Organizational commitment and employee engagement as mediators of the influence of organizational climate on employee performance: A study in Bali-Penida River Basin Organization, Indonesia

 Corresponding author: Sari Ni Wayan Eka Mustika Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0. Organizational commitment and employee engagement as mediators of the influence of organizational climate on employee performance: A study in Bali-Penida River Basin Organization, Indonesia Ni Wayan Eka Mustika Sari *, I Ketut Setia Sapta and IGNB Gunadi Master of Management Study Program, Faculty of Economics and Business, Mahasaraswati University, Denpasar, Bali, Indonesia. World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 Publication history: Received on 25 June 2025; revised on 02 August 2025; accepted on 04 August 2025 Article DOI: https://doi.org/10.30574/wjarr.2025.27.2.2855 Abstract Employee performance is a crucial aspect in public sector organizations, which is influenced by various factors such as organizational climate, organizational commitment, and employee engagement. This study aims to analyses the effect of organizational climate on employee performance with organizational commitment and employee engagement as mediating variables. This research uses a quantitative approach with the Structural Equation Modeling - Partial Least Square (SEM-PLS) method on 153 employees of the Bali-Penida River Basin Organization. The results showed that organizational climate, organizational commitment, and employee engagement have a significant effect on employee performance. In addition, organizational commitment and employee engagement proved to be able to partially mediate the relationship between organizational climate and employee performance. Thus, an increase in positive organizational climate can encourage employee commitment and engagement which has an impact on improving employee performance. Keywords: Organizational Commitment; Employee Engagement; Organizational Climate; Employee Performance 1. Introduction Employee performance is a fundamental pillar that underpins the sustainability and success of any organization, whether in the private or public sector. In the context of the public sector, employee performance has a dual significance; it not only reflects internal efficiency, but also directly affects the quality of public services and public trust in government institutions. Organizations that are able to optimize their employees' performance tend to be more adaptive, innovative and effective in achieving their strategic goals. However, achieving optimal performance is not without its challenges. At the Bali-Penida River Basin Organization, for example, data on the Community Satisfaction Index (IKM) shows fluctuations that indicate there is room for improvement in the services provided to the public. Furthermore, the project's physical realization rate, which declined from 99.25% in 2021 to 73.98% in 2023, underscores the urgency of identifying and addressing internal performance inhibiting factors. This phenomenon confirms that although efforts have been made, there are still gaps that need to be explored to drive employee performance to a more optimal level. Human resource management literature has identified a number of factors that significantly influence employee performance. Among these factors, organizational climate, organizational commitment and employee engagement stand out as variables that are interrelated and have substantial impact. Organizational climate refers to the collective perception of organizational members regarding the characteristics of the internal work environment, including policies, procedures, practices and the prevailing interpersonal atmosphere. A positive climate, characterized by World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 201 support, fairness, open communication, and opportunities for voice, tends to create a comfortable working atmosphere and motivate employees to contribute optimally. Conversely, a less conducive climate can lead to dissatisfaction and lower morale. Furthermore, organizational commitment is defined as the level of an individual's psychological attachment to his or her organization, which includes belief in the organization’s values, willingness to go the extra mile for the organization, and desire to remain a member of the organization. High commitment is often manifested in the form of loyalty, dedication, and a deep sense of responsibility, which directly correlates with improved individual and collective performance. Committed employees will feel a sense of belonging and be motivated to give their best, even under difficult conditions. Finally, employee engagement is a concept that reflects the extent to which employees are psychologically motivated to contribute to the success of the organization and are willing to exert discretionary effort in completing important tasks. This construct extends beyond basic job satisfaction, encompassing three key dimensions: vigour (mental energy and resilience), dedication (a sense of commitment and pride in one’s work), and absorption (deep concentration and full immersion in work activities). Employees who are highly engaged tend to demonstrate greater proactivity, innovation, and resilience, all of which positively impact individual performance and contribute to overall organizational effectiveness. Although these three variables have been widely researched, there are still interesting phenomena and research gaps to be explored further. At the Bali-Penida River Basin Organization, initial observations and interviews with several employees indicated several crucial issues. For example, there are employees who do not complete work according to the specified time, which has an impact on the delay of other work. In addition, the lack of mutual understanding between employees and honesty in explaining the work situation during evaluation is an obstacle for leaders in providing appropriate direction. This phenomenon is exacerbated by employees who are reluctant to provide maximum performance, which can reduce the morale of other colleagues and hinder the achievement of organizational goals. Academically, the results of previous research on the relationship between these variables also show inconsistencies. Some studies, such as Rahmat [1] and Hadianto [2], found that organizational climate has a positive effect on performance. However, Rivai [3] and Woru [4] reported different results, where organizational climate had no significant impact. Similarly, employee engagement; Linggialloa [5] showed a positive effect on performance, while research from Chaerunissa and Pancasati [6] found no effect. This gap underscores the need for further research to understand the dynamics of the relationship between these variables in the specific context of public sector organizations such as Bali-Penida River Basin Organization, especially considering the role of mediation. Based on the background, the phenomenon that occurred, and the existing research gap, this study aims to comprehensively analyses the effect of organizational climate on employee performance, with organizational commitment and employee engagement as mediating variables. This research is expected to contribute theoretically by enriching the understanding of the mechanism of relationships between variables in the context of government organizations, as well as providing practical implications for the management of the Bali-Penida River Basin Organization in formulating more effective strategies to improve employee performance. 2. Literature review 2.1. Organizational Commitment Organizational commitment is a psychological attitude that reflects the extent to which an employee feels bound and has a desire to remain part of the organization. This commitment is divided into three main dimensions. First, affective commitment, which is the emotional attachment of employees to the organization, which encourages them to be actively involved and make their best contribution. Second, continuance commitment, which arises from consideration of the consequences or losses that may be borne if they leave the organization, such as loss of job stability or other benefits. Third, normative commitment, which is a sense of moral responsibility to continue working in the organization, which is usually influenced by personal values and social norms. Research by Prianto [12] shows that employees with a high level of organizational commitment tend to show better performance, because they are more loyal, dedicated, and productive in carrying out their tasks. World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 202 2.2. Employee Engagement Employee engagement is defined as the level of individual involvement, satisfaction, and enthusiasm for the work performed [8]. This concept includes three main dimensions, namely vigour, dedication, and absorption. Vigour refers to the level of energy and mental resilience of employees in carrying out work, including the spirit to continue working despite challenges. Dedication indicates a high level of emotional engagement with work, characterized by a sense of enthusiasm, inspiration, and pride in the role. Meanwhile, absorption describes the extent to which an employee feels immersed in his work, with full focus and concentration so that it is difficult to break away from the task at hand. The results of research conducted by Linggialloa [5] show that employee engagement has a significant influence on employee performance. Employees who are emotionally and cognitively involved in their work tend to be more productive, innovative, and able to make a positive contribution to achieving organizational goals. 2.3. Organizational Climate Organizational climate is a collective perception held by members of an organization of the characteristics of the internal work environment, including aspects such as policies, procedures, practices, and interpersonal dynamics that prevail within the organization [10]. A positive organizational climate is generally characterized by several key elements, namely support, fairness, and communication. Support refers to the extent to which management provides attention, assistance, and resources to employees in carrying out their duties. Fairness refers to employees' perception of equality of treatment and fairness in organizational decision-making. Meanwhile, communication reflects the level of openness, clarity, and effectiveness of information exchange among organizational members. Research conducted by Dijah [15] shows that a positive organizational climate contributes to increased job satisfaction and employee commitment, which in turn has an impact on improving individual and overall organizational performance. Conversely, a negative organizational climate has the potential to cause dissatisfaction, job stress, and decreased employee productivity [3]. 2.4. Employee Performance Employee performance is defined as the work achieved by an employee in carrying out their duties and responsibilities, in accordance with the standards or targets set by the organization [14]. This performance reflects the effectiveness and efficiency of individuals in carrying out their roles in the work environment. Some indicators commonly used to measure employee performance include: quality, which is the extent to which tasks are completed properly and meet standards; quantity, which is the volume of work that can be completed within a certain period of time; task execution, which includes accuracy and accuracy in completing work; and responsibility, which is the awareness and commitment of employees in carrying out their obligations consistently. Optimal performance not only supports the achievement of organizational goals, but also reflects the level of individual job satisfaction and motivation. Therefore, measuring and improving employee performance is a crucial aspect of sustainable human resource management. 2.5. Previous Empirical Studies Based on the literature review above, it can be concluded that there is an interrelated relationship between organizational climate, organizational commitment, employee engagement, and employee performance. Previous research shows that a positive organizational climate has a significant effect on organizational commitment [9], Organizational commitment has a positive effect on employee performance [17], Employee engagement acts as a strong mediator in the relationship between organizational climate and employee performance [18]. 2.6. Research Gap and Framework Many studies have examined the relationships between these variables however; there are still gaps in the literature that require further investigation. Some findings are contradictory, particularly regarding the effect of organizational climate, which does not always show a significant influence on employee performance [3]; [4]. Therefore, this study seeks to address these gaps by analyzing the impact of organizational climate on employee performance, with a particular focus on the mediating roles of organizational commitment and employee engagement, in the context of the Bali-Penida River Basin Organization. 2.7. Conceptual Framework Based on the theory and empirical findings that have been reviewed, this study proposes that organizational commitment and employee engagement are able to mediate the relationship between organizational climate and employee performance. This framework is built on the assumption that the conceptual approach shows that organizational climate has a significant influence on organizational commitment, employee engagement and employee performance. The better the organizational climate, the better the organizational commitment, employee engagement and employee performance. The conceptual framework of this study is as shown in Figure 1 below: World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 203 Source: processed by author Figure 1 Conceptual Framework 2.8. Hypothesis of research Primarily based at the problem statement and conceptual framework, there are hypothesis proposed • H1: Organizational climate has a positive effect on employee performance. • H2: Organizational commitment has a positive effect on employee performance. • H3: Employee engagement has a positive effect on employee performance. • H4: Organizational climate has a positive effect on organizational commitment. • H5: Organizational climate has a positive effect on employee engagement. • H6: Employee engagement has a positive effect on organizational commitment. • H7: Organizational commitment mediates the relationship between organizational climate and employee performance. • H8: Employee engagement mediates the relationship between organizational climate and employee performance. 3. Method This study uses a quantitative approach with an explanatory research design, which aims to test and explain the causal relationship between the variables studied, especially the effect of organizational climate on employee performance, by considering the mediating role of organizational commitment and employee engagement. The quantitative approach was chosen because it allows systematic hypothesis testing through the analysis of numerical data obtained from questionnaires. The population in this study were all State Civil Apparatus (ASN) working at the Bali-Penida River Basin Organization (BWS), totaling 153 people. ASN was chosen as the population because it has a greater responsibility to the organization than contract personnel. The sampling technique used was nonprobability sampling with the saturated sampling method (census), so that the entire population was sampled. The choice of this method aims to obtain representative and comprehensive data regarding employee perceptions of the variables studied. Data were collected using three methods: questionnaires, interviews, and documentation. The primary instrument, a questionnaire, was developed based on validated indicators from previous studies and employed a 5-point Likert scale to measure respondents’ perceptions of organizational climate, organizational commitment, employee engagement, and employee performance. To enhance response rates and data accuracy, the questionnaire was distributed directly to all respondents. Additionally, semi-structured interviews were conducted with the Head of the General and Administration Subdivision at BWS Bali-Penida to gather contextual information about organizational conditions and challenges in improving employee performance. Secondary data were obtained from internal organizational documents, including World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 204 staffing records, performance reports, and the Community Satisfaction Index (IKM), which served to enrich and complement the primary data. The research instrument was developed based on indicators that have been validated in previous studies. Organizational climate was measured using five indicators: responsibility, identity, warmth, support, and conflict, following Wirawan [10]. Organizational commitment was assessed through three indicators: affective, continuance, and normative commitment, as conceptualized by Busro [13]. Employee engagement was measured according to three dimensions—vigour, dedication, and absorption—based on Robins [8]. Meanwhile, employee performance was evaluated using four indicators: work quality, work quantity, task execution, and responsibility, following Mangkunegara [14]. Prior to the main data collection, the research instrument was pilot-tested on 30 respondents to ensure its validity and reliability. Validity was examined by correlating the score of each item with the total score, with items deemed valid if their correlation coefficient was ≥ 0.30. Reliability was assessed using Cronbach’s Alpha, where a coefficient of ≥ 0.60 indicates acceptable reliability. The results showed that all variables had a Cronbach’s Alpha value above 0.70, confirming that the instruments are valid, reliable, and suitable for use in the wider data collection. 3.1. Data Analysis Technique The data obtained from the questionnaire were analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS) with SmartPLS 4.0 M3 software. The analysis was carried out in several stages, including: 3.1.1. Evaluation of the Measurement Model (Outer Model) • Convergent Validity: Checked through the outer loading value and Average Variance Extracted (AVE). Indicators are considered valid if the outer loading value> 0.5 and AVE> 0.5. • Discriminant Validity: Checked by comparing the square root value of AVE with the correlation between latent variables. Discriminant validity is fulfilled if the square root value of the AVE is greater than the correlation between other latent variables. • Reliability: Checked using composite reliability and Cronbach's Alpha. Variables are considered reliable if the composite reliability value is > 0.7 and Cronbach's Alpha > 0.6. 3.1.2. Structural Model Evaluation (Inner Model) Measures the predictive power of the model by examining the R-square value for the dependent variable. A higher Rsquare value indicates that the model explains a greater proportion of the variance in the data. Assesses the predictive relevance of the model using the Q-square value. A Q-square value greater than 0 signifies that the model has good predictive relevance. 3.1.3. Hypothesis Testing Conducted with t-test statistics. The hypothesis is accepted if the p-value < 0.05 and t-statistic > 1.96. 3.1.4. Examination of Mediation Effects Mediation effects were examined to determine whether the mediating variables organizational commitment and employee engagement and also mediate the relationship between organizational climate and employee performance. The mediation was assessed based on the significance of both direct and indirect effects. 4. Results 4.1. Validity Test The model has convergent validity said to be achieved if the value of AVE is greater than 0.5. World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 205 Table 1 Average Variance Extracted (AVE) Results Average variance extracted (AVE) X1 (Organizational climate) 0.689 Y1 (Organizational Commitment) 0.697 Y2 (Employee Engagement) 0.726 Y3 (Employee Performance) 0.684 Source: Primary Data Processed, 2025 Based on Table 1, it can be observed that the Average Variance Extracted (AVE) values in the second stage of testing exceed 0.50 for all variables. This indicates that all variables in this study have met the criteria for convergent validity, confirming that the measurement instruments used are valid. 4.2. Reliability Test The reliability test aims to ensure that the measurement instrument produces stable and consistent results when used repeatedly under the same conditions. A variable is considered reliable if both the composite reliability and Cronbach’s alpha values exceed 0.70. Table 2 Composite Reliability Test Results Cronbach's alpha Composite reliability (rho_a) Composite reliability (rho_c) X1 (Organizational Climate) 0.887 0.894 0.917 Y1(Organizational Commitment) 0.783 0.784 0.873 Y2 (Employee Engagement) 0.812 0.816 0.888 Y3 (Employee Performance) 0.845 0.846 0.896 Source: Primary Data Processed, 2025 The composite reliability and Cronbach’s alpha values for all research variables exceeded 0.70. Therefore, it can be concluded that all variables are reliable. 4.3. Structural Model Evaluation (Inner Model) Table 3 Endogenous Variable R-square Value Structure Model Dependent Variable R-square Adjusted R-square 1 Organizational Commitment (Y1) 0,634 0,630 2 Employee Engagement (Y2) 0,170 0,165 3 Employee Performance (Y3) 0,659 0,652 Calculations: Q2 = 1-(1 – (R12) (1 – (R22) (1 – (R32) = 1-(1 – 0,634) (1 – 0,170)(1 - 0,659) = 1-(0,366) (0,830) (0,341) = 1 – 0,104 = 0,896 Source: Primary Data Processed, 2025 The Q-square value ranges between 0 and 1, with values closer to 1 indicating better predictive relevance of the model. The calculated Q-square value of 0.896 suggests that the model has very strong predictive relevance. This indicates that 89.6% of the variation in employee performance is explained by organizational climate, organizational commitment, and employee engagement, while the remaining 10.4% is influenced by other factors not included in the model. World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 206 4.4. Hypothesis Test Table 4 Path Coefficient Test Results Hypothesis Inter-Variable Relationships Original sample T statistics P values Conclusion H1 X1 (Organizational Climate) -> Y3 (Employee Performance) 0.161 2.562 0.010 Positive Significant H2 Y1 (Organizational Commitment) -> Y3 (Employee Performance) 0.275 2.747 0.006 Positive Significant H3 Y2 (Employee Engagement) -> Y3 (Employee Performance) 0.490 5.202 0.000 Positive Significant H4 X1 (Organizational Climate) -> Y1 (Organizational Commitment) 0.263 4.947 0.000 Positive Significant H5 X1 (Organizational Climate) -> Y2 (Employee Engagement) 0.413 4.829 0.000 Positive Significant H6 Y2 (Employee Engagement) -> Y1 (Organizational Commitment) 0.651 11.043 0.000 Positive Significant Source: Primary Data Processed, 2025 The SEM-PLS analysis results indicate that all hypothesis proposed in this study are supported. A summary of the hypothesis testing results is as follows • H1: Organizational climate has a positive and significant effect on employee performance (coefficient 0.161, p=0.010). • H2: Organizational commitment has a positive and significant effect on employee performance (coefficient 0.275, p=0.006). • H3: Employee engagement has a positive and significant effect on employee performance (coefficient 0.490, p=0.000). • H4: Organizational climate has a positive and significant effect on organizational commitment (coefficient 0.263, p=0.000). • H5: Organizational climate has a positive and significant effect on employee engagement (coefficient 0.413, p=0.000). • H6: Employee engagement has a positive and significant effect on organizational commitment (coefficient 0.651, p=0.000). 4.5. Mediation Test Table 5 Summary of Test Results for Indirect Influence No. Inter-Variable Relationships Path Coefficient (Bootstrapping) T Statistic P values Efect 1 X1 (Organizational Climate) -> Y1 (Organizational Commitment ) -> Y3 (Employee Performance) 0.073 2.333 0.020 Positive Significant 2 X1 (Organizational Climate) -> Y2(Employee Engagement) -> Y3 (Employee Performance) 0.202 3.816 0.000 Positive Significant Source: Primary Data Processed, 2025 • H7: Organizational commitment mediates the relationship between organizational climate and employee performance (indirect coefficient 0.073, p=0.020). • H8: Employee engagement mediates the relationship between organizational climate and employee performance (indirect coefficient 0.202, p=0.000). World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 207 5. Discussion This study provides a thorough understanding of the relationships among organisational climate, organisational commitment, employee engagement, and employee performance within the Bali-Penida River Basin. The findings corroborate existing theories and prior research, demonstrating that a positive organisational climate significantly enhances employee performance. The data analysis reveals that organisational climate exerts a positive and statistically significant influence on employee performance. This finding aligns with the studies conducted by Rahmat et al. [1] and Hadianto et al. [2], which highlight that a favourable organisational climate increases employee motivation and job satisfaction, thereby positively impacting performance. Such a supportive organisational climate cultivates a work environment where employees feel valued and motivated to contribute optimally. Furthermore, organisational commitment has been demonstrated to have a positive and significant impact on employee performance. This finding supports the results of Prianto et al. [12] and Ma’arif [17], which indicate that employees with high levels of commitment tend to exhibit greater loyalty and productivity. A strong organisational commitment motivates employees to exert greater effort in achieving organisational objectives and enhances their sense of responsibility towards their tasks. These results underscore the critical role of fostering employee commitment as a strategy to enhance overall organisational performance. Employee engagement was identified as the variable exerting the most significant influence on employee performance. Employees who are both emotionally and cognitively engaged in their work tend to demonstrate higher levels of productivity and innovation. This finding aligns with the studies conducted by Linggialloa et al. [5] and Ma’arif [17], which confirm that employee engagement plays a crucial role in enhancing performance. Consequently, it is essential for organisations to foster an environment that promotes employee engagement, such as by providing opportunities for participation in decision-making processes and cultivating a positive work atmosphere. Moreover, this study revealed that organisational commitment and employee engagement serve as mediating variables in the relationship between organisational climate and employee performance. This indicates that a positive organisational climate influences employee performance not only directly but also indirectly by enhancing employee commitment and engagement. These findings are consistent with the research of Obeng [11], which highlight the mediating roles of commitment and engagement in linking organisational climate to performance outcomes. Therefore, initiatives aimed at improving employee performance should prioritize strengthening these two mediating factors. The findings of this study carry significant implications for the management of the Bali-Penida River Basin Organization. First, fostering a positive organisational climate should be prioritized, with particular emphasis on providing support, facilitating open communication, and implementing effective conflict management strategies. Second, the development of programmes aimed at enhancing employee commitment, such as targeted training and career development initiatives, is essential to improving overall performance. Finally, organisations should actively promote employee engagement by creating opportunities for employees to participate in decision-making processes and by cultivating a supportive and inclusive work environment. However, this study has several limitations. Firstly, it was conducted within a single public sector organisation, which may limit the generalisability of the findings to other contexts. Secondly, the study focused exclusively on three main variables, despite the presence of numerous other factors that could influence employee performance. Therefore, future research is recommended to include multiple organisations and incorporate additional variables to achieve a more comprehensive understanding of the determinants of employee performance. 6. Conclusion Based on the study results, it can be concluded that organizational climate has a positive and significant effect on employee performance at the Bali-Penida River Basin Organization. A positive organizational climate fosters a supportive work environment where employees feel valued and motivated to contribute optimally. Additionally, organizational commitment plays a crucial role, exhibiting a positive and significant impact on performance, as employees with high commitment tend to be more loyal and productive. Employee engagement also demonstrates a significant influence, indicating that employees’ emotional and cognitive involvement in their work substantially enhances performance. Furthermore, this study confirms the mediating roles of organizational commitment and employee engagement in strengthening the relationship between organizational climate and employee performance. World Journal of Advanced Research and Reviews, 2025, 27(02), 200-209 208 The practical implications of these findings highlight the need for management at the Bali-Penida River Basin Organization to prioritize the development of a conducive organizational climate by fostering open communication, empathetic leadership, and providing effective communication training. Enhancing organizational commitment can be achieved by offering opportunities for employee participation in decision-making, implementing career development programs, and recognizing employee contributions through rewards. Promoting employee engagement through the design of challenging and meaningful work, as well as cultivating a collaborative culture, is essential for improving performance. Additionally, regular performance evaluation and monitoring, accompanied by clear target setting and constructive feedback, are strongly recommended to optimize employee outcomes. This study is limited by its focus on a single organizational context; therefore, future research should extend to a variety of public and private sector organizations and incorporate additional variables. Such efforts are necessary to obtain a more comprehensive understanding of the factors influencing employee performance across diverse settings. Compliance with ethical standards Acknowledgments The authors would like to express sincere gratitude to the leadership and staff of the Bali-Penida River Basin Organization for their support, provision of data, and valuable time during the preparation of this article. Their assistance and cooperation greatly contributed to the successful completion of this research. Disclosure of conflict of interest The authors declare that there is no conflict of interest regarding the publication of this article. Statement of informed consent Verbal consent was obtained from all participants, and their confidentiality and anonymity were strictly maintained. References [1] Adi Rahmat, Abdillah MR, Priadana MS, Wu W, Usman B. Organizational climate and performance: the mediation roles of cohesiveness and organizational commitment. IOP Conf Ser Earth Environ Sci. 2020;469(1):012048. doi:10.1088/1755-1315/469/1/012048. [2] Hadianto B, Wissen S, Hapsarinyc RS, Kurniawan SP, Carolina Y. 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