in the last 4 years (2016-2019). The results of
the performance accountability system of the Lubuklinggau City Government
agencies can be seen in Table 1.
Table 1. Results of the Performance Accountability System of Lubuklinggau

City Government Agencies
No. Year Rating Result Information

1 2016 C That's enough
4 2019 CC Pretty good
Source: Bappeda Agencies of Lubuklinggau City 2019
The report from the Lubuklinggau City Inspectorate Agencies in 2019 stated that the
level of employee discipline is still in low level, especially in the environment The
Department of Education and Culture of Lubuklinggau City. The low level of
employee awareness of the importance of attendance and discipline is allegedly an
inhibiting factor for government performance, especially in The Department of
Education and Culture of Lubuklinggau City. Even though there have been
government efforts to stimulate employee awareness through electronic attendance,
it has not shown a positive value. It is hoped that the provision and addition of
incentives in accordance with the mechanism in Permendikbud Number 10 of 2018
concerning Technical Guidelines for Distribution of Professional Allowances, Special
Allowances, and Additional Income for Regional Civil Servant Teachers can
stimulate increased motivation and discipline of employees to perform well. The
existence of incentives or additional (rewards) that are given or increased affects
the increase in performance. The incentive or reward is a compensation for
employee performance achievement. Sari and Touana (2017) states that creating a
good and healthy organizational condition and maintaining employee commitment,
then employee satisfaction is an important aspect of the organization, compensation
has an important value because compensation represents the organization's efforts
to maintain and improve the welfare of their employees. Furthermore, it was reported
that experience shows that inadequate compensation can reduce work
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performance, work motivation, and employee job satisfaction, and even has
potential for employees to leave the organization. Thus the existence of rewards,
allowances, and incentives can motivate employees to improve employee
performance. Field findings in the Lubuklinggau City Government indicate that the
low performance, discipline, and motivation of employees are influenced by the level
of uneven welfare of the apparatus.
Literature Review
Performance
Vermeeren, et al. (2014) stated that performance is an interaction function of three
things, namely ability (A), motivation (M), and opportunity (O). Thus the performance
can be arranged into a formula = {ƒ(A x M x O)} which means that performance is a
function of ability, motivation and opportunity. Meanwhile Udin & Yuniawan (2020)
argued that performance is a person's success in finishing the task. Chien, Mao,
Nergui, & Chang (2020) said that performance is the result obtained by a person or
group of people in an organization, in line with their respective authorities and
responsibilities in an effort to achieve the organization’s goals concerned legally, not
breaking the law and in accordance with morals and ethics. Performance can also
be interpreted as the results obtained by an organization whether the organization
is profit or nonprofit oriented which is generated over a period of time. Zehir, Gurol,
Karaboga, & Kole (2016) said that performance is the result of work that has a strong
relationship with the organization's strategic objectives, customer satisfaction and
capable in making an economic contribution. Zehir, Gurol, Karaboga, & Kole (2016)
defined performance as a description of achievement level of the implementation of
an activity, program and policy in realizing the organization’s goals, objectives,
mission and vision contained in the formulation of a strategic scheme.
Discipline
According to Thoman & Lloyd (2018), work discipline can be interpreted as the
implementation of management to reinforce organizational guidelines. Work
discipline used by managers to communicate with their members. The purpose is
to increase someone’s compliance with applicable social rules and norms.
According to Salamon and Mesko (2016), discipline is a person’s awareness and
willingness to obey all organizational rules and prevailing social norms. Discipline
must be enforced in an organization, without discipline, it is difficult for organization
to achieve their goals. Discipline can also be interpreted as a process of exercising
self-control to work effectively, efficiently, and productively. The purpose of
discipline is the exercise of self-control to increase work performance so that
organizational goals are achieved.
Providing Incentives / Additional Employee Income

The basic motivation for most people to become employees of a certain organization
is to earn a living and, in the end, expect to receive certain rewards (Lazear, 2018).
The rewards can be in the form of salary, compensation, or incentives. According to
Oloke, Oni, Babalola, & Ojelabi (2017), the incentive is something that stimulates
interest in work. Other experts also define incentives as a motivation that
encourages employees to work optimally, which is intended to earn additional
income beyond predetermined salary (Cainarca, Delfino, & Ponta, 2019). The
provision of incentives is intended to meet the needs of employees and their families
(Shaw & Gupta, 2015). Thus, the term incentive system is generally used to describe
wage payment plans that are linked directly or indirectly to various employee
performance standards or organizational profitability.
Motivation
Motivation comes from the Latin word "movere" which means impulse, driving force
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that causes an action or deed (Riwukore, 2010). Literally motivation means giving a
motive. Someone doing an action generally has a motive. Oloke, Oni, Babalola, and
Ojelabi (2017) stated work motivation as the willingness to make high efforts to
achieve organizational goals that are adjusted by the ability to meet certain individual
needs. Bastari, Ali and Hamidah (2020) argued that work motivation is psychological
processes that generates and direct behavior towards goal. According to Dung &
Thang (2019), work motivation describes the strength within the individual that
explain the level, direction, and persistence of effort expended adequately. While
Pakdel (2013), motivation can be described as the human inner force that upon
stimulation causes a person to react in a particular way.
Hypothesis Framework
H1. Providing incentives / additional employee income has a positive effect to
employee performance at The Department of Education and Culture of
Lubuklinggau City. Shaw & Gupta (2015) argued that incentives are additional
rewards given to certain employees whose performance is above the standard
performance. Incentives used to support the fair principle in providing
compensation; 2) Runtuwarouw (2019) argues that incentives are rewards given to
motivate workers so that their work productivity is high; 3) Novianty & Evita (2018),
argues that incentives are incentives offered to employees to carry out work
according to or higher than predetermined standards; 4) Cainarca, Delfino, & Ponta
(2019) incentives are one type of reward associated with work performance; 5)
Cainarca, Delfino, & Ponta (2019) states that an incentive is additional salary given
to employee at certain time in the form of a higher base salary, usually based
exclusively on individual performance.
H2. Work motivation has a positive effect to employee performance at The
Department of Education and Culture of Lubuklinggau City. Fernet, Guay, Senécal,
& Austin (2012) suggest that motivation is a motive that is associated with a person's
desire to do something or not. Motivation is generally divided into intrinsic and
extrinsic motivation. Intrinsic motivation is the type associated with personal
fulfillment, pleasure and personal enjoyment. Extrinsic motivation occurs when
people are triggered by external factors to explore or challenge them to do
something in order to achieve a reward.
H3. Work discipline effects employee performance positively at The Department of
Education and Culture of Lubuklinggau City. Discipline is an obedient attitude and
service behavior which are orderly to the rules that have been set in the task.
Yuliandi & Tahir (2019) revealed that discipline is a person’s willingness to obey the
applied norms around them attitude.
H4. The provision of incentives / additional employee income, work motivation and
discipline have simultaneously significant positive effect to employee performance
at The Department of Education and Culture of Lubuklinggau City.
The framework of the above hypothesis is carried out in partial form, which means
that testing between variables X1 toward variable Y, variable X2 toward variable Y,
variable X3 toward variable Y, and simultaneously, which means that this test is
carried out jointly between variables X1, X2, and X3 toward variable Y and presented
in figure form, can be seen in Figure 1.
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Figure 1. Research Model
Incentives / Additional
of Employee Income
Indicators :
(Siagian,2018)
H
1
Performance, length of
work, tenure, Needs,
Fairness and Worthiness
H
4
Employee
Work Motivation Performance
Indicators: Indicators :
(Riwukore, 2010) (Wirawan,
2015)
H
2 Quantity of work
Need for achievement, results, quality of
Need for relationship, work, efficiency,
H work discipline,
5
Need for power
and accuracy
H
Work Discipline 6
Indicators:
(Rivai,2015)
Attendance, adherence
to work regulations, H
adherence to work 3
standards, a high level H
of alertness, work 7
ethically
RESEARCH METHOD
This research used quantitative methods with the Statistical Package for Social
Science (SPSS) version 21,0 as the instrument analysis. The questionnaire was
given to employees who work at The Department of Education and Culture of
Lubuklinggau City. The questionnaire-based data will be tabulated and tested for
the instrument. Making a validity test and a reliability test was the next process.
According to Sugiyono (2017) population is a generalization area that consists of
objects or subjects that has certain qualities and characteristics to be examined and
studied. In this research, the population was employees at The Department of
Education and Culture of Lubuklinggau City. There are 57 people who work in it,
who are saturated samples so that all populations are sampled. Likert scale was
used to measure a person’s or group’s attitudes, opinions, and perceptions people
about social phenomena. The process of collecting data required in this discussion
through two stages of research, namely: (1) library research, is conducted to search
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for and obtain secondary data and theoretical data related to the research being
carried out. Literature study is carried out by studying the literature, research
journals, lecture materials and other sources related to research. (2) field research),
in this case the author collects the necessary data by making direct observations at
the Department concerned, either through observations / interviews and distributing
questionnaires to employees. This technique is used when the researcher intends
to predict the state (fluctuation) of the dependent variable, if two or more
independent variables as predictor factors are manipulated (increase and decrease
in value). So multiple regression analysis will be carried out if the number of
independent variables is at least two (Riwukore, 2010).
The formula is: Y = a+ b1X1 + b2X2 + + b3X3 + e
Where : Y (Employee performance), a (Constant numbers with value of Y if b1 , b2
, b3 , and e = 0), b1, b2, b3 (Regression coefficient), X1 (Incentive variable score),
X2 (Motivation variable score), X3 (Discipline variable score), and E (Erorr).
RESULTS AND DISCUSSION
Results
Table 2. Profile of gender and employee education at The Department of

Education and Culture of Lubuklinggau City
Classification of Respondents Total Percent (%)

Gender Male 32 54
Female 25 46
Education Level SMA 5 9
S1 32 56
S2 17 30
S3 3 5
Source: Data Processed Results for 2020
Data Table 1 shows that the gender of employees is dominated by male workers
and followed by female workers. This proves that The Department of Education and
Culture of Lubuklinggau City has the highest number of male employees. Likewise
with the latest education, it can be seen that the latest education of employees of
The Department of Education and Culture of Lubuklinggau City is dominated by 32
graduates of S1, 17 graduates of S2, 5 high school students, and 3 S3 graduates.
This proves that The Department of Education and Culture of Lubuklinggau City has
paid attention to the educational background of employees in their work
environment.
Data Validity Test

In this validity test, 57 respondents were used then calculated with the Pearson
product moment formula, then comparing r count with r table, the value of r table
was determined in this validity test of 0,632 obtained from table r, df = n-2 at the
0,05 level. Dari From 60 per item statements, it is found that the incentives,
motivation, and discipline in this research have the correct item total correlation <
0,05, so it can be concluded that 2 of the 60 statements to measure performance at
The Department of Education and Culture of Lubuklinggau City have a valid value.
This means that the use of a questionnaire in the data collection of this research is
that the statement items compiled are abash statements, so that several indicators
on each variable can be included in this research.
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Reliability Test
The reliability value of the Cronbach alpha variable for incentives, motivation,
discipline and performance is as follows: (1) The Cronbach Alpha value of the
Incentive variable is 0,911> 0,6. This shows that the research instrument in the form
of a questionnaire is reliable. (2) The Cronbach Alpha value of the motivation
variable is 0,908 > 0,6. This shows that the research instrument in the form of a
questionnaire is reliable. (3) Cronbach Alpha value of variable Job satisfaction
0,910> 0,6. This shows that the research instrument in the form of questionnaire is
reliable. (4) The Cronbach Alpha value of the performance variable is 0,894> 0,6.
This shows that the research instrument in the form of a questionnaire is reliable.
Normality Test Results

The normality test used is the Kolmogorov Smirnov test, where the data results are
stated to be normal if the Asymp value Sig (2-tailed) shows significance (> 0,05).
The results can be seen in Table 3 below:
Table 3. Normality test results
Giving Employee
Motivation Discipline
Incentives Performance
(X2) (X3)
(X1) (Y)
N 57 57 57 57
Mean 59,54 59,05 60,53 60,56
Normal
Std.
Parametersa,b 5,779 4,838 5,050 3,546
Deviation
Most Extreme Absolute ,102 ,127 ,125 ,104
Differences Positive ,102 ,098 ,112 ,072
Negative -,063 -,127 -,125 -,104
Kolmogorov-Smirnov Z ,772 ,961 ,945 ,783
Asymp. Sig. (2-tailed) ,590 ,315 ,334 ,571
Table 3 results of the normality test above shows the value of "Asymp. Sig. (2-
tailed)" for the Incentive Giving variable (X1) of 0,590, and the value of "Asymp. Sig.
(2-tailed)” Motivation variable (X2) of 0,315. Meanwhile, the value of "Asymp. Sig.
(2-tailed)" for the Discipline variable (X3) is 0,334, and the value of "Asymp. Sig. (2-
tailed)” Employee Performance variable (Y) is 0,571. All values of "Asymp. Sig. (2-
tailed)" for each variable show that it is greater than 0,05. So, it can be concluded
that the normality test is fulfilled and the data can be said to be normal.
Multicollinearity Test Results

To detect multicollinearity, it can be seen from the Value Inflation Factor (VIF). If
the VIF value (> 10), multicollinearity occurs. Conversely, if VIF (<10),
multicollinearity does not occur. The analysis results can be seen in Table 4.
Table 4. Multicollinearity test results
Model Collinearity Statistics

Tolerance VIF
(Constant)
1 Giving Incentives (X1) ,855 1,170
Motivation (X2) ,610 1,640
Discipline (X3) ,595 1,679
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Table 4 above shows that the multicollinearity test results are known from the VIF
value for each predictor. The incentive variable obtained a VIF value of 1,170 <10
and the motivation variable obtained a VIF value of 1,640 <10. Meanwhile, the
discipline variable obtained a VIF value of 1,679 <10. All VIF values for each
predictor value only ranged from 1 to 10. So, it can be concluded that multicollinearity
does not occur and the multicollinearity test is fulfilled.
Heteroscedasticity Test Results

For the heteroscedasticity test using the Scatterplot regression model graph, the
results can be seen in Figure 2 below:
Figure 2. Scatter Plot for giving incentives, motivation, discipline, and

performance
In Figure 2 above, it can be seen that heteroscedasticity does not occur because
there is no clear pattern and the dots spread above and below or the data spreads
over all fields. So, it can be concluded that the heteroscedasticity test is fulfilled.
Multiple linear regression analysis
Table 5. Results of Multiple Linear Regression, Incentives, Motivation and

Discipline to Employee Performance
Model Unstandardized Standardized

Coefficients Coefficients
B Std. Error Beta
(Constant) 21,319 4,616
1 Giving Incentives (X1) ,186 ,059 ,303
Motivation (X2) ,200 ,084 ,274
Discipline (X3) ,270 ,081 ,385
Table 5 above shows the results of the multiple linear regression test to obtain the
regression equation, namely:
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Y = 21,319 + 0,186 X1 + 0,200 X2 + 0,270 X3
From the regression value equation shows that, the constant value obtained is a =
21,319 units. That is, if the independent variable of Incentives (X1), Motivation (X2),
and Discipline (X3) is 0, then the Employee Performance (Y) is 21,319 units. The
value of the incentive-giving variable regression coefficient obtained is b1 = 0,186
units. This means that if the other independent variables have a fixed value and the
Incentive Giving variable has increased, then Employee Performance will increase
by 0,186 units. The regression coefficient value of the Motivation variable obtained
is b2 = 0,200 units. This means that if the other independent variables are fixed in
value and the Motivation variable has increased, then the employee performance
will increase by 0,200 units. The regression coefficient value for the Discipline
variable obtained is b3 = 0,270 units. That is, if the other independent variables are
fixed in value and the Discipline Variable has increased, then Employee
Performance will increase by 0,270 units.
Result of the coefficient of determination
Table 6. Results of the coefficient of determination on Incentives, Motivation

and Discipline to Employee Performance
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 ,762a ,580 ,557 2,361
Table 6 above shows that the value of R Square (R2) is 0,580 or 58%. This shows
that the percentage of the contribution of the influence of the independent variables
(Incentives, Motivation and Discipline) on the dependent variable (Employee
Performance) is 58%. The rest (100% - 58%) which is 42% is influenced by other
variables not examined in this research.
F Test Results
Table 7. F test results (simultaneous) providing incentives, motivation and

discipline on employee performance
Model Sum of Squares df Mean Square F Sig.
Regression 408,609 3 136,203 24,435 ,000b

1 Residual 295,426 53 5,574
Total 704,035 56
Table 7 shows, the value obtained is Fcount 24.435 > Ftable (57-3-1 = 53) = 2.78 with a
significant value of 0.000 <0.05. This means that the independent variables of
incentives, motivation, and discipline have a significant effect simultaneously on the
dependent variable on employee performance pada Dinas Pendidikan dan
Kebudayaan Kota Lubuklinggau.
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Discussion
The Effect of Incentives to Employee Performance

The results showed that from a simple linear regression test for the variable giving
incentives to employee performance at The Department of Education and Culture of
Lubuklinggau City obtained a simple regression equation: Y = 21,319 + 0,186 X 1 +
0,200 X2 + 0,270 X3. This equation shows that the constant value obtained is a =
21,319 units. that is, if the independent variable providing incentives (X 1) is 0, then
the employee's performance (Y) is 21,319 units. Meanwhile, the regression
coefficient value of the incentive-giving variable obtained was b = 0,186 units. That
is, if the incentive-giving variable (X1) has increased, the employee performance
value (Y) will increase by 0,186 units. So, it can be concluded that, from the results
of the simple regression test, the variable incentives for employee performance only
contributed to an increase of 0,186 units. Furthermore, the test results of the
correlation coefficient (r) between the independent variable giving incentives and the
dependent variable employee performance, the value obtained is 0,529. This means
that the relationship between the independent variable giving incentives (X1) and
the dependent variable employee performance (Y) can be partially said to be
moderate, namely 0,529 because the value is in the coefficient interval 0,40 - 0,599.
The first hypothesis of this study is "giving incentives / additional employee income
has a positive effect to employee performance at The Department of Education and
Culture of Lubuklinggau City” proven correct and the hypothesis is accepted. The
results of this research are also supported by opinions Oloke, Oni, Babalola, &
Ojelabi (2017) bahwa incentive is something that stimulates interest in work. Lazear
(2018) reporting that the incentive to be the basic motivation for most people to
become employees in a particular organization is to earn a living which in the end
will expect to receive a certain reward. The rewards in question can be in the form
of salaries, compensation or incentives. So, it is concluded that the provision of
incentives / additional income for state civil servants is a tool used as an incentive
to improve performance and maintain employee performance so that their work can
be carried out properly and incentives are in accordance with predetermined
standards.
Effect of Motivation to Employee Performance

The results showed that from a simple linear regression test for the motivation
variable to employee performance at The Department of Education and Culture of
Lubuklinggau City, a simple regression equation was obtained: Y = 21,319 + 0,200
X2. This equation shows that the constant value obtained is a = 21,319 units. That
is, if the independent variable motivation (X 2) is 0, then the employee performance
(Y) is 21,319 units. Meanwhile, the regression coefficient value of the Motivation
variable obtained was b = 0,200 units. That is, if the motivation variable (X2) has
increased, then the employee performance (Y) will increase by 0,200 units. So, it
can be concluded that, from the results of the simple regression test, the motivation
variable for employee performance only contributes to an increase of 0,200 units.
Furthermore, the test results of the correlation coefficient (r) between the
independent variable motivation and the dependent variable employee
performance, the value obtained is 0,608. This means that the relationship between
the independent variable motivation (X2) and the dependent variable employee
performance (Y) is partially strong, which is 0.608 because the value is in the
coefficient interval of 0,60 – 0,799. positive on the performance of employees at The
Department of Education and Culture of Lubuklinggau City,” the truth is proven and
the hypothesis is accepted. The results of this study are also supported by the
opinion of Oloke, Oni, Babalola, & Ojelabi (2017) that work motivation is the
willingness to carry out high efforts to achieve organizational goals conditioned by
the ability to meet certain individual needs. So, it can be concluded that motivation
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is a condition that moves people towards a certain goal, and wants to work optimally
so that goals can be achieved properly. As well, as energy to generate impulses in
oneself and as an influential condition to generate, direct and maintain work-related
behavior.
Effect of discipline to employee performance

The results showed that from a simple linear regression test for disciplinary variables
on employee performance at The Department of Education and Culture of
Lubuklinggau City, it was obtained a simple regression equation: Y = 21,319 + 0,270
X3. This equation shows that the constant value obtained is a = 21,319 units. That
is, if the discipline-free variable (X3) is 0, then the employee's performance (Y) is
21,319 units. Meanwhile, the discipline variable regression coefficient value
obtained is b. = 0,270 units. That is, if the discipline variable (X3) has increased, the
employee performance value (Y) will increase by 0,270 units. So, it can be
concluded that, from the simple regression test results, the discipline variable on
employee performance only contributes to an increase of 0,270 units. Furthermore,
the test results of the correlation coefficient (r) between the independent variable of
discipline and the dependent variable of employee performance, the value obtained
is 0,660. This means that the relationship between the discipline-free variable (X3)
and the dependent variable on employee performance (Y) is partially strong, namely
0,660 because the value is in the coefficient interval 0,60 - 0,799. The third
hypothesis of this research is "work discipline has a positive effect on employee
performance at The Department of Education and Culture of Lubuklinggau City”
proven correct and the hypothesis is accepted. The results of this research are also
supported by the opinion of Yuliandi & Tahir (2019) which states that discipline is an
attitude of a person's willingness to obey the prevailing norms around them. Thus,
discipline is the key to an organization to achieve the goals. Discipline can also be
interpreted as a process of exercising self-control to work effectively, efficiently, and
productively.
Effect of Incentives, Motivaton, and Discipline to Employee Performance

The result of determination coefficient (R2) from the independent variable (giving
incentives, motivation and discipline) to the dependent variable (employee
performance), obtained value of R Square (R2) is 0,580 or (58%). This shows that
the percentage of the influence of the independent variables (giving incentives,
motivation and discipline) to the dependent variable (employee performance) is
58%. As much as 42% is influenced by other variables which were not examined in
this research. It can be concluded that if changes are made jointly, the independent
variables of providing incentives, motivation, and discipline can affect to employee
performance at the same time at The Department of Education and Culture of
Lubuklinggau City is 58%. The results of the fourth hypothesis test of the F test
(simultaneous) variables of incentives, motivation, and discipline on employee
performance at The Department of Education and Culture of Lubuklinggau City
indicates that the value obtained is Fcount 24,435 > Ftable (57-3-1=53) = 2,78 with
signification value 0,000 < 0,05. This shows that the independent variables of
incentives, motivation, and discipline have a significant effect simultaneously on the
dependent variable of employee performance at The Department of Education and
Culture of Lubuklinggau City. The results of the F test (simultaneous) prove that, the
seventh hypothesis of this study is "providing incentives / additional employee
income, work motivation and discipline have a significant positive effect to employee
performance at The Department of Education and Culture of Lubuklinggau City”
proven correct and the hypothesis is accepted. The results of this study are in
accordance with the research report from Frengki, Hubeis, & Affandi (2017) and
Andisi & Uhing (2018) that the provision of incentives such as allowances and life
insurance, motivation, and discipline can simultaneously improve employee
performance.
106
CONCLUSIONS
The results showed that the provision of incentives, motivation and discipline
together or partially had a significant and positive effect on employee performance
at The Department of Education and Culture of Lubuklinggau City, but discipline had
a more dominant or high influence on employee performance. Thus, the discipline
factor greatly determines employee performance. The role of the leader in
supervising and enforcing sanctions and penalties for employee work violations. In
addition, it is recommended that the leadership elements at The Department of
Education and Culture of Lubuklinggau City can provide adequate rewards and
incentives for outstanding employees to stimulate employee motivation to work.
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Tourism & Management Studies, 16(4), 2020, 35-44, https://doi.org/10.18089/tms.2020.160403
The impacts of perceived overqualification on employee performance: a case of chefs

Os impactos do excesso de qualificação percebida no desempenho dos empregados: um caso de chefs
Gökhan Onat
Tourism Faculty, Recep Tayyip Erdogan University, Rize, Turkey, gokhan.onat@erdogan.edu.tr
Duygu Eren
Tourism Faculty, Nevşehir Hacı Bektaş Veli University, Nevşehir, Turkey, deren@nevsehir.edu.tr
Received: 26.03.2020; Revisions required: 23.05.2020; Accepted: 07.07.2020
Abstract Resumo
There are many variables that affect employee performance in working Existem muitas variáveis que afetam o desempenho dos funcionários na
life. Some of these variables originate from individuals, while others are vida professional. Algumas dessas variáveis são de ordem individual,
caused by external factors. One of the individual factors that affects enquanto outras são causadas por fatores externos. Um dos fatores
employee performance is perceived overqualification. The purpose of individuais que afeta o desempenho dos funcionários é o excesso de
this study is to reveal the effect of perceived overqualification on qualificação percebida. O objetivo deste estudo é revelar o efeito do
employee performance. That's why in this research, the effect of excesso de qualificação percebida no desempenho dos funcionários.
perceived overqualification in the hospitality industry on employee Neste estudo, o efeito do excesso de qualificação percebida no setor da
performance is discussed. The data of the current study, which utilized hotelaria no desempenho dos funcionários é discutido. Os dados do
138 usable questionnaires, were collected from the kitchen staff of 4- presente estudo, que recolheu 138 questionários utilizáveis, foram
and 5-star hotels in Nevşehir. As a result of the analysis made with the recolhidos de empregados de cozinha de hotéis de 4 e 5 estrelas em
data collected, it was found that perceived overqualification negatively Nevşehir. Como resultado da análise, verificou-se que o excesso de
and significantly affects employee performance. In this context, as a qualificação percebida afeta negativamente e significativamente o
result of this study, it can be said that employee performance may desempenho dos funcionários. Nesse contexto, como resultado deste
increase or decrease if the overqualification observed in chefs increases estudo, pode-se dizer que o desempenho dos funcionários pode
or decreases. In light of the results obtained as a result of the study, aumentar ou diminuir se o excesso de qualificação observada nos chefs
practical implications and suggestions have been made for future aumentar ou diminuir. À luz dos resultados obtidos no estudo, são
studies. apontadas implicações e sugestões para estudos futuros.
Keywords: Perceived overqualification, employee performance, chefs, Palavras-chave: Excesso de qualificação percebida, desempenho dos
hospitality industry, Cappadocia s. funcionários, chefs, indústria hoteleira, Capadocia.
1. Introduction concluded a positive correlation between the variables (Fine and

Nevo, 2008), whereas some studies have revealed that the
The concept of qualification emphasized by different disciplines
correlation between the two variables is negative (Ünsal Akbıyık,
refers, in the studies in which it is discussed, to the characteristics
2016). Özdevecioğlu, Kaya, and Dedeoğlu (2015:8) concluded
of an individual such as educational status, knowledge, skills,
that perceived overqualification negatively affects employee
experience, and talents. When these attributes either exceed or
performance. In the literature, it is possible to find studies dealing
fail to meet job qualifications, it is regarded as a quality mismatch
with two concepts from different aspects. Howewer there is no
(Erdogan, Bauer, Peiró & Truxillo, 2011; Bickes, Yilmaz, Samur &
studies were found which are examining these variables for chefs.
Demirtas, 2020). Although quality mismatch does not have a
For this reason, the purpose of this study is to reveal the effect of
perfect equivalent in Turkish, an individual’s having more
perceived overqualification on employee performance. As it was
qualifications than is required by the position can be defined as
thought that this research would fill the gaps in this field, the
“overqualification,” while having fewer qualifications than is
study was deemed worthwhile.
required by the position can be regarded as “underqualification”
(Ünsal Akbıyık, 2016). Various factors such as continuous technological changes and
developments, along with globalization in the business world
In the related literature, the concept of overqualification has
and the increasing trend of population rates, has led to certain
generally been considered to be a negative phenomenon
changes in the labor market (Güneren & Karakuş, 2015). An
(Erdogan et al., 2011). In many studies it is reported that the
individual who believes that he/she is more qualified than
concept of overqualification negatively affects job-related
required by his/her current job either becomes unemployed or
attitudes and behaviors (Johnson, Morrow, & Johnson,
maintains his/her job with fear of being unemployed. Due to
2002:439; Maynard, Joseph, & Maynard, 2006:549). In addition,
various reasons such as economic or family-related concerns,
it is observed that the concept of overqualification has a
he/she agrees to be employed for a position that requires a
negative impact on job performance (Ünsal Akbıyık, 2016). Fine
lower educational level and less work experience and skills than
and Nevo (2008), on the other hand, concluded that
he/she has. In such cases where individuals have to work at a
overqualified individuals have at least moderate levels of job
position that requires less skill or experience than they have,
performance. In the studies examined, no study addressing
the research shows that these employees have higher turnover
these two variables on chefs has been encountered. The studies
intentions and lower levels of organizational commitment (Akın
examining overqualification and employee performance have
35
Onat, G., & Eren, D. (2020). Tourism & Management Studies, 16(4), 35-44
and Ulukök, 2016). Presently, businesses wish to work with 2. Literature Review
more qualified employees with higher performance. Therefore,
2.1 Perceived overqualification and employee performance
the effect of perceived overqualification on employee
performance will be discussed in the current study. The concept of overqualification can be examined in two
different ways: subjectively and objectively. From the objective
Nevşehir is a village that was known as Muşkara during the
perspective, overqualification refers to the standard of skills
Ottoman period. In the 18th century, the name was changed to
that individuals must have and an educational level of the
“Nevşehir,” which means “new city” in Persian. This city, also
individual that is higher than that required by the work (Fine,
known as the land of beautiful horses, was an important retreat
2007; Maltarich, Reilly, & Nyberg, 2011). From the subjective
and shelter for the Christian world and escaped Roman
perspective, on the other hand, overqualification is the
pressure after the Hittites. For this reason, there are many
perception that the skills of an individual exceed what is
important museums and historical sites in the region according
required by the work (Maltarich et al., 2011). Subjective
to the history of Doğan and Karakuş (2014), and it is among the
overqualification refers to individuals' perceptions of whether
regions that Christians visit during pilgrimages. At the same
they are overqualified for their current jobs or not (Erdogan et
time, this region is also the center of the fairy chimneys formed
al., 2011). Individuals’ perceptions of their own
by the effects of the Erciyes, Melendiz, and Hasan mountains.
overqualification may not always reflect the reality. In other
Göreme Natural and Historical National Park, which is among
words, an individual who does not have the knowledge, skills,
the regions where fairy chimneys are most intense, is included
abilities, and education level required for the work may
on the UNESCO World Natural and Cultural Heritage list. The
consider himself to have those qualifications. This comes to the
region, with its unique appeal, is rare in the world. Nevsehir is a
forefront as the main difference that distinguishes subjective
city that does not have advanced job opportunities in industry;
overqualification from objective overqualification (Maltarich et
however, it is among the most important tourism centers in
al., 2011:236–237; Maynard et al., 2015:211).
Turkey. Therefore, tourism activities are given importance in
the region. The dry cream, wine, pumpkin seeds, pottery, and The concept of perceived overqualification was discussed by
ceramics of the Kaymaklı region (which is a town of the Nevşehir Kristof-Brown (2000:53) in the context of demand-ability
region) are noteworthy as tourist products. In this region, there mismatch. The term “demand” represents the requirements of
is hot air ballooning, trekking, mountain biking, horseback the work within the organization, while “talent” refers to the
safaris, ATV trips, church visits, vintage events, etc., available as level of knowledge, skills, training, experience, and other
tourist activities (Tanıtma Genel Müdürlüğü, 2020). According possible qualifications of the person performing the work. In
to the 2019 data, there are 111 accommodation enterprises other words, demand-ability mismatch means that the
with tourism operation certificates and tourism investment individual has more knowledge, skills, training, experience, and
certificates in the region, which has developed in a way that is other possible qualifications related to the work. Therefore, the
considered to be significant thanks to tourism. The total bed current study focuses on the concept of perceived
capacity of these hotels is 11,230. A total of 3,834,134 people overqualification. Person-job (PJ) cohesion is one of the
visited the region in 2019. The number of tourists visiting narrower scopes of person-environment cohesion (PE) and
Nevsehir, compared to the number of tourists who visited expresses the harmony between an employee's characteristics
Turkey (51,860,042), constitutes about 7% (TUIK, 2020; and the job or task (Krıstof-Brown, Zımmerman, and Johnson,
Nevşehir Provincial Culture and Tourism Directorate, 2020). The 2005). There are basically two types of PJ compatibility. One of
city of Nevsehir, which is so important in terms of tourism, was these is demands-talents, and the other is needs-facts (Krıstof-
selected as the study region. Brown et al., 2005; Arvan, Pindekb, Andelc, & Spectora, 2019).
What is addressed here is the demand-ability fit. In the context
In a study conducted on the Nevşehir region, cultural tourism was
of perceived overqualification, there is no person-job fit. As a
identified as the main motivation source for tourists visiting the
result, it is observed that individuals experience lower
region (Aslan, Güneren, & Çoban, 2014). But gastronomic
organizational commitment and job satisfaction (Fine and
elements are one of the factors that significantly affect the
Nevo, 2008:346). Furthermore, it is regarded as a perception
satisfaction of tourists visiting the region (Aslan et al., 2014;
that escalates the individual's turnover intentions (Maynard
Karakuş, Onat, & Güneren, 2019, Karakuş, Onat, & Güneren,
and Parfyovona, 2013:437; Erdogan & Bauer, 2009:558;
2020). Professional chefs are needed to present these
Maynard et al., 2006:549).
gastronomic elements to tourists. Because the importance given
to food increases day by day, the number of tourists traveling for Performance is a concept that defines the extent to which
food and beverage is also increasing (Kivela & Crotts, 2006). It is individuals can make use of their potential or actual knowledge
the performance of the chefs that is most important in meeting and skills to achieve their goals or expectations. In other words,
such an important tourist need. For this reason, perceived it is the percentage of a person’s use of his/her capacity to
overqualification variables that are thought to affect the successfully complete a task within a certain period of time
performance of chefs were considered worthy of investigation. (Kaynak et al., 1998). More specifically, the concept of
performance is defined as the degree to which the goal is
36
achieved. Performance refers to what extent an organizational “Someone with less education than myself could perform well
goal is reached by an individual, group, work unit, or firm on my job”; “My previous training is not being fully utilized on
through performing predefined tasks (Kasnaklı, 2002). this job”; “I have a lot of knowledge that I do not need in order
to do my job”; “My education level is above the education level
Çoban and Eren (2017) examined employee performance under
required by my job”; “Someone with less work experience than
the framework of organizational performance. According to
myself could do my job just as well”; and “I have more abilities
Kuebg and Krahn (1999), Kueng (2000), Eren (2007), Zerenler
than I need in order to do my job.” The original scale is in the
and İraz (2006), and Özdemir and Yılmaz (2016), employee
format of a 7-point Likert scale. Assessments range from “1 -
performance is one of the factors that increase or decrease
strongly disagree” to “7 - strongly agree.”
organizational performance. In other words, performance
demonstrated by employees plays a great role in paving the The dependent variable in the current study is employee
way for an organization to reach its goals. Employee performance. In order to measure the performance of kitchen
performance, which is of great importance for businesses, can staff in hotel businesses, the employee performance scale
be improved through a number of activities. Compulsory developed by Kirkman and Rosen (1999:67) and adapted by Sigler
practical training provided in culinary schools and universities and Pearson (2000:34) is used. The adapted scale consists of five
plays an effective role in increasing the performance of chefs, items, whereas the original scale is in the format of a 7-point
which have been selected as the sample group for the current Likert scale. Employee performance was assessed using the 5-
study (Bucak & Yiğit, 2018). Furthermore, on-the-job training, item scale of employee performance, as follows: “I complete my
motivation-boosting meetings, increases in salary, and tasks on time”; “I meet my goals”; “I exceed my goals”; “I make
promotions are the sorts of factors that increase employee sure that products meet or exceed quality standards”; and “I
performance (Yılmaz, 2018:103; Uygur, 2007). respond quickly when problems come up.” Assessments range
from “1 - strongly disagree” to “7 - strongly agree.”
In the literature, it is observed that person-job fit is associated
with job performance (Kristof-Brown et al., 2005:317). The As a result of the comprehensive literature review on the scales,
relationship between perceived overqualification and employee it was observed that a great number of studies tested and
performance was discussed in the study of Ünsal Akbıyık (2016a), verified the reliability and validity of the scales used to measure
and it was concluded that perceived overqualification had a perceived overqualification and employee performance. For
negative effect on employee performance. From this point of instance, the performance scale was used by Kirkman and
view, it is predicted in the current study that perceived Rosen (1999), Sigler and Pearson (2000), and Çöl (2008), while
overqualification is associated with employee performance, and the perceived overqualification scale was used by Ünsal Akbıyık
in this context the following hypothesis is proposed to reveal the (2016); Alfes, Shantz, and Van Baalen (2016); and Liu, Luksyte,
relationship between the concepts in question. Zhou, Shi, & Wang (2015). Therefore, it was decided to adopt
the scales in question in the current study as well.
Hypothesis 1: Perceived overqualification has a negative effect
on chefs’ performance. 3.2 Sample and data collection
As indicated in the conceptual model of the current study (see In the current study, the convenience sampling method, which
Figure 1), it is predicted that perceived overqualification will is a non-probability sampling technique, was used as sampling
have an impact on employee performance. tool. In this sampling method, the researcher collects data from
the most easily accessible subjects until reaching the sample size
Figure 1 - Conceptual model
required for the research (Gürbüz & Şahin, 2015:130). The reason
underlying the preference of this sampling method in the current
study is to conduct the questionnaire with as many eligible chefs
as possible to reach in a short time the sample size that will
represent the research population. In this sampling technique,
the ability to represent the research population is low. Since the
data collected from the same population in different time periods
may differ, the collected data cannot be generalized over the
3. Research Methodology population (İslamoglu, 2009).
3.1 Research variables and measurement The research population consists of chefs working in 4- and 5-star
hotels in Nevşehir. According to the data dated October 30, 2018,
In order to measure the concept of perceived overqualification,
obtained from the Nevşehir Provincial Directorate of Culture and
which is the independent variable in the current study, a scale
Tourism, there are 17 4-star and six 5-star hotels operating in
developed by Maynard et al. (2006) is used. The scale consists
Nevşehir. The research was conducted throughout January and
of nine items that assess perceived overqualification, as
February of 2019. A total of 200 questionnaires was handed out
follows: “My job requires less education than I have”; “The work
to kitchen chefs and managers at hotels. Of these, 153
experience that I have is not necessary to be successful on this
questionnaires were returned. However, it was observed that 15
job”; “I have job skills that are not required for this job”;
37
questionnaires were left blank or never filled in. Therefore, those study were developed and used in previous studies; therefore,
forms were excluded from the sample. The number of eligible confirmatory factor analysis was performed to test the
questionnaires was 138. In order to use structural equation reliability of the scales. As a result of confirmatory factor
modeling, the minimum number of samples should be 5 to 10 analysis, two items violating the reliability were excluded from
times greater than the number of observed variables (Gürbüz & the analytical process. Following the exclusion of the items, the
Şahin, 2015:324; Reisinger & Mavondo, 2007:42; Hair, Anderson, normal distribution of the scales was re-tested, and reliability
Babin, & Black, 2010). The number of observed variables in this analysis was re-performed. Finally, structural equation
study is 14. As the number of observed variables is multiplied by modeling (SEM) was conducted since it allows error variances
10 (14 * 10 = 140), the result indicates that the structural to be included in the model and its explanatory power is
equation modeling can be performed in the current study. statistically greater than regression analysis.
3.3 Data analysis 4. Research Findings
The data collected for this study were analyzed in a computer 4.1 Descriptive statistics of respondent employees
environment using SPSS and AMOS programs. In the study,
normal distribution of data was tested via scatter plot matrix Table 1 provides the descriptive statistical data (frequency and
and also on the basis of the skewness and kurtosis values. Since percentage [%]) of the employees who form the sample in the
the research data showed normal distribution, it was continued current study.
with parametric analyses. The scales adopted in the current
Table 1 - Descriptive statistics of the respondents

N Frequency Percentage (%)
Gender 138
Male 87 63.0
Female 50 36.2
Missing value 1 0.7
Age 138
20 and below 3 2.2
21-30 62 44.9
31-40 47 34.1
41-50 20 14.5
51 and above 2 1.4
Missing value 4 2.9
Educational Status 138
Primary School-High School 47 34.1
Associate’s and Bachelor’s Degree 62 44.9
Master’s and Doctoral Degree 21 15.2
Missing Value 8 5.8
Business Status 138
5-star hotel 48 34.8
4-star hotel 86 62.3
Missing value 4 2.9
Professional Experience 138
Less than 5 years 35 25.4
6-10 years 43 31.2
11-15 years 39 28.3
16-20 years 13 9.4
21 years or more 6 4.3
Missing value 2 1,4
Training in Tourism 138
Yes 110 79.7
No 28 20.3
The number of trainings 138
1 14 10.1
2-4 56 40.6
5-7 29 21.0
8-10 6 4.3
11 and more 1 0.7
Missing value 32 23.2
Regarding the gender of the employees involved in the study, it represented 63% of overall respondents. It was noted that the
was observed that the majority (87) were men, who number of women respondents in the study was 50 with a rate
38
of 36.2%. It was observed that 0.7% of the employees who respondents) (40.6%) responded that they attended such
participated in the study left this item unmarked. With regard training events 2–4 times at maximum. It was reported that 14
to the age of the respondent employees, it was observed that respondents had attended once (10.1%), 29 respondents had
44.9% of overall respondents were aged between 21 and 30 attended 5–7 times (21.0%), six respondents had attended 8–
years. In other words, the majority of the respondent 10 times (4.3%), and one respondent had attended 11 times or
employees in the current study was composed of young chefs. more. Since 28 respondents had not been involved in such
Upon examining the other statistics, it was noted that three training before, they left the item unmarked. In addition, the
respondent employees were aged 20 years or below (2.2%), 47 remaining four respondents left the item unmarked despite the
employees were aged 31–40 (34.1%), 20 employees were aged fact that they had attended such training.
41–50, and two employees were aged 50 or above (1.4%). It was
4.2 Psychometric properties
observed that four (2.9%) respondent employees left this item
unmarked. Regarding the educational status of the respondent It is predicted that the variables in the research scale show
employees, it was observed that the majority (62 respondents) normal distribution separately and in combinations with all
was composed of chefs with bachelor’s and associate degrees. variables (Çokluk, Şekercioğlu, & Büyüköztürk, 2018:16-17). In
Upon examining the other statistics, it was noted that the other words, it is assumed that the reciprocal effect of the
number of respondents with primary and high school education variables in the research will show normal distribution (Hair,
was 47 (34.1%), and the number of those with master’s and Black, Babin, & Anderson, 2014:686). Multivariate normality
doctoral degrees was 21 (15.2%). The remaining eight tests can be run graphically and statistically. One of the simpler
respondents left this item unmarked. Regarding the enterprise graphical methods is to examine the histograms for each
status of the hotels where respondent employees worked, the variable by plotting them on the normal curve. Q-Q plots can be
majority of respondents (86 respondents) were employed as shown as the more popular chart type. In this graph, the
chefs at 4-star hotels. The number of respondents from the observations are ascending and graphed to correspond to the
kitchen departments of 5-star hotels was 48 (31.2%). The expected normal scatter plots. The values observed in this chart
remaining four respondents (2.9%) left this item unmarked. are on the X-axis, and the expected values are on the Y-axis. In
Regarding the respondents’ years of professional experience, it charts with normal scatter, points are collected around a
was observed that the majority (43 respondents) had 6–10 straight line. As the values (points) of the variables move away
years of experience in the sector. Other respondents’ years of directly, the deviations from normality increase. As the points
experience are as follows: 35 respondents had less than five approach the line, that is, just above and below the line, it can
years (25.4%), 39 respondents had 11–15 years, 13 respondents be interpreted that the deviations from the norm are not
had 16–20 years (9.4%), and six respondents had 21 years or excessive (Çokluk et al., 2018:15).
more (1.4%). It was observed that the majority of employees
As a result of the Q-Q analysis, it can be said that our data
(110 respondents) (79.7%) had training backgrounds in the field
provides normality.
of tourism. On the other hand, it was noted that 28 respondents
(20.3%) had no training experience in the field. As the In Figure 2, the distribution of normality is given by the Q-Q
respondents were asked about the number of tourism-oriented plots. It is observed that the data in this matrix show a close
training events they had attended, the majority (56 distribution to the line.
Figure 2 - Q-Q plots
Statistically, multivariate normal distribution can be assessed in are presented below. Hair et al. (2014) indicate that the threshold
the light of skewness and kurtosis values (Hair et al., 2014:31-32; value of normality should be ±2.58 at the significance level of 0.01
Çokluk et al., 2018:16; Tabachnick & Fidell, 2014:113). Levels of and ±1.96 at the significance level of 0.05. As a result of the
significance differ at critical skewness and kurtosis values which skewness and kurtosis tests (p > 0.05), it is noted that skewness
39
values range between -0.869 and 0.076 and kurtosis values range Salvation, 2010:189). Although exploratory factor analysis is
between -1.112 and -0.105. Since the analysis results fall into the generally performed at the first stage of the research, it is
range of the recommended values, it will undergo parametric mostly conducted to determine under which factor the
tests in the following stages of the study. measurement items accumulate. In general, it is employed in
research of an exploratory nature. It is performed to explore the
The reliability coefficient of the scales in a study should be
construct within variable sets of a newly developed
minimum (Cronbach’s alpha) and/or greater than 0.70 (Hair,
measurement scale. Basically, in this analysis, it is not possible
Anderson, Tatham, & Black, 1998). In other studies in the
to predict in advance the number of factor groups under which
literature, 0.60 and 0.50 are also considered acceptable. In the
the correlations between variables will accumulate. The
current study, an acceptable threshold of reliability was
researcher conducting the study examines the dimensions
determined to be 0.70. It is observed that the values in Table 2
which are formed as a result of grouping the variables in line
(perceived overqualification: 0.862, employee performance:
with the level of relevance in terms of content and factor
0.817) are above the acceptable level of reliability.
loadings, renames the factors, and defines the dimensions
Factor analysis is an analysis method utilized to test (Kurtuluş, 2010:189). At this point, the fact that the factors to
measurement models that bring together a large number of be formed at this stage show consistency with the theory is of
variables that are linked to one another, and it aims to discover great importance for the explanatory power of the study. On
a small number of conceptually meaningful constructs (factors, the other hand, in confirmatory factor analysis, the researcher
variables) based on the large number of variables, or to identify has a theoretical argument about the measures of a construct
correlations between the factors and their indicators. Factor (Hair et al., 2014:93). In the scope of CFA, the correlations laying
analysis is one of the statistical techniques used to obtain out the foundation of the construct formed by the variables are
evidence for construct validity in the scope of studies in the put forward through validation of the theoretically developed
social sciences where the main purpose is to develop or adapt specific hypotheses. In general, CFA is performed to identify
a scale and in studies where an already-developed scale is used whether the original construct of the previously used
for a different purpose or on a different sample (Çokluk et al., measurement scales is verified via the collected data in the
2018:177- 178; Tabachnick &Fidell, 2014). study (Gürbüz & Şahin, 2015:326). Whether the model formed
as a result of the confirmatory factor analysis and the collected
Factor analysis is divided into two categories as exploratory
data fit one another is assessed in light of the goodness-of-fit
factor analysis (EFA) and confirmatory factor analysis (CFA)
indices. The goodness-of-fit indices of SEM and CFA in the
(Çokluk et al., 2018:177-178; Tabachnick and Fidell, 2014:614;
current study are presented in Table 2.
Table 2 - Goodness-of-fit indices of SEM and CFA

Fitness Criteria Good Fit Acceptable Fit References
Overall Fitness of the Model
χ2/df 0 ≤ χ2/df ≤ 2 2 < χ2/df ≤ 5 Byrne, 2010
p value .05 < p ≤ 1.00 .01 ≤ p ≤ .05 Gürbüz and Şahin, 2015: 329
Comparative Fit Indices
RMSEA 0 ≤ RMSEA ≤ .05 .05 < RMSEA ≤ .08 Schermelleh-Engel, Moosbrugger, and Müller, 2003
IFI .95 ≤ IFI ≤ 1.00 .90 ≤ IFI < .95 Marsh and Hau, 1996; Hair et al, 2010; Byrne, 2010
NFI .95 ≤ NFI ≤ 1.00 .90 ≤ NFI < .95 Hair et al, 2010; Byrne, 2010
NNFI .95 ≤ NNFI ≤ 1.00 .90 ≤ NNFI < .95 Mulaik et al., 1989
CFI .95 ≤ CFI ≤ 1.00 .90 ≤ CFI < .95 Bentler, 1992; Hu and Bentler, 1999
Absolute Fit Indices
GFI .90 ≤ GFI ≤ 1.00 .80 ≤ GFI ≤ .89 Marsh, Balla and McDonald, 1988
Doll, Xia and Torkzadeh, 1994
AGFI .90 ≤ AGFI ≤ 1.00 .80 ≤ AGFI ≤ .89 Gürbüz and Şahin, 2015: 329
SRMR 0 ≤ SRMR ≤ .05 .05 < SRMR ≤ .08 Doll, Xia and Torkzadeh, 1994
The root mean square error approximation (RMSEA) is mostly is determined by comparing the model with the independence
the comparative fit index preferred in large samples. It is an model/absence model, which assumes that there is no
index used to determine the population covariances in the relationship between the variables. In other words, the
decentralized Chi-square distribution (Meydan & Sesen, independence model compares the covariance matrix and the
2015:34). proposed model's covariance matrix (Meydan and Sesen,
The comparative fit index (CFI), compared to NFI and NNFI, is a 2015:34).
less sensitive comparative fit index. The harmony of the model
The goodness-of-fit index (GFI) is the absolute fit index for
40
evaluating the model fit independently of the sample size. It of the variables are not taken into account. SRMR was also
shows how much the GFI model, which is similar to R2 in developed to close this gap (Schermelleh-Engel et al., 2003:12).
multiple regression, measures the covariance matrix in the
In the non-normed fit index (NNFI), the model's Chi-square
sample. In other words, it deals with the amount of variance
value is added to the Chi-square ratio of the independent model
and covariance that can be explained by the model (Meydan &
and the degree of freedom (df) of the model (Meydan & Sesen,
Sesen, 2015:34).
2015:33). The term TLI (e.g., in AMOS software) is also a
The normed fit index (NFI) is the preferred comparative fit for comparative fit index used instead of the NNFI.
most large samples, and it is found by determining the ratio of
The incremental index of fit (IFI) uses a calculation that is
the tested model to the Chi-square value of the independent
essentially the same as NFI and is based on sample size and
model (Meydan & Sesen, 2015:33).
parsimony. Unlike the NFI, the degree of freedom is also taken
The adjusted goodness-of-fit index (AGFI) is the absolute fit into account (Byrne, 2010:79).
index preferred for larger samples and is a regulated form of
In the current study, the perceived overqualification scale
the GFI where the sample width is taken into account. More
developed by Maynard et al. (2006) and the employee
parameters are released and based on the correction to the
performance scale developed by Kirkman and Rosen (1999:67)
model's degree of freedom (Meydan & Sesen, 2015:35).
and adapted by Sigler and Pearson (2000:34) were used. Since
The standardized root mean square residual (SRMR), in addition the scales in the present study were adopted from previous
to being a general fit measurement based on the fit of values studies, the multi-factor first-order CFA analysis was performed
(such as RMR), depends on the variance and covariance sizes of to determine whether the measurement constructs are
the observed variables. This makes it almost impossible to validated by the collected data. The results of the multi-factor
decide whether the RMR value fits well or badly when the scales first-order CFA are provided in Table 3.
Table 3 - Results of first-order multi-factor CFA

Model Dimension Item Factor Loading CR AVE
PO.1 0.62
PO.2 0.712
PO.3 0.676
PO.4 0.691
Perceived
PO.5 0.873 0.883 0.50
Overqualification
PO.6 0.611
(PO) PO.7 0.73
1st Order
PO.8 0.654
EP.2 0.678
EP.3 0.777
EP.4 0.72 0.818 0.530
(EP)
EP.5 0.735
Fit indices: χ2/df= 1.334; CFI= 0.971; P= 0.56; GFI= 0.933; AGFI= 0.900; RMSEA= 0.049; TLI= 0.963; SRMR= .055
Following the confirmatory factor analysis, the items PO.9 (“I collected data. The ranges of the other goodness-of-fit indices
have more skills than required to perform my job”) and EP.1 (“I are provided in Table 2.
fulfill my tasks on time”) were excluded from the analysis as 4.3 Hypothesis testing with AMOS
their factor loadings were below 0.50, which hindered the The main objective of structural equation modeling (SEM) is to
verification of convergent validity and discriminant validity. For test a set of correlations between one or more independent
convergent validity, the average variance extracted (AVE) and variables and one or more dependent variables (Gürbüz &
composite reliability (CR) values were tested on the basis of Şahin, 2015:323). The structural model developed in the scope
each latent variable. The AVE values and factor loadings must of the current study employs one independent and one
be greater than 0.50 while CR values must be greater than 0.70 dependent variable. This model can be tested via classical
(Hair et al., 2014:619; Dedeoğlu, Balıkçıoğlu, & Küçükergin, methods of analysis. Nevertheless, the reason underlying the
2015:9; Dedeoğlu, 2019:523). In SEM, the researcher predicts a preference of SEM in the present study is that SEM, unlike the
fit between the theoretical argument and the data; therefore, classical methods of analysis, incorporates statistical error
x2 is supposed to be deemed insignificant. The x2 value is highly variances into the analytical process and thus increases the
dependent on the sample, and it is generally deemed significant explanatory power of the model. Furthermore, in classical
at sample sizes of n < 200 (Gürbüz and Şahin, 2015:329). In the methods of analysis that aim to test the correlations between
current study, the x2/df (1,334) and p (0.56) values are at the the constructs, it is difficult to test a specific model in a holistic
expected levels; in other words, the model is validated by the way. However, in SEM, whether a research model involving
41
different correlations is holistically verified by the research data hypothesis developed based on the current literature. The
can be assessed based on goodness-of-fit indices. In the scope findings of the SEM analysis are provided in Table 4 in detail.
of the study, SEM was conducted to test the model and the
Table 4 - Results of structural equation modeling (SEM) analysis

Std. Factor
Hypothesis Relationship t value P value R2 Result
Loading (β)
H1 PO EP -0,446** -3,973 <.001 0,20 supported

Fit indices:X2/df=
1,334; CFI= 0,971; GFI= 0,933; AGFI= 0,900; RMSEA= 0,049
**p<.01
PO= Perceived Overqualification; EP= Employee Performance
As seen in Table 4, perceived overqualification affects employee managers and business owners so as not to lose their jobs.
performance negatively and significantly (β = -0.446; t = -3.973; Nevertheless, those individuals will have higher turnover
p < .001). Therefore, H1 is supported in the light of this finding. intentions as they perceive better job opportunities in the
In parallel with the findings in Table 4, employee performance business world. Furthermore, they may have lower job
is predicted to decrease by -45% in the event of one-unit performance, as well. In addition, individuals becoming aware
alteration in perceived overqualification. The goodness-of-fit of the fact that they are highly overqualified may start showing
indices provided in the structural model are a part of the greater interest in other job opportunities. Consequently, the
goodness-of-fit indices presented in Table 2. job performance required for an organization to reach its goals
begins decreasing, which is an undesirable condition for
5. Conclusion and Recommendations
organizations. Therefore, organizations must make sure that
The current study discusses how perceived overqualification they take all necessary measures to avoid such a situation.
affects employee performance. It was predicted that employee
In the current study, it is observed that perceived
performance would decrease as individuals’ perceived
overqualification explains employee performance by -45%. In
overqualification increased. As a result of the analysis, it is put
the literature, employee performance is explained by such
forward that perceived overqualification affects employee
concepts as organizational justice (Kalay, 2016), organizational
performance negatively and significantly. In other words,
commitment (Uygur, 2007), perceived empowerment (Çöl,
employees may engage in lower job performance when they
2008), employee competence (Eren and Onat, 2018; Karakuş,
perceive that they have more skills than is required by the job.
Onat, & Ardıç Yetiş, 2018), burnout (Lee, Migliaccio, Lin, & Seto,
More clearly, this condition results in the fact that employees
2020), high performance business practices (training,
do not use their knowledge and skills to achieve organizational
empowerment, rewarding) (Karatepe, 2013), and creativity
goals. In this case, for hotels in Turkey, such a condition can
(Ngo, Nguyen, Lee, & Andonopoulos, 2020). This study has
cause some disruption—for example, by employees slowing
attempted to explain employee performance through
down work in the kitchen, failing to fulfill orders, or doing
perceived overqualification, and this is the limitation of the
incomplete work. This can affect businesses through economic
study. Future research may encompass other concepts
cost and loss of customers. As to the reasons why chefs might
explaining employee performance, and those concepts may be
consider themselves to be overqualified, the following opinions
tested via complex models, and thus, the explanatory power of
are included in the literature: not seeing themselves as higher
employee performance can be increased.
than the organization, not finding that they belong to that
organization and not seeing the value they deserve, not getting The objectives of this study were: to reveal the effect of
the fee they deserve, not using the knowledge and experience perceived overqualification on employee performance, to make
they gained at school adequately in that workplace, etc. recommendations for the literature and practice as a result of
(Maynard & Parfyovona, 2013; Erdogan & Bauer, 2009; the research, to fill the gap in the literature, and to guide future
Maynard et al., 2006). It is seen that the findings of the current studies. As a result of this research conducted on chefs, a
study show parallelism with the findings of other studies in the negative and significant relationship was found between the
literature (Ünsal Akbıyık, 2016a; Ünsal Akbıyık, 2016b; Erdogan perceived overqualification and employee performance. As a
et al., 2011: 266; Kristof-Brown et al., 2005). As highlighted by result of the research, suggestions for the literature and
Holtom, Mitchell, Lee, & Eberly (2008) in their study on practice were made. This work on chefs contributes to fill the
turnover intention and willingness to stay in the organization, gap in literature.
when individuals perceive alternative job opportunities, they
It is anticipated that the findings of the current study will
have lower job performance, and those working with ambition
contribute to the literature. In this regard, the current study has
will engage in such attitudes and behaviors that lead to a higher
revealed the fact that perceived overqualification affects
turnover intention. In such a country as Turkey where the
employee performance negatively and significantly. Taking into
unemployment rate is high, overqualified individuals may
consideration this finding, it is recommended that organizations
continue fulfilling the tasks and responsibilities assigned by
42
give weight to the PJ fit during the hiring process. The hotels in Dedeoglu, B. B. (2019). Are information quality and source credibility
the Nevşehir region should determine the requirements of the really important for shared content on social media? The moderating
role of gender. International Journal of Contemporary Hospitality
positions in the company in detail when hiring chefs and should Management, 31(1), 513-534.
ensure that the chefs know these detailed instructions during Dedeoğlu, B. B., Balıkçıoğlu, S., & Küçükergin, K. G. (2015). The role of
the recruitment process. At the same time, the recruitment of touristsʼ value perceptions in behavioral intentions: The moderating
chefs can be undertaken by conducting interviews and practices effect of gender. Journal of Travel & Tourism Marketing, 33(4), 513-534.
incorporating these requirements. In this way, the desired Doğan, N. Ö., & Karakuş, Y. (2014). Evaluating the service quality in the
tourism industry using QFD-AHP integrated method: an application on
employee-work harmony will more likely be achieved. In
Göreme Open Air Museum. In Süleyman Demirel Üniversitesi İktisadi ve
addition, orientation training can be provided to the hired chefs İdari Bilimler Fakültesi Dergisi (Vol. 19). Retrieved from
to achieve employee-business harmony. The losses mentioned http://dergipark.ulakbim.gov.tr/sduiibfd/article/view/5000122023
above for the hotel business will be minimized in the Doll, W. J., Xia, W., & Torkzadeh, G. (1994). A confirmatory factor
analysis of the end-user computing satisfaction instrument. MIS
enterprises where employee-work harmony is achieved.
quarterly, 453-461.
Commitment to the organization can be increased by providing
Erdogan, B., & Bauer, T. N. (2009). Perceived overqualification and its
motivational meetings, occupational safety training, and in- outcomes: The moderating role of empowerment. Journal of Applied
house training (e.g., knife use techniques, cake making Psychology, 94(2), 557.
techniques, new cooking techniques, information on how to Erdogan, B., Bauer, T. N., Peiró, J. M., & Truxillo, D. M. (2011).
use new technologies in the kitchen) to new chefs. Additionally, Overqualified employees: Making the best of a potentially bad situation
for individuals and organizations. Industrial and Organizational
organizations can eliminate employees’ negative attitudes and Psychology, 4(2), 215-232.
behaviors towards the organization by increasing the material Eren, D. (2007). Örgütsel hizmet odaklılığın işetme performansı
and immaterial acquisitions/profits distributed to the üzerindeki etkisi: konaklama işletmelerinde bir uygulama. Doktora Tezi,
employees. At the same time, the fact that executives in Erciyes Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı,
Kayseri.
organizations adopt performance-based remuneration systems
Eren, D., & Onat, G. (2018). İçsel Pazarlama Faaliyetlerinin İşgören
in the context of assigning tasks and responsibilities can provide
Yetkinliği Üzerine Etkisi: Nevşehir’deki Otel İşletmelerinde Bir
a positive contribution to the efficiency of such organizations. Uygulama. Nevşehir Hacı Bektaş Veli Üniversitesi Sosyal Bilimler
Enstitüsü Dergisi, 8(1), 58-76.
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44
Media Ekonomi dan Manajemen, Volume 37 Issue 1, January 2022, 109-126
EMPLOYEE PERFORMANCE ANALYSIS BASED ON HUMAN RESOURCES

MANAGEMENT PRACTICES IN PRIVATE HOSPITAL IN SURAKARTA
Rini Handayani
Department of Management, Atma Bhakti Institute of Economics, Surakarta, Indonesia
Email: rini.handayani@stie-atmabhakti.ac.id (corresponding author)
Kasidin
Department of Management, Atma Bhakti Institute of Economics, Surakarta, Indonesia
Email: kasidin@stie-atmabhakti.ac.id
Received: September 2021; Accepted: December 2021; Available online: January 2022
Abstract
Human resource management (HRM) is the foundation to face business competition. Organizational
strategies related to HRM create satisfaction among employees so that employees perform well and can
create a competitive advantage for their organization. The need for human resources in the hospital
industry has developed along with the availability of hospitals reaching 2813 hospitals in Indonesia.
This of course requires superior human resources performance. HRM practices are expected to drive
human resources performance and achieve a competitive advantage in the hospital industry. This study
will examine the effect of HRM practices, namely training, performance appraisal, and compensation
systems on employee performance. Furthermore, this study will also examine the role of job satisfaction
to mediate HRM practices on employee performance. The study was conducted in a private hospital in
the Surakarta area with a sample of 120 respondents. Convenience sampling technique as a sampling
method used to collect samples using a questionnaire. SmartPLS is used to analyze research data. The
results showed that there was a significant positive effect on HRM Practices (training, performance
appraisal, compensation system) on employee performance. However, job satisfaction only mediates
the effect of performance appraisal and compensation system on employee performance, while job
satisfaction does not play a role in mediating the effect of training on employee performance.
Keywords: HRM Practices; Training; Performance Appraisal; Compensation Systems; Employee
Performance.
Abstrak
Manajemen sumber daya manusia (SDM) menjadi pondasi untuk menghadapi pesaingan bisnis.
Strategi organisasi yang terkait dengan manajemen SDM menciptakan kepuasan di antara karyawan
sehingga karyawan berkinerja baik dan mampu menciptakan keunggulan kompetitif bagi
organisasinya. Kebutuhan SDM pada industri rumah sakit mengalami perkembangan seiring dengan
tersedianya rumah sakit mencapai 2813 rumah sakit di Indonesia. Hal ini tentu membutuhkan
kinerja SDM yang unggul. Praktek manajemen SDM diharapkan dapat sebagai pendorong kinerja
SDM dan mencapai keunggulan kompetitif industri rumah sakit. Penelitian ini akan menguji pengaruh
praktek manajemen SDM yaitu training, penilaian kinerja, dan system kompensasi terhadap kinerja
karyawan. Selanjutnya penelitian ini juga akan menguji peran kepuasan kerja untuk memediasi
Praktek Manajemen SDM terhadap kinerja karyawan. Penelitian dilakukan di rumah sakit swasta
wilayah Surakarta dengan sampel sebanyak 120 responden. Teknik convenience sampling sebagai
metode sampling yang digunakan dengan pengumpulan sample menggunakan kuesioner. SmartPLS
digunakan untuk menganalisis data penelitian. Hasil penelitian menunjukan adanya pengaruh positif
signifikan pada Praktek Manajemen SDM (training, penilaian kinerja, sistem kompensasi) terhadap
kinerja karyawan.Namun kepuasan kerja hanya memediasi pengaruh penilaian kinerja dan system
kompensasi terhadap kinerja karyawan sedangkan kepuasan kerja tidak berperan memediasi pengaruh
training terhadap kinerja karyawan.
Katakunci: Praktek Manajemen Sumber Daya Manusia; Training; Penilaian Kinerja; Sistem
Kompensasi; Kinerja Karyawan
p-ISSN: 0854-1442 (Print) e-ISSN: 2503-4464 (Online) 109

How to Cite: Handayani, R. & Kasidin, K. (2022). Employee Performance Analysis Based on Human Resources Management
Practices in Private Hospital in Surakarta. Media Ekonomi dan Manajemen, 37(1), 109-126. doi:
http://dx.doi.org/10.24856/mem.v37i1.2428.
INTRODUCTION (Japlani. A. & Purnamasari, 2020; Subekti,

The dynamic business environment 2021), compensation system (Hee & Jing,
requires every organization to maximize its 2018; Shanty & Mayangsari, 2017). This
strategic capabilities to take advantage of causes the company to pay less attention to
business opportunities and achieve superior the company's HRMP. However, several
performance compared to its business studies provide results that point to a
competitors. Human resources, as significant influence of HRMP on
organizational resources, are critical in organizational performance (Hassan, 2016;
ensuring that an organization's backbone is Taib et al., 2018). Organizations can adopt
strong enough to obtain a competitive HRMP to attract or retain talented members
advantage in the marketplace. Effectiveness of the organization to achieve their
of human resource management is needed organizational goals (Mohamed, 2014; Nor,
to support organizational performance, for 2018).
that employees as the main organizational To strengthen the theory of HRM in
resources are in a strategic position to be developing countries and based on the
able to create a competitive advantage existing gap research in HRMP on
(Allameh et al., 2014; Khan, 2010; Taib et employee performance, job satisfaction is
al., 2018) because human resources in each one of the possible variables to mediate
organization vary, they have unique research gaps on HRMP and employee
characteristics and cannot be imitated performance. HRMP fosters employee
(Shaukat et al., 2015). Effective human confidence so that they can work
resource management practices directly enthusiastically, optimally and obtain job
impact the performance of an organization satisfaction. Kondisi tersebut nantinya akan
and its ability to obtain a competitive edge menumbuhkan efektifitas kerja dan kinerja
(Chukwuka Ernest J., 2016; Rawashdeh & pegawai serta keunggulan bersaing
Al-Adwan, 2012). This is a fact that human organisasi (Alsafadi & Altahat, 2021;
resources play an essential role in Astuti et al., 2020; Pradhan et al., 2017).
managing the life and long-term viability of Job satisfaction can be interpreted as
a company's operations since human a person's level of happiness and comfort
resources are responsible for carrying out with the organization or work he does
the organization's policies, programs, (Rodjam et al., 2020). Employees will feel
objectives, and goals. Good human happier and more comfortable at work if
resource management practices (HRMP) employees are in a good work environment
contributes to the creation of a good and an organization that supports the
organizational climate so that it will achievement of their task completion. In the
provide opportunities for the development hospital industry, job satisfaction of
and proper distribution of work for hospital staff is very crucial because it will
members of the organization and create a have an impact on excellent service to
pleasant working relationship. patients and will have an impact on patient
Research on HRMP in developing satisfaction, lower medical costs, and will
countries so far has received less attention ultimately make hospitals more competitive
(Aycan et al., 2000; Hassan, 2016; (Chaudhury, 2015). HRM efforts are
Mahadevan & Mohamed, 2014). Even needed to be able to build employee job
some studies show that employee satisfaction which ultimately affects
performance is not influenced by HRMP, employee and company performance.
for example training (Azis. et al., 2019; In this research, job satisfaction will
Ingsih et al., 2021), performance appraisal play a mediating role between HRMP and
110 p-ISSN: 0854-1442 (Print) e-ISSN: 2503-4464 (Online)

employee performance. A good HRMP will force in the organization. Where every
foster employee satisfaction at work which organization is not only formed by people,
in the end the level of comfort and it will also shape the behavior of the people
happiness will improve their performance involved in it, get their services
at work. Rodjam et al. (2020) argue that reciprocated, refine their skills, motivate
when employees are satisfied, they will do them to achieve superior performance, and
various things that are positive and will ensure that they continue to maintain their
have an impact on the success of the commitment to the organization.
organization. A strategic approach needs to be
Furthermore, this research will be taken to manage working relationships that
conducted in the service industry sector, focus on individual abilities to obtain a
namely private hospitals. Hospitals in sustainable competitive advantage (Jocom
Indonesia have tremendous growth. Based et al., 2017). This is achieved through an
on data from the Ministry of Health in integrated and unique set of policies,
March 2019, hospitals reached 2813. This programs, and employment practices
is balanced with the high demand for (Bratton & Gold, 2003). HRMP is designed
human resources. Hospital performance, of and implemented so that it can attract,
course, cannot be achieved if it is not motivate and even retain employees. It aims
supported by the superior performance of for the sustainable survival of the
its employees because, in hospitals, organization (Schuler & Jackson, 1987).
medical personnel is the arteries that HRMP expert training (Karim et al., 2019),
maintain the sustainability of the hospital performance appraisal (Khan. et al., 2018;
industry. This causes HRMP to be Rahahleh et al., 2019), compensation
indispensable in the hospital industry. system (Onuorah et al., 2019; Siddiqi &
HRMP in this study is training, Tangem, 2018) encourage employees to
performance appraisal, and compensation work better to improve organizational
system. Management of employees as performance.
company resources is expected to be the
key to the company's success because it Human Resources Management Practise
supports the company's business strategy. (HRMP) And Employee Performance
The purpose of this study was to investigate Rapid changes in the business
the impact of human resource management environment force the business world to
practices (HRMP), which include training, adopt HRMP so that they to seize the
performance appraisal, and remuneration market and maintain business sustainability
systems, on employee performance in testing the influence of HRMP on
private hospitals, as mediated by job employee performance has been tested by
satisfaction. Through the role of the several studies.
employee job satisfaction construct as a
mediation, it is hoped that this research can Several studies in various industrial
provide information about human resource sectors show the influence of HRMP on
management practices and help experts in employee performance (Croucher et al.,
the HRM field to improve employee 2012; Hassan, 2016; Mira et al., 2019; Taib
performance, especially in the private et al., 2018). Most showed a significant
hospital service industry. effect of increasing employee performance
from the HRM practice. Employee
LITERATURE REVIEW performance is an important factor that acts
Human Resource Management as a driver of organizational performance.
Chukwuka Ernest J. (2016) rgues A well-executed HRMP will bring
that human resource management considers organizational success (Nor, 2018; Shaukat
the dimensions of people as the driving et al., 2015).

Ghebregiorgis and Karsten (2006) Karim et al., 2019; Younas et al., 2018;
argues that the community's economic Zhavoronkova et al., 2018).
conditions, political instability and
environmental uncertainty will affect H1a: Training affects employee
HRMP, among others, on recruitment, performance
performance appraisal, training,
compensation and reward systems. Carlson Effect of performance appraisal on
et al. (2006) found that providing employee performance
competitive compensation, attractive Observations on the impact of the
recruitment and performance appraisal effectiveness of performance appraisal on
systems, and providing training & employees have not been widely carried
development to employees all affect out, especially in the Asian region
employee performance. While Tessema (Shahzad et al., 2008). Performance
and Soeters (2006) studied eight HRMPs appraisal is a systematic evaluation of the
that had a significant and positive effect on work of employees and aims to motivate
perceived performance, including employees in carrying out their work
retirement or social security, training, (Singh, 2004; Wan et al., 2002). Companies
complaint practices, placement, promotion, can take advantage of employee
recruitment and selection, compensation performance appraisals to improve
practices, and performance evaluation. employee performance. As stated by Sels
(2003) that the performance appraisal set
Effect of Training and Employee by the company will motivate employees to
Performance work more productively and achieve good
Tzafrir (2005) believes that the performance.
training provided to employees is an Several studies have the opinion
important part of building human resource that performance appraisal can close the
competencies. Training is given to make performance gap between employees,
changes through new skills or improve the therefore clarity is needed in conducting
skills that employees already have. performance appraisals. Accurate and fair
Training can initiate employees in performance appraisals focus on employee
completing their work so that it has an performance behavior and not on employee
impact on achieving the organization's personal characteristics (Ghauri, 2012).
long-term goals (Laird et al., 2003). Performance appraisal has the toughest
Therefore, the company has an interest in challenge regarding subjectivity but several
designing the right training program so that researchers have identified a positive
it fits the needs of employees and the influence between performance appraisal
company. on employee performance (Khan, 2010;
Training plays an important role in Khan. et al., 2018; Meysen et al., 2012).
creating and improving employee
H1b: Performance appraisal affects
competence and productivity so that later it
employee performance
can produce superior employee
performance (Cardon & Stevens, 2004; Effect of Compensation System on
Castilla, 2005; Qureshi & Mohammad, employee performance
2006). In addition, training will motivate Employees are motivated to perform
employees to engage in important well because of the compensation structure.
organizational activities in order to achieve In exchange for their efforts on behalf of
organizational targets (Bolman & Deal, the company, employees receive a salary or
2011). Research shows a significant effect other form of remuneration. (Hafiza. N. S
of training on employee performance et al., 2011) defines compensation as the
(Chełmecka, 2018; Jocom et al., 2017; accumulation of benefits earned by

employees for their efforts in the employees find problems at work they will
organization's job obligations. Salmela-Aro feel happy and comfortable if they can ask
and Nurmi (2004) mention compensation colleagues. It can be said that training does
as an extrinsic incentive for certain tasks not have a direct influence on employee
performed. performance, but there needs to be a
Performance-based compensation is mediating factor, including satisfaction.
an HRMP that is often used to evaluate and This phenomenon is linear with research
reward employees' efforts (Alqudah et al., Azis. et al. (2019) who argues that training
2014). Several studies indicate that there is has no direct effect on employee
an influence between the compensation performance. Prasetyo (2019) and Alsafadi
system and employee performance (Hafiza. and Altahat (2021) also argue that training
N. S et al., 2011; Hameed, 2014; Siddiqi & mediated by job satisfaction will affect
Tangem, 2018). employee performance.
H1c: Compensation system affects Performance appraisal is important
employee performance for organizations to assess employee work
results and ensure employees have done
The Role of Job Satisfaction Mediates work according to the standards set by the
the Effect of HRMP on Employee organization. In addition, with performance
Performance appraisal, the organization can determine
Employee job satisfaction will be what rewards or punishments will be given
achieved if the expectations or benefits for employee performance. Appraisal
desired by employees can be realized after performance has the aim of increasing the
they do what is their obligation or duty. level of employee job satisfaction through
George and Zakkariya (2018) argue that job recognition of the employee's work (Rais et
satisfaction is an individual's emotional al., 2021). Research from Wandansari
reaction to the results of his work, namely (2019) and Ferdiane et al. (2018) stated that
by comparing the results that have been performance appraisal can affect employee
achieved with the desired results. performance through job satisfaction.
Individuals when they have achieved job Furthermore, compensation is an
satisfaction will be more enthusiastic about important aspect that can also influence
working. Job satisfaction is the key to individual work behavior. A good
improving performance that leads to the compensation system has a positive impact
achievement of organizational goals (Rais on the organization because it will
et al., 2021). Even an organization with a strengthen the main values of the
good work plan will not run well to achieve organization. In addition, organizational
its goals if the employees involved do not goals can be achieved through the
work with pleasure and enthusiasm. establishment of a good compensation
Robbins and Judge (2015) also state that system for its employees. Hartono et al.
happy employees are productive (2021), Sukidi (2016), and Yudianto and
employees. Job satisfaction is one of Aryani (2018) state that the compensation
several factors that can mediate HRMP and system affects employee performance
employee performance (Alsafadi & Altahat, through job satisfaction. Compensation
2021; Rodjam et al., 2020). given appropriately will foster a sense of
Research Ingsih et al. (2021) state satisfaction with the work of employees
that employee performance is not affected and will motivate them to achieve
by the training the company provides for its organizational targets.
employees. Employee performance is not
directly achieved from various materials H2a: Job satisfaction mediates the effect of
delivered during training, but employee training on employee performance
performance can be formed when

H2b: Job satisfaction mediates the effect of management approach that can be used to
performance appraisal on employee achieve competitive advantage through
performance human resource development strategies.
H2c: Job satisfaction mediates effect of Several studies have shown that HRMP
compensation system on employee (training, performance appraisal,
performance compensation system) has a direct
influence on employee performance
Research Framework (Hafiza et al., 2011; Hameed, 2014; Karim
mployees are a very valuable et al., 2019; Khan. et al., 2018; Siddiqi &
resource in an organization where the Tangem, 2018; Younas et al., 2018) or
success or even the sustainability of the through job satisfaction (Alsafadi &
organization is strongly influenced by Altahat, 2021; Azis. et al., 2019; Hartono et
employee performance. Therefore, the al., 2021; Ingsih et al., 2021; Yudianto &
performance of employees is very Aryani, 2018).
important to the organization. HRMP is a
Training
Employee
Performance
Performance
Appraisal
Compensation
System
Figure 1. Research Framework
Questionnaires will be distributed to 9

RESEARCH METHODS
private hospitals in Surakarta
Qualitative research method to (http://bppsdmk.kemkes.go.id). The
determine the direct effect of HRMP number of samples was determined from
(training, performance appraisal, the Slovin formula with a 90% confidence
compensation system) on employee level. The sample calculation shows the
performance. In addition, it will also minimum number of samples is 96 people.
determine the effect of HRMP on employee However, to anticipate the low response
performance with job satisfaction as a rate in the study, the number of
mediating variable. The population of this questionnaires distributed was added by
study was employees who were medical 25% of the minimum required sample so
personnel, both doctors and nurses at the that in the end the number of samples in
Surakarta private general hospital, this study was 120 respondents. This is
amounting to 2320. The technique used for done so that the adequacy of research data
sampling is non-probability sampling. is still met. Data from respondents were
Convenience sampling was chosen because collected using a questionnaire.
of the limited cost and time in the study.

Measurement of the research Variance Extracted (AVE). Model

instrument with a 5-point Likert scale suitability will be measured by the
collected from respondents' responses to Goodness of Fit value in the range between
evaluate the influence between constructs. 0 -1, namely 0 – 0.25 (small category), 0.25
Employee performance is defined as the – 0.36 moderate category) and above 0.36
overall result of individual work compared (large category).
to the targets and responsibilities that have The research equation formed is:
been set and agreed upon in advance
(Siddiqi & Tangem, 2018). Employee EP = ɣ0+β1*TR+β2*PA+β3*CS+ɣ1*JS+ɛ(1)
performance will be measured by 5 Information : JS: Job Satisfaction, TR:
indicators. Training is defined as a Training, PA: Performance Appraisal, CS:
systematic approach so that individuals can Compensation System; EP: Employee
achieve the knowledge and skills to Performance
complete tasks effectively by increasing the
resulting behavior (Hassan, 2016). Training The decision of the hypothesis in the
will be measured by 4 indicators. The study is based on a significance value of
compensation system is a system that 0.05 and compares the t statistic and t table.
regulates the process of giving salaries or
wages to individuals for the work they have RESULTS AND DISCUSSION
done (Hassan, 2016). The compensation Respondent Characteristics
system will be measured by 5 indicators, The characteristics of the 120
namely adequate salary, driving quality of respondents are shown in Table 1. The
work, routine salary increases, giving majority of the respondents were women as
bonuses, good work benefits. Performance many as 68 people (57%). The age of the
appraisal is defined as a systematic respondents is dominated by respondents
evaluation of the work of individuals in who have the age of 31-40 as many as 46
carrying out the work assigned to them people (38%). The education level of
(Hassan, 2016). Performance appraisal is respondents for the S1 level is the most
measured by 5 indicators, namely objective dominant of 47 people (39%) slightly
and measurable results, achievement of different from those of the diploma level
documented performance goals, as well as respondents as many as 38 people (32%).
work efficiency and effectiveness. Job
satisfaction is the level of happiness of Evaluasi Outer Model
employees regarding the tasks they carry A construct that has composite
out and the conditions of the organization reliability and Cronbach's alpha values
(Rodjam et al., 2020). Job satisfaction will greater than 0.6 is declared a reliable
be measured by 4 indicators, namely the construct (Ghozali. & Latan, 2015). The
job itself, promotion opportunities, fairness results of the reliability test will be
in supervision, and co-workers (Ingsih et presented in table 2. These results indicate
al., 2021). that all constructs have composite
Hypothesis testing using Structural reliability and Cronbach's Alpha values
Equation Model with SmartPLS 3.0 above 0.6. The AVE value has shown a
program. Test the quality of the data using value above 0.5.
validity and reliability tests. The validity of The loading instrument value is
the data is seen by the convergent validity used to measure convergent validity in the
value which refers to the loading factor study. It is expected that the minimum
above 0.70. As for reliability testing, see loading factor value is 0.7 but if the loading
the results of composite reliability and factor value is between 0.5 - 0.6 it can still
Cronbach's alpha, which is at least 0.6 and be tolerated (Ghozali. & Latan, 2015).
a minimum value of 0.5 for Average Figure 2 shows the construct in the study

has a loading factor value above 0.6. This Goodness of Fit (GoF) Test Results
illustrates that the construct used can be Testing the suitability of the model is
used to measure the model proposed in the obtained from the multiplication between
study. n the results of the discriminant the average root value of communailities
validity test, the cross-loading value of the and the average root value of r - square
construct will be shown. According to (table 4). The calculation results show a
(Ghozali. & Latan, 2015), if it is found that value of 0.657. These results can be
the correlation of the construct indicators concluded that the research model has a
has a higher value than the correlation of large GoF. A large GoF value indicates a
these indicators to other constructs, it can match between the research sample and the
be concluded that the construct has high proposed model. The results of these
discriminant validity. Table 3 will present calculations are as follows:
cross-loading indicators between √ ̅̅̅̅̅̅̅ ̅̅̅̅ (2)
constructs.
√
Evaluation of Inner Model and Outer √
Loading
Mediation test results
Tests are carried out to see the The results of the mediation test can
relationship between the constructs and be seen from the indirect effect between the
their significance value. In addition, the constructs of training, performance
value of N Square is also needed in the appraisal and compensation system on
evaluation of the inner model to assess the employee performance with job satisfaction
existence of a substantive effect on the as a mediating construct. The value of
exogenous construct on the endogenous specific indirect effects in the final
construct. Table 4 will present the value of smartPLS report shows the results of the
R Square. mediation test (Table 6).
The R Square value of 0.546 means The results of the mediation test show
that the job satisfaction construct can be that job satisfaction can act as mediation in
explained by construct training, the construct performance appraisal, and
performance appraisal, and compensation compensation system on employee
system by 54.6% while 45.4% can be performance. This can be seen from the
explained by various factors other than the value of the t statistic which is greater than
three constructs. Furthermore, the R Square 1.98 and the value of p-value which is
value of 0.803 means that the construct of smaller than 0.05. However, job
employee performance can be explained by satisfaction cannot mediate the effect of
80.3% of the job satisfaction, training, training on employee performance because
performance appraisal, and compensation the statistical test results show that the
system constructs, while 19.7% can be statistical t value is smaller than 1.98 and
explained outside the four constructs. the p-value is greater than 0.05.

Table 1. Respondent Characteristics

Information Amount Prosentase (%)
Gender :
- Man 52 43
- Female 68 57
Age :
- 20 – 30 20 17
- 31 – 40 46 38
- 41 – 50 33 27.5
- 51 – 60 15 12.5
- Over 60 6 5
Education :
- Senior High School 27 22
- Diploma 38 32
- Bachelor 47 39
- Master 8 7
Source: Processed data, 2021
Table 2. Reliability Test Results

Construct Composite Reliability Cronbach’s Alpha AVE
Training 0.884 0.826 0.655
Performance Appraisal 0.847 0.776 0.527
Compensation System 0.922 0.894 0.703
Job Satisfaction 0.871 0.803 0.628
Employee Performance 0.915 0.884 0.685
Source: Processed data, SmartPLS 2021
Figure 2. Convergent Validity


Table 3. Cross Loading Indicators Between Constructs

Training Performance Compensation Job Employee
Appraisal System Satisfaction Performance
TR 1 0.836 0.508 0.529 0.552 0.636
TR 2 0.799 0.533 0.505 0.436 0.560
TR 3 0.801 0.558 0.625 0.593 0.793
TR 4 0.801 0.435 0.573 0.457 0.601
PA1 0.442 0.720 0.378 0.358 0.453
PA2 0.554 0.749 0.455 0.376 0.577
PA3 0.462 0.791 0.553 0.483 0.534
PA4 0.321 0.667 0.398 0.427 0.437
PA5 0.490 0.695 0.481 0.582 0.610
CS1 0.597 0.551 0.793 0.551 0.703
CS2 0.583 0.534 0.810 0.484 0.583
CS3 0.613 0.550 0.911 0.655 0.691
CS4 0.550 0.460 0.834 0.481 0.696
CS5 0.571 0.556 0.840 0.632 0.614
JS1 0.479 0.427 0.537 0.790 0.512
JS2 0.444 0,476 0.467 0.806 0.510
JS3 0.563 0.469 0.636 0.818 0.625
JS4 0.524 0.604 0.479 0.754 0.633
EP1 0.634 0.493 0.543 0.578 0.760
EP2 0.646 0.619 0.629 0.644 0.861
EP3 0.803 0.645 0.701 0.643 0.889
EP4 0.715 0.649 0.775 0.614 0.876
EP5 0.547 0.614 0.581 0.524 0.743
Tabel 4. Value of R Square

Construct R Square
Job Satisfaction 0.546
Employee Performance 0.803
Table 5. Inner Model Statistical Results

Construct Causality Relationship Estimation t-Statistic p-Value
Coefficient
Training Job Satisfaction 0.235 2.238 0.026
Training  Employee Performance 0.385 5.046 0.000
Performance Appraisal  Job Satisfaction 0.261 2.605 0.009
Performance Appraisal  Employee Performance 0.212 2.728 0.007
Compensation System  Job Satisfaction 0.344 3.655 0.000
Compensation System  Employee Performance 0.275 3.311 0.001
Job Satisfaction  Employee Performance 0.163 2.452 0.015

Table 6. Indirect Test Results

Contruct Original Sample t – Statistic p-value
Training Job Satisfaction Employee 0.038 1.464 0.144
Performance
Performance Appraisal  Job Satisfaction 0.042 1.991 0.047
Compensation System  Job Satisfaction 0.056 2.124 0.034
results of the analysis show that the first
Discussion
hypothesis (b) is accepted means that there
Effect of training on employee perfor-
is an influence of performance appraisal on
mance
the performance of employees of the
The results of the analysis of research
data to see the effect of training on private hospital industry in Surakarta.
employee performance showed that the t Performance appraisal as HRMP
statistic value was (5.046). The value of the needs to be managed optimally.
t statistic is greater than the value of t table Performance appraisal will describe what
(1.98) with a significance value of 0.000 or the employee has done and whether the
less than 0.05, meaning that the first work contributes to the company's goals. In
hypothesis (a) proposed is accepted, the hospital service industry where service
namely that there is an effect of training on is the main thing, it requires employees
employee performance in private hospitals who can carry out their work
in Indonesia. Surakarta. professionally. Performance appraisal can
Training becomes employee motivate employees in carrying out their
motivation to increase knowledge so that duties as well as possible so that it will
employees can do work with optimal have a positive impact on employee
results. Training will improve employee performance. The results of this study are
competence so that they can provide good consistent with research (Khan, 2010;
performance for the company. The hospital Khan. et al., 2018; Meysen et al., 2012).
industry is an industry where its human
resources must have certain specifications Effect of compensation system on
in doing work. Therefore, in the hospital employee performance
industry, training is one way that needs to Analysis of data from research data
be done in HRMP to be able to improve the states that the compensation system on
performance of its employees. The results employee performance shows that the t
of this study are in line with the research statistic value (3.311) is greater than the t
(Chełmecka, 2018; Jocom et al., 2017; table (1.98) with a significance value of
Karim et al., 2019; Younas et al., 2018; 0.001 less than 0.05. This means that the
Zhavoronkova et al., 2018). first hypothesis (c) is accepted, namely the
compensation system affect the
Effect of performance appraisal on performance of private hospital employees
employee performance in Surakarta.
Data analysis to analyze the effect of Hospitals as a service industry in the
performance appraisal on employee humanitarian field are also required to have
performance shows that the value of t quality services. Compensation as the most
statistic (2.728). The value of the t statistic basic component in HRMP can be an
is greater than the value of the t table important factor to improve employee
(1.98). The significance value obtained is performance. Employee performance is an
0.007 which is smaller than 0.05. The important parameter to support customer

service. The compensation system affects role of partial mediation because the
the productivity of an employee at work. A estimated coefficient value of the direct
good compensation system makes effect is greater than the indirect effect. The
employees work better and has a positive results of this study are not different from
impact on their performance. Research the research conducted by Wandansari
results from Hafiza et al. (2011), Hameed (2019) and Ferdiane et al. (2018) which
(2014), and Siddiqi and Tangem (2018) are state that performance appraisal can affect
in line with this study. employee performance through job
satisfaction.
Furthermore, the results of data
The Role of Job Satisfaction Mediates
analysis show that the compensation
the Effect of HRMP on Employee
system affects employee performance
Performance
(estimated coefficient: 0.275; p-value:
Several studies show that employee
0.001) and the mediation test shows that
job satisfaction is a company investment.
job satisfaction can mediate the effect of
Job satisfaction has become a strong
the compensation system on employee
predictor to improve company performance
performance (estimated coefficient: 0.056;
in the long term. Job satisfaction will make
p- value: 0.034). The results of this analysis
employees feel comfortable, happy, and
mean that the second hypothesis (c) is
satisfied in their role to complete their tasks
accepted, which means that job satisfaction
with dedication.
can mediate the effect of the compensation
The results of data analysis show that
system on employee performance. Data
training has a significant effect on
analysis also shows the role of partial
employee performance (estimated
mediation because the estimated coefficient
coefficient: 0.235; p-value: 0.000) but
value of the direct effect is greater than the
training has no significant effect on
indirect effect. The results of this study are
employee performance through job
consistent with the research of Hartono et
satisfaction (estimated coefficient: 0.038; p-
al. (2021), Sukidi (2016), and Yudianto and
value 0.144). This means that the second
Aryani (2018) which state that the
hypothesis (a) is rejected, which means that
compensation system affects employee
job satisfaction cannot mediate the effect of
performance through job satisfaction
training on employee performance. This
study is inconsistent with research that because compensation given appropriately
will foster a sense of satisfaction with the
explains that training has an indirect effect
work of employees and will motivate to
on employee performance (Alsafadi &
achieve organizational targets.
Altahat, 2021; Azis. et al., 2019; Ingsih et
The results of the research analysis
al., 2021; Prasetyo, 2019).
see that job satisfaction can play a role in
The results of data analysis show that
mediating the performance appraisal and
performance appraisal has a significant
compensation system on employee
effect on employee performance (Estimated
performance. Therefore the company must
coefficient: 0.212; p-value: 0.007). The job
be able to provide what can make
satisfaction mediation test shows that the
employees feel comfortable and happy in
influence of performance appraisal has a
completing their duties. This will have an
significant effect on employee performance
impact on its performance later.
with job satisfaction as a mediation
Furthermore, companies need implement
(estimated coefficient: 0.042; p-value:
HRMP by providing adequate salaries,
0.047). This means that the second
bonuses, and benefits as well as other
hypothesis (b) is accepted, which means
compensation systems that can bring job
that job satisfaction can mediate the effect
satisfaction to hospital employees so that
of performance appraisal on employee
they can provide good service to patients
performance. Data analysis also shows the

and will ultimately have an impact on the Observations show that there is research
hospital's competitive advantage. that supports these factors as antecedents of
employee performance. In addition,
CONCLUSIONS companies can implement HRMP such as
training, performance appraisals, and
This research is expected to provide
compensation systems correctly and
information related to HRMP and help
appropriately because human resources are
professionals in the HRM field to be able to
the biggest resources of a company and
improve employee performance, especially
need to be managed properly so that later it
in the private hospital service industry
will have a positive impact on achieving
through the creation of employee job
company goals.
satisfaction. Based on data analysis with
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Int. J. Production Economics 234 (2021) 108075
Contents lists available at ScienceDirect
International Journal of Production Economics

journal homepage: http://www.elsevier.com/locate/ijpe
Impact of COVID-19 outbreak on employee performance – Moderating role

of industry 4.0 base technologies
Gopalakrishnan Narayanamurthy a, Guilherme Tortorella b, c, *
a
University of Liverpool Management School, Liverpool, UK
b
The University of Melbourne, Melbourne, Australia
c
Universidade Federal de Santa Catarina, Florianopolis, Brazil
A R T I C L E I N F O A B S T R A C T
Keywords: COVID-19 outbreak has implied significant changes in the way service organizations work, affecting employees’
COVID-19 routine and activities. At the same time, the advent of Industry 4.0 (I4.0) introduced new technologies that might
Industry 4.0 facilitate such activities, mitigating the COVID-19’s implications. The objective of this research is two-fold. First,
we aim at examining the impact of COVID-19’s work implications on employees’ performance (i.e. output quality
Services
and delivery). Second, we seek to verify the moderating role of I4.0 base technologies on this relationship. We
surveyed 106 employees of different service organizations who have been working remotely during the pandemic
and analyzed their responses through multivariate techniques. Results revealed that COVID-19’s work impli
cations (i.e. home office work environment, job insecurity and virtual connection) do impact employee’s per
formance, although not at the same extent. Further, we found that I4.0 technologies moderate the enhancement
of employee’s performance. However, the orientation and intensity of such moderation may vary according to
the performance metric and work implication under analysis. As COVID-19 outbreak inevitably pushed new ways
of working that can become an integral part of the post-pandemic world, our research provides important
theoretical and practical implications for improving employee’s performance through the digitalization of ser
vice organizations.
1. Introduction exist for both negative and positive directions. Supporting the negative
impact, a recent Deloitte survey in Chinese firms indicated that 46% of
COVID-19 outbreak has pushed almost all the employees around the them expect a reduction in performance due to COVID-19 (Boichenko
world to work in a completely different setting in comparison to what it and Tymchenko, 2020). Increased stress, inadequate infrastructure,
used to be before. COVID-19 triggered interventions such as social missing work environment/colleagues, unrealistic performance expec
distancing, travel restrictions, virtual or remote work, and skeleton tations, impaired manager-employee relationship, and difficulty estab
crews have constrained the continuance of earlier processes, thereby lishing trust with colleagues are the downside of virtual work
changing the way employees work (Gallup, 2020; Tortorella et al., environment (Graves and Karabayeva, 2020), which can negatively
2020a). Such interventions triggered by COVID-19 outbreak introduced impact on employees’ performance. Caputo and Hyland (2020), through
employee behavioral changes, which can transition with multiple a focus group conducted with a sample of 256 employees (mostly from
lockdowns from temporary to long-lasting. Line managers, team leaders U.S. firm), indicated that four out of ten respondents felt that the
and human resources professionals are very concerned about such pandemic would reduce cross-functional collaboration, and 36% of the
behavioral changes as they can influence employees’ emotional, respondents worried about how remote work would impact their
cognitive, and physical wellbeing, which can ultimately impact their work-life balance.
deliverables and performance (Graves and Karabayeva, 2020). Supporting the positive impact, HSBC (2017) revealed that virtual
Clearly, the absorption of COVID-19 triggered interventions by the work is more likely to increase worker productivity than financial in
organizations to contain the its impact on the performance of em centives. Research also showed that firms providing a better work life
ployees. However, the direction of this impact is unclear, as arguments balance through virtual work options pave way for more productive
* Corresponding author. The University of Melbourne, Melbourne, Australia.

E-mail addresses: g.narayanamurthy@liverpool.ac.uk (G. Narayanamurthy), gtortorella@bol.com.br (G. Tortorella).
https://doi.org/10.1016/j.ijpe.2021.108075
Received 25 October 2020; Received in revised form 16 February 2021; Accepted 17 February 2021
Available online 23 February 2021
0925-5273/© 2021 Elsevier B.V. All rights reserved.
G. Narayanamurthy and G. Tortorella International Journal of Production Economics 234 (2021) 108075
workforce as employees feel more motivated (Stevens, 2019). Graves viable model by integrating agility, resilience and sustainability per
and Karabayeva (2020) stated that virtual work provides employees spectives based on the lessons learnt from COVID-19 pandemic. Sai
with flexibility in work, increased availability of time due to the absence leshsingh and Subramanian (2020) introduced ambiguity by studying
of commuting, and more importantly access to better talent around the 2011 Thai Flood and COVID-19 pandemic events and developed
globe that can increase the average individual performance. Considering ambiguity-coping mechanisms. Remko (2020) suggested a pathway for
the above arguments for mixed impact of COVID-19 outbreak on developing more resilient post-COVID-19 operations. Based on a struc
employee performance leads to our first research question (RQ): tured literature review, Queiroz et al. (2020) synthesized the impacts of
RQ1: What is the impact of work implications of COVID-19 outbreak epidemic outbreaks on operations amid the COVID-19 pandemic.
on employees’ performance? However, impact of the pandemic on the management of processes and
Another aspect that lacks clarity is the impact of Industry 4.0 (I4.0) operations, and its associated stakeholders such as employees are yet to
adoption on the linkage between the work implications of COVID-19 be investigated, which has been chosen as the focus of this research.
outbreak and employees’ performance. I4.0 refers to the dawn of a According to a policy brief by International Labor Organization (ILO,
new industrial revolution introduced by the emergence, advancement, 2020), COVID-19 pandemic has turned the world of work upside down.
and convergence of a number of technologies such as additive Unanticipated change introduced by exogenous events such as the
manufacturing, Internet of Things (IoT), blockchain, advanced robotics outbreak of COVID-19 is expected to partially paralyze organizations
and artificial intelligence (Tortorella and Fettermann, 2018; Ivanov and their respective employees, and force them into vulnerable zones
et al., 2019). These technologies have enhanced employees and orga (Williams et al., 2017). Getting pushed into these zones can trigger
nizations performance by establishing real-time connection between the immediate and severe issues that can negatively impact
digital and physical systems. I4.0 is not only capable of reducing costs, business-to-business (B2B) sales employee’s performance (Hartmann
enhancing flexibility, increasing speed, and improving quality, but can and Lussier, 2020). Some of them were issues stemming from greater
possibly dampen the tensions inherent between these key operational remote working and physical unavailability, cancellations and post
priorities and, thereby, influence performance (Olsen and Tomlin, poning of important meetings and events, travel restrictions and border
2020). Linking digital and physical systems using I4.0 is expected to shutdowns by different countries, and greater stakeholder mental and
affect every corner of the operations management (McKinsey 2015) and physical health illnesses, among others. These issues experienced by
will also impact the way employees deal with value-adding processes, employees will reduce their ability and willingness to perform the
especially in the times after the outbreak of COVID-19. Due to the existing tasks and new tasks. Employees continuing to work remotely
scarcity of studies that examine the I4.0’s impact on the relationship after COVID-19 outbreak have higher chances of experiencing anxiety,
between COVID-19’s work implications and employees’ performance, frustration, and burnout, which on getting accumulated can affect their
the below-stated research question was raised: productivity and engagement, leading to delivery of poor-quality output
RQ2: What is the impact of I4.0 technologies on the relationship prone to errors.
between COVID-19’s work implications and employees’ performance? Performance management systems are adopted with an objective to
We answer these two research questions by building the conceptual create alignment and shared understanding of the deliverables and the
model using social construction of technology (SCOT) theoretical lens. pathways (e.g. trainings, mentorship) to achieve those deliverables. The
SCOT theory assumes that the ways in which a technology is used cannot relevance and validity of pre-established performance management
be deciphered without understanding how that technology is embedded systems are lost in a crisis hit context, warranting its revision by
in its social context (Bijker et al., 1987; Douglas, 2012). It argues that contextualizing to the new normal circumstances (Maley, 2013; Gun
technology does not determine human behavior, instead technology is nigle et al., 2019). The fading of relevance and validity of such systems
shaped by the human action (Pinch and Bijker, 1984, 1986; Bijker, leaves the employees without alignment and shared understanding of
2008). To test the hypotheses developed, we collected data from em deliverables, leading to their sub-optimal performance. This is more so
ployees of different service sector firms who have started working from true in the current context post the outbreak of COVID-19. Hartmann
home post COVID-19 outbreak. We received 106 valid responses and and Lussier (2020) studied the impact of COVID-19 outbreak on B2B
analyzed them using multivariate techniques. sales employee’s performance based on the review of
The contributions of this study are two-fold. First, our results have practitioner-oriented articles, interview of B2B organization’s em
shown that the work implications of COVID-19 pandemic have a direct ployees, and a webinar with sales professionals. Using Leavitt’s model of
impact on employees’ performance, especially when considering home organizational change and sociotechnical systems theory, they synthe
office environment. Further, I4.0 base technologies do moderate the sized a rich discussion on the challenges introduced by COVID-19
work implications originated by the COVID-19 outbreak on employees’ outbreak that can reduce the performance of B2B sales employee.
performance, although the orientation of such moderation seems to vary Considering these arguments from literature and extending to all cate
according to the work implication under analysis. To the extent of our gories of employees in an organization, we incline towards negative
knowledge, no similar studies have been conducted, and this is the first impact of COVID-19 outbreak and propose our first hypothesis as:
research that has empirically evidenced such effects, whose insights
H1. Work implications of COVID-19 outbreak are negatively related to
might also contribute to the post-pandemic period. Second, this research
employees’ performance.
provides indications that service organizations might need to rethink
their processes and routines for the post-pandemic period based on the To hypothesize the impact of I4.0 base technologies on the rela
lessons learned from the COVID-19’s work implications. This is espe tionship between work implications of COVID-19 outbreak on em
cially relevant for organizations that concurrently adopt I4.0 base ployee’s performance, we rely on social construction of technology
technologies and virtual connection practices, which might enhance (SCOT) theoretical lens. SCOT theory explains how a variety of social
employees’ performance. This insight is expected to add value to team factors and forces shape technological development that is often non-
leaders and line managers who face difficulty in containing the negative linear, technological change, and the meanings associated with tech
impact of COVID-19 pandemic on employee performance. nology (Pinch and Bijker, 1984, 1986; Bijker, 2008). Leonardi and
Barley (2010) clustered the research on SCOT implementation into five
2. Theoretical background and hypotheses development perspectives, namely perception, interpretation, appropriation, enact
ment, and alignment, and explained the phase of implementation, social
Majority of the attention in operations management research so far phenomenon constructed, and construction process for each perspec
has been directed towards understanding the impact of COVID-19 tive. van Baalen et al. (2016) extended SCOT to digital world and treated
outbreak on organizations. For example, Ivanov (2020) developed a its users as technological change agents. Different groups of users are
2
expected to adopt, apply and share the meanings of the technology, and sustainability, that can enable employees to better manage their
define the trajectory of the technology development, and interpret its deliverables. Considering these arguments based on SCOT theory, we
artifact to conduct negotiation on its designs (Klein and Kleinman, 2002; propose our second hypothesis as:
Kwok and Koh, 2020).
H2. I4.0 base technologies moderate the relationship between COVID-
I4.0 technologies enable digitized and connected value streams that
19’s work implications and employees’ performance, such that the
can transform established firms into smart and autonomous value de
negative effect is lesser with increase in the adoption level of I4.0 base
livery (Arnold et al., 2016). I4.0 technologies deliver real-time-capable
technologies.
horizontal and vertical internet-based connectedness of people, ma
chines, and objects, as well as information and communication tech Fig. 1 presents the hypothesized theoretical model. As both the
nologies for the dynamic management of complex business processes COVID-19 work implications and I4.0 technologies are recent phe
(Bauer et al., 2015; Müller et al., 2018). I4.0 base technologies encap nomena whose relationship is uncertain, the moderation seems more
sulates technologies that provide connectivity and intelligence to the suitable approach, since it tests for interactions that affect when re
front-end technologies which is arranged in four main dimensions, lationships between variables occur rather than testing a causal link
namely smart manufacturing, smart products, smart supply chain and between these variables (Cohen, 2008). In this sense, in the hypothe
smart working (Frank et al., 2019). SCOT makes use of the notions of sized model we considered the COVID-19’s work implications as the
relevant social groups, interpretative flexibility, stabilization, and independent variables and I4.0 base technologies as the moderators of
closure (Bijker, 2008). In the case of I4.0 technology, organizations and the relationship with performance metrics.
their stakeholders are the relevant social groups that conceptualize the
utility of automation to extract value and enhance performance. They 3. Method
continue to brainstorm the design of I4.0 technology until reaching the
point of stabilization, where coalescence can be achieved around the 3.1. Instrument development
design. Small adaptations are made to the stabilized I4.0 architecture to
accommodate industry specifications, application areas and exogenous The questionnaire consisted of four parts with their respective
events such as COVID-19, so that it can convincingly fit their needs. measures (see Appendix). First, we collected information of respondents
Organizations with greater digital maturity and automation through and their organizations. In this initial part, we also included a statement
the integration of I4.0 technologies have benefited significantly from it that explicitly indicated the anonymity and confidentiality nature of the
after COVID-19 outbreak as they were been able to sustain the pro study, and that there was no better answer. Second, we asked re
ductivity levels effectively. After the outbreak of COVID-19, IEEE (2020) spondents about the adoption level of I4.0 base technologies in their
implies that adoption of virtual reality, augmented reality, holographic organizations. For that, we used the four base technologies: (i) Big Data,
displays and immersive collaboration spaces enabled by tele-presence (ii) Internet of Things (IoT), (iii) Cloud Computing, and (iv) Analytics (e.
technologies will see rapid rise in firms as they demand advanced g. machine learning and data mining). Those technologies were sug
at-a-distance collaboration tools. Javaid et al. (2020) explained how gested and empirically validated by Frank et al. (2019), which identified
different technologies of I4.0 such as artificial intelligence, internet of implementation patterns for Industry 4.0. IoT, Big Data, Cloud
things, big data, virtual reality, holography, cloud computing, autono Computing and Analytics provide a solid basis on which other front-end
mous robot, 3D scanning, 3D printing, and biosensors, can be used to technologies can build on, being utilized in other investigations on I4.0
efficiently manage the interventions of COVID-19. To demonstrate the (e.g. Tortorella et al., 2020b). Therefore, we understand that, since I4.0
extent of automation that can be expected through the adoption of I4.0 is still at its early stages in most organizations and given the high
technology in the post-COVID world, IEEE (2020) state that “A B2B sale pervasiveness of those base technologies, they would be more easily
used to require a handshake at an expensive steakhouse; now, it will be done found in the targeted sample. A 6-point Likert scale was utilized, varying
through a food delivery app that serves the steak and wine to people’s new from 1 (not implemented) to 6 (fully implemented). Those measures
home offices enabled by immersive collaboration spaces, that exist only on a were also adopted by previous studies that encompassed I4.0 (e.g.
server in a lights-out data center running on a self-healing network.” Dubey et al., 2019; Tortorella et al., 2020b). The subsequent part eval
Developing on SCOT theory, technologies are adopted and used by uated the work implications of COVID-19 outbreak. Fifteen implications
employees because they contribute towards achieving human purposes were stated and listed based on studies from Qiu et al. (2020), Nicola
and improve social world or to advance the interests of individuals and et al. (2020), Lewnard and Lo (2020) and Zhang et al. (2020). Analo
social groups. Conforming to this, I4.0 base technologies have been gously, we applied a Likert scale that ranges from 1 (fully disagree) to 6
widely adopted and pervasively used by employees after the outbreak of (fully agree) to identify respondents’ agreement level. Finally, in the
COVID-19 as it satisfies the automation requirements of different fourth part, respondents indicated their own performance improvement
stakeholders. According to ILO (2020), outbreak of COVID-19 has level during the past two months. Two individual performance measures
accelerated the digitization trend and adoption of I4.0 technologies were used: quality and delivery. These measures were assessed based on
(including network technology, Big Data, 3-D printing, artificial intel a Likert scale where 1 denoted a ‘significantly worsened’ performance,
ligence and robotics) auguring a promising future of greater flexibility and 6 referred to a ‘significantly improved’ performance. This part was
Fig. 1. Hypothesized theoretical model.
3
located far from the previous ones, where the independent and potential Table 1
moderating variables were placed. Such countermeasure aimed at Sample characteristics (n = 106).
avoiding common method bias (Podsakoff and Organ, 1986; Podsakoff Respondent’s gender Organization sector
et al., 2003). Two academicians pre-tested the questionnaire so that
Male 76 71.7% Financial services 16 15.1%
content and face validity were checked. Based on their inputs, some Female 30 28.3% Government Services 18 17.0%
terms and statements were revised to mitigate misinterpretations and
Respondent’s role Distribution Services 25 23.6%
erroneous responses.
Supervisor or 72 67.9% Personal Services 9 8.5%
Coordinator
3.2. Sample selection and data collection
Manager or Director 34 32.1% Infrastructure 38 35.8%
Services
For selecting the sample, we used a non-random approach with two
Respondent’s experience Organization degree of interaction and
main selection criteria (Smith, 1983). First, respondents should be customization
working remotely to service organizations during COVID-19 pandemic.
<5 years 63 59.4% Low 15 14.2%
The establishment of this criterion would ensure that the proper working >5 years 43 40.6% High 91 85.8%
context is in place. We included a question in the email with the ques
Organization size Organization degree of labor intensity
tionnaire sent to potential respondents, so that we could disregard those
who did not meet this criterion. Further, all respondents should perform <5000 employees 65 61.3% Low 30 28.3%
either a coordinator, supervisor, manager, or director role within their >5000 employees 41 38.7% High 76 71.7%
organizations. The assumption was that respondents playing these roles Organization ownership Organization type
would have a more holistic and systemic view of their organization, Public 14 13.2% Transnational 61 57.5%
mitigating myopic perceptions of the status quo. No restriction related to Private 92 86.8% National 45 42.5%
sector, ownership (i.e. public or private) or type (i.e. transnational or
national) were determined, due to the wide diversity of service
The first EFA was performed with I4.0 base technologies, as shown in
organizations.
Table 2. All four digital technologies resulted in high loadings in the first
Emails with the questionnaire were sent in April 2020 to 558 po
PC, with an eigenvalue of 2.85 and accounting for 71.13% of the total
tential respondents initially identified from the authors’ network in
variance in responses. Construct reliability was tested through the
India. After that, a follow-up email was sent in the beginning of May
Cronbach’s alpha, whose result (α = 0.856) overcame the 0.6 threshold
2020 to reinforce invitation to respond to the survey. 106 valid re
sponses comprised the final sample, representing a 19% response rate indicating high reliability in responses (Meyers et al., 2006). Responses
for this construct were determined calculating the weighted average of
(higher than the 15% rate recommended by Hair et al., 2014). The
dataset was checked for non-response bias between respondents who original responses using factor loadings as weights.
The second EFA utilized responses on the agreement level of work
answered in April (early respondents; n1 = 49) and the ones who
answered in May (late respondents; n2 = 57). Levene’s test for equality implications caused from COVID-19 outbreak. Using a varimax rotation,
we found three PCs with eigenvalues larger than 1 (4.30, 3.83 and 2.13,
of variances and a t-test for equality of means (Armstrong and Overton,
1977) were applied, and results did not indicate significant differences respectively) and representing an accumulated variance of 68.31% of
the measures. Only factor loadings above 0.45 were considered
in means and variances between groups. Moreover, Harman’s
single-factor test with an exploratory factor analysis was used to (Tabachnick et al., 2007). We replicated the results utilizing an oblique
rotation as a check for orthogonality and the extracted components were
complementarily verify existence of common method bias (Malhotra
et al., 2006). The test including all independent, moderating, and similar. Unidimensionality of components was verified and confirmed
applying Principal Component Analysis at a component level. We
dependent variables resulted a first factor that accounted for 22.35% of
the total variance. The absence of a single factor explaining most of the assessed reliability determining Cronbach’s alpha. Results in Table 3
showed high reliability (i.e. α > 0.6) (Meyers et al., 2006).
variance supported the assumption that issues related to common
method bias could be disregarded. Measures that loaded in the first component were all related to the
economic impact caused by COVID-19 outbreak. Due to social
Regarding respondents’ characteristics, 67.9% were either supervi
sors or coordinators, and 59.4% had less than 5 years of experience. distancing restrictions, market consumption has deaccelerated in many
sectors (Zhang et al., 2020). Additionally, the utilization of existing re
With respect to the service organizations encompassed in the dataset,
57.5% were transnational (located in multiple countries); 86.8% were sources has been reoriented to basic needs supply, such as food (Hobbs,
2020). Thus, most organizations have faced a significant reduction in
private; 61.3% had less than 5000 employees; and 35.8% of them were
from the infrastructure sector (e.g. communications, transportation,
utilities, banking). In terms of the degree of interaction and custom Table 2
ization, 85.8% of respondents claimed that their service organizations EFA to validate the I4.0 base technologies construct (Adapted from Frank et al.,
presented a high level, and 71.7% informed their organizations had a 2019).
high degree of labor intensity. According to Fitzsimmons et al. (2008), Variables Mean Std. Communalities Base Technologies
organizations that display high labor intensity and inter Dev. [BASE_TECH]
action/customization are called ‘professional services’ as they provide Big data 3.49 1.78 0.79 0.890
individual attention by highly trained specialists. Internet of Things 3.68 1.79 0.63 0.794
(IoT)
Cloud computing 3.76 1.84 0.73 0.853
3.3. Validity and reliability of constructs
Analytics (e.g. 3.83 1.77 0.70 0.834
machine learning
In this step, we conducted two Exploratory Factor Analysis (EFA) and data mining)
using Principal Component (PC) extraction to identify and validate Extraction sums of squared loadings 2.85
constructs based on the collected data. EFA is generally adopted in sit % of variance 71.13
uations where a scale needs to be developed, helping the identification Cronbach’s alpha 0.856
of latent constructs of variables (Fabrigar et al., 1999). EFA is also useful KMO measure of sampling adequacy 0.812
Bartlett’s test of sphericity (χ2/df) 196.450/6**
when hypotheses or patterns of measured variables are not previously
known (Finch and West, 1997) (Table 1). Notes: Extraction method: Principal Component Analysis; ** p-value < 0.01.
4
Table 3
EFA to validate constructs of COVID-19’s work implications (rotated component matrix).
Variables Mean Std. Communalities 1 2 3 Denomination
Dev.
I do not face delay in receiving information from my team 3.24 1.64 0.76 0.774 Job insecurity [JOB INS]
I do not find my department or division’s future uncertain 3.13 1.72 0.76 0.816
I cannot be moved to a lower level job within the organization 2.66 1.78 0.80 0.890
I cannot lose my job and be laid off permanently 2.99 1.84 0.79 0.887
I cannot lose my job by being pressured to accept early retirement 2.80 1.84 0.82 0.901
I have more frequently used email to communicate with my suppliers, 5.08 1.31 0.64 0.699 Home office environment
customers and/or team members [HOME]
I have more frequently used websites to communicate with my suppliers, 3.96 1.88 0.46 0.459
customers and/or team members
My work environment is neat and organized 4.88 1.22 0.71 0.845
My work environment presents the necessary infrastructure to support my 4.81 1.29 0.75 0.859
activities
My work environment allows me to properly concentrate and focus on my daily 4.74 1.22 0.79 0.892
duties
My work environment allows me to have a flexible routine (i.e. flexible hours) 4.81 1.38 0.41 0.599
I have more frequently used the telephone to communicate with my suppliers, 4.84 1.60 0.56 0.645 Virtual connection
customers and/or team members [VIRTUAL]
I have more frequently used online platforms to communicate with my 5.10 1.39 0.64 0.598 0.525
suppliers, customers and/or team members
I significantly do not miss the physical interaction with my colleagues 4.29 1.62 0.65 0.774
I do not face difficulty in approaching my coworkers 3.21 1.70 0.67 0.606 0.548
Extraction sums of squared loadings 5.04 3.86 1.37

% of variance 33.58 27.73 9.14
Rotation sums of squared loadings 4.30 3.83 2.13
% of variance 28.69 25.40 14.22
Cronbach’s alpha 0.843 0.805 0.821
KMO measure of sampling adequacy 0.807
Bartlett’s test of sphericity (χ2/df) 1041.913/105**
Notes: Extraction method: Principal Component Analysis; Rotation Method: Varimax with Kaiser normalization; ** p-value < 0.01.
their demands, which caused a decrease in revenue and aggravated and their composite reliability (CR) (see Table 4). Significant correlation
unemployment in most countries (Nicola et al., 2020). This construct coefficients (p-value < 0.05) were found positive, indicating the nature
then represents such sense of job instability and sense of market insecurity of variables’ interaction. CR values were larger than 0.7, confirming the
[JOB_INS] entailed by COVID-19 outbreak. convergent validity of constructs (Hair et al., 2014). Therefore, values
The second construct was consisted of work implications associated for each validated construct were calculated based on their corre
with home office environment. COVID-19 pandemic has forced organi sponding factor loadings and given in a continuous scale.
zations to restructure their processes and so that their employees could
work remotely from home, avoiding an accentuated exposition and 3.4. Data analysis
reducing the odds of a larger contamination (Nicola et al., 2020). In this
scenario, people had to rearrange their work environment to perform Next, we performed a set of Ordinary Least Square (OLS) hierarchical
their activities from home accordingly. Measures that loaded in this linear regression models to test our hypotheses. Each performance
construct were grouped and assumed to represent pandemic’s effects measure was individually examined in the regression models. Model 1
related to home office environment [HOME]. encompassed ‘employee output quality’ as the dependent variable.
The third construct grouped items that were associated with work Thus, in Model 1A we only included the effect of the control variables (i.
communication and information sharing. One of the main impediments e. organization sector, degree of interaction and customization, and
entailed by COVID-19 outbreak has been related to communication. As degree of labor intensity). Model 1B included the direct effect of the
physical interaction has been minimized, online platforms have been three constructs of COVID-19’s implications and the I4.0 base technol
more extensively utilized as means to curb such restriction. In this sense, ogies construct. Finally, Model 1C entailed adding the moderating ef
service organizations have encouraged virtual connections to enhance fects of I4.0 base technologies. Model 2 referred to ‘employee output
communication and mitigate social distancing effects on employees and delivery’ as dependent variable. Analogously, Models 2A, 2B and 2C
teams. Hence, the underlying measures of this construct represent the regressed this dependent variable on control variables, control and in
virtual connection [VIRTUAL] motivated by COVID-19 pandemic. dependent variables, and control, independent and interaction terms,
Finally, we determined the pairwise correlations for all constructs respectively.
Table 4
Pearson correlation coefficients and composite reliability (CR).
1 2 3 4 5 6 7 8 9 CR
1-Organization sector – 0.237* 0.169 − 0.058 0.212* 0.073 0.193* 0.116 0.147 –
2-Degree of interaction and customization – 0.406** − 0.063 0.147 0.201* 0.133 0.153 0.083 –
3-Degree of labor intensity – 0.059 0.157 − 0.013 0.148 0.189 0.179 –
4-JOB_INS – 0.094 0.401** 0.063 0.128 0.157 0.901
5-HOME – 0.447** 0.454** 0.612** 0.605** 0.876
6-VIRTUAL – 0.113 0.386** 0.368** 0.854
7-BASE_TECH – 0.366** 0.358** 0.889
8-Employee output quality – 0.887** –
9-Employee output delivery – –
5
Determining a minimum representative sample size at which the associated ( ̂

β = 0.513; p-value < 0.01) with employee output quality.
results of a regression analysis would be unchanged from those obtained Regarding the interaction terms, results suggested that BASE_TECH has
with larger sample sizes has been a major practical concern for multi a positive moderation on the effect of VIRTUAL (̂ β = 0.197; p-value <
variate data analysis techniques application (Forcino, 2012). Although 0.10) on employee output quality. In opposition, BASE_TECH seems to
researchers must collect a sample size that is large enough to be repre
negatively moderate the effects of both HOME (̂β = − 0.208; p-value <
sentative, once that sample size has been obtained, additional samples
0.05) and JOB_INS = − 0.157; p-value < 0.10).
should not alter the outcome of a multivariate analysis, and such addi
With regards to ‘employee output delivery’, results for the hierar
tional material can be considered a form of over-sampling (Forcino
chical linear regression analyses indicated that Model 2B (F-value =
et al., 2015). There is no certain rule of thumb to determine the sample
9.491; p-value < 0.01; R2 = 0.404) was the selected one, since no sig
size. Some researchers do, however, support a rule of thumb when using
nificant change in R2 occurred in Model 2C. In other words, as Model 2B
the sample size. In regression analysis, which is the procedure conducted
only included control and independent variables, no significant
in our study, many researchers (e.g. Concato et al., 1995; Peduzzi et al.,
moderation was found for the performance improvement of employee
1995; Vittinghoff and McCulloch, 2007) say that there should be at least
output delivery. In fact, only HOME presented a significant positive
10 observations per variable. In our regression analysis, the most critical
models were 1C and 2C, which regressed the respective dependent association (̂
β = 0.476; p-value < 0.01) with this performance measure.
variables on control, independent and interaction terms. As our sample These results do not bear H1 and partially support H2.
size is 106 respondents, we met the 10 to 1 ratio between sample size The positive direct impact of HOME on both employee output quality
and independent variables indicated. Other survey-based studies and delivery was contrary to the hypothesized negative effect of COVID-
recently published that approached novel phenomena utilized a similar 19’s work implications (H1). As service organizations had to quickly
sample size to perform their multivariate data analyses, such as Frank adapt to the new normal implied by the pandemic, individuals’ perfor
et al. (2019) which had a 92-respondent sample, Tortorella et al. (2017) mance was expected to worsen since their readiness level would not
with a sample of 89 companies, Marodin et al. (2018) with a sample of match the current requirements. However, the counterintuitive positive
110 responses, Marodin et al. (2016) with a dataset comprised by 64 impact of home office environment pointed in our analyses somewhat
respondents, and Godinho Filho et al. (2016) with 52 responses. converges to previous indications from MacEachen et al. (2008) and
Multicollinearity on the estimated coefficients was examined using Bloom (2014). In general, these studies suggested that when employees
the variance inflation factors (VIF) for all variables, which were all work remotely from their homes there is a higher likelihood of
below five (Belsley et al., 2005). Assumptions related to normality, increasing both productivity and job satisfaction. Our results expand
linearity and homoscedasticity were verified between independent, such findings indicating that employee output quality is also prone to
moderating and dependent variable (Hair et al., 2014). Residuals were improve when service organizations adopt home office policies. Further,
evaluated to verify normality of the error term distribution. Linearity our findings suggest that employees do not lack the required infra
was assessed with plots of partial regression for each model. Homosce structure and discipline to work from their home, since the sudden
dasticity was visually examined by plotting standardized residuals change to home office environment implied by the pandemic positively
against predicted value. All tests confirmed the required assumptions for influenced their performances.
the OLS regression analyses. Regarding the moderating role of BASE_TECH, two different out
comes were observed. I4.0 base technologies (e.g. IoT, big data, cloud
4. Results and discussion computing and machine learning) are supposed to facilitate communi
cation and information sharing among agents (Frank et al., 2019; Shou
et al., 2019), support and catalyze more assertive decision-making
Table 5 displays the results for the standardized ̂
β coefficients of the
(Tortorella et al., 2019; Ancarani et al., 2019), and eventually act on
regression analyses. For Model 1A (only control variables), no signifi
issues related to services, processes or products by autonomously
cant results were found. When adding the independent variables to the
addressing proper countermeasures (Lam et al., 2019; Koh et al., 2019).
model (Model 1B), the prediction of ‘employee output quality’ was
In this sense, the extensive adoption of such technologies was assumed
significantly explained (F-value = 9.877; p-value < 0.01; R2 = 0.414) by
to mitigate potentially negative impacts of the pandemic on employees’
HOME construct (̂ β = 0.474; p-value < 0.01). However, as the interac performance, hence, moderating this relationship as hypothesized in H2.
tion terms (moderating variables) were inserted, Model 1C showed a Thus, the positive moderation found for the VIRTUAL construct was
significant change in R2, explaining 45.3% of the variance (F-value = naturally expected, as this construct deals with work communication
7.878; p-value < 0.01). In Model 1C, HOME remained positively and information sharing implied by the COVID-19 outbreak.
Table 5
Standardized ̂
β coefficients of the hierarchical regression models.
Variables Employee output quality Employee output delivery
Model 1A Model 1B Model 1C Model 2A Model 2B Model 2C
Organization sector 0.073 − 0.038 − 0.057 0.123 0.015 − 0.007

Degree of interaction and customization 0.077 0.002 − 0.011 − 0.013 − 0.080 − 0.087
Degree of labor intensity 0.145 0.104 0.093 0.163 0.117 0.107
HOME 0.474*** 0.513*** 0.476*** 0.498***
VIRTUAL 0.163 0.135 0.144 0.133
JOB_INS 0.002 0.000 0.036 0.047
BASE_TECH 0.124 0.145 0.114 0.123
HOME x BASE_TECH − 0.208** − 0.148
VIRTUAL x BASE_TECH 0.197* 0.123
JOB_INS x BASE_TECH − 0.157* − 0.156
F-value 1.705 9.877*** 7.878*** 1.649 9.491*** 7.215***
R2 0.048 0.414 0.453 0.046 0.404 0.432
Adjusted R2 0.020 0.372 0.396 0.018 0.361 0.372
Change in R2 0.366*** 0.040* 0.358*** 0.028
Notes: * p-value < 0.10; ** p-value < 0.05; *** p-value < 0.01.
6
On the other hand, the negative moderation of BASE_TECH on the 5.1. Theoretical implications
relationships between HOME or JOB_INS and employee output quality
was contrary to expectation. Although surprising, these negative in From a theoretical perspective, three outcomes are worth
teractions are aligned with findings from Tortorella et al. (2020b), mentioning. First, we have empirically verified three constructs of
which indicated that organizations might find larger benefits from the COVID-19’s work implications; they are: (i) job insecurity, (ii) home
adoption of I4.0 base technologies at an organization level rather than at office environment and (iii) virtual connection. As COVID-19 pandemic
a team or individual level. Frank et al. (2019) has pointed that the un is a recent phenomenon, the existence of clear definitional constructs to
derstanding about I4.0 base technologies still needs to be enhanced, base research on is scarce, entailing a fragmented research field. Hence,
since managers are more familiar with their I4.0 smart functionalities a theoretical contribution of this study refers to the identification of
and applications rather than the technologies that underpin them. This three specific work implications constructs, which were validated by
fact may also help to explain the negative moderation of BASE_TECH. orthogonal components extraction and complemented previous research
Thus, we argue that the negative moderation on the effects of both home indications (e.g. Tortorella et al., 2020a). As these work implications
office environment and job insecurity may occur due to the combination of constructs were initially derived from the literature and validated based
poor managerial comprehension of I4.0 base technologies and the fact on practitioners’ perceptions, their identification raises a practical
that these technologies are more prone to be used in organizational framework anchored on a theoretical background. Thus, instead of
macro-processes that do not directly relate (or distantly relate) to addressing a wide range of work implications from the COVID-19, which
employee output quality. This argument is also supported by the lack of tends to consume unnecessary efforts, these constructs allow focusing on
significant moderation found for employee output delivery. Fig. 2 more common and elementary work implications from COVID-19.
summarizes the results obtained by capturing the empirically significant Second, our results have shown that the work implications of COVID-
relationships. 19 pandemic have a direct impact on employees’ performance, espe
cially when considering home office environment. Counterintuitively,
5. Conclusion working remotely appears to positively influence employees’ perfor
mance. Surprisingly, no significant direct effect was found for job inse
The objective of our research was to provide an understanding of curity and virtual connection. The explanation of this result might favor
how the outbreak of COVID-19 could impact employee’s performance two different theoretical views. On the one hand, it may indicate that the
(RQ1) and the moderating role performed by I4.0 base technologies variation in individual employee’s performance is not so vulnerable to
adoption (RQ2). To answer those questions, we collected data from the working condition, relying much more on individual employee’s
employees of different service sector firms in India who have been factors, such as adaptability and intrinsic motivation (Diamantidis and
working remotely during the COVID-19 outbreak. We received 106 valid Chatzoglou, 2019). On the other hand, the effect of COVID-19’s work
responses and analyzed them using multivariate techniques. implications on employees’ performance may be mitigated when other
Answering RQ1, our results revealed that home office work envi organizational factors are properly in place. This is view is much aligned
ronment enhances output quality and delivery performance of em with Li et al.’s (2019) findings, which posed that organizational factors,
ployees. In the sample studied, we did not find any significant direct e.g. leadership and culture, are key to employees’ turnover intention.
impact of job instability and sense of market insecurity and virtual Finally, I4.0 base technologies do moderate the work implications
connection on employee performance. Regarding RQ2, our research originated by the COVID-19 outbreak on employees’ performance.
indicated that I4.0 base technologies adoption (i) negatively moderates Nevertheless, the orientation of such moderation seems to vary ac
the relationship between home office work environment and output cording to the construct under analysis. Moreover, the moderating role
quality, (ii) positively moderates the relationship between virtual of I4.0 base technologies is more pervasive on quality performance of
connectedness and output quality, and (iii) negatively moderates the employees than on delivery performance. The duality in results suggests
relationship between job insecurity and output quality. No significant that the benefits from implementing I4.0 base technologies are still
moderation of I4.0 base technologies was observed for output delivery poorly understood, with emphasis to service organizations. Although the
performance. These findings have significant implications to both theory advent of the Fourth Industrial Revolution has led organizations to in
and practice, being discussed more in-depth next. crease their interconnectivity and automation levels, so that higher
levels of modularization, flexibility, resilience, and performance can be
achieved (Frank et al., 2019; Kusiak, 2020), many service organizations
still struggle to grasp the concepts of I4.0 (Bonamigo and Frech, 2020).
Fig. 2. Empirically significant relationships.
7
Our research unveils further roles played by I4.0 technologies in service established selection criteria, the distribution of respondents varied. In
organizations, especially when considering the “new normal” implied by this sense, our findings may be limited by the characteristics of the study
the COVID-19. To the extent of our knowledge, no similar studies have sample. Further research could increase the dataset not only in terms of
been conducted and this is the first research that has empirically evi number of responses, but also in relation to the diversity of services. This
denced such effects, whose insights might also contribute to the could provide different and new insights to the field, complementing our
post-pandemic period. research findings. Finally, we studied the moderation of I4.0 base
technologies, on which smart functionalities and applications are sup
5.2. Practice implications posed to be built. As observed in our study, managers are more likely to
perceive the benefits of I4.0 adoption when discussing the smart func
Regarding practical contributions, our research raised arguments to tionalities and applications (also denoted as front-end technologies by
managers of service organizations that are implementing I4.0 technol Frank et al., 2019), undermining the empirical examination of the role of
ogies and working remotely during the COVID-19 outbreak. Our find I4.0 base technologies. Therefore, subsequent studies could conduct the
ings indicate that service organizations might need to rethink their analysis of such I4.0 front-end technologies in service organizations that
processes and routines for the post-pandemic period based on the lessons are working remotely during the COVID-19 outbreak. A deeper under
learned from the COVID-19’s work implications. For instance, the standing of the role played by I4.0 in extremely disruptive moments
reinforcement of home office environment appears to be an interesting (such as the pandemic) could be an additional motivation to managers to
alternative to enhance performance of the employees of these organi move forward towards the fourth industrial revolution era.
zations. Furthermore, our results indicate that organizations concur
rently adopting I4.0 base technologies and virtual connection practices Appendix A. Supplementary data
might improve employees’ performance, especially in terms of quality
output. This insight is expected to add value to team leaders and line Supplementary data to this article can be found online at https://doi.
managers who face difficulty in containing the negative impact of org/10.1016/j.ijpe.2021.108075.
COVID-19 pandemic on employee’s performance. Such indications
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10
Economic Research-Ekonomska Istraživanja
ISSN: 1331-677X (Print) 1848-9664 (Online) Journal homepage: http://www.tandfonline.com/loi/rero20
An empirical study of employee loyalty, service

quality, cost reduction and company performance
Ivana Tomic, Zdravko Tesic, Bogdan Kuzmanovic & Milos Tomic
To cite this article: Ivana Tomic, Zdravko Tesic, Bogdan Kuzmanovic & Milos Tomic
(2018) An empirical study of employee loyalty, service quality, cost reduction and
company performance, Economic Research-Ekonomska Istraživanja, 31:1, 827-846, DOI:
10.1080/1331677X.2018.1456346
To link to this article: https://doi.org/10.1080/1331677X.2018.1456346
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VOL. 31 , NO. 1, 827–846
https://doi.org/10.1080/1331677X.2018.1456346
OPEN ACCESS
An empirical study of employee loyalty, service quality, cost

reduction and company performance
Ivana Tomic, Zdravko Tesic, Bogdan Kuzmanovic and Milos Tomic
Faculty of Technical Sciences, Industrial Engineering and Management, Novi Sad, Serbia
ABSTRACT ARTICLE HISTORY

The focus of this study was on investigating the relationships among Received 6 October 2015
employee loyalty, service quality, cost reduction and company Accepted 30 May 2017
performance, with the aim to investigate the impact of employee KEYWORDS
loyalty to company performance. The research model was developed Company performance;
and empirically tested on the sample of 100 service companies with measurement; employee
317 questionnaire surveys conducted in the Republic of Serbia and loyalty; service quality
Bosnia and Herzegovina. Using different statistical analysis (the
Kolmogorov-Smirnovljev statistic, Path analysis, A.M.O.S. statistic JEL CLASSIFICATIONS
software and lavaan software) leads to the conclusion that employee C19; F66; J24
loyalty is significantly related and has a positive influence on company
performance.
1. Introduction
Performance can be defined as the ability of an organisation to achieve its goals (Stainer,
2006). Performance indicators should be integrated and interdependent in order to provide
an overall perspective on the company’s goals, business strategies and specific objectives, as
well as on the company performance (Tesic, Tomic, Gajic, Kuzmanovic, & Tomic, 2014).
Performance measurement is a concept that allows the coordination of component parts
of complex organisations. The companies which are capable of using the frameworks and
methods for measuring performance in the management of their strategies, systems and
processes have the ability to achieve competitive advantages (Spitzer, 2007).
Ittner, Larcker, and Randall (2003) point out that measuring the company performance
means easier access to the information needed to identify strategies and coordinated man-
agement processes such as goal-setting, decision-making and performance evaluation. An
essential condition for the fulfilment of the objectives is the proper selection of key indicators
for performance assessing (Lohman, Fortuin, & Wouters, 2004).
This research represents a further contribution to the idea, which was discussed by a num-
ber of authors, that employees’ loyalty in service organisations can have a positive impact on
the company performance (Balkyte & Tvaronaviciene, 2010; Cavacoa & Machado, 2014).
CONTACT Ivana Tomic ivanatomic159@gmail.com

© 2018 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/
licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
828 I. TOMIC ET AL.
In order to test the impact of employee loyalty to the company performance, we investi-
gated the relationships among employee loyalty, service quality, cost reduction and company
performance. Testing these relations is of particular importance for increasing sustainable
competitiveness and company performance; therefore, relations are set in order to increase
performance through an increasing and maintaining competitiveness in time (Tan, Shen,
& Yao, 2011; Zhang & London, 2013).
The relevance of the topic for service companies is considerable, since employee loyalty is
very important for company success. Service companies generate their income by providing
services and they are based on human capital.
Loyalty signifies a person’s devotion or sentiment of attachment to a particular object and
employee loyalty can be defined as employees’ commitment to the success of the organisation
and believing that working for this organisation is their best option (Iqbal, Tufail, & Lodhi,
2015). Loyal employees are faithful to the organisation and do their best in service provid-
ing, which has a direct and significant influence on the service companies’ performance.
2. Literature review

Performance measurement provides reliable information which can help in decision-mak-
ing and influence the management (Ukko, Tenhunen, & Rantanen, 2007). Samsonowa
(2011) identifies four dimensions for company performance: growth, return on investment,
increase of market share and increase profitability. Economic performance is reflected in
profitability or company market value (Morrison Paul, 1999).
Key performance indicators (K.P.I.s) are a set of measures focused on those aspects of
the organisational performance that are most critical for the current and future success of
the company (Parmenter, 2007).
K.P.I.s are used for performance measuring and achieving the set goals, and also to
reflect the critical success factors (Hynuk & Benoit, 2010). Performance measurement is a
fundamental principle of management, considering that performance measures provide an
important link between strategy and management activities (Muchiri, Pintelon, Gelders,
& Martin, 2011).
K.P.I.s are variables that, observed together, provide a meaningful, concise, general pic-
ture of the organisational performance and its processes and are used for reporting about
the progress towards achieving the set goals (Tesic et al., 2014).
During the process of developing K.P.I.s, the following should be considered:
• Making strategic objectives clear, in order to focus and bring together the whole organ-
isation. Senior manager must clearly communicate the company vision.
• Tying the core business processes to the objectives. Maintenance is a core business
function if there are assets or equipment.
• Focusing on critical success factors for each of the processes, recognising there will
be variables.
• Using the indicators to track performance trends and to highlight progress and poten-
tial problems.
• Identifying possible solutions to the problems (Wireman, 2005).
Since Balanced Scorecard (B.S.C.) (Kaplan & Norton, 1992) brought to management’s atten-
tion the fact that performance needed to be measured with four perspectives: Financial,
ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 829
Customer, Internal Process and Learning and Growth, these perspectives have been
increased by the inclusion of two more perspectives (Parmenter, 2010):
• Environment/Community: supporting local businesses, linking with future employees,
community leadership.
• Employee satisfaction: Positive company culture, retention of key staff, increased
recognition.
Employee satisfaction is a necessary component of their loyalty, which is very important
to be relegated to a sub-section within internal process, since it has a large influence on
service quality and to company performance as well.
The aim of conducted research refers to investigating the influence of different variables
on company performance in service industry. The choice of variables is primarily based on
employee loyalty, as that variable is very important in service companies. Since that variable
has a direct and indirect influence on company performance, the other two variables, service
quality and cost reduction, are defined as very important variables which affect performance
on the way that is presented with the research model defined in this paper.
2.1. Relationships between variables

In a period of economic crisis, companies struggle to maximise their income and their
strategies are mostly concerned with cost reduction, which has an impact on company per-
formance. This research concentrates on service companies, so the variables which have an
influence on cost reduction and performance are concerned with employees and services.
Since there are a large number of variables related to employees and services that have an
influence on company performance, in this research we focus on employee loyalty, service
quality and cost reduction as the variables that have an influence on the performance of
all analysed service companies. Employee loyalty has an influence on service quality, since
loyal employees do their best to provide the best possible services with the highest quality.
In addition, service quality has an influence on cost reduction in many aspects, since good
quality service reduces the possibility of errors, repair, and reclamation, and also aids it to
retain clients. Cost reduction has an influence on performance, as lower costs have a direct
influence on higher income and better company performance.
2.1.1. Employee loyalty

A considerable body of theoretical and empirical research has been done on employees influ-
ence on company performance. Sila (2007) researched employee performance or the effect
of employee fulfilment on company performance and Fulmer, Gerhart, and Scott (2003)
explored whether superior firm-level employee relations effectively serve as an enduring
resource that can be associated with better financial and market performance relative to
other firms.
Baptiste (2008) indicates that, whilst the issue of employee wellbeing at work has reached
a new level of importance in the minds of managers, there is still little evidence that attention
has been paid to the link between employee wellbeing and performance.
The impact of employee loyalty on company performance is very significant.
Silvestro (2002) explored the relationship between employee satisfaction, loyalty, produc-
tivity and profitability. He came to the conclusion that there was a strong positive correlation
between these variables.
830 I. TOMIC ET AL.
Yee, Yeung, and Cheng (2008) indicated that the importance of employee attitudes,
including employee loyalty, and their impact on operational performance has largely been
neglected and that loyal employees are more capable and have a direct impact on delivering
a higher level of service quality, which has an indirect impact on company performance.
Loyalty behaviours will generate both market share and profitability increases for the
service company (Chi & Gursoy, 2009) and, if employees are committed to organisation
and performing at a higher level, this will have an indirect impact and a positive influence
on organisational performance (Ali, Rehman, Ali, Yousaf, & Zia, 2010).
2.1.2. Service quality

Service quality can be analysed with customer satisfaction and companies should use cus-
tomer satisfaction to assess performance (Madu & Kuei, 1993). Service quality is ultimately
related to customer loyalty and retention and, eventually, to higher profits for the organi-
sation (Storbacka, Strandvik, & Gronroos, 1994).
Salanova, Agut, and Peiro (2005) indicate that contact employees’ main tasks involve
interaction with customers and service quality depends to a large extent on the quality
of this interaction. When employees are highly engaged and share common perceptions
about the quality of the service in their unit, it is expected that they will perform very well
with customers, who will report favourable employee performance. The research by Snow
(2002) explored the relationship between service climate and performance using self-re-
ports filled in by employees themselves, without consideration of the viewpoints of those
receiving service.
2.2.3. Cost reduction

Berman, Wicks, Kotha, and Jones (1999) researched the effects of company–customer rela-
tionship on company performance, and the related influence on service quality, as well as the
variables which have an influence on performance and argued that employees and return on
investment which includes cost reduction, have an influence on performance. Dyer and Chu
(2003) analysed the influence between costs and improving performance, since the compa-
nies that are effective in reducing costs will have better performance. Schuh, Raudabaugh,
Kromoser, Strohmer, and Triplat (2008) also analysed methods for cost reduction with the
aim to increase value and firm performance.
Rai, Patnayakuni, and Patnayakuni (1997) researched reducing labour costs with the
aim to increase company performance and Reider (2004) used cost reduction analysis and
programmes of continuous improvement in gaining a competitive advantage.
2.2.4. Performance
In defining performance criteria, some scientists focus on internal organisational factors,
such as organisational goals and procedures for achieving these goals (Selden & Sowa, 2004).
Performance management is a continuous process of identifying, measuring and devel-
oping performance and performance alignment with the strategic objectives of the organ-
isation (Aguinis & Pierce, 2008).
Performance measuring can be defined as the process of quantifying the effective-
ness and efficiency of operation (De Lima, da Costa, & de Faria, 2009) and strategies and
management systems have a significant impact on the company performance (Tsamenyi,
Sahadev, & Qiao, 2011). Bititci, Turner, and Begemann (2000) indicated that many models
for performance measurement have been developed, such as the B.S.C., a technique for
the analysis of strategic measurement and reporting, performance measurement for global
manufacturers, questionnaire for measuring performance, system performance criteria,
Cambridge design process of measuring performance and reference model for integrated
performance measurement systems.
Models for measuring performance have evolved from the cybernetic view according to
which the performance measurement was mainly based on financial measures to a holis-
tic view based on multiple measures of non-financial performance measurement, which
operates as an independent process integrated into a broader set of activities (Henri, 2004).
Gunday, Ulusoy, Kilic, and Alpkan (2011) indicated that the desire of companies to
increase business efficiency and competitive advantage is a key reason for their tendency
towards innovation, and that innovation can improve the company performance in several
ways, which mainly comprises innovative performance, product performance, market per-
formance and financial performance.
De Toni and Tonchia (2001) defined that there are four types of performance indicators,
namely cost/productivity, time, flexibility and quality, by which the production strategy of
companies can be defined. The process of developing a system for performance measuring
is divided into three main phases that include performance measurement plan, implement-
ing and using performance measurement (Bourne, Mills, Wilcox, Neely, & Platts, 2000).
According to Braz, Scavarda, and Martins (2011), a system for measuring performance is the
key part of the company management which stimulates managerial change and promotes
organisational learning.
Kennerley and Neely (2002) state that many processes have been developed and can help
managers to define a set of measures that reflect their goals and evaluate their performance
in an appropriate manner. Business process analysis is a term used in a broad sense, which
also includes an analysis with measurable K.P.I.s as factors for assessing the performance
of business processes.
3. Objectives and hypotheses

The research problem analysed in this paper is taking an operational perspective on the
relations between employee loyalty and company performance. We examine the intercon-
nections between employee loyalty, service quality, cost reduction and company perfor-
mance and the contextual factors influencing these relationships.
The level of contact between employees and customers may account for variations in the
relationship between employee loyalty and company performance.
The objectives of the research can be defined as follows:
O1: Creating a research model for analysing relationships among employee loyalty, service
quality, cost reduction and company performance.
O2: Investigating the relationships among defined variables with the aim to investigate the
impact of employee loyalty to company performance.
O3: Researching if the relations that were investigated will contribute to improving the per-
formance of service companies.
The hypotheses, in accordance with the aim and subject of the research, can be defined as
follows:
832 I. TOMIC ET AL.
H1: Employee loyalty has a positive influence on service quality (Yee, Yeung, & Cheng, 2010).
H2: Service quality has a positive influence on cost reduction.
H3: Cost reduction has a positive influence on company performance.
4. Methodology
Although the statistical population contains over 10,000 organisations from Bosnia and
Herzegovina and over 110,000 organisations from the Republic of Serbia, the intentional
sample we wanted to analyse is 100 service companies. We chose the most suitable service
companies from the statistical population, 80 from the Republic of Serbia and 20 from
Bosnia and Herzegovina. We selected 100 companies, on the basis of the information of
the academic institutions that we will receive answers from those companies since that was
a voluntary questionnaire. These companies totaled 317 respondents, who all wanted to
take part in the research, so the research is conducted on 317 questionnaire surveys and
the response rate was 100%, so the research is conducted on 317 questionnaire surveys. The
service companies include banks, insurance companies, supermarkets and other service
companies. A five-point Likert scale was used for measuring perception and data analy-
sis was performed by the Kolmogorov-Smirnovljev statistic. The correlation between the
items in the model was determined by statistical software A.M.O.S. (Analysis of Moment
Structures) and lavaan software. A regression model was used for measuring the influence
of defined indicators, and Path analysis was used for the confirmation of the proposed
hypothesis.
4.1. Path analysis

Path analysis is a statistical method used to examine hypothesised (causal) relationships
between two or more variables (Lleras, 2005). Path analysis is a straightforward extension
of multiple regressions. Its aim is to provide estimates of the magnitude and significance
of hypothesised causal connections between sets of variables. This is best explained by
considering a path diagram. Path analysis is also a method employed to determine whether
or not a multivariate set of no experimental data fits well with a particular causal model
(Wuensch, 2012).
Path analysis presents and analyses the relationship among variables in a model, and
it is a simplified type of structural equation modelling (S.E.M.). The analysis method for
verifying the theoretical model composed of a series of regression analysis and all prediction
variables can be proceeded in the regression model simultaneously. Thus, this method is
also considered to be composed of several regression equations (Huang & Hsueh, 2007).
Path analysis is a method for explicitly formulating theory, and attaching quantitative esti-
mates to causal effects thought to exist on a priori grounds. Probably the greatest advantage
of path analysis is that it provides a means by which the nature of the problem addressed
by an empirical study may be handily summarised. It requires the researcher to think
about cause, particularly systems of intercausal connections (termed the ‘path model’) and
provides an explicit link between a priori theoretical notions of causal connections and
quantitative estimates of causal impact (Wolfle, 1980).
Figure 1. Path model for business performance. Source: Huang & Hsueh (2007).
In a path model, the path coefficients not only identify the direct effect of each of the
exogenous variables on the appropriate dependent variables, but they can also be used to
calculate both the indirect and the total effects of each variable on the respective dependent
variables (Deshpande & Zaltman, 1982; Gupta & Somers, 1996).
A path diagram is a schematic drawing that represents a concise overview of the model
of research and includes all the relevant observed variables (typically represented by
square boxes) and the latent variables (represented by circles), with arrows that illustrate
the (hypothesised) relationships among these variables. A direct effect of one variable on
another is represented by a single-headed arrow, while (unexplained) correlations between
variables are represented by double-headed arrows (Rosseel, 2012).
In the path analysis, mediation indicates that the effect of an independent variable on a
dependent variable is transmitted through a third variable, called a mediator variable. In the
language of path analysis, mediation refers to an indirect effect of an independent variable on
a dependent variable that passes through a mediator variable (Edwards & Lambert, 2007).
Path analysis was used for researching a theoretical model which shows the influence
of human capital, structural capital and relational capital to business performance, such
as the model presented in Figure 1 (Huang & Hsueh, 2007), for calculating a measurable
impact of manufacturing strategy to business performance (Swamidass & Newell, 1987),
as well as for analysing direct effects of business strategy on manufacturing flexibility and
manufacturing flexibility on organisational performance (Gupta & Somers, 1996).
Path analysis can also be used for analysing purchase intentions with the model pre-
sented in Figure 2, which indicates that website amateurism positively affects perceived
deceptiveness, but perceived content and perceived physical and human presence negatively
834 I. TOMIC ET AL.
affect perceived deception, while perceived deceptiveness decreases purchase intentions

(Malvanova, Benbunan-Fich, Koufaris, & Lang, 2015).
4.2. Research model

In this research the relationships among the variables employee loyalty, service quality, cost
reduction and company performance were analysed by measuring the influence between
the defined variables. Figure 3 presents our research model with relationships among the
variables.
Employee loyalty can be defined as employee’s feeling of attachment to the employing
company. That can be constructed by psychological measures that are able to capture a ser-
vice employee’s feelings towards the employing company, which includes four indicators for
employee loyalty: intention to stay, willingness to perform extra work, sense of belonging
and willingness for more responsibility (McCarthy, 1997).
Service quality is concerned with the overall perception of the performance of the ser-
vices offered by the service employees within a service company. This can be analysed by
the SERVQUAL instrument (Parasuraman, Berry, & Zeithaml, 1991). The SERVQUAL
instrument suggests that there are five dimensions of perceived service quality, namely
Figure 2. Path model for purchase intentions. Source: Malvanova et al., 2015.
Figure 3. Research model with relationships among alternatives. Source: Authors.

Table 1. All the used indicators of each variable.

Variable Indicators
Employee loyalty Intention to stay
Willingness to perform extra work
Sense of belonging
Willingness for more responsibility
Service quality Tangibles
Reliability
Responsiveness
Assurance
Empathy
Cost reduction Reducing cost per unit of service
Improving sales channels
Reducing operating costs
Company performance Growth
Return on investment
Increased market share
Increased profitability
Sources: McCarthy (1997), Parasuraman et al. (1991), Parmenter (2010), Navarro and Moya (2005), Samsonowa (2011).
tangibles, reliability, responsiveness, assurance and empathy (Parasuraman et al., 1991).

Since the items under each of these dimensions are not equally appropriate in the service
context of this research, the most relevant item from each of the five dimensions is chosen
for this study, which is consistent with the previous research in service quality (Carman,
1990; Yee et al., 2010). Service quality is very important, since the marketing team obviously
wants the business to put forward the best image that it can (Brock, 2009).
Cost reduction of the company can be achieved by optimised planning, introducing
greater transparency and better planning of logistics (Buchta, Eul, & Schulte-Croonenberg,
2007). In addition, the loyalty of employees who operate rationally and provide quality ser-
vices has a significant impact on reducing overall costs. Three dimensions of cost reduction
that can be set are reducing cost per unit of service, improving sales channels and reducing
operating costs (Parmenter, 2010).
Company performance can be analysed with four dimensions: growth, return on
investment, increased market share and increased profitability (Navarro & Moya, 2005;
Samsonowa, 2011).
In Table 1 all the used indicators of each variable are presented.
5. Research
The research was conducted using statistical analysis on the data collected using 317 ques-
tionnaire surveys which were designed to investigate the relevance of the key components
of the defined variables (Navarro & Moya, 2005).
The sample was drawn from 100 service companies and included employees from dif-
ferent sectors: Finance, Logistics and Marketing. All interviewed respondents completed
the questionnaire surveys, so the response rate was 100%.
Demographic data of the employees from the sample will include a period of work
experience and duration of service in the service company.
Table 2 shows the period of work experience of employees from the sample.
Table 3 shows the duration of service in the service company of employees from the
sample.
836 I. TOMIC ET AL.
Table 2. Period of work experience of employees from the sample.

Work experience (years) Number of employees Percentage
0–5 84 ~ 26 %
5–10 112 ~ 35%
10–15 38 ~ 12%
15–20 43 ~ 14%
> 20 40 ~ 13%
Total 317 100%
Source: Research results.
Table 3. Duration of service in the service company of employees from the sample.
Duration of service in the service company (years) Number of employees Percentage
0–5 78 ~ 24%
5–10 89 ~ 28%
10–15 65 ~ 21%
15–20 52 ~ 16%
> 20 33 ~ 11%
Total 317 100%
Table 4. Structure of the sample.

Service Companies Number of questionnaires Percentage of sample
Banks 90 ~ 28%
Insurance Companies 121 ~ 38%
Supermarkets 60 ~ 19%
Other Service Companies 46 ~ 15%
Total 317 100%
The period of work experience and duration of service confirmed the hypotheses that
employee loyalty has a positive influence on service quality, service quality has a positive
influence on cost reduction and cost reduction has a positive influence on company per-
formance. They affected the results of the research as a support that employee with longer
work experience and longer duration of service also considered that the variables have
an impact as that is set in our hypotheses. According to answers, it can be concluded that
although there was no certain regularity in the connection of work experience, duration
of service and answers in the survey, certainly the employees with longer work experience
and duration of services gave good marks to confirm the proposed hypotheses.
The questionnaires were distributed in service companies, as is shown in Table 4.
As is presented in Table 1, indicators are defined for each variable. The questionnaire
survey for employee loyalty contained four dimensions: intention to stay, willingness to per-
form additional work, sense of belonging and willingness for more responsibility (McCarthy,
1997). The questionnaire had six questions rated on a five-point Likert scale which was used
for measuring perception, from 1 meaning ‘I completely agree’ to 5 meaning ‘I completely
disagree’.
In the same way, a questionnaire survey addressing service quality contained five dimen-
sions of the perceived quality of service: tangibles, reliability, responsiveness, assurance and
empathy (Parasuraman et al., 1991).
Table 5. Descriptives.
Scales K.-S. p Min. Max. Mean S.D. Skewness Kurtosis
1. Employee loyalty 0.109 0.000 6.00 21.00 13.38 3.07 0.30 −0.67
2. Service quality 0.142 0.000 5.00 15.00 9.38 2.04 0.33 −0.63
3. Cost reduction 0.087 0.000 7.00 23.00 15.04 3.17 0.03 −0.43
4. Performance 0.139 0.000 6.00 20.00 12.68 2.27 0.37 0.44
Note: n = 301; K.-S., Kolmogorov-Smirnov statistic; p, significance level of Kolmogorov-Smirnov statistics’.
The questionnaire survey used for cost reduction contains three dimensions: reducing
cost per unit of service, improving sales channels and reducing operating costs (Parmenter,
2010).
The questionnaire survey related to company performance contains four dimensions:
growth, return on investment, increased market share and increased profitability (Navarro &
Moya, 2005; Samsonowa, 2011). The results of the analysis show the impact of the variables
on the defined goal (Blesic, Dragin, Marković, Cerovic, & Deri, 2014).
5.1. Descriptive statistics

The conceptual model makes explicit the expected links among the variables: employee
loyalty, service quality, cost reduction and performance. The analysis was first made by the
Kolmogorov-Smirnov (K.-S.) test.
5.2. The Kolmogorov-Smirnov (K.-S.) test

The K.-S. test is a non-parametric test of goodness of fit for the continuous cumulative
distribution of the data samples. It can be used to approve the null hypothesis that two data
populations are drawn from the same distribution to a certain required level of significance.
On the other hand, failing to approve the null hypothesis shows that they are from different
distributions (Wang & Wang, 2010).
The K.-S. test is arguably the most well-known test for normality. It is also available in
most widely used statistical software packages. In its original form, the K.-S. test is used
to decide if a sample comes from a population with a completely specified continuous dis-
tribution. In practice, however, we often need to estimate one or more of the parameters
of the hypothesised distribution (say, the normal distribution) from the sample, in which
case the critical values of the K.-S. test may no longer be valid. When one concludes (after
using the K.-S. test) that a sample is not normal, this only means that the data is not normal
at the specified sample mean and sample variance. In the traditional K.-S. test, the data is
compared against a normal distribution with fixed parameter values (Drezner, Turel, &
Zerom, 2008). K.-S. statistics belong to the class of statistics which is based on the largest
vertical difference between the hypothesised and empirical distribution (Conover, 1999 ;
Razali & Wah, 2011).
The basic descriptive measures are shown in Table 5. Regarding the normality of the dis-
tribution, the K.-S. test shows that, for each sub-scale, there is a significant deviation from
the normal distribution. However, according to the less strict criterion (more suitable for
research in social sciences), values of skewness (a measure of the asymmetry) and kurtosis
838 I. TOMIC ET AL.
Table 6. Correlations between dimensions.

Scale 1 2 3 4
1. Employee loyalty —
2. Service quality 0.475** —
3. Cost reduction 0.516** 0.429** —
4. Performance 0.215** 0.263** 0.390** —
**p < 0.001.
(a measure of whether the data are peaked or flat) of the distribution can be considered
acceptable.
Table 6 shows the correlations between the sub-scales. The results show statistically
significant positive inter-correlations of the sub-scales Employee loyalty, Service quality,
Cost reduction and Performance. The correlation coefficients range from moderate-to-high,
with the highest values for the correlation between Employee loyalty and Cost reduction
and the lowest between Employee loyalty and Performance.
5.3. Structural equation modelling

S.E.M.s constitute a popular framework for formulating, fitting and testing an abundant
variety of models for continuous interval-level data in a wide range of fields (Oberski,
2014). Special cases of structural equation modelling include factor analysis, (multivari-
ate) linear regression, path analysis, random growth curve and other longitudinal models,
errors-in-variables models and mediation analysis (Bollen, 1989; Kline, 2011).
In order to explore the hypothesised model of the observed dimensions, we used struc-
tural equation modelling. The data was analysed using A.M.O.S. statistical software and
lavaan software package.
The A.M.O.S. programme offered a comprehensive graphical interface that allowed users
to specify their model by drawing its path diagram (Rosseel, 2012).
Lavaan (latent variable analysis) is a software package for structural equation modelling
implemented in the R system for statistical computing, as multiple regression equations are
simply a set of regression formulas, using the typical syntax of an R formula (Fox, 2006).
Lavaan reveals the long-term goal: to provide a collection of tools that can be used to explore,
estimate and understand a wide family of latent variable models, including factor analysis,
structural equation, longitudinal, multi-level, latent class, item response and missing data
models (Lee, 2007; Muthen, 2002; Skrondal & Rabe-Hesketh, 2004).
We used the following indices of model fit: χ² (Chi-square test), C.F.I. (comparative fit
index), T.L.I. (Tucker-Lewis index), R.M.S.E.A. (root mean square error of approximation)
and S.R.M.R. (standardised root mean residual).
Two models were tested using path analysis. The first model (Figure 4) assumes the
direct effect of Employee loyalty on Service quality, the direct effect of Service quality on
Cost reduction and the direct effect of Cost reduction on Performance. Figure 5 shows the
Proposed Path Analytic Model of Employee loyalty, Service quality, Cost reduction and
Performance. The single-headed arrows represent the causal links between these variables.
Since indexes of fit do not satisfy the criteria for the assessment good fit (Table 7), a
modification was implemented on the first model: the dimension Employee loyalty in the
second model achieves a direct impact on the dimension Cost reduction (Figure 5).
Figure 4. First model tested (p < 0.001). Source: Research results.
There is a positive correlation between the defined variables, with the highest positive
correlation found between Employee loyalty and Service quality (0.47**), followed by the
correlation between Employee loyalty and Cost reduction (0.40**) and between Cost reduc-
tion and Performance (0.39**), while the lowest correlation exists between Service quality
and Cost reduction (0.24**). All the coefficients show good levels of correlation.
The path analysis results demonstrate that, when the Employees loyalty and Cost reduc-
tion are brought into a direct relationship (Employee loyalty represents a predictor variable
and Cost reduction a criterion variable), indices of fit reach satisfactory values.
6. Discussion
Management structures of today’s business systems want a company that is flexible enough
to adapt quickly to market changes, able to be ahead of competitors, innovative enough to
keep its products and services, capable of providing customer services and maximum quality
(Tesic, Lalic, Cosic, & Mitrovic, 2010). Hong, Doll, Revilla, and Nahm (2011) indicated
that, for its management, it is extremely important to analyse how the activities which are
carried out in the company affect business performance.
In this research, we developed and tested a new model which explores the relationships
among employee loyalty, service quality, cost reduction and performance. The research
results give strong support for the prediction that employee loyalty is an important variable
and has a significant influence on company profitability.
Armstrong and Baron (2005) indicate that people and their collective skills, abilities,
knowledge, and experiences, coupled with their willingness to deploy these into the inter-
ests of their employing company, are now recognised as making a significant contribution
840 I. TOMIC ET AL.
Figure 5. Second model tested. Source: Research results.

Note: ** = significant at p < 0.001 and it is used for correlation coefficients in path analysis.
Table 7. Fit indexes of two hypothesised models.

χ² df C.F.I. T.L.I. R.M.S.E.A. S.R.M.R.
Model 1 242.28** 6 0.78 0.56 0.24 (0.18–029) 0.09
Model 2 242.27** 6 0.99 0.97 0.05 (0.00–0.14) 0.02
**p < 0.001.
to company success and constitute a significant source of competitive advantage. In a total

quality setting, regular contact with customers is maintained in order to identify their
changing needs and requirements via such methods as focus groups and customer site
visits, and performance is continuously measured against those requirements (Hackman
& Wageman, 1995).
Youndt, Snell, Dean, and Lepak (1996) indicated that organisations can create customer
value by either reducing costs or increasing benefits in the production equation. Since people
are one of the most costly and uncontrollable resources affecting this equation, management
has to control costs by diminishing the amount of human capital needed in the production
process by substituting mechanised systems for labour.
Wright, Gardner, Moynihan, and Allen (2005) suggest a positive relationship between
employees and performance and provide a more rigorous examination of the causal order
in the Human Resources practice–organisational performance relationship.
Business-unit-level research also provides opportunities to establish linkages to outcomes
that are directly relevant to most businesses. Important outcomes such as customer loyalty,
profitability, productivity, employee turnover and safety variables are typically aggregated
and reported at the business-unit level in many companies (Harter, Schmidt, & Hayes, 2002).
Path analysis was used to verify the theoretical model and identify the cause–effect rela-
tionship between variables. This result differs from the previous studies (Yee et al., 2010),
in which introduction of the additional direct relation between these dimensions was not
necessary.
The results on our sample show that Employee loyalty achieved a very significant contri-
bution to Cost reduction (β = 0.40, p < 0.001), indicating that people who do not express a
feeling of loyalty and interest in the company they work for probably would not even think
about potential reductions in costs that same company could implement.
Management should recognise and support employee loyalty as a vital source of service
companies. They should encourage loyalty using different methods for motivation and
rewarding and employees should have the opportunity to thrive and contribute their ideas
for improving the business. They should also receive an adequate reward for their efforts,
as well as bonuses for additional work. Using all mentioned efforts for improving employee
loyalty, management would succeed in achieving better company performance.
7. Findings
In this study, we developed and tested the relationships among employee loyalty, service
The results of our research give strong support for the hypothesis that employee loyalty
has a positive influence on service quality, service quality has a positive influence on cost
reduction and cost reduction has a positive influence on company performance.
8. Relevance
This research helps in understanding the relationships between employee loyalty, service
9. Contribution
The results of the research can be applied in the field of management in analysing perfor-
mance, since the model with defined relations has not been applied before and it can be
applied for performance analysis in the management of service companies.
10. Conclusion
The values obtained from Path analysis express the influence (beta coefficients). If the values
are positive, this means that one variable is positively related to another, and the increase in
one variable entails an increase in the other variables. Also, if the values are negative, this
means that an increase of one variable reduces other variables associated with it.
Based on the research and the use of various methods, the hypotheses are proven as
follows:
The fact that Employee loyalty affects Service quality (0.47) and that this is a positive
relation proves hypothesis (H1): Employee loyalty has a positive influence on Service quality.
842 I. TOMIC ET AL.
Since our analysis shows that Service quality affects Cost reduction (0.24) and that this
is a positive relation, this proves hypothesis (H2): Service quality has a positive influence
on Cost reduction.
According to our results, Cost reduction affects Performance (0.39) and that is also a
positive relation, so it proves hypothesis (H3): Cost reduction has a positive influence on
Performance.
In addition to the indirect influence of Employee loyalty to Cost reduction through
Service quality, Employee loyalty achieved a direct influence and positive impact on Cost
reduction (0.40), which leads to the conclusion that, in addition to the defined hypotheses,
Employee loyalty also has a direct and positive impact on Cost reduction.
Collectively, our hypotheses formed a basic model involving the variables which may
directly and/or indirectly affect performance. The framework of relationships formed by
the suggested hypotheses was tested by path analysis. This method primarily involves the
decomposition and interpretation of linear relationships among a set of variables. The causal
model is presented in its testable form and describes the primary relationships between the
variables as hypothesised. The path coefficients of all the defined variables are shown and
all coefficients are statistically significant (p < 0.001). The path analysis results indicate that
all the variables have a causal impact on performance.
Based on the research it can be concluded that there is an influence of the defined vari-
ables on the company performance and the relations that were investigated will contribute
to improving the performance of service companies.
Disclosure statement
No potential conflict of interest was reported by the authors.
Funding
This work was supported by Ministry of Education, Science and Technological Development of the
Republic of Serbia [grant number 035050].
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Webology, Volume 17, Number 2, December, 2020
The Quality Effect of Digital-Based Signature Services on the

Performance of the District Government
Andries Lionardo
Faculty of Social and Political Studies, University of Sriwijaya, Palembang, Indonesia.
Chairun Nasirin*
Department of Health Administration, College of Health Sciences (STIKES) Mataram, Indonesia.
E-mail: chairun.nasirin@stikes-mataram.ac.id
Received July 18, 2020; Accepted September 24, 2020

ISSN: 1735-188X
DOI: 10.14704/WEB/V17I2/WEB17055
Abstract
This study aims to measure the extent of the influence of digital-based signature service
quality on the performance of the District Government of Palembang, Indonesia. The benefits
of research provide solutions to the effectiveness of bureaucratic reform at the sub-district
level. This research on the Effect of Digital-Based Signature Service Quality on Government
Performance uses public service theory and organizational performance. This research method
uses quantitative research methods. Research respondents were determined by population and
sampling techniques following selected criteria relevant to the research problem. The research
findings show that digital signatures are very significantly influential in overcoming slow
problems and lengthy procedures in administrative services at the sub-district level. As a
result, the socio-economic community feels facilitated in public services of its many types.
The results of this study also go in line with efforts to reform public services undertaken by
the Central Government so that aspects of organizational communication and public
administration undergo fundamental changes.
Keywords
Service Quality, District Performance, Digital Signature.
Introduction
In the current millennial era, humanist service is the main task that is essential from the
figure of the apparatus, as a servant of the state and servant of society. This task has been
clearly outlined in the opening of the fourth 1945 Constitution, which includes 4 (four)
aspects of the essential services of the apparatus to the community, namely protecting the
entire Indonesian nation and all Indonesian bloodspots, promoting public welfare,
607 http://www.webology.org
promoting the life of the nation and carrying out world order based on independence,
lasting peace and social justice.
Revolution 4.0 makes the scope of services and public services include aspects of
community satisfaction that is very broad tends to have a wider scope of services and is
identical to the quality of service itself (Huang and Wong, 2014). Because public facilities
and services are a way of allocating resources through performance mechanisms that work
towards achieving better quality public services (Zhang et al., 2020). On the contrary,
public services without a humanist apparatus performance process tend to open space for
corrupt practices (Denford et al., 2019).
As part of the current service system, digitalization and paperless have been adopted in
response to the comprehensive scope of public services (Gonzalez et al., 2019).
Unfortunately, public services that touch almost every corner of people's lives are not
supported by an open culture of bureaucratic reform and a humanist service process.
Therefore it is not surprising that public services in Indonesia have characteristics that
tend to be corrupt, especially those related to the procurement of public service products
that are obligatory such as National Identity Cards (KTP), Family Cards (KK), Driving
License, Passport, and other population administration.
The study has an urgency in the relationship between the problems studied, the findings
produced, and the application of these findings to improve a mechanism for the realization
of more public services Suitable for the community. The results of shows that are
applicable can be made recommendations for the Government, especially in the district of
AlangAlangLebar, Palembang, in optimizing administrative services based on
digitalization (Blank, 2018). The design of this research is quantitative research. The
advantage of this research also lies in the research design because the essence of
quantitative analysis can measure statistical data in the form of public service
relationships with organizational performance to realize appropriate solutions.
Literature Review
1) Quality of Public Services
It must be understood that public services are a form of public service activities carried
out by Government Agencies at the Central and Regional Bureaucracy, the public must be
able to provide public services that are more professional, effective, simple, transparent,
open, timely, responsive and adaptive as well as able to develop human quality in the
sense of increasing the capacity of individuals and society to actively determine their
future (Palma et al., 2020). Professional public services, which means that public services
are characterized by the existence of accountability and responsibility from service
providers (Lindkvist and Llewellyn, 2003), with the following characteristics (Widodo:
2002)
1. Effective, prioritizing the achievement of what are the goals and objectives;
2. Simple, implies that procedures/ for services are carried out easily, quickly, precisely, not
convoluted, easily understood and easily implemented by people who request services;
3. Clarity and certainty (transparent), implies the existence of clarity and certainty
regarding: (a) The procedure of service; (b) service requirements, both technical and
administrative requirements; (c) work units and or officials who are authorized and
responsible for providing services; (d) details of service tariffs and procedures for
payment; (e) time schedule for completion of services.
4. Openness, meaning the procedures for requirements, work units in charge of service
providers, completion time, details of tariffs and other matters relating to the service
process must be openly informed so that it is easily known and understood by the public,
both requested or unsolicited;
5. Efficiency means: (a) service requirements are only limited to matters that are directly
related to the achievement of service objectives while still taking into account the
integration of requirements with related service products; (b) Preventing the repetition of
the fulfillment of requirements, in the case of the process of community service
concerned, requires the completion of the requirements of the work units / other relevant
government agencies.
6. Timeliness, this criterion implies the implementation of community services can be
completed within a specified period of time;
7. Responsive, more directed at responsiveness and quick response to the problems, needs,
and aspirations of the people being served;
8. Adaptive, quick to adjust to the demands, desires, and aspirations of the people served
who are always experiencing growth and development.
To be able to assess the extent of the quality of public services Zeithaml (1990) stated in
supporting this, there are 10 (ten) dimensions that must be considered in looking at the
benchmarks of the quality of public services, namely as follows:
1. Tangible, consisting of physical facilities, equipment, personnel, and

communications;
2. Reliable, consisting of the ability of the service unit to create the promised service
appropriately;
3. Responsiveness, willingness to help consumers take responsibility for the quality of

services provided;
4. Competence, demands it has, good knowledge and skills by the apparatus in
providing services;
5. Courtesy, attitude or behavior friendly, friendly, responsive to the desires of
consumers and willing to make contact or personal relationships;
6. Credibility, honest attitude in every effort to attract public trust;
7. Security, the services provided must be free from various dangers and risks;
8. Access, there is an easy to make contact and approach;
9. Communication, the willingness of service providers to listen to the voices, desires
or aspirations of customers, as well as the willingness to always convey new
information to the public;
10. Understanding the customer makes every effort to find out the customer's needs.
Based on the above explanation, indicators of the quality of public services such as:
1. Timeliness;
2. Ease of submission;
3. Service accuracy is error-free;
4. Service fees.
2). The Concept of Organizational Performance
Many factors can play a role in creating organizational performance, including vision-
mission, organizational structure, work procedures, intensive systems, discipline,
cooperation, leadership. According to Palma et al. (2020) that increasing individual
performance could be seen from their skills, practical skills, competencies, knowledge and
information, freedom of experience, attitudes and behavior, virtues, creativity, morality,
and others. Group performance can be seen from the aspects of cooperation, integrity,
discipline, loyalty, and others ".
Meanwhile, (Matei et al., 2016; Palma et al., 2020) explained that a number of structural
factors indicate a good administration and relationship to performance. Among the more
prominent factors are the perception of roles, norms, social status, group size,
demographic composition, group assignments, and cohesiveness. Furthermore, according
to Goldschmidt et al. (2019), the implementation of the organizational task requires the
support of organizational structures, such as a legal basis, work procedures, facilities, and
others. The ability of the organizational structure is the administrative ability, namely the
strength of the organization to achieve or complete tasks supported by the organizational

structure in addition to its environment. How far the organization's ability to carry out
functions is very dependent on the availability of trained personnel, resources, and the
level of authority (Nævestad et al., 2019).
Furthermore, Monteiro et al. (2020) hold that organizational structure is a form of the way
in which tasks and responsibilities are allocated to individuals, where the individuals are
grouped into offices, departments, and divisions. Organizational Structure should always
adjust to the development needs of the public and the environment. It aims to create
effective organizational performance and fast work processes. " Responding to the
opinion above, it can be seen that in order to create an effective organizational
performance in order to create a situation to accelerate the fast work process, an
organizational structure is needed that can fulfill public services in the district
government.
The study of this research from the perspective of social-political science is the study of
organizational communication in the form of an analysis of the quality of public services
and organizational performance of the District Government of Alang-AlangLebar,
Palembang City. The following is a complete research road map.
Chart 1 The framework of Public Service Quality
(Source: Zeithaml, 1990)
Method
Research Design The Effect of Digital-Based Signature Service Quality on Government

Performance in Alang-AlangLebar Sub district, Palembang City, South Sumatra Province,
is a quantitative descriptive design. Descriptive research is research that describes the
object or subject of research and others based on the facts that appear and as they are
systematically, factually and accurately about the facts and characteristics of the
population of a particular area. Quantitative research itself based on various opinions of
experts can be concluded an observation that involves a certain characteristic, in the form
of calculations, numbers or quantities that view reality as a single, classified, concrete, can
be observed and measured quantitatively.
Population from the research on the Effect of Digital-Based Signature Service Quality on
Government Performance in Alang - AlangLebar Subdistrict, Palembang City, South
Sumatra Province are people who promote public services in the Alang-AlangLebar
District Office in Palembang City during March-June 2020 as many as 52 the visitor who
submitted a public service. In this study, the population that had the opportunity was the
person who filed for population administration at the Alang-AlangLebar Sub-District
Office of Palembang City.
Data collection techniques used in this study were by distributing questionnaires,

unstructured interviews, and observations. The three data collection techniques are the
distribution of questionnaires in the study of the Effect of Digital-Based Signature Service
Quality on Government Performance in Alang-AlangLebar sub district, Palembang, South
Sumatra Province.
Results and Discussion
The initial phenomenon of the research shows that there is an indication of the poor
quality of public services that have been enjoyed by the people of Palembang City. Data
on the quality of public services that have been provided are reflected in reports of the
many complaints made by the public through newspapers and social media. The data is as
follows:
Table 1 Types and Community Negative Responses in Public Services

In the City of Palembang
Public Complain Totals
1. Expensive costs 8
2. Long processing time 41
3. Too convoluted 12
4. There are always mistakes 9
5. The apparatus is not friendly 14
6. Dirty room 11
Source: Secondary data, 2020.
From the data in table 1, there are still complaints or dissatisfaction from the community
about the results of services, and it is clear that complaints from the community will
indicate the quality of services provided. The District Government of Alang - AlangLebar
responds to this challenge by realizing a digital signature-based policy whose aim is to
provide public services that are quickly accepted by the community through the signature
of the Sub-District Head (Camat).
The respondents of this study are employees and the public who feel the services of the
Government Office District of Alang – Alang Lebar Palembang City. The number of
respondents in this study based on Gender consists of men and women, which can be seen
in Table 9 below:
Table 2 Classification of Respondents by Gender

No Gender N (value) Percent (%)
1. Male 18 34,62
2. Female 34 65,38
Total 52 100
Source: Secondary Data, 2020.
The data above shows that the number of respondents based on gender is that respondents
are dominated by female respondents amounting to 34 people with a percentage of 65.38
percent and the number of male respondents totaling 18 people with a percentage of 34.62
percent, these results indicate that employees in this study the majority were female. The
data that researchers present is information provided by respondents through providing
questionnaires to be filled or answered.
Validity Test in this study was conducted on 52 respondents who are employees who
work in the Government Office District of Alang - AlangLebar Palembang. The questions
in the Questionnaire consist of 30 items, of which 14 questions for the independent
variable are the service quality variable (X), which has 5 Dimensions, and 16 Questions
for the dependent variable are the employee performance variable (Y) which has four
dimensions. The criteria used in this validity test are performed by comparing the value of
"r’’ _ ("calculate") with the value of "r" _ "table". If "r" _ (count) is greater than "r" _
"table," then the question item is declared valid. the value of "r" _ "table" can be seen in
the helper table (attached). the value of "r" _ "table" with N = 52 at the significance of 5%
is 0.273. From the results of questionnaire processing through SPSS Version 20.0, the
following results from the validity test of service quality variable (X) questions and
Employee performance variable questions (Y).
Table 3 Test Results of Service Quality Validity (X)

Variable Item Keterangan
Quality (X) Item 1 0,343 0,273 Valid
Item 2 0,326 0,273 Valid
Item 3 0,457 0,273 Valid
Item 4 0,374 0,273 Valid
Item 5 0,366 0,273 Valid
Item 6 0,377 0,273 Valid
Item 7 0,416 0,273 Valid
Item 8 0,352 0,273 Valid
Item 9 0,432 0,273 Valid
Item 10 0,602 0,273 Valid
Item 11 0,558 0,273 Valid
Item 12 0,437 0,273 Valid
Item 13 0,493 0,273 Valid
Item 14 0,487 0,273 Valid
Based on Table 12, it can be seen that the independent variable, namely service quality
has 14 questions. From the results of the validity test, it is known that all values of "r" _
(count) have a value greater than "r" _ "table" which is 0.312, this shows that the variable
quality of service indicators owned is valid and reliable, the questionnaire used can further
analysis is performed.
Table 4 Employee Performance Validity Test Results (Y)

Variable Item Result
Employee Performance (Y) Item 1 0,489 0,273 Valid
Item 2 0,396 0,273 Valid
Item 3 0,377 0,273 Valid
Item 4 0,348 0,273 Valid
Item 5 0,360 0,273 Valid
Item 6 0,399 0,273 Valid
Item 7 0,450 0,273 Valid
Item 8 0,557 0,273 Valid
Item 9 0,305 0,273 Valid
Item 10 0,372 0,273 Valid
Item 11 0,435 0,273 Valid
Item 12 0,347 0,273 Valid
Item 13 0,412 0,273 Valid
Item 14 0,407 0,273 Valid
Item 15 0,359 0,273 Valid
Item 16 0,468 0,273 Valid
Based on the table above, it can be seen that the dependent variable is employee
performance has 16 questions. From the results of the validity test, it is known that all
values of r "r" (count) have a value greater than "r" " table) which is 0.273, this shows that
the employee performance indicators owned valid and reliable indicators that the
questionnaire used can be further analyzed.
The above data also shows that employee performance variables from the dimensions of
service quality, dimensions of employee work quantity, dimensions of task
implementation, and overall dimensions of responsibility are 60.01 percent, which is
included in the Good category. In the next discussion will be carried out interval scale
measurements. The statistical test is performed on the independent variable (X), which is
service quality on the dependent variable (Y), namely Employee Performance.
1) Service Quality Variable Interval
The questionnaire on the service quality variable consists of 14 question items. Based on
data that has been processed using the SPSS 20.0 For Windows program, the highest
score obtained is 65, and the lowest score is 39. The analysis shows an average of 52.90, a
median of 53.00, mode 50, and a standard deviation of 5.661.
The number of interval classes can be calculated using the formula 1 + 3.3 Log N where
N is the number of research subjects. it is known that N = 52 so that the equation 1 + 3.3
Log 52 = 6.64 is obtained rounded up to 7 class intervals. The range of data is calculated
by using a formula with a maximum value of 65 - 39, the minimum value so as to obtain a
range of data of 65 - 39 .. = 26 The length of the class is calculated by the formula for the
range of data: the number of class intervals is obtained by the length of class 26: 6.64 =
3.91. Respondents' answers to the service quality variables can be seen in the following
table:
Table 5 Number of Frequency Class Intervals Frequency of Service Quality

No Interval Frequency (f) Percentage (%)
1 63 – 66,9 2 3,8
2 59 – 62,9 6 11,5
3 55 – 58,9 14 26,9
4 51 – 54,9 10 19,2
5 47 – 50,9 13 25,0
6 43 – 46,9 5 9,6
7 39 – 42,9 2 3,8
Total 52 100
Service quality variable data is then classified into the category of service quality variable
tendency data. Calculation of trend distribution is used by using the ideal average formula
(Mi), and the ideal standard deviation formula (SDi), namely Mi = ½ (Xmax + Xmin) and
SDi ½ (Xmax - Xmin) where Xmax is the maximum value and Xmin is the minimum
value.
Based on these calculations, it is known that the ideal mean service quality variable is 52,
and the ideal standard deviation is 4.33. The trend category table is divided into 3 interval
classes in the calculation of high categories = X> Mi + SDi, Medium = Mi – SDi ≤ X <Mi
+ SDi and Low = X <Mi - SDi. The results of the distribution of trends in service quality
variables can be seen in Table 28, as follows:
Table 6 Category Trends in Service Variable Data Quality

No. Interval Frequency (f) Percentage (%) Result
1. X 56,33 8 15,39 high
2. 47,67 – 56,33 37 71,15 midle
3. X 47,67 7 13,46 low
Based on the table above shows that the assessment of respondents on the variable service
quality is moderate because the majority of respondents gave a medium assessment. The
tendency category table shows that eight people (15.39%) each are in the high category; in
the moderate category, 37 people (71.15%) and the low category are seven respondents
(13.46%).
2) Employee Performance Variable Interval
The questionnaire on the Performance variable consists of 16 question items. Based on

data that has been processed using the SPSS 20.0 For Windows program, the highest
number of scores is obtained by 76, and the lowest number of scores is 54. The results of
the analysis show an average of 65.83, a median of 66.00, mode 4, 00, and the standard
deviation of 5,433.
The number of interval classes can be calculated using the formula 1 + 3.3 Log N where
N is the number of research subjects. it is known that N = 52 so that the equation 1 + 3.3
Log 52 = 6.64 is obtained rounded up to 7 class intervals. The range of data is calculated
by the formula maximum value of 76-54, the minimum value so as to obtain a data range
of 76-54 = 22 The length of the class is calculated by the formula of the data range: the
number of interval classes, the length of class 22: 6.64 = 3.3 is obtained. Respondents'
answers to employee performance variables can be seen in the following table:
Table 7 Number of Frequency Interval Classes Employee Performance Variables

No. Intervall Frequency (f) Percentage (%)
1. 74,4 – 77,7 2 3,8
2. 71 – 74,3 9 17,3
3. 67,6 – 70,9 7 13,5
4. 64,2 – 67,5 14 26,9
5. 60,8 – 64,1 9 17,3
6. 57,4 – 60,7 8 15,4
7. 54 - 57,3 3 5,8
Total 52 100
Service quality variable data is then classified into the category of service quality variable
tendency data. Calculation of trend distribution is used by using the ideal average formula
(Mi), and the ideal standard deviation formula (SDi), namely Mi = ½ (Xmax + Xmin) and
SDi ½ (Xmax - Xmin) where Xmax is the maximum value and Xmin is the minimum
value.
Based on these calculations it is known that the ideal mean of employee performance
variables is 65 and the ideal standard deviation is 3.66 The tendency category table is
divided into 3 interval classes in the calculation of categories High = X> Mi + SDi,
Medium = Mi – SDi ≤ X <Mi + SDi and Low = X <Mi - SDi. The results of the trend
distribution of employee performance variables can be seen in Table 30, as follows:
Table 8 Category trends in employee performance variable data

No. Intervall Frequency (f) Percentage (%) Result
1. X 68,66 11 21,15 High

2. 61,34 – 68,66 30 57,70 middle
3. X 61,34 11 21,15 low
Based on the table above, it can be explained that the assessment of respondents on the
variable service quality is moderate because the majority of respondents gave a medium
assessment. The trend category table shows that as many as 11 people (21.15%) were in
the high category, in the moderate category were 30 people (57.70%), and the low
category were 11 respondents (21.15%).
Conclusion
After analyzing the results of the discussion studied related to the Effect of Digital-Based
Signature Service Quality on Government Performance in Alang - AlangLebar District,
Palembang City, South Sumatra Province, the researchers draw conclusions based on the
explanation and explanation of the previous discussion, which is proven Effect of Digital-
Based Signature Service Quality on Government Performance in Alang - AlangLebar
Subdistrict, Palembang City, South Sumatra Province 0.576 (57.6%). The correlation
coefficient between service quality (X) and employee performance (Y) in the District
Government of Alang - AlangLebar Palembang, South Sumatra Province is 0.759
(75.9%). This means that employee performance can be said to be good, but needs to be
maximized again. Improved employee performance can be done by further maximizing
the quality of service work of the District Government of Alang - AlangLebar, Palembang
City, South Sumatra Province.
Based on research that has been done by the author, the authors suggest several things
related to the Effect of Digital-Based Signature Service Quality on Government
Performance in Alang - AlangLebar Subdistrict, Palembang, South Sumatra Province.
First, more adequate facilities are needed both for work facilities in the employee's room,
good facilities standards, and a clean work environment in supporting all employee
performance. Second, do wider socialization to the public related to the existing digital
signage service policy.
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Model Analisis &
No Nama Peneliti Variabel Penelitian Hasil Penelitian
Alat Uji Statistik
1. Isaac Ahakwa Independent Variabel : Weighted Partial 1. Employee Engagement
Jingzhao Yang Least Squares EE is an important term in
Evelyn Agba Tackie The Influence of (WPLS) and Partial an organization, which has
Samuel Atingabili Employee Engagement, Least Squares gained substantial interest
(PLS) based on in scholarly study.
Dependent Variabel : Structural Equation 2. Organizational
1. Work Environment Modeling (SEM) Commitment
2. Job Satisfaction on were employed. It is undoubtedly very
Organizational required for all
Commitment and establishments to cultivate
Performance of OC since personnel is the
Employees: A key foundation of
Sampling Weights in sustained achievement and
PLS path Modelling efficiency.
Work Environment
The WE is a significant
element that influences the
JS and OC of employees
to the organization.
Employee Job Satisfaction
JS is the wonderful
psychological state arising
from the enjoyment of a
person's own work
experience (Liu,
Aungsuroch, &
Yunibhand, 2016
Performance is defined as
the product of trained
employees in some
particular circumstances
(Obicci, 2015).
2. 1. Qi Song, School of Independent Variabel : data by conducting a The results
Business Administration, Impact of the usage of quasinatural field show that all p-values of t-
Southwestern University social media in the experiment (Shadish tests for demographic
of Finance and workplace et al. 2002) at SW variables are greater than
Economics, Chengdu, Payment (a 0.05 (p = 0.22 for
China, Dependent Variabel: pseudonym for age, 0.51 for gender, 0.90
songqiswufe@163.com on team and employee anonymity), a large for education, 0.86 for
2. Yi Wang, School of performance financial service organizational tenure, and
Business Administration, Author team company in Western 0.78 for job
Southwestern University China. position), indicating no
of Finance and significant differences
Economics, Chengdu, between two samples. In
China, addition, the sample
wangyi63@swufe.edu.cn shows a mixture of age,
3. Yang Chen, School of gender, education,
Business Administration, organizational tenure, and
Southwestern University job position (Forsgren
of Finance and
Economics, Chengdu,
China,
chenyang@swufe.edu.cn
4. Jose Benitez
(corresponding author),
Rennes School of
Business, Rennes,
France,
jose.benitez@rennes-
sb.com; Department of
Management, School of
Business, University of
Granada, Granada, Spain,
joseba@ugr.es
5. Jiang Hu, All in Pay
Network Service Co.,
Ltd., Chengdu, China,
hujiang@allinpay.com
3. H. Heslina Independen Variabel : 1) Descriptive 1) Questionnaire, which is
Andi Syahruni The Influence of analysis is used to a technique of collecting
Information Technology, analyze the effect data through a list of
Human Resources of Information written questions to
Competency and Technology, HR respondents to obtain
Employee Competence, and accurate and valid data. 2)
Employee Observation, namely data
Dependen Variabel : Engagement on collection by direct
Engagement on employee observation of the object
Performance of performance. 2) under study. 3) Interview
Employees Multiple regression is a method of collecting
analysis is the data through direct
method used to processing to obtain
answer the information from selected
relationship respondents. 4)
between Documentation, namely
independent and the method of collecting
dependent data with written data in
variables. the form of documents
available at the Makassar
City Regional Revenue
Agency Office. The data
types used in this study are
as follows: (1) Primary
data is data obtained
directly through interviews
with respondents and other
officials related to the
problem under study. (2)
Secondary data is data in
documents and written
reports such as
organizational structure,
number of employees, and
other information related
to this research problem.
4. Phong Thanh Nguyen1 Independent Variabel: This research was 1. Employee Competence
Az Zahra Tania LITERETURE REVIEW conducted by and Performance
Arifani2, Azzalia Yuniar FACTORS AFFECTING looking at the Competence is an ability
Susanti3, M. Rizky EMPLOYEE or the capacity of a person
three factors that
Mahaputra4 PERFORMANCE : to perform various tasks in
are considered to a job, where this ability is
Dependen Variabel: have an effect on determined by intellectual
COMPETENCE, employee and physical factors
COMPENSATION AND performance, (Robbins & Coulter,
LEADERSHIP namely 2018). Thus, competence
competency, shows the skills and
abilities acquired
compensation,
intellectually and
and leadership physically in a job.
style factors 2. Employee
through various Compensation and
relevant research Performance
methods and can In an organization, a
explain in detail motivated and performing
workforce is needed high
the relationship
in order to meet the needs
between of the organization. One
performance way to increase employee
factors. performance motivation is
to get compensation.
5. Tehubijuluw Zacharias1 Independent Variabel: The analysis This research shows a

Mohamad Arsad Cultural Reconstruction method used in this positive and significant
Rahawarin and Organization study was effect of organizational
Yusriadi Yusriadi Environment Generalized culture on corporate
Dependent Variabel: Structured engagement, which is seen
for Employee Component from the direct influence
Performance Analysis (GSCA). path analysis results. The
results of this study are in
line with Harwiki (2016)
that every culture is said to
be effective in the
organization if the
employees have good
organizational
engagement. According to
Mitic et al. (2016),
engagement can be
successful if the culture is
wise, exemplary,
disciplined, and applies all
procedures consequently
and avoids favoritism that
can lead to prejudice,
resentment, and social
jealousy.
will improve if the
corporate culture and
organizational engagement
is appropriately
implemented
(Silverthorne, 2004).
6. Jefirstson Richset Independent Variabel: Statistical Package 1. The Effect of Incentives
Riwukore1, Yohanes Analysis of Employee for Social Science to Employee Performance
Susanto2, Jekki (SPSS) version 21,0 The results showed that
Pilkandis3, Fellyanus Dependent Variabal: as the instrument from a simple linear
Habaora4 Performance in The analysis. regression test for the
Department of Education variable giving incentives
and Culture, to employee performance
Lubuklinggau City at The Department of
Education and Culture of
Lubuklinggau City
obtained a simple
regression equation
2. Effect of Motivation to
The results showed that
from a simple linear
regression test for the
motivation variable to
employee performance at
The Department of
Lubuklinggau City, a
simple regression equation
was obtained
3. Effect of discipline to
employee performance
The results showed that
from a simple linear
regression test for
disciplinary variables on
employee performance at
The Department of
Lubuklinggau City, it was
obtained a simple
regression equation
4. Effect of Incentives,
Motivaton, and Discipline
to Employee Performance
The result of
determination coefficient
(R2) from the independent
variable (giving
incentives, motivation and
discipline) to the
dependent variable
(employee performance),
obtained value of R Square
(R2) is 0,580 or (58%).
7. Gökhan Onat Independent Varabel: a computer Perceived

Duygu Eren The impacts of perceived environment using overqualification and
overqualification on SPSS and AMOS employee performance
programs. The concept of
Dependen Variabel: overqualification can be
employee performance: examined in two different
a case of chefs ways: subjectively and
objectively From the
objective perspective,
overqualification refers to
the standard of skills that
individuals must have and
an educational level of the
individual that is higher
than that required by the
work (Fine, 2007;
Maltarich, Reilly, &
Nyberg, 2011). From the
subjective perspective, on
the other hand,
overqualification is the
perception that the skills of
an individual exceed what
is required by the work
(Maltarich et al., 2011).
Subjective
overqualification refers to
individuals' perceptions of
whether they are
overqualified for their
current jobs or not
(Erdogan et al., 2011).
8. Rini Handayani Independet Variabel: Teknik convenience The age of the

Kasidin Emplotee Performance sampling sebagai respondents is dominated
Analalisis metode sampling by respondents
yang digunakan who have the age of 31-40
Dependent Variabel: dengan as many as 46
Ased On Human pengumpulan people (38%). The
Resources Managemen sample education level of
Practices In Private menggunakan respondents for the S1
Hospital In Surakarta kuesioner. level is the most
SmartPLS dominant of 47 people
digunakan untuk (39%) slightly
menganalisis data different from those of the
penelitian diploma level
respondents as many as 38
people (32%).
9. Gopalakrishnan Independet Variabel: set of Ordinary In general, these studies
Narayanamurthy Impact of COVID-19 Least Square (OLS) suggested that when
Guilherme Tortorella hierarchical linear employees work remotely
Dependent Variabel: regression models from their homes there is a
outbreak on employee to test our higher likelihood of
performance – Moderating hypotheses. increasing both
role of industry 4.0 base productivity and job
technologies satisfaction. Our results
expand such findings
indicating that employee
output quality is also prone
to improve when service
organizations adopt home
office policies. Further,
our findings suggest that
employees do not lack the
required infrastructure and
discipline to work from
their home, since the
sudden change to home
office environment
implied by the pandemic
positively influenced their
performances.
10. Ivana Tomic, Zdravko Independent Variabel: Path analysis is a The research was
Tesic, Bogdan An empirical study statistical method conducted using statistical
Kuzmanovic & Milos used to examine analysis on the data
Tomic Dependent Variabel; hypothesised collected using 317
of employee loyalty, (causal) questionnaire
service relationships surveys which were
quality, cost reduction and between two or designed to investigate the
company performance more variables relevance of the key
(Lleras, 2005). components
of the defined variables
(Navarro & Moya, 2005).
The sample was drawn
from 100 service
companies and included
employees from different
sectors: Finance, Logistics
and Marketing. All
interviewed respondents
completed
the questionnaire surveys,
so the response rate was
100%.
11. Andries Lionardo Independent Variabel: Data collection The initial phenomenon of
Chairun Nasirin* The Quality Effect techniques used in the research shows that
this study were by there is an indication of
Dependent Variabel: distributing the poor quality of public
of Digital-Based questionnaires, services that have been
Signature Services on the unstructured enjoyed by the people of
Performance of the interviews, and Palembang City. Data on
District Government observations. the quality of public
services that have been
provided are reflected in
reports of the many
complaints made by the
public through newspapers
and social media.
Referensi
Ahakwa, Isaac., Jingzhao, Yang., Evelyn, Agba, Tackie., and Samuel, Atingabili., 2021. The
Influence of Employee Engagement, Work Environment and Job Satisfaction on
Organizational Commitment and Performance of Employees: A Sampling Weights in
PLS path Modelling. SEISENSE Journal of Management, Vol 4, No 3,
https://doi.org/10.33215/sjom.v4i3.641.
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Resources Competency and Employee Engagement on Performance of Employees.
Golden Ratio of Human Resource Management, Vol.1, Issue. 1,
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Thanh, Nguyen, Phong., Az, Zahra, Tania, Arifani., Azzalia, Yuniar, Susanti., and M. Rizky,
Mahaputra., 2020. Literature Review Factors Affecting Employee Perfomance :
Competence, Compensation and Leadership. DIJEFA (dinasti internasional journal of
economics, finance & acounting), Volume 1, Issue 3,
https://dinastipub.org/DIJEFA.
Zacharias, Tehubijuluw., Mohamad, Arsad, Rahawarin., and Yusriadi, Yusriadi,. 2021. Cultural
Reconstruction and Organization Environment for Employee Performance. Journal of
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Richset, Riwukore, Jefirstson., Yohanes, Susanto., Jekki, Pilkandis., and Fellyanus, Habaora.,
2021. Analysis of Employee Performance in The Department of Education and Culture,
Lubuklinggau City. Asia Pacific Journal of Management and Education (APJME), Vol. 4
No. 2, https://doi.org/10.32535/apjme.v4i2.1149.
Onat, Gökhan., and Duygu Eren., 2020. The impacts of perceived overqualification on
employee performance: a case of chefs. Tourism & Management Studies, 16(4), 35-44,
https://doi.org/10.18089/tms.2020.160403.
Handayani, Rini., and Kasidin., 2022. Employee Peformance Analysis Based on Human
Resources Management Practices in Private Hospital in Surakarta. Media Ekonomi
dan Manajemen, Volume 37, Issue 1, http://dx.doi.org/10.24856/mem.v37i1.2428.
Narayanamurthy, Gopalakrishnan., and Guilherme, Tortorella., 2021. Impact of COVID-19
outbreak on employee performance – Moderating role of industry 4.0 base
technologies. International Journal of Production Economics,
http://www.elsevier.com/locate/ijpe.
Tomic, Ivana., Zdravko, Tesic, Bogdan, Kuzmanovic., and Milos, Tomic., 2018. An empirical
study of employee loyalty, service quality, cost reduction and company performance.
Economic Research-Ekonomska Istraživanja, Vol. 31, No .1
https://doi.org/10.1080/1331677X.2018.1456346.
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Services on the Performance of the District Government. Webology, Volume 17, Number
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media in the workplace on team and employee performance
Author team. https://www.sciencedirect.com/science/article/pii/S0378720618306645.

T. Review. Fitri Yanti Abd. Malik

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T. Review. Fitri Yanti Abd. Malik

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TUGAS REVIEW JURNAL INTERNASIONAL

Dr. Adnan Rajak SE., M.Si

Nama: Fitri Yanti Abd. Malik

PROGRAM STUDI MANAJEMEN

The Influence of Employee Engagement, Work

1,2,3,4 School of Management, Jiangsu University, Zhenjiang-China

Purpose- This paper explored the link between employee

Review of Related Literature

decisions." Furthermore, (Hanaysha, 2016a) conceived of EE as the productive, interpersonal, emotional

Hypotheses Development and Conceptual Framework

Figure 1: The Conceptual Framework

Employee EP1 I managed to plan my work so that it’s done on time.

Table 4: SPSS syntax

Table 5: Construct Reliability and Validity

Figure 2: The Structural Model (PLS-SEM)

Table 12: Hypotheses testing (moderating relationship)

Figure 3: Interaction effect of JS on EE and OC

Figure 4: Interaction effect of JS on EE and OC

Table 13: Effect Size

Cohen, S. (1988). Perceived stress in a probability sample of the United States.

1. Qi Song, School of Business Administration, Southwestern University of Finance and

Economics, Chengdu, China, songqiswufe@163.com

2. Yi Wang, School of Business Administration, Southwestern University of Finance and

Economics, Chengdu, China, wangyi63@swufe.edu.cn

3. Yang Chen, School of Business Administration, Southwestern University of Finance and

Economics, Chengdu, China, chenyang@swufe.edu.cn

4. Jose Benitez (corresponding author), Rennes School of Business, Rennes, France,

jose.benitez@rennes-sb.com; Department of Management, School of Business, University of

Granada, Granada, Spain, joseba@ugr.es

(Research Project ECO2017-84138-P), the Regional Government of Andalusia (Research Project

employee performance. The instrumental value provided by work-oriented social media is

firms to create business value from information technology investments.

Keywords: Social media in the workplace, work-oriented social media, socialization-oriented

social media, team performance, employee performance, IT consumerization, business value of

engagement, knowledge sharing, innovation, customer service, marketing, and talent

question this study addresses and answers.

employee practices and outcomes.

usage of work-oriented and socialization-oriented social media generate synergies in the

be complemented by socialization-oriented social media by providing expressive value (social

and emotional support).

We use a qualitative grounded theory approach to uncover the underlying complementarity

(Forsgren and Bystrom 2018), a qualitative study is recommendable. A grounded theory

complementarily used to improve team and employee performance.

Specifically, we ran a quasinatural field experiment, collecting data of two matched-sample

critical implications for the behavior and performance of employees, 2) work-oriented

provided by work-oriented social media is reinforced by the expressive value provided by

improves team and employee performance.

THEORETICAL BACKGROUND AND DEVELOPMENT

Conceptualization and classification of social media in the workplace

further understand the implications of this heterogeneity because such an understanding

particular types of social media and their interactions in the workplace.

socialization-oriented social media. Work-oriented social media refer to web-based platforms

such as improved communication effectiveness, greater work-related knowledge, and enhanced

Beyond their conceptualization and nature, we distinguish work-oriented and

algorithms, protocols, interfaces, and platform-supported applications. From the system

designed to present more technical features affording and reinforcing efficiency in

aware of the read/unread statuses of messages for improving communications efficiency.

communication by offering communication tools based on organizational or team structures.

platforms in different directions.

Second, work-oriented and socialization-oriented social media are different in terms of

affordance flexibility. According to the theory of socio-materiality, technological affordances do

2008), technological affordances – represented by technological performance – are subject to

social media technologies. Work-oriented social media, designed and implemented by