Track: Business Management

Abstract

Work loyalty and organizational commitment have a very important meaning for every company in improving employee performance. State-owned companies engaged in clean water services are very concerned about employee performance to improve services to the community. This research was conducted at a government-owned clean water company in Surabaya, East Java, Indonesia with the aim of analyzing the effect of work loyalty on employee performance, employee loyalty on organizational commitment, organizational commitment on employee performance and employee loyalty to employee performance through organizational commitment. This study uses 63 employees of clean water companies as the population. The sampling technique used was total sampling technique. Data analysis used Structural Equation Modeling (SEM) Partial Least Square (PLS). The results showed that work loyalty has an effect on employee performance, employee loyalty has an effect on organizational commitment, organizational commitment has an effect on employee performance, and organizational commitment is able to mediate the effect of employee loyalty on employee performance.