Aris Siregar
Department of Management, Faculty of Economics, Universitas Asahan

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Leadership, organisational commitment, and work culture as determinants of employee performance: Evidence from an Indonesian palm oil processing company Tabytha Stevani; Aris Siregar
Priviet Social Sciences Journal Vol. 6 No. 9 (2026): September, 2026
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v6i9.2231

Abstract

Palm oil processing is a continuous safety-critical operation in which the output quality depends on the coordinated conduct of shift-based production, maintenance, and laboratory personnel. This study examines the partial and simultaneous effects of leadership, organizational commitment, and work culture on employee performance at PT Karya Serasi Jaya Abadi (KSJA), a Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) mill in Serdang Bedagai Regency, North Sumatra. Using Slovin's formula, 86 respondents were drawn from a population of 109 permanent employees, and the data were analyzed using multiple linear regression after instrument validation and classical assumption testing. All four scales demonstrated acceptable internal consistency (α = .710–.790). The model was highly significant, F(3, 82) = 132.01, p < .001, explaining 83.4% of the variance in performance (adjusted R² = .827). All three predictors were significant: leadership, β = .353, t(82) = 3.94, p < .001; organizational commitment, β = .349, t(82) = 2.84, p = .006; and work culture, β = .256, t(82) = 2.21, p = .030. Decomposition of the explained variance, however, shows that the three predictors uniquely account for only 5.7 percentage points of the 83.4% explained, with the remaining 77.7 points shared among them; tolerance values as low as .139 and variance inflation factors up to 7.21 confirm substantial multicollinearity. Therefore, this study advances a convergent climate interpretation: the three constructs behave less as distinct antecedents than as facets of a single managerial climate. The implications for construct specification and measurement practice are discussed.