The Effect of Competency and Culture Transformation on Company Performance: The Mediating Role of Service Quality and Employee Loyalty at PT PLN Enjiniring

Authors

  • Mona Novi Astuty Universitas Negeri Padang
  • Vidyarini Dwita Universitas Negeri Padang

DOI:

https://doi.org/10.55927/eajmr.v5i6.177

Keywords:

Employee Competence, Organizational Culture, Internal Service Quality, Employee Loyalty, Organizational Performance

Abstract

This study examines the effects of Employee Competence and Culture Set on Performance (Key Performance Indicators/KPI) through Internal Service Quality and Employee Loyalty at PT PLN Enjiniring. The research employed a quantitative explanatory approach with a causal design. The findings reveal that Employee Competence has a positive but insignificant direct effect on Internal Service Quality and Performance. Culture Set demonstrates a positive but insignificant effect on Employee Loyalty, while significantly influencing Internal Service Quality and Performance. Internal Service Quality significantly affects both. The study concludes that organizational performance is influenced more strongly by organizational systems, internal service mechanisms, and work culture than by individual competence alone. These findings highlight the importance of strengthening digital work culture, improving internal

References

Abdullah, M. I., Huang, D., Sarfraz, M., Ivascu, L., & Riaz, A. (2021). Effects of internal service quality on nurses’ job satisfaction, commitment and performance: Mediating role of employee well‐being. Nursing Open, 8(2), 607–619. https://doi.org/10.1002/nop2.665

Afuan, M. A., Ali, H., & Zefriyenni, Z. (2024). Determination of Performance Through Job Satisfaction: Competence, Motivation and Organizational Commitment at the Central Statistics Agency in West Sumatra. Qubahan Academic Journal, 4(3), 662–677. https://doi.org/10.48161/qaj.v4n3a810

Apriyanti, R. (2023). THE INFLUENCE OF EMPLOYEE PROFESSIONALISM AND COMPETENCE IN IMPROVING THE QUALITY OF EMPLOYEE SERVICE ONE STOP INTEGRATED SERVICES, KEMBANGAN DISTRICT,

WEST JAKARTA ADMINISTRATIVE CITY. Jurnal Ilmu Pemerintahan Widya Praja, 49(1), 1–11. https://doi.org/10.33701/jipwp.v49i1.3246

Ateeq, A., Alzoraiki, M., Milhem, M., & Al-Absy, M. (2023). Impact of employee loyalty on job performance: Mediating role of job satisfaction on the example of Zain company, Bahrain. Problems and Perspectives in Management, 21(2), 470–

481. https://doi.org/10.21511/ppm.21(2).2023.44

Aydemir, S., & Kıpçak, E. (2024). The Impact of Internal Service Quality and Ethical Leadership on Employee Performance.

Sustainability, 16(21), 9446. https://doi.org/10.3390/su16219446

Ben Saad, G., & Abbas, M. (2018). The impact of organizational culture on job performance: a study of Saudi Arabian public sector work culture. Problems and Perspectives in Management, 16(3), 207–218. https://doi.org/10.21511/ppm.16(3).2018.17

Cao, J., Abu Mansor, N. N., & Li, J. (2024). Impact of work competencies on job performance among university counsellors.

PLOS ONE, 19(12), e0315494. https://doi.org/10.1371/journal.pone.0315494

Chaanine, J. (2025). Strengthening Lebanese health care: exploring the impact of organizational culture on employee loyalty through trust and job satisfaction. Leadership in Health Services, 38(2), 263–279. https://doi.org/10.1108/LHS-09-2024- 0114

Cherian, J., Gaikar, V., Paul, R., & Pech, R. (2021). Corporate Culture and Its Impact on Employees’ Attitude, Performance, Productivity, and Behavior: An Investigative Analysis from Selected Organizations of the United Arab Emirates (UAE). Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 45. https://doi.org/10.3390/joitmc7010045

Creswell, J. W. . (2017). Research design : qualitative, quantitative, and mixed methods approaches. SAGE.

Cronbach, L. J. (1951). Coefficient Alpha and the Internal Structure of Tests. Psychometrika, 16(3), 297–334. https://doi.org/10.1007/BF02310555

Denison, D. R. (1990). Corporate Culture and Organizational Effectiveness. In Human Resource Management (1st ed., Vol.

28, Number 4). John Wiley & Sons. https://doi.org/10.1002/hrm.3930280408

Denison, D. R. (2000). Organizational culture: Can it be a key lever for driving organizational change. The International Handbook of Organizational Culture and Climate, 18(4), 72–347.

Farhan Saputra, Ganis Aliefiani Mulya Putri, Dita Puspitasari, & Bayu Putra Danaya. (2023). Pengaruh Pengembangan Karier dan Budaya Kerja terhadap Loyalitas Karyawan dengan Kepuasan Kerja Sebagai Variabel Intervening pada PT Graha Sarana Duta Cabang STO Gambir. Trending: Jurnal Manajemen Dan Ekonomi, 2(1), 168–186. https://doi.org/10.30640/trending.v2i1.1937

Firdaus, A. R., Ezita, R. cahndra, & Rodiah, E. (2022). Pengaruh Budaya Profesional Terhadap Kinerja Karyawan yang Dimediasi oleh Disiplin dan Loyalitas Karyawan PT. ABC Cikarang Kabupaten Bekasi. MASTER: Jurnal Manajemen Strategik Kewirausahaan, 2(1), 85–96. https://doi.org/10.37366/master.v2i1.470

Hair, J., & Alamer, A. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hasan, H. (2023). Effect of organizational culture on organizational learning, employee engagement, and employee performance: Study of banking employees in Indonesia. Problems and Perspectives in Management, 21(3), 471–482. https://doi.org/10.21511/ppm.21(3).2023.38

Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., & Schlesinger, L. A. (1994). Putting the Service Profit Chain to Work. Harvard Business Review, 72(2), 164–174.

Ingsih, K., Astuti, S. D., & Riyanto, F. (2024). The role of digital competence in improving service quality and employee performance. SA Journal of Human Resource Management, 22. https://doi.org/10.4102/sajhrm.v22i0.2689

Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 71–79.

Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard : translating strategy into action. Harvard Business School Press.

Kerlinger, F. N. . (2000). Asas-asas penelitian behavioral. Gadjah Mada Univesiti Press.

Le, D. C. T., Nguyen Thanh, L., & Huynh Giao, L. (2025). Relationship between corporate culture, service quality, and customer satisfaction of food and beverage franchise enterprises. F1000Research, 14, 267. https://doi.org/10.12688/f1000research.154431.1

Likert, R. (1932). A Technique for The Measurement of Attitudes. Archieve of Psychology, 22(140), 1–53.

Liu, W., & Liu, Y. (2022). The Impact of Incentives on Job Performance, Business Cycle, and Population Health in Emerging Economies. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.778101

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12–40.

Perić, G., Dramićanin, S., & Pavlović, N. (2021). The influence of internal service quality and employee satisfaction on organizational commitment in travel agencies: The case of Serbia. Menadzment u Hotelijerstvu i Turizmu, 9(1), 43–60. https://doi.org/10.5937/menhottur2101043P

Permana, R., Rahmi, P. P., & Utami, W. N. (2026). Effect of Competence, Motivation, and Work Discipline on the Performance of Employees at Perumda Air Minum Tirta Raharja in Bandung Regency. International Journal of Marketing & Human Resource Research, 7(1), 184–199. https://doi.org/10.47747/ijmhrr.v7i1.3334

Sekaran, Uma., & Bougie, Roger. (2016). Research methods for business : a skill-building approach. John Wiley & Sons. Septina, N., & Josiah, T. (2025). Pengaruh Kompetensi Pegawai Dan Lingkungan Kerja Terhadap Kualitas Layanan Pegawai

UPTD Puskesmas Natar Kecamatan Natar Kabupaten Lampung Selatan. Jurnal Bisnis, Manajemen Dan Akuntansi, 1(2), 151–160. https://doi.org/10.70963/jbisma.v1i2.231

Sharma, P., Kong, T. T. C., & Kingshott, R. P. J. (2016). Internal service quality as a driver of employee satisfaction, commitment and performance. Journal of Service Management, 27(5), 773–797. https://doi.org/10.1108/JOSM-10- 2015-0294

Spencer, L. M. ., & Spencer, S. M. . (1993). Competence at work : models for superior performance. Wiley.

Sriwati, S., & Siswani, S. (2023). Pengaruh Kompetensi dan Motivasi Kerja Terhadap Loyalitas Pegawai PERUMDA Pasar Jaya Kantor Area 7 Jakarta Timur. Jurnal Administrasi Dan Manajemen, 13(1), 1–16. https://doi.org/10.52643/jam.v13i1.2953

Stojanovic, A., Milosevic, I., Arsic, S., Urosevic, S., & Mihajlovic, I. (2020). Corporate Social Responsibility as a Determinant of Employee Loyalty and Business Performance. Journal of Competitiveness, 12(2), 149–166. https://doi.org/10.7441/joc.2020.02.09

Sugiyono. (2013). Metode Penelitian Kuantitatif Kualitatif and R&D (19th ed., Vol. 1). Alfabeta.

Sugiyono. (2020). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (D. I. S. P. M. Sutopo, Ed.; 2nd ed., Vol. 2). Penerbit Alfabeta Bandung.

Sutarmo, S., Indarti, S., & Malta, M. (2024). The influence of employee competence and work environment on service quality.

Jurnal Mantik, 8(1), 590–599. https://doi.org/10.35335/mantik.v8i1.5162

Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance.

Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640

Wibawa, I. M. A., Troena, E. A., Armanu, & Noermijati. (2014). The Role of Organizational Culture on Spiritual Leadership, Human Capital, and Employee Loyalty. European Journal of Business and Management, 6(21), 144–153.

Wibowo, D. Y. A., Muljono, P., & Sumertajaya, I. M. (2021). ANALYSIS OF THE EFFECT OF KNOWLEDGE MANAGEMENT, COMPETENCY, AND INNOVATION ON EMPLOYEE PERFORMANCE. JURNAL APLIKASI MANAJEMEN, 19(4), 804–811. https://doi.org/10.21776/ub.jam.2021.019.04.09

Published

2026-06-19

Issue

Section

Articles