Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2023 Vol: 29 Issue: 6S

The Influence of Perceived Organizational Support, Knowledge Sharing, and Employee Engagement on Performance: The Mediating Effect of Organizational Commitment

Suparjo, Universitas 17 Agustus 1945 Semarang

Yoga Adhi Dana, Politeknik Rukun Abdi Luhur Kudus

Charisha Magda Komala, Politeknik Rukun Abdi Luhur Kudus

Endang Sri Sunarsih, Universitas Diponegoro, Semarang

Citation Information: Suparjo., Dana. Y.A., Komala. C.M., Sunarsih. E.S. (2023). The influence of perceived organizational support, knowledge sharing, and employee engagement on performance: the mediating effect of organizational commitment. Academy of Entrepreneurship Journal, 29(S6), 1-11.

Abstract

The main purpose of this research is to acknowledge whether organizational commitment has a mediation effect on a correlation among perceived organizational support, knowledge sharing, and employee engagement with performance. Data was collected from 190 lecturers and education staff at 10 private universities in the area of Central Java Province, Indonesia. Respondents were chosen by using purposive sampling technique. Structural Equation Modelling was used to analyse the collected data. This study resulted in perceived organizational support, knowledge sharing and employee engagement significantly affect performance. Moreover, perceived organizational support, knowledge sharing and employee engagement significantly affect organizational commitment. The mediating effect analysis showed that organizational commitment mediated the correlation of perceived organizational support, knowledge sharing, and employee engagement with performance. This research recommends that private universities' performance can be improved by perceived organizational support, knowledge sharing, and employee engagement through the indirect effect of employee organizational commitment.

Keywords

Perceived Organizational Support; Knowledge Sharing; Employee Engagement; Organizational Commitment; Performance.

Introduction

According to Raihan (2020), almost half of the numbers of private universities in Indonesia experiences student decline in COVID-19 pandemics, which numbers are varied, where the worst decline was starting from 50%-90%. On the other hand, private universities have an important role in the world of education, as they contribute to 3.171 institutions or 96% of the total number of universities in Indonesia and they are places to study for nearly 4,5 million students or around 64% of the numbers of students nationally. The role of the private universities in taking part in the intellectual life of the nation in Indonesia is so important that various related parties such as government, business people, society, and researchers need to interfere to help this higher education institution survive and be well-developed.

In the current competitive organization management, the managers need to implement a leadership approach that can ensure their workforces to possess high performance (Anning Dorson, 2018). Performance shows achievements of work, either viewed from quantity or quality gained by an employee in doing his job according to responsibilities given by the organization. Several factors that affect organization performance are: perceived organizational support (Ikon & Ogochukwu, 2019), knowledge sharing, employee engagement (Ariussanto et al., 2020), and commitment to the organization (Sözbilir, 2012).

The experienced perceived organizational support is employee's perception on how far the organization appreciates their contribution and welfare (Robbins and Judge, 2013). Subconsciously, employees question how far the organization takes action because of its concern towards its employees. The high level of perceived organizational support shows that an organization gives its trust to its employees to improve their output (Eisenberger et al., 2001). The research findings of Febriantoro and Juariyah (2018) stated that perceived organizational support has a positive and significant effect on employee performance. It differs with the research finding of (2019) stating that Perceived Organizational Support possesses insignificant effect on employee performance.

In an organization, knowledge sharing behaviour frequently conducted by the employees will affect the improvement of work ability and knowledge of each employee when he works, and it makes him have improved competitive advantages. The work improvement of ability and knowledge will make employees easier in completing their assigned work; therefore, it can directly affect their performance improvement. Knowledge sharing is a process conducted through interactive communication between an employee and the others in an organizational group in order to create mutual relationships to achieve common goals (Bucata & Rizescu, 2017). The result finding of Santoro, et al (2018) showed that knowledge sharing has a significant effect on employee performance. It differs with the research of stating that knowledge sharing has an insignificant effect on employee performance (Prompreing & Hu, 2021).

High employee engagement of the employees is one of the factors considered as the most valuable asset owned by an organization (Saratun, 2016). Employee engagement is a good instrument to help organizations in striving to gain sustainable competitive advantage. According to Pandita & Ray (2018), employee engagement is a situation where individuals are emotionally and intellectually engaged in a group or organization. The completion of supporting factors, such as work environment, leadership, team and colleagues, training and career development, compensation, organization policy, and work welfare will improve employee engagement and will directly have a positive effect on employee performance (Ariussanto et al., 2020). Research of Nazir and Islam (2017) stated that employee engagement has positive effect on performance. It differs with research finding of Linggiallo et al. (2021) proving that employee engagement does not have a significant effect on performance. Based on result differences of several researches and how substantial the important role of human resources in managing private universities is are the reasons why this research was conducted.

Literatutre Review

Perceived Organizational Support, Performance and Organizational Commitment

The concept of perceived organizational support has been used to mark and assess employee management in an organization, showing how great the organization appreciates and supports its employees to do their working roles effectively (Ikon & Ogochukwu, 2019). Perceived organizational support is as an employee’s perception of belief and trust about how far an organization values its employee’s contribution as well as notices, respects and cares about its employee’s welfare. Generally, an organization gives forms of positive support that are beneficial for its employees. The support can generate employee’s perception of the organization. Employees, who get a high perceived organizational support level, give their performance more maximally. This is because perceived organizational support can affect employee’s spirit to work, consequently, it will finally affect their performance (Siswanti & Pratiwi, 2020). Perceived organizational support is an organizational support experienced by the employees where it is about how far their organization appreciates their contribution and welfare (Robbins & Judge, 2013).

Perceived organizational support refers to an employee's perception on how far an organization evaluates their contribution and cares about their welfare. Employees with higher levels of perceived organizational support will make them feel more obliged to help their organization reach its goal (Eisenberger, 2002). Positive support, such as fair treatment, salary, promotion, voting rights and other forms of support that can support the implementation of the work and can improve employee’s welfare are given by the organization. The high organizational support can increase employee’s commitment to their organization, where in the end; it can make them feel responsible to repay what has been given by the organization where they work, by giving optimum performance. Employees with higher perceived organizational support will make them feel more obliged to help their organization to reach its goal. In other words, they have a commitment to participate in realizing the organization's vision and mission. Febriantoro and Juariyah (2018), Prastyo and Frianto (2020), Ridwan et al., (2020), Sharma and Biswakarma (2020), Sulistyawati and Sufriadi (2020), Siswanti and Pratiwi (2020) stated that perceived organizational support has a positive and significant effect on employee performance. Based on the description above, hypothesis 1 and 2 are proposed as follows:

H1: Perceived Organizational Support has a positive and significant effect on performance.
H2: Perceived Organizational Support has a positive and significant impact on organizational commitment.

Knowledge Sharing, Performance and Organizational Commitment

Ahmed, et al. (2019) explained that knowledge sharing is as a process that happens among individuals in a community, where each individual interacts and shares his knowledge with other individuals through online or face-to- face, practical community, group, or forum and the like. Al-Emran, et al. (2018) explained that knowledge sharing is as a process conducted systematically to gain knowledge and to distribute as well as to disseminate it with one’s various multi-dimension to the others or from one organization to other organizations through media or various methods. According to Alsharo, et al. (2017), he stated that knowledge sharing is a process of interactive communication between one individual and another in a group, creating mutual relationships to reach mutual goals. Stated that knowledge sharing is a social interaction process by building opportunities to share knowledge and building domains from informal relationships as well as providing facilities to observe, listen, and also imitate the best practice, strengthened by a belief among individuals.

The implementation of knowledge sharing can show that an employee has had commitment towards organization, so it opens an opportunity for each member to create more, to be responsible, to be loyal and to be able to keep the stability of the organization. This is supported by research finding of stating that by improving knowledge sharing, it will have a positive effect on the improvement of organizational commitment. Showed that knowledge sharing has a significant effect on employee performance based on the description hypotheses 3 and 4 are proposed as follows:

H3: Knowledge-sharing has a positive and significant effect on performance.
H4: Knowledge-sharing has a positive and significant effect on organizational commitment.

Employee Engagement, Performance and Organizational Commitment

Stated that employee engagement is the most powerful factor to measure the strength of a company Welch (2011) stated that the concept of employee engagement refers to the engagement concept in their work, related to organization effectiveness in realizing the goal of the organization. Employee engagement is important for an organization to reach its goal that is set through the mission of the company, and employees can understand what must be done to be able to improve the company's competitiveness (Saratun, 2016). According to Nguyen et al., (2020) employee engagement can be interpreted as a situation where an individual is emotionally and intellectually involving himself in his jobs earnestly, by using two dimensions; employee engagement in his job and employee engagement in his organization. A company with qualified employees and has employee engagement will help the achievement of the organization’s goal better. A high-quality employee is one of the factors that cannot be duplicated or copied by competitors and he is considered as the most valuable asset if managed and involved well.

The level decline of employee engagement will imply to the organization, there are at least three things: 1) the weakening of trust, the declining of employee engagement shows the weakening of trust, because employee engagement is an important requirement in an organization; 2) long-term potential employee retention will cost high level of frustration; 3) employee loyalty uncertainty has the potential to damage performance. The longer the decline takes place the harder the steps taken by the organization, the bigger the risk the employee relationship with the management and the organization is, considering that the difficult times are when the organization needs its best employees to reach success. Robbins and Coulter (2012) stated that work engagement is the level of employee identification to his job, actively participates in his job and considers performance in his job more valuable for his own benefit. Based on the description, hypotheses 5 and 6 are proposed as follows:

H5: Employee Engagement has a positive and significant effect on performance.
H6: Employee Engagement has a positive and significant effect on organizational commitment.

Organizational commitment on Performance

Organizational commitment is an individual involvement bond with the organization, so that the individual feels that he owns his organization. Organizational commitment describes how far an individual identifies himself and is involved in his organization and does not want to leave his organization. This is according to the concept adapted from the opinion, summarizing that organizational commitment is a psychological situation characterizing a relationship between an employee and his organization and implying on a decision to continue his membership in that organization (Sozbilir, 2023).

Organizational commitment can be understood through two approaches; they are behaviour and attitude approaches. In a behaviour approach, the attention of the researchers is on the manifestation of a strong commitment. An employee becomes involved in an organization because of sunk cost (salary and facilities that are the functions of age and years of service). While in an attitude approach, organizational commitment is defined as a statement where an employee is identified by a certain organization and its goals. The employee wants to keep becoming the member of the organization in order to facilitate the organization to achieve its goal. Employee commitment in an organization can be used as one of the guarantees to keep the life sustainability of the employee, considering that employee commitment influences the productivity of an organization/ company (Luthans, 2011). Based on that description, hypotheses 7 is proposed as follows:

H7: Organizational commitment has a positive and significant effect on performance.

In accordance with the above literature review analysis and hypothesis development, the research model in this research is shown on Figure 1.

Figure 1: Research Model.

Research Method

The research was conducted on a period of February until July 2022. The number of research samples was 190 respondents, consisting of lecturers and educational staff from 10 private universities in Central Java. Sampling techniques used purposive sampling. Out of 220 distributed questions, 194 were returned with a response level of 88%. After an evaluation was done, there was only 190 respondent data met the requirements for statistical analysis to be able to be conducted. When it was viewed from the gender, 40% respondents were males and 60% were females. Respondents of each category were between 30 to 60 years old and having work experience as lecturers were between 5 to 25 years. The indicators of perceived organizational support: 1. the organization cares about their employees' ideas; 2. the organization cares about the employee’s welfare; 3. the organization pays attention to goals and values of the employees; 4. the organization is willing to help its employees when they get troubles; 5. the organization cares about the employee satisfaction at their workplace (Table 1).

Table 1
Respondent Demography (N = 190)
Variables Information Mean Std Dev
Age Year 45.751 7.857
Work experience Year 16.215 6.674
Marital status 0 = Single
1 = Married
0.998 0.443
Perceived Organizational Support 5 items 24.351 4,592
Knowledge sharing 5 items 23.402 5.018
Employee engagement 5 items 24.086 4.519
Organizational commitment 5 Items  24.103  5.021
Performance 5 items 23.814 4.326

The indicators of knowledge sharing: 1. good communication; 2. intensive social interaction; 3. knowledge sharing; 4. relation; 5. trust. The indicators of employee engagement: 1. put full effort into work; 2. being enthusiastic with the work; 3. being energetic in the work; 4. involved in things occurring in the organization; 5. feeling more alive by joining the organization. The indicators of organizational commitment: 1. strong acceptance for the goals and the values of the organization; 2. will to strive for achieving the interest of the organization; 3. strong desire to keep working for the organization; 4. being proud to become the members of the organization; 5. feel that the organization has done a big favour to his life. The indicators of performance: 1. the goal for employee performance; 2. discipline; 3. work initiative; 4. cooperation; 5. integrity.

Results

The result of the reliability test showed that all construct reliability values are bigger than 0.7. This shows that all research constructs have reliable status (Table 2).

Table 2
Data Reliability Test
Variables Std.
Loading
Error Standard Reliability
Perceived Organizational Support 4,187 1,325 0.782
Knowledge sharing 4,613 0.892 0.719
Employee engagement 3.980 1.975 0.804
Organizational Commitment 3,296 1,743 0.716
 Performance 4,208 0.968 0.711

Model testing was conducted by using Structural Equation Modelling (SEM) with twostep approaches. The result of the Fit Test Index calculation presented in Table 3 showed that the measurement result has met the criteria of goodness-of-fit, which means that model in this research can be accepted (Table 3).

Table 3
Fit Test Index Of Structural Equation Modelling
No Goodness of fit index Cut of value Analysis Result Model Evaluation
1 χ 2 - Chi-Square  < 108,78 98.95 Good
2 Significance Probability ≥ 0.05 0.067 Good
3 CMIN/DF ≤ 2,00 1.983 Good
4 GFI ≥ 0.90 0.916 Good
5 AGFI ≥ 0.90 0.851  Marginal
6 TLI ≥ 0.95 0.932 Marginal
7 CFI ≥ 0.95 0.968 Good
8 RMSEA ≤ 0.08 0.079 Good

Each hypothesis was tested by comparing critical ratio (CR) value and t-table value on a certain degree of freedom (DF). If CR value is bigger than t-table value on a certain DF, the correlation of the tested variable can be stated as significant on a certain level of probability. Moreover, it can also be viewed from its probability level if p<0.05 zero hypothesis is denied, and if p>0.05 zero hypothesis is accepted. The result of the proposed five hypotheses is presented on Table 4.

Table 4
Regression Weight Standardized Structural Equation Model
Hypotheses Estimate S.E. C.R. P Confirmation
 Performance <--- Perceived
Organizational
Support
0.412 0.62 3.784 0.023 significant
 Organizational <--- Perceived
Commitment Organizational
Support
0.674 0.53 5.312 0.019 significant
 Performance <--- Knowledge
sharing
0.435 0.49 3.765 *** significant
 Organizational <--- Knowledge
Commitment sharing
0.691 0.54 4.219 0.035 significant
 Performance <--- Employee
engagement
0.358 0.65 3.476 *** significant
 Organizational <--- Employee Commitment engagement 0.517 0.78 5.418 0.028 significant
 Performance <--- Organizational
Commitment
0.782 0.74 5.167 *** significant

Statistical analysis of hypothesis testing showed that hypothesis 1 stating that perceived organizational support has a significant positive effect on performance was accepted. This can be seen from Critical Ratio (CR) value of 3.784, showing a higher value than t-table value of 3.00 on probability level of 0.023 < 0.05 with β of 0.412. In accordance with this analysis result, it means that it accepts the hypothesis stating that perceived organizational support has significant positive effect on performance. This result shows that perceived organizational support variables can improve employee performance of private universities.

Hypothesis 2 stating that perceived organizational support has a significant positive effect on organizational commitment was accepted. This can be seen from Critical Ratio (CR) value of 5.312, showing a higher value than t-table value of 3.00 on probability level of 0.019 < 0.05 with β of 0.674. In accordance with this analysis result, it means that it accepts the hypothesis stating that perceived organizational support has significant positive effect on organizational commitment. This result shows that perceived organizational support variables can improve employee’s organizational commitment of private universities.

Hypothesis 3 stating that knowledge sharing has a significant positive effect on performance was accepted. By referring to the result of statistical analysis, it shows Critical Ratio (CR) value of 3.765, and this value is higher than t-table value of 3.00 on probability level of 0.000 < 0.05 with β of 0.435, thus it accepts the hypothesis stating that knowledge sharing has significant positive effect on performance. This result means that knowledge sharing can improve employee’s performance of private universities.

Hypothesis 4 stating that knowledge sharing has a significant positive effect on organizational commitment was accepted. In accordance with the result of statistical analysis, it shows Critical Ratio (CR) value of 4.219, and this value is higher than t-table value of 3.00 on probability level of 0.035 < 0.05 with β of 0.691, thus it accepts the hypothesis stating that knowledge sharing has significant positive effect on organizational commitment. This result shows that knowledge sharing can improve employee’s commitment to private university organization.

Hypothesis 5 stating that employee engagement has a significant positive effect on performance was accepted. This can be seen from Critical Ratio (CR) value of 3.476, showing a higher value than t-table value of 3.00 on probability level of 0.000 < 0.05 with β of 0.358. In accordance with this analysis result, it means that it accepts alternative hypothesis stating that employee engagement has significant positive effect on performance. This result shows that employee engagement variables can improve employee’s performance at private universities.

Hypothesis 6 stating that employee engagement has a significant positive effect on organizational commitment was accepted. This can be seen from Critical Ratio (CR) value of 5,418, showing a higher value than t-table value of 3.00 on probability level of 0.028 < 0.05 with β of 0.517. By this analysis result, it means that it accepts the hypothesis stating that employee engagement has significant positive effect on organizational commitment. This analysis result shows that employee engagement variables can improve employee’s commitment to the private universities.

Hypothesis 7 stating that organizational commitment has a significant positive effect on performance was accepted. In accordance with the result of statistical analysis, it shows Critical Ratio (CR) value of 5.167, and this value is much higher than t-table value of 3.00 on probability level of 0.000 < 0.05 with β of 0.782, thus it accepts the hypothesis stating that organizational commitment has significant positive effect on performance. This result means that effective organizational commitment can improve employee performance at private universities.

In order to assess whether organizational commitment variables can become a role as a mediator in the correlation among perceived organizational support, knowledge sharing, and employee engagement and performance, it uses Path analysis method where the result is presented on Table 5.

The result of path analysis on Table 5 discloses a direct effect of perceived organizational support on performance of 0.412 which is less than the indirect effect, through organizational commitment of 0.527. Therefore, it can become a role as a mediator variable and strengthen the correlation between perceived organizational support and performance. The result of path analysis on a direct effect of knowledge sharing on performance is 0.412 which is less than the indirect effect; knowledge sharing effect on performance through organizational commitment is 0.527 (Wahyuni, 2019). According to the result, it can be concluded that organizational commitment can become a role as a mediator and strengthen the correlation between knowledge sharing and performance. The result of path analysis on a direct effect of employee engagement on performance is 0.358 which is less than its indirect effect; employee engagement effect on performance through organizational commitment is 0.404. According to the result, it can be concluded that organizational commitment can become a role as a mediator and strengthen the correlation between employee engagement and performance.

Table 5
Direct And Indirect Effect
 Variables Estimation
 Performance <--- Perceived Organizational Support 0.412
 Organizational <--- Perceived Organizational Support
Commitment
0.674
 Performance <--- Organizational Commitment 0.782
 Performance <--- Organizational <--- Perceived Organizational
Commitment Support
0.527
 Performance <--- Knowledge Sharing 0.435
 Organizational <--- Knowledge Sharing
Commitment
0.691
 Performance <--- Organizational <--- Knowledge sharing
Commitment
0.540
 Performance <--- Employee Engagement 0.358
 Organizational<--- Employee Engagement
Commitment
0.517
 Performance <--- Organizational <--- Employee Engagement
Commitment
0.404

Conclusion

Perceived organizational support creates a positive attitude among the employees, where they feel acknowledged, appreciated and considered important by the organization. As a reward for this treatment, the subordinates show their constant commitment to their organization and do activities to realize the goal of the organization. A condition is developed in the organization where employees, willing to share their knowledge and experience voluntarily, will create an aftereffect, the improvement of communication quality, the intensive social interaction and trust among them. Currently, the organization is facing more challenges by technology advancement and tight competition in its environment. In this situation, each organization needs to adapt with the new technology and to improve its competitiveness. One of the ways to face this challenge is to develop and keep talented employees. Employee engagement is a great approach, by involving high work engagement, it will improve work satisfaction. Employee engagement can push satisfaction attitude, commitment improvement, and employee performance.

Based on the above analysis, this research recommends that the management of private universities in Central Java conduct various organizational efforts to improve perceived organizational support, knowledge sharing, employee engagement of the employees to encourage the improvement of the performance through organizational commitment.

This research only took samples from 10 private universities in a big category in Central Java. In actual fact, there are approximately 243 private universities spread in several cities in Central Java. In this research, the free variable being used was limited, where it only used three free variables; perceived organizational support, knowledge sharing, and employee engagement. In reality, there are many other factors that have effects on organizational commitment or performance at private universities in Central Java.

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Received: 12-July -2023, Manuscript No. AEJ-23-13980; Editor assigned: 14-July-2023, PreQC No. AEJ-23- 13980(PQ); Reviewed: 29-July-2023, QC No. AEJ-23-13980; Revised: 03-Aug-2023, Manuscript No. AEJ-23- 13980(R); Published: 14-August-2023

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