Factors Influencing Organizational Commitment through Job Satisfaction

Abstract

This study aims to analyze the influence of Transformational Leadership Style and Work Motivation on Organizational Commitment with Job Satisfaction as an intervening variable at the Representative Office of Bank Indonesia Medan, North Sumatra. This research employs a quantitative approach using Structural Equation Modeling (SEM) with the SmartPLS 3.0 analytical tool. The population consists of all employees at the Representative Office of Bank Indonesia Medan, and the sample was determined using a saturated sampling technique. Data were collected through questionnaires and processed using SmartPLS software.

The results indicate that Transformational Leadership Style has a significant effect on Job Satisfaction but does not have a significant direct effect on Organizational Commitment. Work Motivation is proven to have a significant effect on both Job Satisfaction and Organizational Commitment. Furthermore, Job Satisfaction significantly affects Organizational Commitment. The indirect effect analysis shows that Job Satisfaction does not mediate the relationship between Transformational Leadership Style and Organizational Commitment, but it successfully mediates the influence of Work Motivation on Organizational Commitment. These findings emphasize that enhancing employee motivation and job satisfaction plays an essential role in strengthening organizational commitment.