Syntax Literate: Jurnal Ilmiah Indonesia p�ISSN: 2541-0849 e-ISSN:
2548-1398
Vol. 7, No. 5, Mei 2022
IMPROVING
EMPLOYEE PERFORMANCE THROUGH INNOVATIVE WORK BEHAVIOR
University of Sultan Ageng Tirtayasa, Jakarta, Indonesia
Email: [email protected], [email protected]
Abstract
The higher the level of competition in the
industrial sector, it is necessary for the company's efforts to respond well to
this in order to survive through internal strategies in the form of improving
employee performance. Organizational culture is found to be one of the factors
that can improve employee performance. The main purpose of this study is to
build a model in an effort to improve employee performance involving innovative
work behavior as an intervening variable for the influence of organizational
culture on employee performance. The population in this study were employees of
companies engaged in the manufacturing sector with 276 employees. Samples were
taken 127 employees using purposive random sampling method. Structural Equation
Modeling (SEM) was used to test the statistical significance of the path
coefficients against the three (3) established hypotheses. The findings of the
study indicate that organizational culture and innovative work behavior have a
positive and significant influence on employee performance. Innovative work
behavior can be an intervening variable for the influence of organizational
culture on employee performance.
Keywords:
organizational culture; innovative work behavior; employee performance.
Introduction
Competition in the industrial world, especially those in the food and
beverage industry in Indonesia, is getting tougher. Competition in the food and
beverage industry sector in Indonesia is competitive with a high concentration (Wijiati & Santosa, 2015).
The condition of the increasingly fierce competition level will create its own
challenges for the food and beverage industry, whether it is engaged as a
provider of raw materials, providers of supporting materials, food and beverage
processing itself, providers of food and beverage packaging materials,
transportation services or all industries related to products. food and
beverages from raw materials to final consumers to continuously improve the
company's performance. Every company is trying to be competitive and trying to
create more profit by increasing productivity, provide customer satisfaction by
meeting expectations in quality and price (Makwana & Patange, 2019).
To face the increasingly fierce level of competition, strategic efforts need to
be made in the form of improving employee performance.
Performance
is a measure of the level of success of an organization (Pawirosumarto, Sarjana, & Gunawan, 2017).
Company performance is determined by employee performance. Organizational
performance can be influenced by the performance of the employees themselves (Hatane, 2015);
(Vosloban, 2012).
Employee performance leads to increased efficiency and productivity of
organizational processes as a whole (Ahmad, Farrukh, & Nazir, 2015).
The importance of employee performance has become increasing over the last few
years, as it has become a major and important variable in any organization (Gridwichai, Kulwanich, Piromkam, & Kwanmuangvanich, 2020).
Employee performance has an important and visible role in the progress of every
organization and its development because employees contribute to its success
and effectiveness (Jankingthong & Rurkkhum, 2012).
In a corporate environment, continuous efforts to improve employee performance
have become the main goal of human resource management (Ferine, Aditia, & Rahmadana, 2021).
Human resources are important to be managed professionally to create alignment
between the interests of employees and the interests of the organization in an
effort to advance the organization (MAPPAMIRING, AKOB, & Putra, 2020).
Organizations should analyze and study employee performance factors and strive
to develop them, because employee performance is the main outcome that
employees contribute to their productivity(Khtatbeh, Mahomed, bin Ab Rahman, & Mohamed, 2020).
Research on organizational culture on employee performance can be grouped into two. First, organizational culture on employee performance where some studies state that organizational culture has an influence on employee performance (Maamari & Saheb, 2018); (Soomro & Shah, 2019); (Sihombing, Astuti, Al Musadieq, Hamied, & Rahardjo, 2018); (Edna Maryani et al., 2020); (Mohd Asaad, Saad, & Yusoff, 2015); (Ezzeddine & Aoun, 2020). Second, some studies state that organizational culture has no effect on employee performance (Wilderom, Van den Berg, & Wiersma, 2012); (Pawirosumarto et al., 2017); (Nusari, Al Falasi, Alrajawy, Khalifa, & Isaac, 2018); (Harwiki, 2016); Paramita et al., 2020; Nkiru et al., ., 2019; Utami & Yenny, 2019).
Based on the research gap, the author tries to improve and create new concepts by providing intervening variables taking variables from established concepts that have been carried out by previous researchers, namely innovative work behavior. Innovative work behavior has a positive influence on employee performance. The role of superiors in fostering and encouraging the team by sharing ideas will create an innovation environment that continues to develop in an effort to improve employee performance (Shanker, Bhanugopan, Van der Heijden, & Farrell, 2017). Innovative behavior has a positive and significant impact on employee performance. The existence of a guidance program between managers and employees can improve the quality of relationships and successfully improve employee abilities (Kim, M.-S.andKoo, 2017). Innovative behavior has a positive and significant impact on employee performance. Organizational innovation needs to be stimulated to drive performance. Leader support for innovation is very important both inside and outside the organization to support employee performance (Morales, Victor J. Garca, Francisco Javier Lloren Montes., 2017). Innovative work behavior is able to mediate the relationship of organizational culture to employee performance (Aboramadan, 2020).
Method
The type of research used is quantitative. The population in the study
is 276 employees who are engaged in the material manufacturing industry for
food and beverage packaging with the characteristics of being permanent
employees and having worked at least two years. The number of samples used as
many as 127 employees. Data collection techniques using purposive random
sampling of company employees. The research model uses Structural Equation Modeling (SEM) to test the significance of the three (3)
hypotheses that have been determined. Data processing is done using the help of
software SmartPLS 3.2.9. SAll items were measured using an interval scale of 1
(strongly disagree) to 10 (strongly agree).
There are five principles or indicators used to measure
organizational culture, namely seiri, seiton, seiso, seiketsu, and shisutke (Moradi, M., MR Abdollahzadeh., 2011).
De Jong and Den Hartog (2010) state that innovative work behavior consists of
four dimensions, namely exploring new ideas (exploration), generating new ideas
(generation), championing new ideas (championing), and implementing new ideas
(implementation). There are
five indicators that can be used to measure employee performance according to
Robbins in (Soemaryani, 2016),
namely quality, quantity, timeliness, effectiveness, and independence.
Result
and Discussions
In conducting data analysis
using SmartPLS, several stages were carried out. The
first is to evaluate the model, the second is to evaluate the outer model, and
the third is to evaluate the inner model.
The following presents the
results of calculations from data processing using SmartPLS
software:
A.
Output
_files/image002.jpg)
Figure 1
The
Results of Full Model Analysis PLS Algorithm
_files/image004.jpg)
Figure 2
The Results of Full Model Analysis Bootstrapping
B.
Evaluation Model
Table 1
Loading Factor
_files/image006.jpg)
Source:
SmartPLS data processing results in research
�
From table 1
regarding the loading factor above, it can be seen that for organizational
culture, OC1, OC2, OC3, OC4, and OC5 all have loading factor values
> 0.7 so that no indicators are discarded and declared valid.
For innovative work behavior, IWB1, IWB2, IWB3, and IWB4 all have loading
factor values > 0.7 so that no indicators are discarded and
declared valid. For employee performance, EP1, EP2, EP3, EP4, and EP5 all have
loading factor values > 0.7 so that no indicators are
discarded and declared valid.
C.
Evaluation Outer Model
Table 2
Validity and Reliability Test
_files/image008.png)
Source:
SmartPLS data processing results in research
Table 3
AVE, SQRT, CR, CA, and R
|
CONSTRUCT |
AVE |
SQRT
AVE |
CR |
CA |
R |
|
Organizational
Culture |
0.679 |
0.824 |
0.913 |
0.881 |
- |
|
Innovative
Work Behavior |
0.844 |
0.918 |
0.956 |
0.938 |
0.500 |
|
Employee
Performance |
0.856 |
0.925 |
0.967 |
0.958 |
0.752 |
Source:
SmartPLS data processing results in research
Table 4
Construct
Correlations
|
CONSTRUCT |
Organizational
Culture |
Innovative
Work Behavior |
Employee
Performance |
|
Organizational
Culture |
0.824 |
||
|
Innovative
Work Behavior |
0.707 |
0.918 |
|
|
Employee
Performance |
0.710 |
0.893 |
0.925 |
Source:
SmartPLS data processing results in research
From table 3.
it can be seen that the AVE value is > 0.5 so it can be stated that the
construct has a valid convergent validity. Then from table 4. the SQRT value
> construct correlations so that it can be stated that the construct has a
valid discriminant validity. Then the value of CR and CA 0.7 so that it can be
stated that the construct has very good reliability. The conclusion of the
model has valid validity and reliability and can be tested further.
D.
Evaluation Inner Model
Table 5
Direct Effects
_files/image009.png)
Source:
SmartPLS data processing results in research
Table 6
Indirect Effects
_files/image011.jpg)
Source:
SmartPLS data processing results in research
Table 7
Total Effects
_files/image013.jpg)
Source:
SmartPLS data processing results in research
Table 8
Research Hypothesis Test
_files/image015.jpg)
Source:
SmartPLS data processing results in research
Hypothesis
Testing 1
H1: Organizational culture has a positive
and significant influence on innovative work behavior
The original sample parameter of the influence of organizational culture
on innovative work behavior is 0.707. The T Statistics value is 14,470 1,967 or
the P Value is 0.000 0.05, so the null hypothesis is rejected and the
alternative hypothesis is accepted. Therefore H1 is
accepted and it can be concluded that organizational culture has a positive and
significant effect on innovative work behavior. Thus hypothesis 1 is supported.
Hypothesis Testing 2
H2: Innovative work behavior has a
significant effect on employee performance
The sample mean parameter of the influence of innovative work behavior on
employee performance is 0.703. The T Statistics value is 12,297 1,967 or the P
value is 0.000 0.05, so the null hypothesis is rejected and the alternative
hypothesis is accepted. Therefore H2 is accepted and
it can be concluded that innovative work behavior has a positive and
significant effect on employee performance. Thus hypothesis 2 is supported.
Hypothesis Testing 3
H3: Organizational culture has a
significant influence on employee performance
The sample mean
parameter of the influence of organizational culture on employee performance is
0.214. The T Statistics value is 3.215 1.967 or the P value is 0.001 0.05, so
the null hypothesis is rejected and the alternative hypothesis is accepted. Therefore H3 is accepted and it can be concluded that
organizational culture has a positive and significant effect on employee
performance. Thus hypothesis 3 is supported.
Discussion
H1: Organizational culture has a
significant influence on innovative work behavior
The
hypothesis that proves there is a positive and significant relationship between
organizational culture (X) and innovative work behavior (Z) is supported
statistically by empirical results. The standardized estimation value of 0.707
has a positive direction with a probability of 0.000 which means it is
significant. This means that the higher the organizational culture, the higher
the innovative work behavior that will be produced. The study found that the 5S
work culture makes employees always try to be innovative at work so that
documents, goods, and equipment in the work area are well organized and stored.
Documents are well separated according to their level of urgency. Only items
and equipment needed in the workplace. Employees will also always strive to
produce innovations at work in the form of continuous improvement to improve
the standards that have been previously set. This is in line with the theory
which states that work culture is a belief about what is good for the
organization and behavior in what form is desired (Pratikno, n.d.).
This means that the belief in the importance of organizational culture will
encourage every employee to have more innovative work behavior.
The
results of this study are supported by previous research conducted byZheng, (Guangyun, Jianlong, Junwei, & Yuanyang, 2019),
(Nguyen et al., 2019),
(Abbatiello et al., 2015),
(Wang et al., 2015),
(Prayudhayanti, 2014),
(Ekobalawati, 2020),
(Purwanto, Asbari, & budi Santoso, 2019),
and (Parashakti, Rizki, & Saragih, 2016)
where these studies show that organizational culture has a positive and
significant influence on innovative work behavior. Organizational culture will
affect the innovative work behavior of employees. The perceived better
organizational culture will be able to generate innovative work behavior from
individual employees.
H2: Innovative work behavior has a
significant effect on employee performance
The hypothesis that proves there is a
positive and significant relationship between innovative work behavior (Z) on
employee performance (Y) is supported statistically by empirical results. The
standardized estimation value of 0.703 has a positive direction with a
probability of 0.000 which means it is significant. This means that the higher
the innovative work behavior, the higher the employee's performance will be.
The study found that innovative efforts arising from employee behavior towards
the work carried out in the form of searching for new ideas, finding new ideas,
fighting for new ideas, and implementing new ideas can cause problems faced at
work to be resolved. This condition will cause the completion of the work to be
faster. Besides that, innovative work behavior continues to encourage
improvements in work which will lead to increased quality and quantity of
performance. This is in line with the theory which states that behavior is a
factor that drives performance (Pratikno, n.d.).
The results of this study are supported by
previous research conducted by (Sol�s-Molina, Hern�ndez-Espallardo, & Rodr�guez-Orejuela, 2018),
(Panagides et al., 2017),
(Choi et al., 2017),
(Leme, de Angelis, & Marin-Morales, 2008),
(Mardiah & Simatupang, 2020),
(Astuti & Febrian, 2019),
(Manurung, Nurchayati, & Setiari, 2020),
and (Purwanto et al., 2020)
where the research shows that innovative work behavior has a positive and
negative effect on significant to employee performance. Behavior is the way in
which individuals will take action. This action later in the work will be able
to determine performance. The better innovative work behavior will have an
impact on the better performance produced.
H3: Organizational culture has a
significant influence on employee performance
The hypothesis that proves there is a
positive and significant relationship between organizational culture (X) on
employee performance (Y) is supported statistically by empirical results. The
standardized estimation value of 0.214 has a positive direction with a
probability of 0.001 which means it is significant. This means that the higher
the organizational culture, the higher the employee performance will be. The
study found that with the 5S work culture, the files that are needed and not
needed are separated, documents are well separated based on the level of
urgency, documents are separated by category and label, items that are often
used are placed close to employees, making it easier to work so that the time
required more efficient and increased work output.
The results of this study are supported by
previous research conducted by (Maamari & Saheb, 2018), (Soomro & Shah, 2019),
(Sakai et al., 2018),
(Kristiana Maryani, 2020),
(Sabuhari, Sudiro, Irawanto, & Rahayu, 2020),
(Randhawa & Ahuja, 2017),
(Makwana & Patange, 2019),
and (Goldstein et al., 2017)
where the research shows that organizational culture has a positive and
significant influence on employee performance. Organizational culture regulates
how employees behave in accordance with what is expected by the organization in
an effort to achieve its goals.
Conclusion
The results of the study have implications for
managerial policy. The results of the research can be used as guidelines for
management in an effort to determine the main scale of determining what to do
first to improve employee performance. From the direct influence, it was found
that innovative work behavior is a positive and dominant factor that has an
influence on employee performance. Next is the organizational culture factor.
Therefore, management can determine or design the main scale of policies in an
effort to improve employee performance by creating policies that can encourage
any innovative behavior in employees. Employees need to be stimulated to create
ideas related to problems at work so that the impact is in the form of
increased performance.
Meanwhile, by looking at the
indirect path, organizational culture is able to provide the largest total
coefficient value. Management needs to consider each of the values
of the organizational culture to be able to encourage the
emergence of innovative behavior in every employee. This is because innovative
behavior can act as an intervening variable in this study.
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Copyright holder: Fauji Sanusi, Dibyantoro
(2022) |
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First publication right: Syntax Literate: Jurnal Ilmiah
Indonesia |
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