EFFECT OF ORGANIZATIONAL COMMITMENT ON THE SUSTAINABILITY PERFORMANCE OF INDONESIAN INDUSTRIES

Abstract

The purpose of this research is to analyze and determine the relationship between
Organizational Commitment on economic performance, Organizational Commitment on
environment performance, Organizational Commitment on social performance.
Organizational Commitment on firm performance sustainability. The contribution of SMEs to
employment in Indonesia reaches 97.02% of the total absorption of existing workforce and
accounts for 60% of national GDP. This study tries to take the commitment dimension from
the company's perspective and the effect of its implementation on SME performance.  Research conducted on 370 SMEs respondents in Indonesia. Structural equation modeling is
used to test research hypotheses, and SPSS software is used to analyze data. Based on the
results of data processing, it is found that the independent organizational commitment to its
employee has a positive and significant effect on economic performance, Organizational
Commitment to its Employee has a positive and significant effect on environmental
performance, organizational commitment to its Employee has a positive and significant effect
on social performance, organizational commitment to its employee has a positive and
significant effect on the firm's sustainability performance.