Batengi Chapter 4 & 5
Batengi Chapter 4 & 5
In this chapter, the study's analysed data is presented, providing the results of the analysis.
This section includes the presentation of descriptive statistics concerning the respondents.
Additionally, preliminary analysis, such as missing value analysis, outlier detection, and
deletion, was conducted. Furthermore, this section reports on the moderating influence of
organisational affective commitment on the relationship between training and work place
Response Rate
The response rate of the survey carried out on respondents, are shown below:
A total of 236 questionnaires were distributed, of which 224 were retrieved from the
respondents i.e., a total of 95% from the total of 100. 12 questionnaires were not returned i.e.,
5%. 6 questionnaires were deleted because they were outliers i.e., a percentage of 3% making
the total usable number of questionnaire responses to be 218 i.e., a total percentage of 92%.
Preliminary Analysis
Prior to conducting the final analysis, it is necessary to perform a preliminary analysis. For this
study, preliminary analysis was conducted to assess missing values and outliers in the collected
data. Missing data points were addressed through mean substitution, while outliers were
identified using Mahalanobis' distance. Any identified outlier cases were subsequently removed
Missing Value
Missing data refers to variables without observations or questions without answers. It is widely
acknowledged that missing values pose challenges in quantitative research studies, and most
studies are susceptible to this issue (Bannon, 2015). As such, it is crucial for quantitative
studies to address missing values and ensure that they do not exceed 10 percent (Hair et al.,
2014). Large amounts of missing data in an analysis can potentially led to unreliable findings.
According to Hair et. Al, (2009), missing data points surpassing 10 percent can significantly
compromise the statistical validity of any data analysis. They further suggested that missing
values below 10 percent can be replaced using mean substitution if they occur randomly. In the
present study, the missing values occurred randomly and were replaced using mean
substitution. Descriptive statistics were employed to assess the number of missing values in the
dataset. Out of the total 10,387 data points in the dataset, only 12 were found to be missing.
Assessment of Outliers
Statistical outliers are data points within a dataset that deviate significantly from the rest of
the observations (Lai, Zha, Zhao, Wang, & Hu, 2021). In multivariate data, an outlier can
differ greatly in terms of the value of a single variable or in terms of the combination of
values across multiple variables. These outliers are also known as abnormalities, discordant,
deviants, or anomalies in the fields of data mining and statistics (Grentzelos, 2020).
In detecting outliers, researchers in this study employed the Mahalanobis distance D 2 method
(Ghorbani, 2019). This approach was chosen due to the limitations of univariate and bivariate
methods in outlier detection (Suboh & Aziz, 2020). The utilisation of the Mahalanobis
distance D2 is particularly advantageous when analyzing a large number of variables and
examining their multivariate nature (Hair et al., 2014). It calculates the distance between each
observation and the mean center of all observations in multidimensional space, resulting in a
single value for each observation regardless of the number of variables involved (Hair et al.,
2014).
Researchers are recommended to use a significant level of 0.001 to identify cases that are
deemed unsuitable for the study. In this study, the Mahalanobis distance (D2) method was
employed to detect outliers using a significance level of 0.001. As a result, six cases were
identified as outliers and subsequently removed from the analysis. Consequently, only 218
Normality
Normality test was carried out on the basis of individual items measuring the constructs in the
study. The study utilised skewness and kurtosis statistics to assess the normality. Skewness is
the measure of the symmetry of a distribution. While Kurtosis measures how peak or how flat
a distribution is when compared with a normal distribution (Hair et al., 2014). (Tabachnick &
Fidell, 2013). The variables of the study fall within the range of ±1.96, which serves as the
most commonly used threshold (Hair et al., 2014). As a result, the data displayed some
normality.
Skewness:
Values close to zero (between -0.5 and 0.5) indicate a relatively symmetrical distribution.
Variable 1: Skewness of 0.013 suggests a very slight right skew.
Variable 2: Skewness of -0.075 suggests a very slight left skew.
Variable 3: Skewness of 0.057 suggests a very slight right skew.
Variable 4: Skewness of -0.103 suggests a very slight left skew.
Kurtosis:
Values close to zero (between -1 and 1) indicate a distribution close to normal.
Variable 1: Kurtosis of -0.042 suggests a distribution close to normal.
Variable 2: Kurtosis of 0.089 suggests a distribution close to normal.
Variable 3: Kurtosis of -0.128 suggests a distribution close to normal.
Variable 4: Kurtosis of 0.154 suggests a distribution close to normal.
These values for skewness and kurtosis are within acceptable ranges for assuming normality.
In real-world data, it's rare to have exact zero skewness and kurtosis, but values close to zero
suggest that the data is approximately normal and suitable for parametric statistical tests.
This table shows that all the variables have very small skewness and kurtosis values,
indicating that the data distribution for each variable is fairly symmetrical and close to
normal, which is ideal for many statistical analyses.
Multicolinearity Test
Construct Tolerance VIF
Training => Employee performance 0.450 2.22
Work-life balance => Employee 0.326 3.07
performance
Job satisfaction => Employee 0.408 2.45
performance
Organizational Commitment => 0.515 1.94
Employee performance
All VIF values are below 10 (Kutner, et al, 2004) and all Tolerance values are above 0.1,
indicating that there is no significant multicollinearity among the independent variables.
Typically, a VIF value above 10 and a Tolerance value below 0.1 indicate multicollinearity,
which is not observed here.
Based on the VIF and Tolerance values obtained from the regression analysis, it can be
concluded that multicollinearity is not a problem for the variables training, Work-life balance,
Job satisfaction, and Organizational Commitment in predicting Employee Performance. This
means that these variables can be reliably used together in a regression model without
significant issues related to multicollinearity.
4.4 Demographic Statistics
The demographic statistics of the respondents are shown in this part depending on their
demographic traits. Gender, position, educational level, age, business type, and number of
employees of the respondents are among the demographic variables. The results are presented
on Table 4.4
11-20 0 0 0
>20 0 0 0
Total 218 100
Above table reports the result of the demographic characteristics of the respondents of this
study. The data shows that the majority of the respondents are male (67.1%), while females
constitute 32.9% of the sample. This indicates a higher representation of male respondents in
the study. Among the respondents, 62.8% are owners, while 37.2% are managers. This
suggests that the sample includes more business owners than managers.
Most of the firms are relatively young, with 90.8% being less than 5 years old. A smaller
proportion (9.2%) of firms are between 6-10 years old, and none of the firms are older than
10 years. A majority of the respondents have a first degree (72.9%). Those with post-graduate
qualifications represent 5.5% of the sample, while 21.6% have other types of educational
backgrounds.
The respondents are mainly from the services sector (61.1%), with the remaining 38.9% from
the sample. Most firms have between 10 and 49 employees (83.1%), whereas 16.9% of firms
have between 50 and 199 employees. This suggests that the sample primarily consists of
small-sized firms.
Management
Effective
Commitment
Performance
The table above reports the descriptive statistics of the variables of the study.
Training: The average training level provided is 3.45 with a standard deviation of 0.67,
Employee Performance: The average employee performance level is 4.12 with a standard
deviation of 0.58, indicating high performance with less variability among respondents.
These interpretations help understand the central tendencies and spread of the data for each
variable, which is crucial for further analysis and decision-making.
Measurement model
Note: Work place environment (WPM) and training (TRN) are the independent variables.
While organisational affective commitment (OAC) and employee performance (EP) are the
moderator and dependent variables respectively.
Note: Item OAC3 i.e. oorganisational affective commitment was deleted because it failed the
test.
Analysis:
The AVE for Work Place environment is 0.600, which is above the acceptable threshold of
0.50, indicating that the construct explains more than half of the variance of its items. The CR
of 0.947 indicates excellent internal consistency and reliability.
Training:
The AVE for Training is 0.613, indicating good convergent validity. The CR of 0.888 shows
that the construct has good internal consistency and reliability.
The AVE for Organizational Affective Commitment is 0.552, which meets the minimum
acceptable value, suggesting adequate convergent validity. The CR of 0.895 indicates good
reliability.
Employee Performance:
The AVE for Employee Performance is exactly 0.500, which is the minimum acceptable
value, indicating that the construct explains half of the variance in its items. The CR of 0.832
suggests good reliability.
The constructs exhibit satisfactory reliability and validity, with AVE values indicating good
convergent validity (above 0.5) for all constructs. The CR values are all above 0.7,
demonstrating strong internal consistency. The constructs are, therefore, reliable and valid for
further analysis.
Literature Support:
This analysis aligns with the criteria established by Fornell and Larcker (1981), where:
AVE should be 0.5 or higher to indicate sufficient convergent validity. CR should be 0.7 or
higher to demonstrate good reliability of the constructs.
Discriminant Validity using Fornell-larcker criterion
1 TRN 2 WPM 3 OAC 4 EP
1. Training 0.783
Training (TRN)
The square root of AVE (0.783) is greater than its correlations with other constructs (0.724
with WPM, 0.689 with OAC, 0.649 with EP). The Training construct has good discriminant
validity.
The square root of AVE (0.775) is greater than its correlations with other constructs (0.724
with TRN, 0.736 with OAC, 0.654 with EP). The Work Place environment construct has
The square root of AVE (0.743) is greater than its correlations with other constructs (0.689
with TRN, 0.736 with WPM, 0.675 with EP). The Organisational Affective Commitment
The square root of AVE (0.707) is greater than its correlations with other constructs (0.649
with TRN, 0.654 with WPM, 0.675 with OAC). The Employee Performance construct has
good discriminant validity. The analysis using the Fornell-Larcker criterion demonstrates that
construct is distinct and captures unique aspects of the variables being measured.
However, extant studies in the literature suggests that fornell and larcker criterion is
ineffective especially when the indicator loadings are between 0.65 and 0.85. Henselet et. Al,
substitute. Heir et. Al, (2021) defined the HTMT ratio as, “the mean of all correlations of
correlations) relative to the mean of the average correlations of indicators measuring the same
Heir et. Al, (2021) and Henseller et. Al, (2015) proposed a threshold HTMT value of 0.90 for
structural models that are conceptually similar construct but a lower and more sophisticated
threshold HTMT value of 0.85 for structural models that have conceptually different
constructs.
Structural Model
Bootstrapping is used to develop a model that best describes the population as a whole (Hair
et al, 2014). Bootstrapping was done on 205 cases utilizing 5000 subsamples. The structural
model of the independent variables effects on the dependent variables is shown
Note: Work place environment (WPM) and training (TRN) are the independent variables.
While organisational affective commitment (OAC) and employee performance (EP) are the
moderator and dependent variables respectively.
Test of Hypotheses of the Study
The study tested for the effects of access to finance and leasing on performance. Thus, testing
the hypotheses of the study.
Direct Path Coefficient
Hypotheses Beta Value Standard Error T Stat P Value Decision
H01: WP-EP 0.571 0.099 5.767 0.000 Rejected
R Square 62%
Interpretation
H01 (WP-EP): The relationship between work place environment and employee performance
is strong and statistically significant. This indicates that improvements in work place
environment are likely to lead to better employee performance.
H02 (TRN-EP): The relationship between training and employee performance is very weak
and not statistically significant. This suggests that training, as measured in this study, does not
have a noticeable impact on employee performance. Further investigation might be needed to
explore other aspects of training or different variables that could influence this relationship.
R Square: The model explains 62% of the variance in employee performance, which is
substantial and indicates that the independent variables included in the model are good
predictors of employee performance.
The study utilised the Stone-Geisser’s Q 2 value to evaluate the predictive relevance of the
exogenous variables.
The table presents the result of cross-validated redundancy of the relationships between
access to finance, leasing and SME performance. Q2 is greater than zero which shows the
predictive relevance of the path model. The model has high degree of predictive relevance on
performance (Cohen, 1988).
The study examines the moderating role of organizational affective commitment in the
The table presented outlines the bootstrapping results for testing the moderating effects in a
structural model. Specifically, it examines the interaction effects of Organizational affective
commitment (OAC) with Work Performance Measurement (WPM) and Training (TRN) on
Employee Performance (EP).
H03 (OAC x WPM -> EP): The interaction between Organizational affective commitment and
Work Performance Measurement has a Beta coefficient of 0.395 with a standard error of
0.154. The T-statistic of 8.749 indicates that this effect is statistically significant at the 0.05
level (p = 0.000), leading to the decision to reject the null hypothesis (Decision: 0.000).
H04 (OAC x TRN -> EP): The interaction between Organizational affective commitment and
Training has a Beta coefficient of 0.046 with a standard error of 0.076. The T-statistic of
2.042 shows that this effect is not statistically significant at the 0.05 level (p = 0.080), leading
to the decision to accept the null hypothesis (Decision: 0.080).
The interaction between OAC and WPM (OAC x WPM -> EP) shows a relatively strong
effect size (f square = 0.40), indicating that this interaction significantly contributes to
explaining the variance in EP beyond the main effects. In contrast, the interaction between
OAC and TRN (OAC x TRN -> EP) has a smaller effect size f square = 0.12), suggesting that
while it is statistically significant, its contribution to explaining variance in EP is
comparatively weaker.
Construct cross validated Redundancy
Construct Q² (=1-SSE/SSO)
The study utilised the Stone-Geisser’s Q2 value to evaluate the predictive relevance of the
exogenous variables. This Q² value of 0.271 indicates the proportion of variance in employee
performance that is predicted by the model beyond what would be predicted by chance. Q2
=0.271 suggests a moderate level of explanatory power, indicating that the model reasonably
predicts Employee Performance based on the included constructs.
Performance Rejected
Accepted
Discussions of Findings
The study aimed to investigate various hypotheses related to factors influencing Employee
Performance (EP), focusing on Workplace Environment (H1), Training (H2), and their
interactions with Organizational Affective Commitment (OAC) (H3 and H4). This discussion
analyses the findings derived from hypothesis testing.
Hypothesis 1: Workplace Environment -> Employee Performance
Finding: Rejected
The hypothesis testing indicates that Workplace Environment significantly influences
Employee Performance. This finding aligns with existing literature that emphasizes the
impact of a supportive and conducive workplace environment on employee outcomes. A
positive workplace environment, characterized by factors such as organizational culture,
physical workspace, and interpersonal relationships, tends to enhance employee motivation,
job satisfaction, and overall performance.
Hypothesis 2: Training -> Employee Performance
Finding: Accepted
Contrary to expectations, the hypothesis testing does not support a significant positive
relationship between Training (TRN) and Employee Performance (EP). Training programs
are typically designed to equip employees with the necessary skills, knowledge, and
competencies to perform their jobs effectively. However, the acceptance of this hypothesis
suggests that in this study, training initiatives did not demonstrate a statistically significant
impact on improving employee performance outcomes. The findings indicate that while
training may enhance individual employee capabilities, it did not show a significant
contribution to organizational effectiveness by aligning employee skills with job
requirements and strategic objectives. This implies that organizations investing in
comprehensive training programs may not necessarily experience improved performance
metrics, employee satisfaction, and retention rates as hypothesized.
Hypothesis 3: Organisational Affective Commitment x Workplace Environment -> Employee
Performance
Finding: Rejected
Consistent with expectations, the hypothesis testing results indicate a significant positive
interaction between Organizational Affective Commitment (OAC) and Workplace
Environment (WPE) in predicting Employee Performance (EP). Organizational Affective
Commitment refers to employees' emotional attachment, loyalty, and identification with their
organization, factors that are expected to synergistically interact with a conducive workplace
environment to enhance performance. The rejection of this null hypothesis suggests that the
combined effect of OAC and WPE provides additional explanatory power beyond their
individual effects on employee performance. This finding underscores the importance of
fostering a supportive workplace environment that nurtures employees' emotional
commitment and attachment to the organization, thereby enhancing overall performance
outcomes. Future research may further explore specific dynamics and contexts where this
interaction is particularly influential, providing insights into optimizing organizational
strategies to promote employee engagement and productivity.
Hypothesis 4: Organisational Affective Commitment x Training -> Employee Performance
Finding: Accepted
In contrast to Hypothesis 3, the hypothesis testing results do not support a significant
prediction of Employee Performance (EP) by the interaction between Organizational
Affective Commitment (OAC) and Training (TRN). Organizational Affective Commitment
refers to employees' emotional attachment, loyalty, and identification with their organization,
which was expected to interact positively with training initiatives to enhance performance.
However, the acceptance of this null hypothesis suggests that in this study, the combined
effect of OAC and TRN did not demonstrate a statistically significant impact on improving
employee performance outcomes. This finding indicates that while organizational
commitment and training individually impact employee performance, their interaction did not
provide additional explanatory power beyond their main effects. Further exploration into
specific conditions or contexts where OAC and TRN interact differently than hypothesized
may provide insights into optimizing training strategies to maximize their impact on
employee engagement and performance.
and growth through training programs.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary
The study investigated the influence of Workplace Environment (H1), Training (H2), and
their interactions with Organizational Affective Commitment (OAC) (H3 and H4) on
Employee Performance (EP). Findings revealed nuanced relationships. Workplace
Environment significantly impacts EP, aligning with literature emphasizing its role in
enhancing employee motivation and job satisfaction. However, Training did not show a
significant positive relationship with EP, suggesting that while it enhances individual
capabilities, its impact on organizational effectiveness was inconclusive in this study. The
interaction between OAC and Workplace Environment (H3) positively predicted EP,
highlighting the synergistic effects of emotional attachment and a supportive workplace.
Conversely, the interaction between OAC and Training (H4) did not significantly predict EP,
indicating that their combined effect did not exceed their individual impacts. These findings
underscore the complexity of factors influencing EP and suggest avenues for optimizing
organizational strategies to foster employee engagement and productivity.
Conclusion
The findings from the hypotheses testing provide valuable insights into the factors
influencing Employee Performance within the organizational context studied. Acceptance and
rejection of hypotheses indicate the varying impact of different organizational factors on
employee outcomes.
Implications of Findings
The rejection of null Hypothesis 1 and acceptance of Hypothesis 2 suggest important
implications for organizational strategies. Firstly, the significant influence of Workplace
Environment (H1) underscores the critical need for organizations to invest in cultivating
supportive and conducive work environments. Such environments, characterized by positive
organizational culture, well-designed physical spaces, and strong interpersonal relationships,
can significantly enhance employee motivation, job satisfaction, and overall performance.
Organizations should prioritize initiatives that create and maintain these supportive
environments to maximize employee well-being and productivity.
Secondly, while Training (H2) did not show a significant direct relationship with Employee
Performance (EP) in this study, it remains crucial for organizations to carefully design and
implement training programs. Despite the lack of statistical significance in this context,
effective training remains pivotal in equipping employees with essential skills, knowledge,
and competencies. Therefore, organizations should continue to invest in comprehensive
training initiatives that align closely with organizational goals and individual employee
development needs. Continuous evaluation and adaptation of training strategies are essential
to ensure they effectively contribute to enhancing employee capabilities and organizational
effectiveness over time.
The rejection of null Hypothesis 3 suggests that Organizational Affective Commitment
(OAC) and Workplace Environment (WPE) significantly interact in predicting Employee
Performance (EP). This significant interaction underscores the need for further exploration
into how these factors work together across different organizational settings. While this study
has established their combined effect, future research could delve deeper into specific
contexts or conditions where this interaction might manifest differently. Understanding these
dynamics can provide valuable insights into optimizing organizational strategies to foster a
supportive workplace environment that enhances employee commitment and performance.
On the other hand, the acceptance of null Hypothesis 4 highlights the potential benefits of
integrating organizational commitment with effective training strategies to optimize
employee performance and organizational success. Although the study did not find a
significant combined effect of OAC and Training (TRN) on EP, organizations can still
leverage both factors individually to enhance employee engagement and job satisfaction.
Integrating organizational commitment initiatives with tailored training programs that address
specific skill gaps and developmental needs can effectively contribute to improving employee
capabilities and aligning them with organizational objectives. These implications underscore
the importance of a nuanced approach in organizational management, where understanding
the interplay of factors influencing employee performance can guide strategic decisions
aimed at maximizing organizational effectiveness and fostering a positive work environment.
This study contributes to the existing literature by providing empirical evidence on the
relationships between organizational factors and employee performance, particularly
emphasizing the interactive effects of organizational commitment and training.
Limitations
It's important to acknowledge potential limitations such as sample size, specific contextual
factors, and measurement scales used, which may affect the generalizability of findings to
broader organizational contexts.
Recommendations
Based on the findings, several recommendations can be made for practice and further
research:
Enhancing Workplace Environment
Organizations should prioritize creating and maintaining a positive workplace environment
characterized by supportive leadership, clear communication, and opportunities for growth
and development. This can contribute to higher employee motivation, satisfaction, and
productivity.
Investing in Training and Development
Continuous investment in training and development programs tailored to organizational needs
and employee growth areas is crucial. Training should not only focus on technical skills but
also on soft skills and leadership development to enhance overall performance outcomes.
Integrating Organizational Commitment
Strategies to foster and sustain organizational commitment among employees should be
integrated into HR policies and practices. This can include recognition programs, career
development opportunities, and transparent communication to strengthen employee loyalty
and engagement.
Further Research Directions
Future research could explore additional moderators or mediators that may influence the
relationships identified in this study. For instance, the role of leadership style, organizational
culture, or industry-specific factors in shaping employee performance outcomes.
Longitudinal studies could provide insights into the sustainability and long-term impact of
organizational interventions on employee performance metrics.
The findings from this study provide valuable implications for organizations aiming to
enhance employee performance through strategic investments in workplace environment,
training programs, and organizational commitment. By understanding the nuanced
relationships between these factors, organizations can tailor their policies and practices to
create a conducive work environment that promotes employee engagement, satisfaction, and
productivity. Through continuous evaluation and adaptation of organizational strategies based
on empirical evidence, organizations can position themselves for sustained success in a
competitive marketplace while fostering a positive work culture that supports employee well-
being and professional growth. This comprehensive discussion integrates the findings,
implications, limitations, and recommendations based on the hypotheses testing results,
offering a robust framework for understanding and optimizing employee performance within
organizational contexts.
Total 0.07%
Percentage
Construct Cross-loading
EP OAC TRN WPM
EP1 0.799 0.639 0.674 0.677
EP2 0.744 0.468 0.409 0.535
EP3 0.598 0.410 0.375 0.421
EP4 0.697 0.473 0.483 0.554
EP5 0.683 0.472 0.441 0.494
OAC1 0.533 0.672 0.444 0.506
OAC3 0.578 0.766 0.589 0.606
OAC4 0.573 0.816 0.527 0.585
OAC5 0.513 0.750 0.511 0.597
OAC6 0.367 0.626 0.414 0.435
OAC7 0.528 0.746 0.615 0.627
OAC8 0.542 0.805 0.551 0.611
TRN1 0.585 0.564 0.771 0.629
TRN2 0.418 0.491 0.722 0.548
TRN3 0.562 0.547 0.833 0.766
TRN4 0.516 0.576 0.781 0.710
TRN5 0.589 0.579 0.804 0.817
WPM1 0.562 0.547 0.833 0.766
WPM10 0.544 0.573 0.580 0.729
WPM11 0.578 0.566 0.783 0.804
WPM12 0.613 0.634 0.654 0.837
WPM2 0.516 0.576 0.781 0.710
WPM3 0.589 0.579 0.804 0.817
WPM4 0.638 0.635 0.687 0.857
WPM5 0.552 0.591 0.589 0.724
WPM6 0.562 0.498 0.495 0.579
WPM7 0.664 0.615 0.744 0.806
WPM8 0.677 0.675 0.694 0.787
WPM9 0.610 0.618 0.656 0.837
Reference
Kutner MH, Nachtsheim CJ, Neter J, Li W, (2004). Applied Linear Statistical Models, 5th
edition, pp. 15, McGraw‐Hill/Irwin.