Syntax Literate: Jurnal
Ilmiah Indonesia p�ISSN: 2541-0849 e-ISSN: 2548-1398
Vol. 7, No. 8, Agustus 2022
THE MEDIATION EFFECT OF EMOTIONAL INTELLIGENCE ON
KNOWLEDGE-BASED HUMAN RESOURCE AND ORGANIZATIONAL COMMITMENT OF THE EMPLOYEE
PERFORMANCE RETAIL MODERN IN TANGERANG CITY
Tan Hadi
Universitas Pelita Harapan, Indonesia
Email: [email protected]
The role of the
workforce as one of the resources in the business world is getting clearer,
various concepts have been born to encourage the motivation of the workforce,
which is expected to have good performance. Performance or achievement are the
results obtained from jobs or activities over a period of time. The purpose of
this article is to analyze the effect of Knowledge Based Human Resources (KB)
on employee performance (PE), the effect of organizational commitment (OC) on
PE, the effect of KB on Emotional Intelligence (EI), OC on EI, EI mediates the
relationship between OC and PE, and EI mediate the relationship between KB and
PE in modern retail in the city of Tangerang. Cross-sectional quantitative
research. The results obtained were analyzed using the SMART-PLS method, the
results showed that both OC and EI had a significant positive effect on PE, while
KB had a positive effect on PE, while OC and KB significantly affected EI. For
the mediating impact of EI, it turns out that EI strengthens the relationship
between OC and PE, while EI weakens the relationship between KB and PE. From
this study it was found that EI is the most dominant factor influencing PE
compared to the other two factors, this shows the need to increase EI for
Modern Retail employees by building a system that includes EI indicators in the
process of hiring, learning and development. The second factor that also has a
significant influence on PE is OC, this shows that the Modern Retail organization
must strengthen the work culture and organizational values so
that it can increase the strong desire for employees to continue to work on behalf
of the organization and remain as members of the organization.
Keywords:� Organizational Commitment; Knowledge Based Human Resources; Emotional intelligence;
Employee performance; SMART-PLS; Standard Operational Procedure (SOP)
Introduction
The concept
of a modern retail business first emerged in the 19th century, providing
one-stop shopping services with modern and comfortable store facilities, is one
of the solutions offered by modern retail entrepreneurs, in order to meet
changes in consumer behavior (Koot 2011). In
Indonesia, the concept of modern retail began to develop in the 1980s, through
several supermarkets that were located on the main and strategic lines, and
then in the 2000s, in order to get closer to consumers, smaller shops were
developed, known as mini markets and located in densely populated settlements (Martinus 2011). According to the Central Statistics Agency
(BPS) in 2021, retail contributed 12.83 percent to total GDP, and that APRINDO
(Association of Indonesian Retail Companies) has a strategic role in advancing
modern retail and maintaining the efficiency of traditional retail
distribution. In addition, APRINDO also has an important role cooperate with
the government in maintaining the security of distribution of goods and price
stability, especially those that are vulnerable to price fluctuations.
Various
modern retailers that exist, compete with each other for consumers by opening
many branches. Even with the same location, segment, and product. For this
reason, every retail company tries to provide a different quality of service
from one another, in order to build trust in the eyes of customers.
One of the
factors that play a role in the success of a retail business are employees. Without
them, retail stores cannot run, and therefore they are the most valuable asset
of a retail business. The retail industry is one sector where employees
interact directly with customers, this means that customer experience and
satisfaction are strongly influenced by your employees (Huang 2017).
�In the context of management, HR is a source
of knowledge, innovation, and renewal (Seidman 2014). Contemporary organizations
place greater emphasis on performance management systems as the primary means
of encouraging higher levels of employee performance (Gruman
2011).
OC defined by
(Al Zefeiti 2017) is a degree that shows how much
employees absorb the values and goals of the organization, so
that through this understanding they can help employees fulfill their job
responsibilities. Strong belief in the values and goals of the
organization, willingness to put in a lot of effort for the benefit of the
organization and a strong desire to remain a member of the organization can
encourage employee motivation to do better.
(Yang et al,
2017) asserted that EI for individuals is the ability to monitor their own
emotions and those of others, which after going through the identification
stage this information is used to guide their thoughts and behavior, including
three stages: paying attention to the needs of others, determining intentions
to helping others, and linking those intentions and behaviors. Previous
research conducted by (Nguyen at al 2019) confirmed that EI is a factor that
has an impact on student achievement, while (Singaravelloo
2021) in his study of public servants found that EI has a positive and
significant impact on EP. However, research related to the effect of KB on EP,
OC on EP, EI on EP and EI as comprehensive determinants is rarely found,
especially in the context of modern retail. This study analizes
the factors that influence EI and evaluate their impact on PE, specifically:
(1) analyze the direct effect of KB and OC on PE., (3) to determine the impact
of EI on PE, and (4) to evaluate the mediating effect of EI on KB and OC on PE.
Literature
Review and Hypothesis Development
In the retail business, customers will generally deal with
employees, where the service from the salespeople will be felt by customers
from the moment, they enter the store. Thus, the role of employees in improving
the customer experience should not be underestimated. The quality of
employee-customer interactions is conductive to improve customer-employee
connections as well as customer satisfaction and loyalty (Wang 2019). This gives
PE a very important role for employees in modern retail.
Employee
Performance and Organization Commitment
EP is a reflection of the behavior of employees at work,
how well they can carry out the required work tasks, and generally companies
set performance targets both individually and in groups, with the hope that the
company can provide good value to customers, minimize waste and operate in an
efficient manner. efficient. Performance is the result achieved by individuals who
are carrying out their duties in accordance with the responsibilities given to
them (Mangkunegara, 2017).
Organizational Commitment, or OC in short, is a strong urge
in an employee to remain a member in an organization, and a high willingness to
work for the organization with a certain belief and acceptance of the values
and goals of the organization. In other words, this is an
attitude that shows employee loyalty to a company by paying attention to the
success and progress of the company (Luthans 2011). Previous research concluded
that OC is positively related to skills, effort and nature of working
conditions (Suharto 2019), OC does not mediate the relationship between work
motivation and PE (Adelfigita Frastika
2021), OC has a positive and significant effect on PE (Fuad Fakhruddin 2020). From
these observations, this paper proposes a hypothesis:
Hypothesis 1 (H1). OC significantly affects productivity
of Modern Retail employees in Tangerang City
Employee Performance and Knowledge-based Human
Resources
KB is an approach in which organizations play a role in
generating, integrating and distributing knowledge. According to this approach,
organizational success is measured by the organization's ability to develop new
knowledge based on its resources (Grant 1997). Knowledge is related to the
ability of employees to build creativity in order to provide the best service to
customers (Prahalad 2013). Knowledge is a major component and an important
intangible resource that can be a source of sustainable competitive advantage.
(Nonaka 2000) categorizes knowledge into tacit knowledge and explicit
knowledge, where tacit knowledge are things that are stored in the human brain,
while explicit knowledge are things that are contained in documents or other
storage places. KB is the quality and skill possessed by employees in solving
any problems based on the expertise and understanding gained from experience or
education through the SECI process. (Davenport 1998) describes KB as a process
by which organizations create, document and share knowledge with their
employees. In a previous study it was stated that KB encourages the formation
of competitive advantage through the transfer of knowledge between individuals,
internal and external organizations (Novianti 2019). From
these observations, this paper proposes a hypothesis:
Hypothesis 2 (H2). Knowledge Based Human Resources significantly
affects the productivity of Modern Retail employees in Tangerang City.
Employee
Performance and Emotional Intelligence
EI is a form of social intelligence which includes the
ability to monitor one's own and other's feelings and emotions, to feel the
difference and to use this information as a guide in thinking and taking
action. According to this definition, emotional control is the ability to
refrain from uncontrollable emotional impulses from public view (Sy 2004), with
four aspects; first, self-awareness; second, self-management; third, social
awareness; and fourth, relationship management (Cherniss
and Goleman, 2001 cited (Cabaros 2022)). (Mastracci 2016) explained that EI is the most basic skill
of individual emotional work, emotional work is the ability to control
emotions. Previous research explains that EI has a positive and significant
effect on work performance (Mahmood et al 2015), in line with the results of
research conducted by (ZhongwuLi 2021). (Ivan Vratskikh 2016) states that EI significantly and directly
affects EP, and conversely an increase in EI is affected by EP. From these
observations, this paper proposes a hypothesis:
Hypothesis 3 (H3). Emotional Intelligence
significantly affects the productivity of Modern Retail employees in Tangerang
City.
Mediating
Effects of Emotional Intelligence
(Mayer 2000) defines emotional intelligence as the ability
to manage emotions and recognize their meanings, which are used in solving
problems faced by individuals, by assimilating feelings related to emotions,
the capacity to understand emotions, understand emotional information and
manage them. Research in the field of organizational psychology seeks to reveal
the role of EI as an alternative construct to predict employee performance
(Goleman, 1995; Mayer et al., 2000 & Furnham, 2004) as one of the factors
that influence work outcomes (Magbleh, 2016 & Konjongian, 2016).
(Sefnedi 2017) in his study
concluded that motivation does not mediate the relationship between emotional
intelligence, organizational cynicism, and job performance. EI mediates the
relationship between work climate and EP (Tukiman et
al. 2018), EI mediates the relationship between organizational citizenship and
job satisfaction with EP, in this study EI refers more to employee
interpersonal skills, such as communication skills and levels of cooperation
and collaboration (Susan Tee Suan Chin 2021). From
these observations, this paper proposes a hypothesis:
Hypothesis
4 (H4). OC significantly affects EI of Modern Retail employees in
Tangerang City.
Hypothesis
5 (H5). Emotional Intelligence mediates the relationship between
Organizational Commitment and productivity of Modern Retail employees in
Tangerang City.
(Kanishka Gupta 2021) through his research on the service
sector in India, concludes that; First, empirical analysis shows the mediating
role of intellectual capital on knowledge-based human resources and
organizational performance; Second, the application of knowledge-based human
resource practices is very important in supporting the performance of the
service sector; third, knowledge-based human resources are partly mediated by
intellectual capital. From these observations, this paper proposes a hypothesis:
Hypothesis 6 (H6). Knowledge Based Human Resources significantly affects the
Emotional Intelligence of Modern Retail employees in Tangerang City.
Hypothesis
7 (H7). Emotional Intelligence
mediates the relationship between Knowledge Based Human Resources and
productivity of Modern Retail employees in Tangerang City.
Diagram 1 The Research
Model
Methods
This study aims to
analyze the mediating effect of EI and evaluate its impact on the relationship
between organizational commitment and knowledge-based human resources on
employee performance in the modern retail sector in the city of Tangerang.
Data Collection
The data used is
primary data collected from respondents through questionnaires. The unit of
analysis is Modern Retail, while the unit of observation is the employees who
work at the modern retail in the city of Tangerang. The number of samples used
were the rule of thumb in SEM analysis, a minimum of 100 samples or 5-10 times
the number of indicator variables (Hair, Matthews and Matthews 2017). Because
the number of indicators in this study was 15, the sample collected in this
study was 150 respondents, but after initial examination such as filling out a
questionnaire, only 113 responses (75.33%) were analyzed.
Measurement
The research
questionnaire was developed through a list of closed questions using a Likert
scale of 5, thus respondents only needed to answer 1 to say strongly disagree
and 5 to say strongly agree on each question. The indicator variables tested in
this study were adapted from previous studies. The measurement items for each
variable can be seen in Table 1.
Table 1
Measurement items
Data
Analysis
The data were
analyzed using the Partial Least Square (PLS-SEM) method, which can be used without
considering the assumption that the data has a normal distribution (Ghozali 2012). The validity test is carried out on each
indicator variable with the provision that the loading factor value must be
above 0.7, and to measure the diversity of the variables using the applicable
rules, namely the Average Variance Extracted value must be above 0.5.
In order to prove
the accuracy, consistency, and precision of the instrument in measuring
construction, a reliability test was carried out, by measuring the Composite
reliability score and Cronbach's Alpha score, each of which must have a value
above 0.7 (Ghozali 2012).
To measure the
effect of exogenous variables on endogenous variables, the R-Square test is
carried out, where the value of R2 must be on a scale of 0 and 1, which means
the higher the value of R2, the greater the effect. The value of R2 is 0.75 for
the strong model, 0.5 for the moderately strong model and 0.25 for the weak
model (Ghozali 2012).
Result and Discussions
Respondent Profile
Respondent's profile
was based on demographic factors including education, age, and gender. Table 2
shows that most respondents are male (66%). In addition, it was found that the
majority of respondents aged (59%) between 20 and 30 years, and most of the
respondents (89%) graduated from high school.
Table 2: Profile of
Respondent
Measurement
Model
Evaluation of the
external model is assessed through convergent validity and discriminant
validity, where convergent validity can be seen through standard loading
factors that show the correlation between each indicator and its constructs. To
assess the validity of the convergence according to the rule of thumb, the
loading factor value must be above 0.7 for all factors.
Diagram
2. Output Display of Smart PLS
Table 3 shows the
joint variance of the different variables aren�t higher than the square root of
the explained mean variance, therefore the discriminant validity of the
measurement model is accepted. Thus, this finding confirms that the measurement
instrument can be used to measure in this study. The reliability test uses
Cronbach's Alpha to measure the consistency and stability of the research
instrument. The intersection point of Cronbach's alpha is above 0.6. From Table
3 it can be seen that the smallest Cronbach's alpha value is 0.855, which means
that the measuring instrument is reliable. Furthermore, the measurement
indicators for each variable can be ascertained to be reliable if the loading
factor value is greater than 0.7 (Nurlaela, Sumarwan and Najib 2019). In this study, the lowest loading
factor was 0.732; therefore, all indicators are reliable. In addition, the
composite reliability (CR) in this study exceeded the threshold of 0.6 (see
Table 3), as suggested by (Hair, Matthews and Matthews 2017), which proves that
there is an acceptable level of internal consistency and reliability. Finally,
convergent validity can be seen from the average variance extract (AVE) value
which is higher than 0.50.
The heterotrait-monotrait (HTMT) ratio was used to measure the
mean difference between the correlation of indicators in different constructs (Heterotrait-Heteromethod correlation) and the correlation
of indicators in the same construction (the Monotrait-Heteromethod
correlation). Previous research has shown that the threshold value for HTMT is
less than 0.9 (Sarstedt 2015). When the HTMT value is
higher than the specified threshold value, it can be said that the discriminant
validity is insufficient.
From table 4 it
can be concluded that the AVE root of the EI construct is 0.80 which is higher
than the correlation of the EI construct with other variables, as well as the
EP, KB and OC variables, each of which has a larger construct value when
compared to the correlation construct with other variables Thus, it can be
concluded that all constructs are in good discriminant validity.
Testing the
structural model is performed by looking at the R-Square value, which is a
goodness-fit test of the model. From table 5 it can be concluded that the effect
of the OC, KB and EI variables on EP gives an R-Square value of 0.544, which
can be interpreted that the variability of the EP construct which can be
explained by the variability of the OC, KB and EI constructs is 54.4%, while
45.6% is explained by the variable. outside of the research. Similarly, the
variability of the EI construct which can be explained by the variability of
the OC and KB constructs is 34.3%, while 65.7% is explained by variables
outside the studied.
Effect
Size Test (f2) was conducted to find the effect of simultaneous exogenous
variables on endogenous variables (Ghozali 2012). An
f2 value of 0.02, or 0.3, or 0.35 is low, medium or strong. Table 6 shows that
the greatest influence of exogenous variables lies in EI on EP with a score of
0.556 which means it has a high influence, while the smallest effect on KB on
EP with a score of 0.001.
This study found
that OC has a significant positive effect on EP, as evidenced by the T-Stat
value of 3.695 > 1.6449 (Lisye Nurzaman
2022), so H1 is supported in this study. The regression coefficient ()
score of 0.385 means that every 1 unit increase in OC will have an effect on EP
of 0.385 units.
This study found
that KB had a positive effect on EP, and this was evidenced by the T-stat value
of 1.986 > 1.6449, so it can be concluded that H2 is supported in this
study, and then the regression coefficient () of 0.208 indicates that
if an activity increases 1 KB unit will have an impact on increasing EP by
0.208 units.
From the data in
table 7, it can be seen that H3 is supported in this study, where the T-stat
score is 8.359 > 1.6446 and is the highest value in this study, which shows
that EI is the most significant factor that positively affects the EP of the
modern retail sector in the city of Tangerang. Furthermore, the regression
coefficient ( equal to 0.622 indicates that every activity that
increases the EI ability of 1 unit of employees will have an impact on increasing
EP by 0.662 units.
In addition to testing the direct
effect of OC and KB, this study also evaluated the indirect effect (Mediation
Effect) of EI on OC and KB. Hypothesis 5 states that EI support indirectly
affects the relationship between OC and EP, while Hypothesis 7 states that
support EI indirectly affects the relationship between KB and EP. Table 8 shows
the results of the evaluation of the indirect relationship.
From table 8 it
can be seen that H5 is supported in this study, where the T-stat score is 3.335
> 1.6446, which indicates that EI significantly mediates the relationship
between OC and EP. This study also supports H7, where from table 8 above it can
be seen that the T-stat value is 3.053> 1.6446, which proves that EI
significantly affects the relationship between KB and EP.
This
study shows strong and positive support from emotional intelligence on employee
performance at modern retail in the city of Tangerang. The ability of employees
to face various challenges at work, persistence in achieving goals, respect for
colleagues and the ability to resolve various conflicts that arise have a very
positive impact on their work results. Other dimensions of emotional
intelligence greatly affect employee performance, including the ability to
accept oneself, to understand the emotions and feelings of others, the ability
to build good relationships with others, the ability to manage and express
emotions, control emotions, the ability to adapt to situations. new, and
respect the opinions of others, and always think positively in life (Lisye Nurzaman 2022). Employees
who work in modern retail in their daily life are always required to provide
good service to consumers, not infrequently in relation to the demands of this
job, employees experience role conflicts. Role conflict can cause tension in
both individuals and organizations (Rizzo 1970). Thus, emotional intelligence
to resolve conflicts, becomes one of the indicators that play a role in
improving employee performance at modern retail.
Furthermore,
this study examines the effect of organizational commitment on employee
performance at modern retail in the city of Tangerang, and the results state
that employees who are proactive in solving every problem that exist at work,
work with enthusiasm and maintain and optimally utilize all the facilities
provided by the company.� significantly
supports the performance improvement of employees working in this modern retail
sector. The results are in line with previous research which states that
organizational commitment which includes Affective commitment, Continuance
commitment and Normative commitment, significantly affects the performance of
workers in the oil sector (Muhammad Riaz Khan 2010), the textile sector
(Shahida Parveen 2019), at the Ministry of Transportation and informatics (Violita 2020).
This
study shows that knowledge-based human resource factors have a positive
influence on employee performance, therefore it provides scientific proof that
to improve employee performance the company must make clear standard operating
procedures, so that it can be a guide for employees to carry out their duties,
in accordance with the direction given by the company through the SOP. In
addition, the application of technology that provides opportunities for
employees to access knowledge and facilitate communication and coordination
also has an impact on employee performance.
This
study also confirms that employee emotional intelligence is a factor that
indirectly mediates the relationship between knowledge-based human resources on
employee performance. This means that knowledge-based human resource indicators
can improve employee performance which is supported by emotional intelligence.
The significance of the indirect effect of knowledge-based human resources on
employee performance through emotional intelligence is (T-stat = 3.053), while
the direct effect is (T-stat = 1.986), meaning that the indirect effect of
knowledge-based human resources on employee performance through intelligence
emotional is greater than the direct effect of KB on EP. This shows that
individuals who work in accordance with existing directives and SOPs will
increase their persistence which has an impact on their performance. This is in
line with (Arief Tukiman Hendrawijaya et all 2018).
Conclusion
The result of the first test is that
organizational commitment has a positive and significant effect on employee
performance. It can be concluded that employees who work with enthusiasm and
have a high commitment to complete work well will have better work performance.
The results of the second test show that emotional intelligence has a positive
and significant effect on employee performance, employees with the ability to
face challenges at work, have high persistence in achieving goals, respect
co-workers and are able to overcome and resolve various conflicts at work, will
have better work performance. good. The results of the third test show that
knowledge-based human resources have a positive and significant impact on
employee performance at modern retail in the city of Tangerang, this proves
that employees who always try to explore knowledge and practice good
communication, and work by following applicable procedures, will have better
performance.
The results of the fifth and seventh
tests, namely emotional intelligence as a mediation for the relationship
between organizational commitment and knowledge-based human resources on
employee performance, emotional intelligence has a positive and significant
effect as a mediator between organizational commitment and employee
performance. Likewise, emotional intelligence has a positive and significant
effect as a mediator between knowledge-based human resources and employee
performance. This shows that the hypothesis regarding the mediating variable is
acceptable.
Some things that become limitations
in this study are; first, respondents only come from one sector, namely modern
retail, for further research it can be combined between modern and traditional
retail sectors; second, the possibility of errors caused by the respondent's
lack of understanding of the questions in the questionnaire given; third, there
is an interaction between the researcher and the facts under study so that the
analysis provided is subjective and based on the researcher's point of view.
The results of this study have proven
that the variables of organizational commitment, knowledge-based human resources
and emotional intelligence can improve employee performance at modern retail in
the city of Tangerang. So that through the results of this study, it is hoped
that it can be a recommendation for business actors in the modern retail
sector, in order to continue to improve employee performance, through
activities that can build employee emotional intelligence, increase employee
involvement which aims to build commitment and loyalty as well as
implementation and development of the system. work procedures to make it easier
and clarify the implementation of the daily tasks of employees.
�
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Copyright holder: Tan Hadi (2022) |
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First publication right: Syntax
Literate: Jurnal Ilmiah
Indonesia |
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