Effect of competency on employee performance and the mediating role of commitment: An empirical investigation in the IT Industry

Abstract Competency and commitment are the two major determinants of employee performance in the IT industry. With growing competition and demand, IT professionals are always at the edge to showcase performance. The present study discusses the issue by utilizing the dimension of competency from the Iceberg model, the commitment model by Allen & Meyer (1990). The study sought to ascertain the influence of competency on employee performance and commitment, as well as the function of commitment in mediating the relationship between competency and employee performance. A standardised questionnaire was created and disseminated to software company workers for this purpose. A total of 242 valid responses were collected from IT companies. SEM was employed to examine the association between the variables analysed as well as the hypothesis. The analysis concluded that the dimension of competence (knowledge, skills, and work attitude) positively impacts employee performance and commitment with (β = 0.57, 0.5, 0.48, 0.37, 0.41, 0.36) with p<0.05, indicating the acceptance of the hypothesis H1, H2, H3, H4, H5 & H6. Also, employee commitment had the highest impact on employee performance at β =0.76, p=.000, CR =6.21. Hypothesis H7 is accepted and concluded that employee commitment acts and serves as a mediator between employee performance and employee competency. This research will help IT companies to better understand employees and incorporate strategies that will enhance organizational performance.