Work Discipline and Organizational Commitment as Drivers of Employee Performance in Indonesian Credit Union Cooperatives: The Mediating Role of Job Satisfaction

Maria Magdalena Naben

Goliterati Management Review (GMR), 2026, vol. 1, issue 1, 85-116

Abstract: Purpose: This study examines the direct and indirect effects of work discipline and organizational commitment on employee performance through job satisfaction as a mediating variable, addressing critical human resource management challenges in Indonesian cooperative financial institutions serving rural and low-income communities in Eastern Indonesia. Method/approach: A quantitative cross-sectional survey collected data from 30 employees at KSP Kopdit Pintu Air Branch Kefamenanu, North Central Timor Regency, East Nusa Tenggara Province, during March 2025. Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 3.2.9 analyzed both direct relationships and mediating pathways, with rigorous measurement validation and bootstrapping procedures (5,000 resamples) for indirect effects testing following contemporary mediation analysis standards. Findings: Work discipline significantly predicts employee performance (β = 0.526, t = 5.154, p 200), longitudinal designs with >3 measurement waves, and objective performance indicators complementing self-reports. Implications: Cooperative managers should implement integrated human resource strategies encompassing disciplinary systems balancing accountability with supportive enforcement, commitment-building programs emphasizing organizational values and community welfare missions, and satisfaction enhancement through fair compensation, career development, and supportive climates. Contribution: This study extends Social Exchange Theory and Affective Events Theory to under-investigated cooperative financial sector in rural Indonesia, validates mediation mechanisms in non-Western values-driven organizational contexts, advances methodological rigor through contemporary PLS-SEM bootstrapping techniques, and provides strategic guidance for Indonesia's 123,048 cooperatives serving marginalized communities.

Keywords: Work Discipline; Organizational Commitment; Job Satisfaction; Employee Performance; Cooperatives; Credit Unions (search for similar items in EconPapers)
JEL-codes: J28 M12 P13 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:lgn:lgngmr:702784

DOI: 10.66452/702784

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