The Influence of Empowerment, Self-Efficacy, and Person–Organization Fit on Employee Performance in Balikpapan Manufacturing Companies: The Mediating Role of Job Satisfaction

Abstract

This study aims to examine the influence of empowerment, self-efficacy, and person-organization fit (P-O fit) on employee performance in manufacturing companies in Balikpapan, with job satisfaction as a mediating variable. Using a cross-sectional survey design with 287 employees from 23 large and medium-sized manufacturing companies located in the Kariangau Industrial Estate, Balikpapan, the data were analyzed using Partial Least Squares-based Structural Equation Modeling (PLS-SEM). The results indicate that all three independent variables have a positive and significant effect on job satisfaction and performance, with job satisfaction partially mediating all relationships (the highest VAF for P-O fit at 47.4%). The theoretical contribution of this study is the integration of three major theoretical frameworks within the context of the manufacturing industry in a developing region, while its practical contribution provides guidance for company management in Balikpapan in designing job satisfaction-based HR interventions. The novelty of this research lies in the first test of a simultaneous mediation model of empowerment, self-efficacy, and P-O fit on performance, with job satisfaction as a mediator in the manufacturing sector in Balikpapan, a previously unseen approach. These findings enrich the human resource management literature in the context of the manufacturing industry in developing regions and provide practical implications for the management of manufacturing companies in Balikpapan, which are transforming toward non-oil and gas industry diversification.