The Effect of Good Governance on Performance Employees through Intellectual Capital in the Sumatera Utara Regional Police

Abstract

The purposes of this study are to: (1) determine the direct relationship of good government governance with employee performance in the Sumatera Utara Regional Police (2) determine the relationship of good government governance to structural capital, human capital, and relational capital (3) find out the correlation of structural capital , human capital, and relational capital with employee performance (4) find out whether structural capital, human capital, and relational capital are able to mediate in the relationship between good government governance and employee performance in the Sumatera Utara Regional Police. This research is explanatory research. The population in this study are police officers in the Sumatera Utara Regional Police who occupy structural positions, while the sample of this study involved 100 respondents to meet the sample criteria that were deemed most suitable for maximum likelihood analysis in SEM. Data is processed using structural equation modeling (SEM) techniques using SmartPLS software. The results showed that (1) good government governance has a significant positive correlation with employee performance (2) good government governance has a significant positive correlation with structural capital, human capital, and relational capital, (3) structural capital, and relational capital has a significant positive correlation with employee performance and human capital is positively correlated but not significant with employee performance (4) structural capital, human capital, and relational capital can act as intervening variables that mediate the relationship between good government governance and employee performance.