1 EFFECT OF EMPLOYEE COMPETENCE AND PERCEIVED ORGANIZATIONAL SUPPORT ON ORGANIZATIONAL COMMITMENT MEDIATED BY EMPLOYEE PERFORMANCE Hendry Kurniawan* Universitas Pasir Pengaraian, Indonesia Abstract This study aimed to determine the effect of employee competence and perceived organizational support on organizational commitment with performance as a mediating variable. This study uses a quantitative approach. The quantitative research method aims to test the established hypotheses. The population in this study were employees of the service organization in Rokan Hulu using a total sampling technique, which means using the entire population as the research sample. In this study, researchers involved 100 employees in service organizations in Rokan Hulu. The analysis used in this study is a structural approach to the Equation Model (SEM) assisted by the SmartPLS application. Based on the research that has been done, it can be concluded that there is a significant positive effect between the variables of Employee Competence, Perceived Organizational on Organizational Commitment. there is a significant positive effect between the variables of Employee Competence and Perceived Organizational on Performance. The performance is able to partially mediate the relationship between Employee Competence, Perceived Organizational and organizational commitment. It is hoped that the service industry providers in Rokan Hulu Regency can always synergize with the government so that the existence of the Service Industry in Rokan Hulu Regency can continue to grow. Keywords: Employee Competence, Perceived Organizational Support, Organizational Commitment, Employee Performance *Corresponding author. Email address: hkurniawan354@gmail.com Effect Of Employee Competence and Perceived Organizational Support on Organizational Commitment Mediated by Employee Performance Received December 20th 2021 Review February 15th 2022 Publish June 30th 2022 AFEBI Management and Business Review (AMBR) P-ISSN 2548- 530X E-ISSN 2548-5318 The current issue and full text archive of this journal is available on AFEBI Management and Business Review at: https://journal.afebi.org/index.php/ambr/article/view/514 mailto:hkurniawan354@gmail.com http://issn.pdii.lipi.go.id/issn.cgi?daftar&1479692235&1&& http://issn.pdii.lipi.go.id/issn.cgi?daftar&1479693409&1&& https://journal.afebi.org/index.php/ambr/article/view/514 2 AMBR INTRODUCTION Commitment is a condition in which a person becomes bound by his actions. It gives rise to beliefs that support his activities and involvement. In other words, commitment is a form of dedication or obligation that binds to other people, certain things, or specific actions (Agustian et al., 2018). Employee commitment is one of the keys that determine the success or failure of an organization to achieve its goals. Employees committed to the organization usually show a work attitude that is attentive to their duties; they are very responsible for carrying out their duties and are very loyal to the company (Arifin, 2012). According to (Portalhr, 2007) lack of understanding of commitment makes the State of Indonesia in the Indonesian Employee Commitment Index only 57% - 7 points lower than the Asia Pacific. Guest stated that HRM (human resource management) policies are designed to maximize organizational integration, organizational commitment, employee commitment, flexibility, and work quality. A high organizational commitment to employees will make employees avoid negative organizational behaviors. Such as truancy, absenteeism, moving to another company, leaving working hours, etc. organizational commitment is a picture of the relationship between workers and the organization. Individuals who have a high commitment to the organization can be seen from a strong desire to remain a member, a willingness to try their best for the benefit of the organization, and belief in and a strong acceptance of the values and goals of the organization. Individuals who have a high commitment to the organization can be seen from a strong desire to remain a member, a willingness to try their best for the organization's benefit, and belief in and a strong acceptance of the organization's values and goals. Organizational commitment is needed as an indicator of employee performance. Employees with high commitment can be expected to show optimal performance. One aspect of organizational commitment stated by Agustian et al., (2018) is the willingness to work as much as possible for the organization's benefit. Employee performance will increase along with the amount of commitment to the organization and will impact the achievement of organizational performance. This is exact with Ardiansyah & Sulistiyowati, (2018), where employees committed to the organization will have maximum performance at work, and employees will also have an attitude that supports organizational performance. However, if employees do not commit to the organization or company, it will have the opposite impact; employees do not have maximum performance at work, and employees will also have attitudes that do not support organizational performance. Some of the attitudes of employees who are not committed to the organization or company include not giving the best for the organization or company, not developing knowledge and skills, not being serious on behalf of the company, not completing the tasks and responsibilities assigned, and not carrying out policies from superiors to support the company's success (Christiana, 2015). One of the internal factors that exist in individual employees is competence. This is because competence is one of the capitals to achieve adequate performance. This author's opinion is by Wibowo, Wahyu Hidayat, (2020) which states that competence is an ability to carry out or perform a job or task based on skills and knowledge and supported by the work attitude required by the job. Thus, competence shows skills and knowledge characterized by professionalism in a particular field as the most important thing, as the superior of that field. An employee who excels is an employee who demonstrates competence at a higher-level scale, with a higher frequency, and with better results than an ordinary or average employee. Therefore, competence is a basic characteristic of each individual, which is related to the criteria required for superior and effective performance. Thus, competent employees are full of confidence because they know they have skills and a positive attitude in their field of work according to their fields. This study will elaborate on employee competence and perceived organizational support for organizational commitment with performance as a mediating variable. The potential in Rokan Hulu Regency is strong enough to support its small industry development efforts. This is quite reasonable, especially considering the status of Rokan Hulu, the wealth and variety of natural resources in the Rokan Hulu Regency area, as well as the availability of infrastructure (economic infrastructure) that can guarantee the service organization process. Therefore, Rokan Hulu Regency encourages and makes decisions to attract investors, as well as upper middle class in potential industrial zones, including in Rokan Hulu Regency. Several previous studies reviewed employee competence and organizational support influencing organizational commitment (Sudarma & Murniasih, 2016; Yustina & Zutiasari, 2020). At the same time, this research is more on an effort to determine the influence of employee competence and perceived organizational support on organizational commitment, which is also mediated by the performance variable. The higher the employee's competence and the support felt by the employee, the stronger the employee's commitment to the organization. The mediation of employee performance also reinforces this. 3 LITERATURE STUDY Employee Competence Competence is a factor that affects employee performance improvement, and performance has a relationship with competence. Performance is a function of competence, attitude, and action (Setiawan, 2021). Competence is a characteristic of knowledge, skills, behavior, and experience to effectively perform a particular job or role. Competence can be objectively measured and developed through supervision, work management, and human resource development programs. Competence is not just knowledge and skills. Competence is a very complex special ability. Suppose employees' competence, attitudes, and actions towards their work are high. In that case, it can be predicted that their behavior will work hard to achieve organizational goals. Employee competence in carrying out work or tasks based on skills and knowledge. It is supported by the work attitude demanded by the job (Agustian et al., 2018). The skills or abilities needed by employees are demonstrated by consistently providing an adequate or high level of performance in a job function (Mujiatun, 2015). Competence is one of a person's basic characteristics that allow employees to produce superior performance. In order to determine the competence of employees, it is necessary to measure with several indicators, in this case, are as follows. According to the International Labor Organization (ILO), occupational safety and health is the promotion and maintenance of the highest degree of physical, mental, and social well-being of all workers in all types of work, preventing occupational health problems (https://www.ilo.org/global/publications). Workers should be protected in each job from risks arising from factors that can interfere with health, also placed and maintained in a work environment that is in accordance with their physiological and psychological conditions so they can fit well with their work and duties. Perceive Organizational Support According to Hajihasani & Kave, (2016) perceived organizational support is employee beliefs about the extent to which the organization values employee contributions and cares deeply about their welfare. According to Anshori & Wangi, (2017) perceived organizational support is the belief that organizations value employee contributions through their work and show concern for their welfare. Based on this, it can be concluded that perceived organizational support has positive employee characteristics regarding the extent to which the organization values employee contributions and welfare. Perceived organizational support refers to employees' perceptions of the extent to which the organization values contributions, provides support, and cares about welfare (RU & H, 2018). Suppose employees perceive that the organizational support they receive is high. In that case, the employee will integrate membership as a member of the organization into their self-identity and develop more positive relationships and perceptions. By unifying membership in the organization with the employee's identity, the employee feels part of the organization and feels responsible for contributing and giving his best performance (Le & Lei, 2019). Each employee's perception of organizational support is also considered a global belief regarding their assessment of organizational policies and procedures. This belief is formed based on their experience of organizational policies and procedures, acceptance of resources, interaction with organizational agents, and perception of the organization's concern for their welfare. Indicators of perceived organizational support according to Rhoades & Eisenberger (2002:699) dalam (Linda et al., 2019), yaitu: Effect Of Employee Competence and Perceived Organizational Support on Organizational Commitment Mediated by Employee Performance Table 1. Dimensions of Employee Competency Variable Indicators Dimensions Indicator Knowledge 1. Factual experience 2. Conceptual experience 3. Procedural experience Skills 4. Administrative skills 5. Managerial skills 6. Technical skills 7. Social skills Motive 8. Economic boost 9. Social boost 10. Psychological boost Self image 11. Self confidence 12. Attitude 13. Personal values 4 AMBR Table 2. Dimensions and Indicators of Organizational Commitment Table 3. Dimensions and Indicators of Organizational Commitment Source: Rhoades & Eisenberger (2002:699) Organizational Commitment Organizational commitment is a feeling of connection or psychological and physical attachment of employees to the organization he works or the organization of which he is a member. Psychological linkage means that employees feel happy and proud to work for or become members (Arifin, 2012). This linkage or attachment has three forms of complying with organizational norms, values, and regulations, identifying with the organization, and internalizing organizational norms, values, and regulations (Rohmatiah & Amadi, 2020). In other words, it is an attitude that reflects employee loyalty to the organization and the ongoing process in which members of the organization express their concern for the organization and its continued success and progress. Arifudin, (2020) states organizational commitment, which means that a worker identifies an organization, its goals, and expectations to remain a member. Most research has focused on emotional engagement in organizations and belief in their values as the 'gold standard for employee commitment. Colquitt, dkk (in (Wibowo, 2016)) define organizational commitment as the desire of some workers to remain members of the organization. According to Lincoln and Bashaw (in (Suharto et al., 2019)); Newstrom (in (Eliyana et al., 2019)); Robbins and Judge in (Wang et al., 2020), organizational commitment has indicators, namely: Dimension Indicator Affective commitment 1. Employees' emotional feelings for the organization 2. Employee confidence for the organization Normative commitment 1. Employees believe they have an obligation to stay in the organization 2. Employees believe in continuing to be committed to the organization Normative commitment 1. The perceived economic value of staying in an organization as compared to leaving the organization 2. Employees are committed to the employer because he is highly paid 3. Employees believe that leaving the company will destroy their families Source: (Lincoln and Bashaw; Newstrom; Robbins) Dimension Indicators Appreciation for employee contributions 1. Organizations value employee contributions 2. The organization appreciates the extra effort that employees have put in 3. The organization feels proud of the success of employees at work Concern or care for the welfare of employees 4. The organization will pay attention to all complaints from employees. 5. The organization cares deeply about the welfare of its employees. 6. The organization will notify employees if they do not do a good job. 7. Organizations are concerned with the general satisfaction of employees' work. 8. Organizations show great concern for employees. 5 Employee Performance Performance is the result of work in quality and quantity achieved by an employee carrying out his duties by the responsibilities given to him (Waris, 2015). Furthermore, according to (Ardiansyah & Sulistiyowati, 2018), several situations require the same standards for all employees who do similar work. A performance for employees can be said to be good or not good can be known after an assessment. Therefore, according to Setiobudi, (2017) performance needs to be measured by assessing the indicators of each performance. Dimension Indicator Work quality 1. Ability 2. Skill 3. Work result 4. Independence Working quantity 5. Time at work 6. Target achievement Cooperation 7. Collaboration 8. Compactness Responsibility 9. Work result 10. Decision making RESEARCH METHODOLOGY Research Design This study uses a quantitative approach. The quantitative research method aims to test the established hypotheses. This method is in the form of numbers derived from measurements using a questionnaire on the variables that exist in the study. The population in this study were employees of the service organization in Rokan Hulu. The sample is part of the number and characteristics possessed by the population (Sugiyono, 2013:149). The sample size was taken using the Hair Formula. The Hair formula is used because the population size is not known for sure. According to Hair (2010:176) that if the sample size is too large, for example 400, then method becomes so sensitive that it is difficult to get good fit measures. So, through calculations based on the formula, the number of samples obtained from this study was 100 people who came from service industry employees in Rokan Hulu Regency. The analysis used in this study is a structural Equation Model (SEM) approach assisted by smart PLS applications (Ghozali, 2018). Outer Model Analysis 1. Validity and Reliability Test Validity and reliability tests are carried out to ensure that the measurement used is feasible to be used as a measurement (valid and reliable). Testing the validity and reliability can be seen from: First, Convergent Validity is an indicator assessed based on the correlation between the item score/component score and the construct score, which can be seen from the standardized loading factor, which describes the magnitude of the correlation between each measurement item (indicator) and its construct. Individual reflexive measures are high if the correlation is > 0.7. Second, Discriminant Validity is a measurement model with reflexive indicators assessed based on cross- loading measurements with constructs. discriminant validity, namely comparing the value of the square-root of average variance extracted (AVE), the instrument is declared valid if it has an AVE score > 0.5 Third, Composite reliability is an indicator to measure a construct that can be seen in the view of latent variable coefficients. In this measurement, if the value achieved is > 0.70, it can be said that the construct has high reliability. Fourth, Cronbach's Alpha is a reliability test carried out to strengthen the results of composite reliability. A variable can be declared reliable if it has Cronbach's alpha value > 0.7. 2. R-Square Test R-square for the dependent construct is used to assess the effect of certain independent latent variables on the dependent latent variable which shows the presentation of the magnitude of the effect. Changes in the value of R-squares (R2) can be used to explain the effect of certain exogenous latent variables on endogenous latent variables whether they have a substantive effect. The results of the PLS R-squares represent the amount of variance of the construct described by the model (Ghozali and Latan, 2015). The higher the R2 value, the better the prediction model and the proposed research model. Effect Of Employee Competence and Perceived Organizational Support on Organizational Commitment Mediated by Employee Performance Table 4. Dimensions and Performance Indicators of Employee Performance 6 AMBR Table 6. Validity Test 3. Inner Model Analysis The Inner Model Analysis or commonly called the Structural Model is used to predict the causal relationship between the variables tested in the model. The analysis of the inner model in testing using Smart PLS is done by testing the hypothesis. In testing the hypothesis, it can be seen from the t-statistical value and probability value. To test the hypothesis by using statistical values, for alpha 5% the t-statistic value used is 1.96, while the beta score is used to determine the direction of the influence of the relationship between variables. The criteria for acceptance/rejection of the hypothesis are: Ha = t-statistic > 1.98 with a score of p-values <0.05. H0= t-statistic <1.98 with p-values>0.05 RESULT AND DISCUSSION Outer Model Analysis 1. Validity Test Validity test is used to measure the validity or validity of a questionnaire. In this research, validity testing is carried out using convergent validity and AVE. The instrument is declared valid if the AVE value is > 0.05 and the outer loading value is (> 0.6). Variable Indicator AVE Outer Loading Valid Employee Competence (X1) KP.1 0.533 0.712 Valid KP.10 0.750 Valid KP.11 0.717 Valid KP.12 0.742 Valid KP.13 0.777 Valid KP.2 0.723 Valid KP.3 0.705 Valid KP.4 0.719 Valid KP.5 0.759 Valid KP.6 0.720 Valid KP.7 0.708 Valid KP.8 0.713 Valid KP.9 0.744 Valid Perceived Organizational (X2) PO.1 0.583 0.717 Valid PO.2 0.780 Valid PO.3 0.723 Valid PO.4 0.812 Valid PO.5 0.783 Valid PO.6 0.785 Valid PO.7 0.771 Valid PO.8 0.732 Valid Organizational Commitment (Y) KO.1 0.576 0.758 Valid KO.2 0.776 Valid KO.3 0.733 Valid KO.4 0.754 Valid KO.5 0.797 Valid KO.6 0.732 Valid KO.7 0.762 Valid Work Performance (M) KIN.1 0.532 0.745 Valid KIN.10 0.705 Valid KIN.2 0.714 Valid KIN.3 0.711 Valid KIN.4 0.722 Valid 7 KIN.5 0.779 Valid KIN.6 0.728 Valid KIN.7 0.734 Valid KIN.8 0.723 Valid KIN.9 0.732 Valid 2. Reliability Test Researchers used 2 types of reliability tests, namely the Cronbach Alpha test and the Composite Reliability test. Cronbach Alpha measures the lowest value (lowerbound) reliability. The data is declared good if the data has a Cronbach alpha value> 0.7. Meanwhile, composite reliability measures the actual reliability value of a variable. The data is declared to have high reliability if it has a composite reliability score >0.7.\ Variable Cronbach's Alpha Composite Reliability Work Performance (M) 0.902 0.919 Organizational Commitment (Y) 0.877 0.905 Employee Competence (X1) 0.927 0.937 Perceived Organizational (X2) 0.898 0.918 3. R-Square Test The R-Square Coefficient determination (R-Square) test is used in the measurement to measure how much the endogenous variable is influenced by other variables. Based on the data analysis carried out through the use of the smartPLS program, the R-Square value is obtained as shown in the following table: Variable R Square R Square Adjusted Work Performance (M) 0.880 0.878 Organizational Commitment (Y) 0.954 0.952 Based on the test results, the r-square score for Performance (M) is 0.880, which means that performance is influenced by employee competence and perceived organization by 88%, and the other 12% is influenced by variables that have not been explained in this study. The r-square score for organizational commitment (Y) is 0.954, which means that employee competence, performance, and perceived organizational affect organizational commitment by 95.4%. The other 4.6% is influenced by variables not explained in this study. 4. Hypothesis Test Based on the results of data processing that has been carried out to answer the proposed hypothesis, it is known that all three hypotheses are accepted. This shows that there is a significant influence between the independent and dependent variables. The following is an analysis related to the influence between variables according to the proposed hypothesis: HYPOTHESIS β T Statistics P Values Information Employee Competence (X1) -> Work Performance (M) 0.617 9.484 0.000 Positive Significant Employee Competence (X1) -> Organizational Commitment (Y) 0.330 2.830 0.021 Positive Significant Perceived Organizational (X2) -> Work Performance (M) 0.354 5.318 0.000 Positive Significant Perceived Organizational (X2) -> Organizational Commitment (Y) 0.944 20.306 0.000 Positive Significant Employee Competence (X1) -> Work Performance (M) -> Organizational Commitment (Y) 0.480 2.235 0.031 Partially mediation Perceived Organizational (X2) -> Work Performance (M) - > Organizational Commitment (Y) 0.536 2.240 0.019 Partially mediation Effect Of Employee Competence and Perceived Organizational Support on Organizational Commitment Mediated by Employee Performance Table 7. Reliability Test Results Table 8. R-Square Test Results Table 9. Hypothesis Test Results 8 AMBR RESULT AND DISCUSSION The results of hypothesis testing The Effect of Employee Competence (X1) on Organizational Commitment (Y) obtained a positive beta score (p = 0.330) with p values 0.000 (p <0.05) with a t statistic of 2.830 (p> 1.96) indicating that there is a significant positive effect between Employee Competence variable on Organizational Commitment. The higher the competence possessed by employees, the higher the organizational commitment. The higher the competence possessed by service organization employees in Rokan Hulu, the higher the commitment of service organizations. competence shows skills and knowledge characterized by professionalism in a particular field as the most important thing, service organization employees who have a high commitment to the organization can be seen from a strong desire to remain an employee of service organizations in Rokan Hulu. This is in accordance with research conducted b y (Pramukti, 2019; Purwanto & Soliha, 2017; Supiyanto, 2015) which found that competence has a positive and significant effect on organizational commitment. In contrast to Silen's, (2016) the results of the influence of competence on commitment are not si gnificant. Influence of Perceived Organizational (X2) on Organizational Commitment (Y) The results of hypothesis testing The Effect of Perceived Organizational (X2) on Organizational Commitment (Y) obtained a positive beta score (p = 0.944) with p values 0.000 (p <0.05) with a t statistic of 20.306 (p> 1.96) indicating that there is a significant positive effect between Perceived Organizational variable on Organizational Commitment. The higher the Perceived Organizational owned by the service organization's employees towards the company, the higher the organizational commitment will be. Awards received as well as comfortable employee conditions as in service organizations in Rokan Hulu. Make employees feel more valued and feel at home. So that it will form a mindset that employees are part of the service company concerned. This will generate organizational commitment that exists in employees so that employees will continue to try to make the company grow. This is in line with research conducted by (Sandra et al., 2015; Pratiwi et al., 2021) The Effect of Employee Competence (X1) on Performance (M) The results of hypothesis testing The Effect of Employee Competence (X1) on Performance (M) obtained a positive beta score (p = 0.617) with p values 0.000 (p <0.05) with a t statistic of 9.484 (p> 1.96) indicating that there is a significant positive influence between variables Employee Competence on Performance. The higher the competence possessed by service organization employee at Rokan Hulu impact on employee per formance. Mangkunegara (2012) states that one factor that influences a person's performance is the ability consisting of potential abilities and reality abilities (knowledge and skill s). According to Kartika & Sugiarto, (2016), competence and its various c onstituent components will interact in such a way that will produce specific performance. Influence of Perceived Organizational (X2) on Performance (M) The results of hypothesis testing the Effect of Perceived Organizational (X2) on Performance (M) obtained a positive beta score (p = 0.354) with p values 0.000 (p <0.05) with a t statistic of 5.318 (p> 1.96) indicating that there is a signifi cant positive influence between Perceived Organizational on Performance. It means that to improve employee perf ormance, a strategy that needs to be taken by the company must be related to these variables. That includes creating a supportive work environment, providing good facilities and infrastructure in the work environment, giving awards for efforts and work res ults, giving promotions, and bonuses, applying the principle of fairness in work, and fair and supportive leadership as has been do ne by the government of Rokan Hulu in supporting industrial activities. This is in line with research conducted by (I. Putra & Rahyuda, 2016; Y. T. D. Putra et al., 2019) Effect of Employee Competence (X1) Mediation Performance (M) on Organizational Commitment (Y) The results of hypothesis testing The Effect of Employee Competence (X1) on Organizational Commitment (Y) mediated by performance (M) obtained a positive beta score (p = 0.480) with p values of 0.031 (p <0.05) with a t statistic of 2.235 (p> 1.96) shows that employee performance is partially mediated the relationship between Employee Competence and Organizational Commitment. The higher the competence of the employee, the higher the organizational commitment possessed by the employee. This is also strengthened by the mediation of the employee performance variable. Individuals who have a high commitment to the organization can be seen from a strong desire to remain a member, a willingness to try their best for the benefit of the organization, and belief in and a strong acceptance of the values and goals of the organization. Employees with high commitment can be expected to show optimal performance. One aspect of organizational commitment stated by Setiawan, (2021) is the willingness to work as much as possible for the benefit of the organization. This is in line with research conducted by (Syahid Sampunto, Y. Sutomo, 2019). The Effect of Perceived Organizational (X2) Mediated Performance (M) on Organizational Commitment (Y) The results of hypothesis testing the influence of Perceived Organizational (X2) on Organizational Commitment (Y) mediated by performance (M) obtained a positive beta score (p = 0.536) with p values of 0.031 (p <0.05) with a t statistic of 2.240 (p> 1.96) shows that employee performance is partially mediated the relationship between Perceived Organizational on on Organizational Commitment. Higher the perceived organization, the higher the organizational commitment of the employees; the performance of the employees also reinforces this. Awards received and comfortable employee conditions. Make employees feel more valued and feel at home. So that it will form a mindset that employees are part of the company. This will improve employee performance and generate organizational commitment owned by employees so that employees 9 will continue to make the company grow. This is in line with research conducted by (Indrawiani et al., 2018). CONCLUSION Based on the research that has been done, it can be concluded that there is a significant positive effect between the variables of Employee Competence, Perceived Organizational on Organizational Commitment. there is a significant positive effect between the variables of Employee Competence and Perceived Organizational on Performance. The performance is able to partially mediate the relationship between Employee Competence, Perceived Organizational and organizational commitment. It is hoped that the service industry providers in Rokan Hulu Regency can always synergize with the government so that the existence of the Service Industry in Rokan Hulu Regency can continue to grow. Subsequent researchers who wish to conduct the same research can expand the object of research or involve more varied variables in order to obtain more coherent findings. REFERENCES Agustian, F. A., Poernomo, D., & Puspitaningtyas, Z. 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