Abstract
This study presents the Job Demands-Resources (JD-R) model to investigate employees’ organizational commitment. The purpose of this study is to examine the effect of job demands and job resources on organizational commitment, as well as the mediating effect of work engagement, in the context of Indonesian state-owned enterprises. Data were gathered using a questionnaire from 115 employees of a state-owned enterprise. Partial Least Squares - Structural Equation Modeling (PLS-SEM) was performed to analyze data. Results of data analysis indicate the negative influence of job demands and positive influence of job resources on organizational commitment. Also, work engagement mediates the effect of job demands and job resources on organizational commitment. The results of this study give a contribution to both theoretical and practical viewpoints. At the theoretical level, this study contributes to the literature on organizational commitment theory and the JD-R model. From the practical viewpoint, the study findings offer insight for Indonesian state-owned enterprises management to enhance employees’ organizational commitment by considering job demands, job resources, and work engagement of employees.
Highlights
In both developed and developing countries, state-owned enterprises (SOE) play important role in policy, trade, and commerce (Naqvi & Ginting, 2020, p. 1)
Work engagement mediates the effect of job demands on organizational commitment
Work engagement mediates the effect of job demands on organizational commitment (β = 0.13; t = 2.105) and the effect of job resources on organizational commitment (β = 0.20; t = 2.377)
Summary
In both developed and developing countries, state-owned enterprises (SOE) play important role in policy, trade, and commerce (Naqvi & Ginting, 2020, p. 1). In both developed and developing countries, state-owned enterprises (SOE) play important role in policy, trade, and commerce In Indonesia, state-owned enterprise is called Badan Usaha Milik Negara (BUMN). In 2019, total BUMNs assets amounted to IDR 8.723,25 trillion (Badan Pusat Statistik, 2020), and in the same year BUMNs contributed IDR 415 trillion from IDR 1,957 trillion in state revenue (Kementerian BUMN, 2019). It implies that Indonesian government relies on BUMNs to power the economy
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