The Effect of Competence and Internal Control On the Performance of Follow-Up of the Ministry of Cooperatives and Small and Medium Enterprises Through Organizational Commitment

Abstract

The low performance of government agencies in following up audit results of Badan Pemeriksa Keuangan RI (BPK-RI) reflects their quality in realizing good governance. This study aims to analyze the effect of competence, internal control, and organizational commitment on the performance of follow-up of the Ministry of Cooperatives and Small and Medium Enterprises, either directly or indirectly. Data were collected through questionnaires and hypothesis testing was carried out using path analysis and Sobel test. The results showed that: (1) competence and internal control simultaneously had a positive and significant effect on organizational commitment; (2) competence partially had a positive and insignificant effect on organizational commitment; (3) internal control partially had a positive and significant effect on organizational commitment; (4) competence, internal control, and organizational commitment simultaneously had a positive and significant effect on follow-up performance; (5) competence partially had a positive and significant effect on follow-up performance; (6) internal control partially had a positive and significant effect on follow-up performance; (7) organizational commitment partially had a positive and significant effect on follow-up performance; (8) organizational commitment did not mediate the relationship between competence and follow-up performance, and (9) organizational commitment partially mediated the relationship between internal control and follow-up performance.

Influence of Leadership, Competence and Innovation on the Performance of Bank Indonesia Employees in Money Management Department (DPU)

“…Leadership does not have a positive and significant effect on employee performance, this is illustrated by the very good and strong organizational structure of Bank Indonesia, the staffing system which has also been made very well planned and integrated to personnel issues and regulations as well as very good Standart Operating Procedure (SOP) [32][33][34]. To minimize errors in both people and the system, all Bank Indonesia employees know and understand the steps and limitations in their work and organization, which according to the researcher makes the leadership variable in this study not have a positive and significant influence on employee performance [35][36][37][38][39].…”