Organizational Support Enhancing Employee Performance and Satisfaction in a Manufacturing Company: An Econometric Case Study in Wonosobo, Central Java, Indonesia

Abstract

Aims: This research aims to examine the effect of Perceived Organizational Support (POS) and Locus of Control on employee performance with job satisfaction as a mediating variable at PT Cebong Albasindo, a wood-processing manufacturing company located in Wonosobo, Central Java, Indonesia. Study Design: This research employed a quantitative approach, utilizing Structural Equation Modeling with Partial Least Squares (SEM-PLS). Place and Duration of Study: The study was conducted at PT Cebong Albasindo, Wonosobo, Central Java, Indonesia, between January and April 2025. Methodology: A total of 110 employees with a minimum one-year tenure were selected using convenience sampling. Data were collected via questionnaires using a Likert scale (1–5). The variables measured include POS, Locus of Control, job satisfaction, and employee performance using indicators from previous validated studies. Data were analyzed using SmartPLS 3.0 for outer model, inner model, and hypothesis testing. Results: POS and Locus of Control significantly influence both job satisfaction and employee performance. Job satisfaction also has a direct significant effect on employee performance. Mediation tests showed that job satisfaction substantially mediates the impact of both POS and Locus of Control on employee performance. The R² value for job satisfaction is 0.553, and for performance is 0.598, indicating moderate explanatory power. Conclusion: Job satisfaction serves as a strong mediating factor that enhances the impact of organizational support and personal control beliefs on employee outcomes. Enhancing organizational support and fostering an internal locus of control among employees can lead to increased satisfaction and ultimately improve performance.