Work spirituality: Its effect to the organizational commitment and performance of rural credit institution administrator

Abstract

Purpose

This study aims to analyze the relationship of work spirituality, organizational commitment and performance of rural credit institution (Lembaga Perkreditan Desa [LPD]) administrators.

Design/methodology/approach

To obtain the data, the researcher uses the interview and questionnaire techniques. The questionnaire is used as the research instrument whose validity and reliability have been tested. This study uses the quantitative approach. The analysis technique used is the path analysis. The significance level of the mediation role is analyzed by using Sobel test.

Findings

The work spirituality is proven to give a positive and significant effect to the performance of administrator and organizational commitment. It can be summarized that the higher the work spirituality, the better the performance at work and the higher organizational commitment. The organizational commitment also gives a positive and significant effect to the LPD administrator’s performance. The organizational commitment is proven to be the partial mediator variable for the relationship between the work spirituality and work performance of LPD administrator.

Research limitations/implications

First, LPD as the druwe institution or owned by the traditional village has to be directed to the attempt of improving the standard of living of Krama Desa Adat and supporting the development of the traditional village. Second, it is important for LPD to be run by the human resource with high work spirituality; thus, it can positively affect their commitment to the organization and improve their performance at work.

Originality/value

The originality of this study is the finding of various empirical studies that have not been explained in an integrated way about the relationship between the work spirituality and organizational commitment, as well as the individual performance. Therefore, this study analyzes further about the relationship among them. In the previous study, there are many researchers who analyze the industry, but few do it in the local wisdom-based organizations such as LPDs that are developing rapidly in Bali.

Citation

Sintaasih, D.K., Manuati Dewi, I.G.A., Mudiartha Utama, I.W. and Mujiati, N.W. (2019), "Work spirituality: Its effect to the organizational commitment and performance of rural credit institution administrator", International Journal of Ethics and Systems, Vol. 35 No. 3, pp. 306-322. https://doi.org/10.1108/IJOES-09-2017-0135