Determinants of Good Corporate Governance and Its Implications on Organizational Commitments (Empirical Study on Employees of Government-Owned Islamic Banks in Dki Jakarta Province)

Abstract

The purpose of this research was to determine the effect of leadership, competence, organizational culture and Good Corporate Governance partially or simultaneously on organizational commitment.. Based on the results of the research, the findings are as follows: leadership, compensation, and organizational culture partially or simultaneously significant effect on good corporate governance with a contribution of 69%. Partially, the organizational culture reflected by ikhwana culture (friendship) has a positive and dominant influence on good corporate governance. Leadership, compensation, organizational culture and good corporate governance partially or simultaneously significant effect on organizational commitment with contribution of 88%. Partially good corporate governance which is reflected with the fairness dimension of dominant in influencing organizational commitment. The results also show that good corporate governance is a full mediating variable on the influence of leadership, compensation, and organizational culture on organizational commitment. The managerial implication of this research result is organizational commitment to Islamic Bank employee in DKI Jakarta Province reflected by dimension of continuous commitment will be able to be improved if Islamic Bank in DKI Jakarta Province able to improve good corporate governance which is reflected with fairness dimension, where good corporate governance will increase if Islamic Bank able to improve the organizationalculturereflectedbythedimensionofikhwanaculture(friendship),which is supported by increasing bank leadership especially reflected with the dimension of social responsibility and supported by increasing the competence of employees especially reflected by the high dimension of human skill.