Influence of Employee Competency, Organizational Culture and Job Satisfaction on Employee Performance in Private Companies in Bangkok

Authors

  • Phetcharat Jinnupong
  • Siam Prasertkul -

Keywords:

Employee competency, Organizational culture, Job satisfaction, Employee performance

Abstract

This research aimed to study the factors affecting employee performance in private companies in Bangkok. Specifically, it investigated 1) employee competency, organizational culture, and job satisfaction as key factors that can affect employee performance; 2) the concepts and theories related to employee competency, organizational culture, job satisfaction, and employee performance; and 3) the influence and interplay of employee competency, organizational culture, and job satisfaction on employee performance and on each other. The research sample consisted of 300 employees from private companies in Bangkok. The research instrument was a questionnaire, and data were analyzed using confirmatory factor analysis and structural equation modeling techniques. The findings revealed that the structural equation model was consistent with the empirical data, with the goodness-of-fit indices for both models being at an acceptable level, indicating the high quality of the model. The results showed that employee competency had a positive effect on organizational culture, with an influence size of 0.297, which was statistically significant at the 0.001 level. Employee competency also positively affected job satisfaction, with an influence size of 0.190, which was statistically significant at the 0.001 level. Organizational culture positively affected employee performance, with an influence size of 0.746, which was statistically significant at the 0.001 level. Finally, job satisfaction had a positive effect on employee performance, with an influence size of 0.196, which was statistically significant at the 0.001 level.

References

Adams, J. S. (1963). Toward an understanding of inequity. Journal of Abnormal and Social Psychology, 67(5), 422-436. https://doi.org/10.1037/h0040968

Aka, U. A., & Juliet, G. E. (2018). Impact of organizational communication processes on employees' performance: A case of selected civil service ministries in Bayelsa State. International Journal of Innovation and Research in Educational Sciences, 5(1), 2349-5219.

Akob, M., Arianty, R., & Putra, A. H. P. K. (2020). The mediating role of distribution Kahns engagement: An empirical evidence of salesforce in Indonesia. Journal of Asian Finance, Economics and Business, 7(2), 249-260. https://doi.org/10.13106/jafeb.2020.vol7.no2.249

Chi, O. H., & Han, H. (2022). Exploring the relationship between job satisfaction and turnover intention during the COVID-19 pandemic: The moderating role of perceived organizational support. International Journal of Hospitality Management, 102, 103123. https://doi.org/10.1016/j.ijhm.2022.103123

Department of Business Development. (2022). Business registration information. Retrieved from https://www.dbd.go.th

Dessler, G. (2015). Human resource management (14th ed.). New Jersey: Pearson Education.

Hashim, J., & Wok, S. (2013). Competence, performance and trainability of older workers of higher educational institutions in Malaysia. Employee Relations, 36(1), 82-106. https://doi.org/10.1108/ER-02-2013-0021

Hee, O. C., Ibrahim, R., Kowang, T. O., & Fei, G. C. (2018). Employee engagement as a mediator between transformational leadership and employee performance. Asian Journal of Scientific Research, 11(3), 441-448. https://doi.org/10.3923/ajsr.2018.441.448

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work (2nd ed.). New York: John Wiley & Sons.

Javed, A., Anas, M., Abbas, M., & Khan, A. I. (2017). Flexible human resource management and firm innovativeness: The mediating role of innovative work behavior. Journal of Human Resource Management, 20(1), 31-41.

Kam, B. H., Tsahuridu, E. E., & Ding, M. J. (2010). Does human resource management contribute to the development of logistics and supply chain capabilities? An empirical study of logistics service providers in China. Research and Practice in Human Resource Management, 18(2), 15-34.

Laforet, S. (2016). Effects of organizational culture on organizational innovation performance in family firms. Journal of Small Business and Enterprise Development, 23(2), 379-407. https://doi.org/10.1108/JSBED-02-2015-0020

Limaj, E., & Bernroider, E. W. N. (2019). The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs. Journal of Business Research, 94, 137-153. https://doi.org/10.1016/j.jbusres.2017.10.052

Locke, E. A. (1976). The nature and causes of job satisfaction. In M. D. Dunnette (Ed.), Handbook of industrial and organizational psychology (pp. 1297-1349). Chicago: Rand McNally.

Ma, S. (2017). Fast or free shipping options in online and omni-channel retail? The mediating role of uncertainty on satisfaction and purchase intentions. The International Journal of Logistics Management, 28(4), 1099-1122. https://doi.org/10.1108/IJLM-05-2016-0140

Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396. https://doi.org/10.1037/h0054346

Morgan, A. N., & Vorhies, W. D. (2018). The business performance outcomes of market orientation culture and behaviours. Innovation and Strategy, 15, 255-282.

Mustafa, M. Z., Yamin, N. A., Razzaq, A. R. A., & Ahad, R. (2022). Factors influencing job satisfaction in the Malaysian vocational college: Herzberg two-factor theory perspective. Universal Journal of Management, 10(1), 18-25. https://doi.org/10.13189/ujm.2022.100102

Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología, 48(1), 30-41. https://doi.org/10.1016/j.rlp.2015.09.009

National Statistical Office. (2022). Employment situation of the population. Retrieved from http://www.nso.go.th

Ogbonna, E., & Harris, L. C. (2000). Leadership style, organizational culture and performance: Empirical evidence from UK companies. International Journal of Human Resource Management, 11(4), 766-788. https://doi.org/10.1080/09585190050075114

Pasaribu, R. N., Matondang, R., & Wibowo, R. P. (2019). The influence of communication abilities, workload & wages on the performance of agricultural officers in Deli Serdang Regency, North Sumatra, Indonesia. American International Journal of Business Management, 2(3), 44-52.

Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725. https://doi.org/10.1016/S2212-5671(15)00580-5

Renyut, B. C., Basri, M. H., Jobhar, B., & Sukmawati, S. (2017). The effect of organizational commitment, competence on job satisfaction and employees performance in Maluku Governor’s Office. Journal of Business and Management, 19(11), 18-29.

Sesari, H. D., Supriyanto, A. S., & Kertahadi. (2024). The effect of fairness and capability utilization on employee performance and commitment: Evidence from manufacturing industries. International Journal of Productivity and Performance Management, (Advance online publication). https://doi.org/10.1108/IJPPM-02-2024-0078

Setyorini, R. R., Landra, N., & Yuesti, A. (2018). The effect of situational leadership style and compensation to employee performance with job satisfaction as intervening variable at PT Bank Rakyat Indonesia (Persero), Tbk Denpasar Branch. International Journal of Contemporary Research and Review, 9, 0976-4852. https://doi.org/10.15520/ijcrr/2018/9/01/393

Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266-282. https://doi.org/10.1108/SAJBS-08-2018-0096

Sundi, K. (2015). Effect of transformational leadership and transactional leadership on employee performance of Konawe Education Department at Southeast Sulawesi Province. International Journal of Business and Management Invention, 2(12), 50-58.

Syauta, J. H., Eka, A. T., Margono, S., & Solimun. (2012). The influence of organizational culture, organizational commitment to job satisfaction and employee performance (Study at Municipal Waterworks of Jayapura, Papua Indonesia). International Journal of Business and Management Invention, 1(1), 2319-8028.

Vroom, V. H. (1964). Work and motivation. New York: Wiley.

Yazdanfar, D., Saeid, A., & Hellgren, C. (2014). Competence development and performance among Swedish micro firms. European Journal of Training and Development, 38(3), 162-179. https://doi.org/10.1108/EJTD-01-2013-0002.

Downloads

Published

22-12-2025

How to Cite

Jinnupong, P., & Prasertkul, S. (2025). Influence of Employee Competency, Organizational Culture and Job Satisfaction on Employee Performance in Private Companies in Bangkok . Business Administration and Economics Review, 21(2), 1–18. retrieved from https://so15.tci-thaijo.org/index.php/bae/article/view/1971

Issue

Section

Research Article