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All Journal International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)
Mohd, Heikal
Universitas Malikussaleh
Economics, Econometrics & Finance

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THE EFFECT OF WORK ENVIRONMENT AND ORGANIZATIONAL CULTURE ON EMPLOYEE RETENTION WITH JOB SATISFACTION AS AN INTERVENING VARIABLE AT PT. PERMATA TANI Putri Faradila; Yanita; Marbawi; Faisal Matriadi; Mohd, Heikal; Rico Nur Ilham
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 6 No. 5 (2026): October
Publisher : CV. Radja Publika

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Abstract

This study examines the effects of work environment and organizational culture on employee retention, with job satisfaction serving as an intervening variable, at PT Permata Tani Rice Mill in North Aceh. A quantitative explanatory design was employed using saturated sampling, involving all 120 employees as respondents. Primary data were collected through a five-point Likert-scale questionnaire and analyzed with Partial Least Squares Structural Equation Modeling using SmartPLS 4. The measurement model demonstrated adequate convergent validity and internal consistency, with outer loadings ranging from 0.703 to 0.931, average variance extracted values above 0.50, and reliability coefficients above 0.70. The structural results show that work environment and organizational culture positively and significantly affect both job satisfaction and employee retention. Job satisfaction also has a positive effect on retention and significantly mediates the effects of both antecedent variables. The model explains 68.0% of the variance in job satisfaction and 44.8% of the variance in employee retention. These findings indicate that retention in a labor-intensive rice-milling context depends not only on physical and social working conditions but also on the ability of organizational practices to generate employee satisfaction.
Co-Authors Matriadi, Faisal Putri Faradila Rico Nur Ilham YANITA YANITA