Effect of Organizational Justice on Organizational Commitment: Mediating Role of Intrinsic and Extrinsic Satisfaction

Abstract

This study aimed to measure the effect of organizational justice on organizational commitment of the employee of a packaging manufacturer in Indonesia which are mediated by intrinsic and extrinsic job satisfaction. Data collection was done by simple random sampling to 271 population of employees. The returned and valid questionnaire results were 145 samples. Data processing was used SEM method with Smart PLS 3.0 software. The results of this study concluded that organizational justice have a positive and significant effect on intrinsic and extrinsic job satisfaction. Intrinsic and extrinsic job satisfaction have a positive and significant effect on organizational commitment. Organizational justice have not significant effect on organizational commitment. Intrinsic and extrinsic job satisfaction have a significant effect as mediator between organizational justice and organizational commitment. This new research proposed a model for building the organizational commitment among the employee of a packaging manufacturer in Indonesia through enhancing organizational justice with intrinsic and extrinsic job satisfaction as a mediator.