Linking leadership styles and organizational culture to organizational commitment in the industry of automotive components (The mediating role of procedural justice)

Abstract

The commitment of employees in an organization is one of the key factors to create competitiveness in doing business for automotive components. This research was aimed to reveal the direct and indirect effects of leadership styles and organizational culture on organizational commitment of employees. Procedural justice has been used as a mediating variable. The instruments used to measure the variables are Leadership Styles (LS), Organizational Culture (OCu), Procedural Justice (PJ) and Organizational Commitment (OCo). Those instruments have been tested for their validity and reliability. Data were collected from the all-155 employees of the automotive component industry, PT. Nadya Karya Perkasa. The Collected data were scrutinized by path analyses. This research has found out that there is a direct and significant effect of leadership styles (ρ= 0.125) and organizational culture (ρ=0.680) on procedural justice, a direct and significant effect of leadership styles (ρ= 0.191) and organizational culture (ρ=0.310) on organizational commitment, a direct and significant effect of procedural justice (ρ =0.352) on the organizational commitment. There is indirect effect of leadership styles to organizational commitment (ρ=0.044), and indirect effect of organizational culture on organizational commitment (ρ=0.236) By this study hopefully the automotive component industry will be able to compete with other industries in the world market by improving the values of employee’s commitment.