Structure Equation Model of Causal Factors Affecting Employees’ Performance in Modern Trade Organization

Abstract

Employees’ performance depends on both internal factors and external factors that stimulate the willingness to work which drives organizational performance. The purposes of this study are to develop and investigate the consistency and conformity of the structural equation model of causal factors affecting the employees’ performance, and to analyze factors that affect employees’ performance in modern trade organizations. Indices were derived from revised literature and related research. This study used the case of 220 employees in a modern trade organization in Songkhla Province, Thailand to collect data. In addition, the data were analyzed by using structural equation modeling. The results demonstrated the structural equation model of causal factors affecting employees’ work performance in modern trade organizations and are consistent with empirical data. The result also indicated that loyalty and motivation had significant direct and indirect influences on employees’ performance in modern trade organizations. Additionally, loyalty is passed on to motivation as an indirect power in employees’ performance. These results carry implications for the ways to improve employees’ performance by increasing factors affecting it and finally, employees' performance will ultimately affect the organizational effectiveness and achieve of overall organizational goals.