THE EFFECT OF COMPETENCY AND JOB SATISFACTION ON PERFORMANCE MODERATED BY COMMITMENT

ABSTRACT


Introduction
The textile and textile products (TPT) industry is one of the industries that continues to grow and almost never dies.According to an article quoted from kawanerabaru.comonline page, the Central Statistics Agency (BPS) reported that in 2021, Indonesia was the world's 13th largest exporter of modest clothing.Its market value is USD 4.68 billion.This figure is greater by around 12.49% compared to 2020.Indonesia exported clothing worth approximately USD 4.16 billion in 2020.The textile sector experienced a slight resurgence in demand for their products from major export destination countries by local and global economic recovery.According to the Ministry of Industry (MOI), exports of textiles and textile products rose 19% to USD 10.52 billion from January to October 2021.
According to the Central Bureau of Statistics BPS, gross domestic product GDP on the basis of constant prices of ADHK from the textile and apparel industry amounted to Rp34.85 trillion in the III2022 quarter.This value still grew by 8.09 compared to the same period the previous year year on year which amounted to Rp32.24 trillion.Although still growing positively, the increase is still slow when compared to the previous quarter of 13.74 yoy.All this is due to the decline in utilization in each subsector of the textile industry.If you look at the utilization of the fiber industry, it has decreased by 20.The spinning spinning industry recorded a 30% decrease in utilization.In the utilization of the weaving and knitting knitting industry decreased by 50.Meanwhile, the utilization of the garment and baby clothing industries decreased by 50 and 20-30, respectively.In 2020 when the coronavirus began to spread around the world and the Covid emergency pandemic status was announced, almost all industrial sectors experienced a decline.
According to the production management theory proposed by Sofjan Assuari (2016), a company must be able to have good production aspects in order to be able to produce the best quality products.These aspects include planning, controlling and supervising which is carried out effectively and efficiently and sustainably to produce high-quality products that are able to compete in the market.Furthermore, according to (Widjaja & Ginanjar, 2022), production management is very necessary to be able to make products from raw materials into outputs that can have added value so that they can be utilized by consumers to meet their needs.
In previous research conducted by (Alkhayyal & Bajaba, 2023), regarding the influence of competence on performance, it was found that leadership competence was found to be positively correlated with performance.This shows that the better the competence possessed by employees, the better their performance.A study conducted by (Idayanti, Ayu, & Piartrini, 2020) regarding the influence of Communication, Competency and Workload On Employee Performance, revealed that employee performance is the result or level of success within a certain period of time.This is the achievement of targets that have been set in advance based on an agreement between leaders and employees.The survival of the company depends on the performance contributed by employees, the better the performance produced by employees can increase the value of the company in the future.Related to the above, namely the level of target achievement that is below the production target as a result of poor employee performance, the author decided to conduct research at the author's place of work, namely P. T. Garmindo Utama Jaya located in the Tangerang area, Banten.The company is a family company engaged in the textile industry and produces apparel.The textile products produced by the company include T-shirts, poloshirts, long and short sleeved shirts, hoodies, sweaters, long and short pants, dresses, and t-shirts for women.For the last 3 years, namely when the Covid-19 pandemic began, production targets have indeed decreased, but production has continued.The problem that occurs is that the level of achievement of production targets for the last 3 years tends to be low and almost never reaches its production targets.The graph of achieving production targets against production targets can be seen in figure 1.

Figure 1 Production Target Chart and Target Achievement of P.T. Garmindo Utama Jaya
Source : Production document of P.T. Garmindo Utama Jaya Figure 1 shows that from 2020, even before the pandemic, achieving production targets (orange bar chart) was lower than the production target (blue bar chart).The condition of not achieving this production target continues to occur even until Q1 of 2023, including in April 2023.Production results are still below the target set, the highest achievement is only 79.86 c/o in February 2023 for the type of poloshirt.Meanwhile, the company has tried to provide raw materials on time, provide machine facilities with modern technology, and provide backup power of 5-8% of the total employees in case there are employees who do not enter.
Research conducted by (Hafid, Azis, Arwaty, & Sudirman, 2022) (Inayat & Jahanzeb Khan, 2021) shows that competence and job satisfaction are factors that can affect employee performance.In addition, research conducted by (Siri, Supartha, Sukaatmadja, & Rahyuda, 2020) shows that competence has a significant influence on performance moderated by commitment.However, research conducted by (Hidayat, 2021) and (Husein & Hanifah, 2019) found that competence did not have a significant effect on employee performance.Therefore, competency development and job satisfaction need to be done appropriately and supported by strong dedication in order to make a good contribution to the company and improve performance optimally.
Research by (Mohd Nasurdin, Tan, & Naseer Khan, 2020) shows that job satisfaction has a positive and significant effect on employee performance in the private health sector in Malaysia.This finding is also supported by other studies conducted by (Kucharska & Erickson, 2019) and (Hendri, 2019) which also revealed that job satisfaction has a positive and significant effect on performance.However, research by (Husein & Hanifah, 2019) and (Kharisma, Prasilowati, & Ayuningtyas, 2019) found that job satisfaction did not have a significant effect on employee performance.Therefore, in this study, the authors decided to include the commitment variable as a mediator between the variables of competence and job satisfaction on performance.
Based on the background and previous research that has been discussed, there are differences (gaps) from each study, therefore this study aims to further analyze the Effect of Competence and Job Satisfaction on Performance Moderated by Commitment.Case Study at P.T. Garmindo Utama Jaya.This study aims to analyze various aspects that affect performance in the textile industry, focusing on competence, job satisfaction, and commitment.The results of this research are expected to provide significant benefits, both in terms of academic, practical, and for companies in the textile industry.Academically, this research will contribute to the development of strategic management theory, enrich the existing literature, and expand understanding of the relationship between competence, job satisfaction, and performance moderated by commitment in the textile industry.For practitioners, the results of this study can be a guide in planning business strategies that are more in line with the company's conditions and its external environment, by emphasizing the importance of work competence and job satisfaction.In addition, decision makers in the company are expected to use the results of this research as a guide in adjusting company regulations and policies to actual conditions and changes in the field, to maintain the competitiveness and sustainability of the textile industry.

Materials and Methods
The design of this research is quantitative research and in the form of causality research, which is a type of research that is prepared to examine the possibility of causal relationships between variables where this research examines the topic of Employee Performance This research has one dependent variable (endogenous), namely performance, three independent variables (exogenous) namely competence, job satisfaction and commitment, and there is one moderation variable that acts also as an independent variable, namely commitment.Based on the time dimension, this study uses data pooling, which is a combination of time series and cross section data.
The unit of analysis in this study is The method used in this study is at PT Garmindo Utama Jaya with an estimated data collection time planned to be carried out for one week starting from the third week to the fourth week of June 2023.This research uses quantitative methods and survey methods, so that the data sources in this study are primary and secondary data.This study uses various variables in order to examine the relationship between competence, job satisfaction, commitment, and employee performance at PT Garmindo Utama Jaya.
The data collection method was carried out through questionnaires using the Non-Probability Sampling sampling method.The collected data is then tested for validity and reliability.Data analysis was carried out using structural equation modeling (SEM) methods and hypothesis tests.The results of this study are expected to provide a deeper understanding of the factors that affect employee performance in the textile industry Based on Table 1, each indicator in the study is considered valid because its value has met the validity test conditions, which is greater than 0.5.Source: smartPLS output, 2023

Result and Discussion
Table 1 shows that the cross loading value of each indicator to its construct has a higher correlation compared to other constructs.From these results, it can be stated that all variables have met the requirements in testing the validity of the discriminant.Based on Table 3, it can be seen that the highest AVE value in the competency variable with a value of 0.787.As for the lowest AVE value, there is a job satisfaction variable with a value of 0.592.Thus it can be concluded that the data from this study can be said to have met the test requirements for convergent validity.The model of the effect of latent variables of competence, job satisfaction and commitment to performance has an R-square value of 0.220 which can be interpreted that the R2 value for performance at PT. Garmindo Utama Jaya of 0.220 has a weak influence.

Predictive Relevance Value (Q2)
The magnitude of Q2 is in the range of 0 < Q2 <1, where the model gets better when it gets closer to 1.The amount of Q2 is equivalent to the total coefficient of determination contained in path analysis or path analysis.Q2 values > 0 indicate that the model has predictive relevance, while Q2 values ≤ 0 indicate that the model lacks predictive relevance.Q2 =1−(1−R1) Q2 =1−(1−0.220)Q2 = 0.780 The calculation results above show a predictive-relevance value of 0.780, which is greater than 0 (zero).This means that the variability of performance constructs that can be explained by competence, job satisfaction and commitment is 22% while the remaining 78% is explained by other variables outside the study.Thus the model is said to be feasible having relevant predictive value.Based on the hypothesis test in this study, the results of t-statistic values of 3,652, original sample values of 0.257 and p values of 0,000.P Values are smaller than 0.05, the original sample value shows a positive value, this result shows that competence has a positive and significant effect on performance.

Test Hypothesis
The most significant indicator of the competency variable is X1.3, which is the statement "I am able to solve problems that occur in the production process".Based on this, the majority of employees already have functional competence in carrying out work, in accordance with theory according to (Palan, 2007)functional competence is a competency that explains work activities and output results such as knowledge and skills needed to complete work.
In addition, the majority of employees also have characteristics in forming competencies as expressed by (Papageorghiou, Avgidou, Spencer, Nix, & Nicolaides, 2006) through motives, self-concept, knowledge and skills.So that it has a significant influence on the achievement of performance over production targets that have been set by the company with the aim of maximizing large profits for the company.This is in accordance with the results of previous research conducted by (Zainol & Al Mamun, 2018) on entrepreneurial competence, competitive advantage and performance of informal women micro-entrepreneurs, which showed that there is a positive and significant influence between competencies on performance.In addition, research conducted by (Khattak & Mustafa, 2019) on management competence, complexity and performance in engineering infrastructure projects in Pakistan also said that management competence has a significant effect on performance.As well as research conducted by (Akman & Turhan, 2018) and (Alkhayyal & Bajaba, 2023) found the same results, namely competence has a significant effect on performance.

The Effect of Job Satisfaction on Performance
Based on the hypothesis test in this study, the results of t-statistic values were obtained of 2,781, original sample values of 0.200, and P Values of 0.006.P Values value is smaller than 0.05, the original sample value shows a positive value, this result shows that job satisfaction has a positive and significant effect on performance.
The most significant indicator of job satisfaction variable is X2.2, which is the statement "I have good expertise in the production/sewing process".Based on this, it can be concluded that the majority of employees have high expertise in operating all machines in the work environment.This has been explained by (Akhyadi, 2015) who revealed that there are factors that affect job satisfaction, especially related to the skills of employees, in this case the job requires special skills so that the more employees who do the job skillfully, the more job satisfaction of these employees.
Therefore, job satisfaction can have a significant influence on employee performance if more training and coaching is provided by the company to employees with the aim of developing skills in each field of work.
The results of this test reinforce previous research on the effect between job satisfaction on performance conducted by (Hendri, 2019) and (Kucharska & Erickson, 2019) which revealed a significant positive influence between job satisfaction and performance.(Mohd Nasurdin et al., 2020) revealed that a high level of employee job satisfaction will improve employee performance even more.

The Effect of Commitment to Performance
Based on the hypothesis test in this study, the results of the t-statistic value of 2,681, the original sample value of 0.193 and the p value of 0.008.P Values value is smaller than 0.05, the original sample value shows a positive value, this result shows that commitment has a positive and significant effect on performance.
The most significant indicator of commitment variable is Z2 which is "I feel part of the family of this company".Based on this, it can be concluded that employees have a strong emotional bond with the company, so that it can give the feeling that employees have become part of the family of the company because of the large level of company concern for its employees.Thus, employees will have a feeling of happiness when carrying out their duties and work earnestly so as not to disappoint the company.The higher the company's family ties to employees, it can foster high commitment from employees to the company.This is in accordance with the theory proposed by (Robbins & Judge, 2013) states that there is a form of affective commitment in a company, namely emotional feelings for the organization and belief in its values.
Therefore, employees will not leave the company to switch to another company.High commitment can make employees willing to produce time to work in the company and able to solve every problem and obstacle that occurs in their work.Thus, the higher the commitment of employees to the company, the better the performance given to develop the company's business.
The results of this study can support previous research conducted by (Uguy & Karundeng, 2020) and Savira and Ida Yuliani (2022) where there was a positive influence between commitment to performance.With a commitment to a company, employees will be more loyal to the company because trust is the main determinant of loyalty.

The Effect of Competency on Performance moderated by Commitment
Based on the hypothesis test in this study, the results of t-statistic value of 0.659, original sample value of -0.043, and P Values of 0.510.P Values are greater than 0.05, the original sample value shows a positive value, this result shows that commitment is not able to moderate the influence between competencies on performance.
Commitment is not able to strengthen the influence between competencies on performance can be caused because commitment and high competence have not been able to improve the performance of a company.This is in accordance with (Robinson, Gibson, McKay, & McWilliam, 2004) that in improving performance, a series of factors are needed that work together to form a unity, namely individual factors, psychological factors and organizational factors.
The results of this test reinforce previous research on the effect of competence, the use of information technology and compensation on performance with organizational commitment as a moderation variable by (Afrina, Ratnawati, Nurmayanti, & Yunina, 2021) which revealed that organizational commitment cannot strengthen or weaken the effect of compensation on performance.

The Effect of Job Satisfaction on Performance moderated by Commitment
Based on the hypothesis test in this study, the results of t-statistic value of 0.027, original sample value of 0.002, and P Values of 0.978.P Values value greater than 0.05, the original sample value shows a positive value, this result shows that job satisfaction is not able to moderate the influence between competencies on performance.
Commitment is not able to strengthen the influence between job satisfaction and performance because employees who have high commitment do not necessarily feel satisfied with the results of their work so that they cannot maximize performance for the company.Therefore, the company must be able to provide regular training for its employees, so that employees who have long worked in the company in the form of high commitment can have satisfaction with the results of their performance because they are supported by the more skilled knowledge possessed by these employees.This is in accordance with the performance dimension according to (Gazi, Islam, Shaturaev, & Dhar, 2022) which revealed that in improving performance there are several dimensions that need to be measured, namely the quantity of work, quality of results, cooperation, responsibility and initiative.
The results of this test undermine previous research on the Effect of Organizational Ability and Commitment on Employee Performance with Job Satisfaction as a Moderation Variable by Regiensyah (Wijaya, 2016) which revealed that employee commitment has a positive and significant influence on performance with job satisfaction as performance moderation.

Conclusion
The results of this study revealed several important findings.First, the competence of employees at PT. Garmindo Utama Jaya has a positive and significant effect on performance, showing that employees who have good competence are able to increase productivity in textile production.Second, job satisfaction has a positive and significant effect on performance, indicating that the majority of employees are satisfied with the work and facilities provided by the company, which overall improves their performance.Third, employee commitment also has a positive and significant effect on performance, indicating that high commitment to the company encourages employees to work harder and give their best, contributing to improved performance.However, the fourth and fifth findings suggest that competence and job satisfaction, when moderated by commitment, do not have a significant effect on performance.This indicates that companies need to pay more attention to variability in employee competencies and efforts to improve job satisfaction, as well as identify other factors that might affect performance beyond commitment.In conclusion, the results of this study provide valuable insights for the management of PT.Garmindo Utama Jaya to improve employee performance and optimize human resources in the textile industry.
Based on the results of the study, the theoretical implication that can be concluded is that this research can contribute to the development of science in the field of management related to company performance.The results of this study can be a reference for other researchers who want to explore the factors affect performance.In addition, these findings can add to understanding of the role of competence, job satisfaction, and commitment in the context of employee performance.
In terms of managerial implications, this study provides valuable insights for the management of PT.Garmindo Utama Jaya and similar companies.Companies must pay attention to and improve employee competence through continuous training, along with increasing job satisfaction through providing facilities and benefits that are in accordance with the work done.In addition, it is important for companies to stimulate and maintain employee commitment so that they are not only satisfied with their work, but also remain committed to delivering the best results.It is also important to realize that competence and job satisfaction are not necessarily accompanied by a high level of commitment, therefore, companies must maintain commitment by providing incentives such as competitive salaries and periodic training.
There are some limitations in this study, such as limitations in the number of samples, the use of online questionnaire distribution, and subjective assessment.For future research, you can add motivation variables as factors that affect employee performance.Motivation can have a significant impact on performance, and further research will help understand its impact in more detail.In conclusion, this study provides important insights for management development and decision making at PT. Garmindo Utama Jaya and similar companies in the textile industry.

Table 4 Cronbach's Alpha and Composite Reliability Test Results Variable Cronbach's Alpha Composite Reliability Information
Based on Table4that the test results of Cronbach's alpha and composite reliability show satisfactory values, because all latent variables have values of Cronbach's alpha and composite reliability ≥ 0.70.This means that all latent variables are said to be reliable.