The influence of causal factors on Organizational Performance in Private Sector Organizations
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Abstract
The objectives of this research were to: 1) test the direct influence of causal factors on organizational performance in the private sector; and 2) test the indirect influence of causal factors on organizational performance in the private sector through human resource management strategies. In this study, a quantitative method was used. The data were collected from 300 entrepreneurs in the energy industry through purposive sampling and simple random sampling. The research tool was a questionnaire with an IOC value of 0.95. The obtained data were analyzed and processed using the least squares path structure equation through the Smart PLS program.
The results of the research, according to the objectives 1) Test the direct influence of causal factors on organizational performance in the private sector. The causal factors influencing organizational performance in the private sector, namely leadership style, employees' commitment, and human resource management strategies, had a direct positive influence on organizational performance in the private sector. There was a positive direct influence on the human resource management strategies; 2) test the indirect influence of causal factors on the organizational performance in the private sector through human resource management strategies. It was found that the leadership style and employees' commitment had an indirect positive influence on organizational performance in the private sector through human resource management strategies.
The organizations in the private sector can use the knowledge and findings from this research to apply in planning and determine strategies for improving, developing, promoting, and extending organizational performance to continually improve. It is beneficial for further business competition.
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