Organizational Culture as a Driver of Employee Performance: The Mediating Effects of Job Satisfaction and Motivation

Abstract

This article examines the effect of organizational culture on worker performance through worker motivation and job satisfaction. The research used a quantitative approach with a cross-sectional strategy. Primary data were collected from 291 employees across various organizations using a structured questionnaire. Each construct was measured with a five-point Likert scale, and the measurement scales were adapted from previous reliable studies. The data analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The measurement model's reliability, convergent validity, and discriminant validity confirmed its effectiveness. The structural model's effectiveness was supported by path coefficients, the coefficient of determination (R²), predictive relevance (Q²), and the bootstrapping method for hypothesis testing and mediation. The results show that organizational culture significantly affects employee performance. They also indicate that culture of an organisation has a major influence on satisfaction of job and motivation an employee. Job satisfaction directly impacts employee performance, while motivation enhances employee performance. Additionally, the mediation analysis suggests that the relationship between organizational culture and employee performance is indirect, mediated by job satisfaction and motivation. This implies that both job satisfaction and motivation play a role in how organizational culture affects employee performance. The study concludes that promoting a positive organizational culture is crucial for improving employee satisfaction, positivity, and overall performance. The findings offer insights for managers and policymakers looking to boost organizational efficiency and contribute to the existing literature on organizational behavior and human resource management. Future research is recommended to test and expand these results, exploring relationships with other mediating and moderating variables and employing longitudinal study designs in different industrial and geographic contexts.