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1 *Corresponding Author: iskandar@uniku.ac.id
International Journal Administration, Business & Organization
Vol. 5 (No. 2), 2024: 1-13 | E-ISSN 2721-5652
Available at https://ijabo.a3i.or.id/index.php/ijabo
The Impact of Transformational Leadership, Career Development,
and Work Environment on Organizational Commitment
(Survey on CV. Bunda Devina)
Iskandar1*
Department of Management
Faculty of Economics and Business
Kuningan University, Indonesia
E-mail: iskandar@uniku.ac.id
Oding Syafrudin2
Department of Management
Faculty of Economics and Business
Kuningan University, Indonesia
E-mail: odingsyafrudin@uniku.ac.id
Yeyen Suryani3
Department of Management
Faculty of Economics and Business
Kuningan University, Indonesia
E-mail: yeyen.suryani@uniku.ac.id
Muhammad Algiani Adhia
Filallba4
Department of Management
Faculty of Economics and Business
Kuningan University, Indonesia
E-mail: algiani123@gmail.com
Received: 07 August, 2024
Accepted: 08 August, 2024
Available online: 14 August, 2024
DOI: 10.61242/ijabo.24.412
JEL Classifications: O10, O15
License
This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0
International License.
ABSTRACT
This research analyzes the impact of transformational leadership, career development,
and work environment on organizational commitment at CV. Bunda Devina, a
company engaged in the andesite natural stone sector, producing a number of raw
stones ready for processing and finished natural stones according to demand. This study
is a quantitative research using data collection techniques through questionnaires with
a survey method. The sampling technique used is saturated sampling with 116
respondents. Data analysis was performed using SPSS. The findings indicate that
transformational leadership positively and significantly impacts organizational
commitment. Additionally, career development and the work environment both have
significantly positive effects on organizational commitment.
Keywords: Transformational Leadership, Career Development, Work Environment,
Organizational Commitment
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
2 DOI: https://doi.org/10.61242/ijabo.24.412
INTRODUCTION
In a business environment, achieving goals and company success are top priorities.
Organizational commitment is a key factor that forms a strong foundation for a company's
productivity towards its values and objectives. The company's efforts to achieve success
involve various strategies, with organizational commitment being a crucial element. This
significantly impacts the company's performance and overall success. Factors that can
shape organizational commitment include employee dissatisfaction with the work
environment, excessive workload, lack of support from the company, interpersonal
conflicts, limited opportunities for career development, and ineffective leadership.
Therefore, efficient management, open communication, and attention to employee well-
being are essential steps to prevent or address the decline in work quality that can affect
organizational commitment.
CV. Bunda Devina is a company specializing in andesite natural stone, producing
both raw stones ready for processing and finished natural stones according to customer
demands. In addition to supplying natural stone to various regions in Java province, CV.
Bunda Devina has also become a supplier for the provinces of Bali and East Nusa
Tenggara.
Organizational commitment refers to the degree to which individuals are
dedicated, involved, and loyal to their employing organization. It involves a positive
attitude and willingness to contribute maximally towards achieving the company's goals.
Organizational commitment is an expression of an employee's identification,
involvement, and loyalty to the company they work for. In this context, organizational
commitment reflects employees' high level of interest in the company's vision, values,
and targets.
According to Mangkunegara (2017), as cited in Widyanasari (2022),
organizational commitment or work commitment is defined as the relative strength of an
individual in identifying his involvement in the organization. Organizational commitment
is defined as the extent to which employees engage in their organization and desire to
remain its members, containing attitudes of loyalty and willingness of employees to work
to the fullest for the organization they work for (Nguyen et al., 2020 as cited in Ismail
HA, 2022).
Transformational leadership style involves leaders making efforts to encourage
and motivate their members or subordinates to reach their full potential, while being
actively involved in achieving organizational goals. The characteristics of
transformational leadership provide guidance on the behaviors and actions a leader should
exhibit towards their members. The aim of transformational leadership is to bring about
positive change and develop both individual and group capabilities to achieve superior
performance.
Career development is a process that involves identifying an employee's career
potential and relevant materials, as well as applying appropriate methods to optimize this
potential. This process includes various activities and efforts made by individuals to
enhance their understanding, skills, and capabilities with the goal of achieving their
desired career targets. It encompasses a series of steps and strategies aimed at improving
performance, advancing positions, and achieving success in one's career trajectory.
According to Mangkunegara (2017), the work environment encompasses all the
tools, materials, and surroundings that an individual interacts with while working,
including their work methods and organizational structure, both individually and as a
group. Susanti and Mardika (2021) define the work environment as everything around
employees that influences an individual's ability to perform assigned tasks, such as the
presence of air conditioning, good lighting, and so on. Meanwhile, Marisya (2022)
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
3 DOI: https://doi.org/10.61242/ijabo.24.412
describes the work environment as the totality of tools, materials, work methods, and
organizational structures encountered by a person, whether working individually or in a
group. CV. Bunda Devina currently employs 116 people. To gain a clearer understanding
of the actual situation at CV. Bunda Devina, it is evident that there is a high employee
turnover rate, as evidenced by the available turnover data. Organizational commitment
can also be assessed through turnover data. According to Ardan & Jaelani (2021),
turnover intention is defined as the tendency or intention of employees to voluntarily
leave their jobs due to personal choices. The formula for calculating annual turnover
intention (Ningsih & Putra, 2019) is:
Table 1. Employee Turnover Data for 2020-2023 at CV. Bunda Devina
Source: Secondary data processed by the researcher in 2023
Based on the data presented, it is clear that employee turnover at CV. Bunda Devina has
shown variability. The number of employees leaving annually has tended to increase or
remain relatively high over the past three years, with turnover rates of 18.51% in 2021,
11.57% in 2022, and 14.75% in 2023. It can be concluded that the employee turnover rate
at CV. Bunda Devina is relatively high, as it exceeds 10%.
Based on the study by Ningsih & Putra (2019), turnover percentages are
considered normal if they range between 5%-10% per year and high if they exceed 10%.
This indicates that CV. Bunda Devina should closely monitor its turnover rate as it is
experiencing a high percentage of turnover.
Employees who exhibit a high level of commitment to an organization are
generally more productive in maintaining long-term engagement in their work
relationships. To assess the level of organizational commitment at CV. Bunda Devina,
the researcher, conducted a pre-survey questionnaire with the following results:
Table 2. Results of the Pre-Survey Questionnaire on Organizational Commitment
Source: Secondary Data Processed by the Researcher, 2023
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
4 DOI: https://doi.org/10.61242/ijabo.24.412
From the table presented above, it is clear that the level of organizational commitment at
CV. Bunda Devina does not yet meet expectations. This is due to several indicators of
organizational commitment receiving negative responses from employees. Only 29% of
employees understand the company's strategic goals, indicating a lack of communication
or understanding regarding the company's vision and mission.
Based on the research findings regarding transformational leadership and career
development on employee commitment, it has been shown that transformational
leadership style has a simultaneous impact on organizational commitment (Pristi Azizah
Triyani & Muhammad Ilmi Hatta, 2022). Meanwhile, Ilyas & Telaumbanua (2021)
indicate a positive and significant effect of transformational leadership on organizational
commitment. Simanjuntak (2020) found a significant influence of career development on
organizational commitment. Conversely, Jufrizen (2015) presents a different view,
showing no significant impact of career development on organizational commitment
through job satisfaction at PT. Perkebunan Nusantara III (Persero). Sifa Apriliana et al.
(2021) suggest The work environment positively and significantly influences
organizational commitment among employees at PDAM Kota Magelang. However, Alvia
Santoni et al. (2021) argue that the work environment has a negative effect on
organizational commitment.
LITERATURE REVIEW
Organizational Commitment
Organizational commitment describes the degree of dedication, engagement, and
allegiance an individual feels towards their employer. According to Widyanasari (2022)
in Bloom & Reenen (2013), organizational or work commitment is defined as the relative
strength of an individual's identification and engagement with the organization. Triatna
(2015:122) identifies the indicators of organizational commitment as follows:
1. Strong desire.
2. Willingness to act on behalf of the organization.
3. Acceptance of the company's values and goals.
4. The degree of turnover.
Transformational Leadership
An employee can develop a sense of trust, appreciation, loyalty, and admiration towards
their leaders when transformational leadership is applied. According to Romadhona &
Farida (2022), transformational or change-oriented leadership is a type of leadership that
can motivate employees to work beyond personal interests and has a profound and
remarkable impact on employees.
Indicators of transformational leadership, as explained by Hidayat & Rofaida
(2021), include:
1. Idealized influence: The leader's charisma that makes them a role model for
organizational members.
2. Inspirational motivation: The leader's ability to motivate and inspire members of
the organization to achieve common goals.
3. Intellectual stimulation: The leader’s trait of encouraging members to think
innovatively and creatively, exploring new methods to achieve goals.
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
5 DOI: https://doi.org/10.61242/ijabo.24.412
Career Development
In a company, career development is crucial because it helps employees reach higher
levels of capability, which in turn supports the company's achievement of its goals (Toreh
et al., 2022). According to Simatupang & Novita Dwi Chandra (2021), career
development is a series of continuous activities that play a role in exploration, formation,
success, and fulfillment of careers. Syahidah et al. (2021) in Hasibuan (2017) identify the
indicators of career development as follows:
1. Education.
2. Training.
3. Modification.
4. Job promotion.
5. Length of service.
Work environment
The work environment is an external factor that affects job satisfaction within an
organization or company. According to Susanti and Mardika (2021), the work
environment encompasses everything around employees that influences their ability to
perform their assigned duties, such as air conditioning, good lighting, and other factors.
Indicators of the work environment, as outlined by Afandi (2021), include:
1. Workplace lighting.
2. Workplace windows.
3. Color schemes.
4. Decorations.
5. Noise from music or machinery.
6. Air temperature.
7. Humidity.
Research Paradigm
H1: The effect of transformational leadership, career development, and work environment
on organizational commitment.
H2: The effect of transformational leadership on organizational commitment.
H3: The effect of career development on organizational commitment.
H4: The effect of the work environment on organizational commitment.
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
6 DOI: https://doi.org/10.61242/ijabo.24.412
RESEARCH METHOD
This research utilizes a quantitative approach. Data is gathered through surveys, and the
analysis includes testing the research instruments, checking classical assumptions,
performing multiple linear regression analysis, and testing hypotheses using F-tests and
t-tests. The study's sample consists of 116 employees. The sampling technique used is
saturated sampling. According to Sugiyono (2018), saturated sampling is a technique
where every member of the population is used as a sample. The reason for using total
sampling is because, as Sugiyono (2018) states, "saturated sampling is a technique where
all members of the population are used as a sample." In essence, saturated sampling is
akin to conducting a census, where every member of the population is included in the
sample. For this study, the sample consists of all 116 employees at CV. Bunda Devina.
RESEARCH RESULTS
Normality Test
The normality test is conducted to determine if the independent and dependent variables
in the regression model are distributed normally. The Kolmogorov-Smirnov test,
performed using the SPSS software, is used to assess the normality of the data, with a
significance threshold set at 0.05.
Table 3. Normality Test Results
Source: data processing output IBM SPSS 26
Table 3 presents the outcomes of the normality assessment conducted using the
Kolmogorov-Smirnov test. The Asymptotic Significance (2-tailed) value stands at 0.200,
exceeding the threshold of 0.05. This indicates that the residuals follow a normal
distribution.
Multicollinearity Test
The purpose of the multicollinearity test is to assess whether there are interrelationships
among the independent variables within the regression model. A regression model is more
effective when there is a lower degree of correlation between the independent variables.
A properly constructed regression model should avoid any correlation between the
independent variables. To evaluate multicollinearity, one should check the Tolerance
values and the Variance Inflation Factor (VIF).
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
7 DOI: https://doi.org/10.61242/ijabo.24.412
Table 4. Multicollinearity Test Results
a. Dependent Variable: Organizational Commitment
Source: IBM SPSS 26 data processing output
According to Table 4, the tolerance values for the three variables—transformational
leadership (X1), career development (X2), and work environment (X3)—exceed 0.1, and
the Variance Inflation Factor (VIF) values for these variables are below 10. Hence, it can
be inferred that the three variables examined in this study satisfy the conditions for the
non-existence of multicollinearity.
Multiple Regression Test
This research utilized multiple regression analysis methods to evaluate how
transformational leadership, career development, and the work environment affect
organizational commitment. The results were calculated using the SPSS Statistics 26
software, focusing on the coefficients:
Table 5. Multiple Regression Test Results
a. Dependent Variable: Organizational Commitment
Source: IBM SPSS 26 data processing output
The general form of the regression equation is as follows:
Thus, the regression results can be formulated into the following regression equation:
Y = 16.189 + (0,197) X1 + (0.206) X2 + (0.178) X3
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
8 DOI: https://doi.org/10.61242/ijabo.24.412
1. The constant value of 16.189 means that if transformational leadership, career
development, and work environment are all at 0, the organizational commitment
value will be 16.189.
2. The coefficient of regression for the transformational leadership variable is 0.197,
indicating that for every 1 unit increase in transformational leadership, there is a
corresponding increase of 0.197 units in organizational commitment.
3. The regression coefficient for the career development variable is 0.206, indicating
that a one-unit increase in career development will result in a 0.206-unit increase
in organizational commitment.
4. The regression coefficient for the work environment variable is 0.178, indicating
that a one-unit increase in the work environment variable leads to a 0.178-unit
increase in the organizational commitment variable.
Coefficient of Determination
The coefficient of determination is used to determine the percentage of the contribution
of the independent variables (X) to the dependent variable (Y). The following are the
results of the coefficient of determination as seen in the model summary based on the
IBM SPSS 26 application results.
Table 6. Results of the Coefficient of Determination
a. Predictors: (Constant), Work Environment, Transformational Leadership, Career Development
Source: IBM SPSS 26 data processing output
According to the R-squared value of 0.694 presented in Table 6, the impact of
transformational leadership, career development, and the work environment on
organizational commitment is evident. Thus, it can be inferred that transformational
leadership, career development, and the work environment account for 69.4% of the
variance, with the remaining percentage being due to other factors that were not explored
in this research.
Hypothesis Test
F Test (Simultaneous Test)
The F-test is employed to evaluate the research hypothesis by investigating the combined
impact of Transformational Leadership, Career Development, and Work Environment on
Organizational Commitment. The F-table value in this study is as follows:
(k; (n-k) = (2; (88-2) = (2; 86)
𝐹𝑡𝑎𝑏𝑒𝑙 = 3.07
In this context, 𝑘 represents the count of independent variables, while 𝑛 denotes the total
number of samples.
Hypothesis:
𝐻0: β1, β2, β3 = 0
Transformational Leadership, Career Development, and Work Environment together do
not affect Organizational Commitment.
𝐻1: β1, β2, β3 ≠ 0
Transformational Leadership, Career Development, and Work Environment together
affect Organizational Commitment.
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
9 DOI: https://doi.org/10.61242/ijabo.24.412
Table 7. F Test Results (Simultaneous Test)
a. Dependent Variable: Organizational Commitment
b. Predictors: (Constant), Work Environment, Transformational Leadership, Career Development
Source: IBM SPSS 26 processing output
According to Table 7, the significance value of 0.000, which is less than 0.05, suggests
that transformational leadership, career development, and the work environment
significantly impact organizational commitment. Furthermore, since the calculated F-
value of 84.653 exceeds the critical F-value of 2.68, the null hypothesis (H0) is rejected,
and the alternative hypothesis (H1) is accepted. This indicates that transformational
leadership, career development, and the work environment significantly influence
organizational commitment.
Test t (Partial Test)
The t-test is employed to evaluate Hypotheses 1, 2, and 3, which examine the effects of
transformational leadership, career development, and work environment on
organizational commitment individually. The results from the partial hypothesis testing,
conducted using the SPSS 26 software, yielded the t-values presented in the table below:
Table 8. Results of t Test (Partial Test)
a. Dependent Variable: Organizational Commitment
Source: IBM SPSS 26 data processing output
Based on the results of the t test (partial) above, it can be concluded as follows:
1. From Table 8, it is known that the effect of transformational leadership on
organizational commitment is 〖0.206〗^2 x 100% = 4.25%.
Then, obtained 𝑡ℎ𝑖𝑡𝑢𝑛𝑔 > 𝑡𝑡𝑎𝑏𝑒𝑙 or 2.064 > 1.908 and sig value 0.008 <0.05, then
H0 is rejected and H2 is accepted. This means that partially transformational
leadership has a significant positive effect on organizational commitment.
2. Career development affects organizational commitment by 〖0.331〗^2 x 100%
= 11%. Then, obtained 𝑡ℎ𝑖𝑡𝑢𝑛𝑔 > 𝑡𝑡𝑎𝑏𝑒𝑙 or 2.992 > 1.908 and sig value 0.003 <
0.05, then H0 is rejected and H3 is accepted. This means that partially career
development has a significant effect on organizational commitment.
3. Work Environment (X3) on Organizational Commitment (Y) is 〖0.348〗^2 x
100% = 12%. Then, obtained 𝑡ℎ𝑖𝑡𝑢𝑛𝑔 > 𝑡𝑡𝑎𝑏𝑒𝑙 or 3.426 > 1.908 and sig value
0.001 < 0.05, then H0 is rejected and H4 is accepted. This means that partially,
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
10 DOI: https://doi.org/10.61242/ijabo.24.412
the work environment has a significant positive effect on organizational
commitment.
DISCUSSION
The Effect of Transformational Leadership, Career Development and Work
Environment on Organizational Commitment
Based on the research findings, transformational leadership, career development, and
work environment collectively influence organizational commitment. Therefore, the
previously formulated research model can be used to predict the impact of these three
variables on organizational commitment. The degree of the effect is represented by the
coefficient of determination, which stands at 30.6%, indicating that the remaining 69.4%
is attributed to other factors. Among the three independent variables, transformational
leadership, career development, and work environment, the most dominant factor
affecting organizational commitment is career development, as evidenced by the highest
regression coefficient of 0.206. In comparison, the regression coefficient for
transformational leadership is 0.197, and the smallest coefficient is for the work
environment, at 0.178.
This aligns with the research by Ilyas & Telaumbanua (2021), which found a
positive and significant impact of transformational leadership on organizational
commitment. According to Simanjuntak (2020), there is a significant effect of career
development on organizational commitment. Additionally, Sifa Apriliana et al. (2021)
demonstrated that the work environment has a positive and significant impact on
organizational commitment. This supports the acceptance of the first hypothesis (H1)
previously formulated.
Effect of Organizational Leadership on Organizational Commitment
An analysis of the effect of transformational leadership on organizational commitment at
CV. Bunda Devina revealed that transformational leadership positively influences the
company's organizational commitment. The t-test results reveal that the calculated t-value
exceeds the critical t-value (2.064 > 1.908), and the significance level is 0.008, which is
below 0.05. This demonstrates that transformational leadership has a direct impact on
organizational commitment. This finding supports previous research by Salim & Fadhila
(2023), which demonstrated that transformational leadership style significantly
influences organizational commitment. This confirms that the second hypothesis (H2) is
accepted. In other words, transformational leadership has a significant effect on
organizational commitment on a partial basis.
Effect of Career Development on Organizational Commitment
As a result of the analysis conducted on the impact of career development on
organizational commitment at CV. Bunda Devina, it was determined that career
development positively influences organizational commitment. The t-test results show
tcalculated > ttable (2.992 > 1.908), and the significance value is 0.003, which is less than
0.05. This indicates that career development has a direct effect on organizational
commitment. This finding supports previous research by Maharani (2019), which
reported that career development has a positive and significant impact on organizational
commitment. This confirms that the third hypothesis (H3) is accepted. In essence, career
development individually plays a crucial role in influencing organizational commitment.
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
11 DOI: https://doi.org/10.61242/ijabo.24.412
The Effect of Work Environment on Organizational Commitment
Analysis of the influence of the work environment on organizational commitment at CV.
Bunda Devina revealed that a positive correlation exists between the work environment
and organizational commitment. The t-test results show tcalculated > ttable (3.426 >
1.908), and the significance value is 0.001, which is less than 0.05. This indicates that the
work environment has a direct effect on organizational commitment. This finding
supports previous research by Arsani (2014), which found that the work environment has
a positive and significant impact on organizational commitment. This confirms that the
fourth hypothesis (H4) is accepted. In other words, the work environment has a significant
effect on organizational commitment on a partial basis.
CONCLUSIONS
Based on the results of research conducted at CV. Bunda Devina on a total of 116
employees who became the research sample, the following conclusions can be drawn:
1. The findings indicate that Transformational Leadership, career development, and the
work environment all positively influence organizational commitment. This means
that the research model formulated by researchers can be used to predict the rise and
fall of organizational commitment through transformational leadership, career
development and the work environment.
2. Transformational leadership positively influences organizational commitment. This
implies that as the quality of transformational leadership improves, it will
significantly enhance organizational commitment.
3. Career development positively influences organizational commitment, indicating
that more effective career development practices will lead to a substantial and
favourable impact on organizational commitment.
4. A supportive work environment enhances organizational commitment, implying that
a more favourable work setting will positively and significantly influence employees'
commitment to the organization.
RECOMMENDATIONS
Based on the research results, there are several recommendations that are expected to
provide benefits to companies and other related parties. The following are the suggestions
submitted:
For the Company
The leader of Company needs to adopt an effective transformational leadership style by
providing inspiration, motivation, and support to employees. A leader who can
communicate well, provide a clear vision, and motivate employees to achieve common
goals can enhance employee engagement and loyalty to the organization.
Company needs to ensure that every employee has access to clear and ongoing
career development opportunities. Training programs, mentoring, and promotion
opportunities should be integrated into the employee development plan.
Company needs to create a supportive and comfortable work environment to enhance
employee organizational commitment. CV. Bunda Devina should listen to employee
feedback regarding their needs and expectations related to the work environment and
well-being, and make necessary changes to meet these needs in order to improve
productivity, job satisfaction, and employee loyalty to the organization.
Iskandar1, Oding Syafrudin2, Yeyen Suryani3, Muhammad Algiani Adhia Filallba4
International Journal Administration, Business & Organization, Vol. 5 (2), 2024
12 DOI: https://doi.org/10.61242/ijabo.24.412
Company should regularly measure the level of employee commitment to identify
areas needing improvement and to design more effective strategies for enhancing
organizational commitment.
For Future Researchers
Considering the various limitations in this study, future research should be more extensive
and in-depth regarding the influence of transformational leadership, career development,
work environment, and organizational commitment by including other variables that were
not examined.
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