The Influence of Competence on Employee Performance with Organizational Commitment as a Mediating Variable

Ikhwan Victhori, Habibullah Jimad and Nova Mardiana
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Ikhwan Victhori: Economics and Business Faculty, University of Lampung, Indonesia.
Habibullah Jimad: Economics and Business Faculty, University of Lampung, Indonesia.
Nova Mardiana: Economics and Business Faculty, University of Lampung, Indonesia.

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Abstract: Aims: This study aims to examine the influence of employee competence on employee performance at PT XYZ and to determine whether organizational commitment mediates the relationship between competence and performance. Study Design: A quantitative, survey-based research design was employed. Place and Duration of Study: The study was conducted at PT XYZ, Indonesia, with data collected in October 3rd until 10th, 2025. Methodology: Primary data were collected from 195 employees using structured questionnaires, achieving a 100% response rate. Three variables were measured: competence, organizational commitment, and employee performance. Data were analyzed using Structural Equation Modeling. Key statistical indicators were used to evaluate significance. Results: The findings show that competence has a positive and significant effect on employee performance, with a path coefficient of 0.255 and a Critical Ratio (CR) of 4.66 (p < 0.05). This demonstrates that higher competence directly enhances job effectiveness and productivity. Mediation analysis further reveals that organizational commitment significantly mediates this relationship. The Sobel test produced a t-value of 7.705 (p = 0.000), indicating that competence strengthens employee performance both directly and through increased organizational commitment. Conclusion: Competence is a strong predictor of employee performance at PT XYZ, and its influence is amplified through the mediating role of organizational commitment. Enhancing employee competencies and fostering stronger commitment—through targeted training, supportive work environments, and competency-based HR policies—can contribute to improved performance and organizational competitiveness.

Date: 2025-11-26
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Published in Journal of Global Economics, Management and Business Research, 2025, 17 (3), pp.437-448

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