The Effects of Organizational Commitment on Non-Financial Performance: Insights from Public Sector Context in Developing Countries

Abstract

Electric energy companies in developing countries face challenges such as low employee organizational commitment, which affects productivity and performance, thereby limiting the ability to fulfill the necessary obligations towards citizens. Therefore, this study aims to examine the effects of organizational commitment on non-financial performance in the electricity sector in the context of developing countries. The quantitative approach was used in this research to achieve the study's objectives. The data of the study were collected from 408 respondents and analyzed in two steps; the first step is the assessment of the measurement via Confirmatory Factor Analysis (CFA) while the second step is the testing of the developed hypotheses for the study using Structural Equation Modelling (SEM). The outcome of the study showed a direct positive and significant impact of organizational commitment on organizational performance. The limitations of this study and some recommendations for future research were also presented in this study. Keywords: Organizational Commitment, Organizational Performance, Electricity Sector, Non-Financial Performance, Public Sector in Developing Countries