Factors affecting job satisfaction and employee performance: a case study in an Indonesian sharia property companies

Abstract

Purpose

This study aimed to discover the factors affecting employee performance by testing the relationship of change management, job satisfaction, organizational commitment and leadership style on employee performance in Indonesian sharia property companies.

Design/methodology/approach

The study population was all members of “Sharia Property Developer” (DPS) across Indonesia with criteria of having subordinates at least one person and is listed as a DPS member. The samples used were 71 people from the 200 members of DPS across Indonesia. The sampling method used was based on R² value and significance level with an 80% statistical strength. Data analysis was carried out using smartPLS software to test the relationship of change management, job satisfaction, organizational commitment and leadership style on employee performance.

Findings

The utilization of SEM in Smart PLS for change management with the ADKAR method had a negative value of 6.2% in affecting employee performance and 4.6% in affecting job satisfaction. Job satisfaction insignificantly affected employee performance by 7.5%. Leadership style and organizational commitment positively affected performance by 57.9% and 25.6%, respectively.

Research limitations/implications

This study did not limit respondents’ education levels. Twenty percent of respondents were middle and high school graduates. Respondent’s position was mostly the highest leader in the company by 58%. Indicators in the ADKAR model did not implement the construct validity test since the researchers did not find precedent studies that discuss the indicators of the ADKAR model in detail.

Practical implications

Factors that positively and significantly affected employee performance can be used to plan employee performance of DPS member companies.

Social implications

The company must create a program to produce meaning in working, shape leaders to have discipline by putting appropriate employees as leaders.

Originality/value

This study used change management, organizational commitment, job satisfaction and leadership style as exogenous variables, job satisfaction and leadership style as intervening variables. The study model modified the previous study regarding employee performance improvement because it utilized the change management with the ADKAR model. The study objects were sharia property companies, where the researchers did not find previous studies discussing employee performance in sharia property companies.

Citation

Latifah, I.N., Suhendra, A.A. and Mufidah, I. (2024), "Factors affecting job satisfaction and employee performance: a case study in an Indonesian sharia property companies", International Journal of Productivity and Performance Management, Vol. 73 No. 3, pp. 719-748. https://doi.org/10.1108/IJPPM-03-2021-0132