Bank Pembangunan Daerah Bali is a financial institution owned by the Provincial Government of Bali, established on June 5, 1962, based on Notarial Deed Number 131 by Ida Bagus Ketut Rurus. Following the issuance of Law Number 13 of 1962 concerning the Principles of Regional Development Banks, the bank's establishment was later adjusted through Regional Regulation Number 6/DPR.DGR/1965, officially incorporating it as a Regional Company. To enhance performance and expand its business scope, the bank's legal status was converted into a Limited Liability Company (PT) in 2004, in accordance with Deed Number 7 dated May 12, 2004, which was subsequently ratified by the Minister of Justice and Human Rights of the Republic of Indonesia. The
adjustment was made again following Law Number 40 of 2007 through Deed Number 25 of 2008.
In addition to the change in legal form, BPD Bali also underwent a transformation in its operational status, namely from a commercial bank to a foreign exchange commercial bank in 2004. This change was followed by an increase in the company's authorized capital from IDR 75 billion to IDR 1 trillion in 2004, and then increased again to IDR 4 trillion based on the resolution of the 2015 General Meeting of Shareholders (GMS). This change reflects BPD Bali's readiness to expand services and competitiveness in the national banking industry, as well as show the company's commitment to strengthening its financial structure and supporting sustainable regional development.
This research was carried out at the BPD Bali Branch Office located on Jalan Raya Kuta No. 1, Kuta District, Badung Regency, Bali. This branch has a strategic role in reaching customers in areas with dense economic and tourism activities. With a total of 47 employees, this branch serves as a relevant subject of research to explore the dynamics of the work environment, job satisfaction, and organizational commitment, which are the central focus of this study.
Bali Regional Development Bank is a financial institution owned by the Bali Provincial Government that has undergone several legal status transformations to support its continued growth. These changes align with the bank’s vision and mission to deliver the highest quality of service to its customers. Badung Branch operations are carried out by employees in accordance with the applicable organizational responsibilities and structure.
Figure 1. Organizational Structure
This study was conducted on 45 employees of the Bali Regional Development Bank Badung Branch. Respondents' characteristics included age, gender, last education, and length of service, as presented in Table 1.
Table 1. Respondent Characteristics
| Characteristics | Clarification | Number (people) | Percentage (%) |
|---|---|---|---|
| Age | 26-30 Years | 11 | 24.4 |
| 31-35 Years | 18 | 40.0 | |
| 36-40 Years | 7 | 15.6 | |
| > 40 years old | 9 | 20.0 | |
| Sum | 45 | 100 | |
| Gender | Man | 24 | 53.3 |
| Woman | 21 | 46.7 | |
| Sum | 45 | 100 | |
| Final Education | High School/Vocational School | 21 | 46.7 |
| S1 | 23 | 51.1 | |
| S2 | 1 | 2.2 | |
| Sum | 45 | 100 | |
| Tenure | 1-10 Years | 30 | 66.7 |
| 11-20 Years | 14 | 31.1 | |
| > 20 Years | 1 | 2.2 | |
| Sum | 45 | 100 | |
Based on the data on respondent characteristics, most employees at the Bali Regional Development Bank Badung Branch are aged between 31 and 35 years, with a total of 18 individuals (40.0%), followed by 11 people (24.4%) aged 26-30 years, 9 people over 40 years old (20.0%), and 36-40 years old as many as 7 people (15.6%). In terms of gender, respondents were dominated by men as many as 24 people (53.3%), while women amounted to 21 people (46.7%).
In terms of education, most of the respondents had a S1 education as many as 23 people (51.1%), followed by 21 high school/vocational school graduates (46.7%), and only 1 person (2.2%) had a S2 education. Based on the working period, respondents who had a working period of 1–10 years dominated as many as 30 people (66.7%), followed by 11–20 years as many as 14 people (31.1%), and more than 20 years as many as 1 person (2.2%). This data shows that the majority of respondents are employees of productive age, highly educated, and have relatively new work experience.
Descriptive statistical analysis is used to describe or describe the data of research results without making generalizations (Sugiyono, 2019:206). In this study, measurements were carried out using a five-point Likert scale, which was given to respondents to assess indicators in each research variable. The score obtained is then calculated to determine the mean value, which is used as
the basis for categorizing the respondent's level of assessment of each measured indicator.
Table 2. Variable Description Criteria
| Average Score | Criterion | ||
|---|---|---|---|
| Organizational commitment | Work environment | Job satisfaction | |
| 1,00 - 1,80 | Very Low | Very Bad | Very Low |
| 1,81 - 2,60 | Low | Bad | Low |
| 2,61 - 3,40 | Enough | Enough | Enough |
| 3,41 - 4,20 | Tall | Good | Tall |
| 4,21 - 5,00 | Very High | Excellent | Very High |
The organizational commitment variable is symbolized by Y and measured using 3 statements that are responded to using 5 points of the Likert Scale. Based on the results of respondents’ answers regarding the organizational commitment variable, the distribution of responses can be summarized as follows:
Table 3. Description of Respondents' Responses to Organizational Commitments
| No | Statement | Respondent's Answer (orang) | Sum | Average | Criterion | ||||
|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |||||
| 1 | I feel emotionally attached to the company | 1 | 16 | 13 | 11 | 4 | 136 | 3,02 | Enough |
| 2 | I feel like I have little choice if I leave the company | 1 | 10 | 11 | 13 | 10 | 156 | 3,47 | Tall |
| 3 | I will not leave this company because I still have obligations | 1 | 8 | 14 | 12 | 10 | 157 | 3,49 | Tall |
| Average Total Organizational Commitment | 3,33 | Enough | |||||||
According to Table 3, the average score for respondents’ views on the organizational commitment variable was 3.33, labeled as “sufficient.” This indicates that employees at the Bali Regional Development Bank Badung Branch have a moderate level of organizational commitment, implying that, on average, they do not show a notably strong feeling of loyalty to the organization. The details of the statements with the highest and lowest average values are as follows:
The statement with the lowest average score was "I feel emotionally attached to the company" of 3.02 (fair category). This shows that in general employees have not fully felt emotional closeness to the organization.
The statement with the highest average score is "I will not leave this company because I still have obligations" of 3.49 (high category). This means that most employees feel a moral responsibility to stay employed by the company.
In this study, the work environment variable acts as the independent variable (X) and is assessed with three statement items utilizing a five-point Likert scale. Based on the results of respondents' responses to statements on this variable, the proportion of answers that reflect employees' perception of the working environment conditions at the Bali Regional Development Bank Badung Branch was obtained. The details of the results of respondents' perceptions are presented in the following explanation.
Table 1. Description of Respondents' Responses to the Work Environment
| No | Statement | Respondent's Answer (orang) | Sum | Average | Criterion | |
|---|---|---|---|---|---|---|
| 5 | 6 | |||||
| 1 | I work together to complement each other and help in completing the work | 5 | 6 | 135 | 3,00 | Enough |
| 2 | The company provides the availability of facilities and infrastructure to support the work. | 0 | 0 | 149 | 3,31 | Enough |
| 3 | I feel that the atmosphere in the company is comfortable, excited and the closeness between the company's employees runs harmoniously | 0 | 6 | 161 | 3,58 | Good |
| Average Total Working Environment | 3,30 | Enough | ||||
The statement with the lowest average score is "I work together to complement each other and help in completing the work" with a score of
3.00 (fair category). This shows that the spirit of cooperation between employees is still not optimal.
The statement with the highest average score was "I feel that the atmosphere in the company is comfortable, excited, and the closeness between employees is harmonious" with a score of 3.58 (good category). This means that employees feel a socially and emotionally supportive work atmosphere in the company environment.
The job satisfaction variable, represented by M, is measured using six statement items, each assessed through a five-point Likert scale. Based on the respondents’ answers regarding the job satisfaction variable, the distribution of responses can be detailed as follows:
Table 2. Description of Respondents' Answers to Job Satisfaction
| No | Statement | Respondent's Answer (orang) | Sum | Average | Criterion | ||
|---|---|---|---|---|---|---|---|
| 1 | I am satisfied that the amount of salary obtained is appropriate and fair | 6 | 134 | 2,98 | Enough | ||
| 2 | I feel satisfied with the work given according to my ability | 1 | 1 | 3 | 159 | 3,53 | Tall |
| 3 | I have a good cooperative relationship with colleagues | 5 | 0 | 0 | 153 | 3,40 | Enough |
| 4 | My boss has always been supportive of me | 2 | 0 | 142 | 3,16 | Enough | |
| 5 | I feel satisfied with the opportunities presented for promotional opportunities | 0 | 4 | 136 | 3,02 | Enough | |
| 6 | I feel satisfied with the work environment provided both physical and non-physical | 9 | 0 | 149 | 3,31 | Enough | |
| Average Total Job Satisfaction | 3,23 | Enough | |||||
Based on Table 5, respondents’ perceptions of the job satisfaction variable yielded a total average score of 3.23, which falls into the “sufficient” category. This suggests that employees at the Bali Regional Development Bank Badung Branch experience a moderate level of job satisfaction in performing their duties. The statements with the highest and lowest average scores are explained as follows:
The statement with the lowest average score is "I am satisfied with the amount of salary earned is appropriate and fair" with a score of 2.98 (fair category). This shows that most employees are not completely satisfied with the amount and fairness of the salary received.
The statement with the highest average score is "I feel satisfied with the work given according to ability" with a score of 3.53 (high category). This means that the majority of employees feel that the work they do is in accordance with their respective capacities and competencies.
Inferential statistics are used to analyze sample data and generalize them to the population (Sugiyono, 2017:233). This study uses path analysis, classical assumption test, and Sobel test as inferential statistical techniques.
Pathway analysis was employed to examine the relationships between the work environment (X), job satisfaction (M), and organizational commitment (Y), with the prerequisite that fundamental statistical assumptions were satisfied.
Table 6. Results of Path Analysis in Sub-Structural 1
R2 : 0,299
| Model | Unstandardized Coefficients | Standardized Coefficients Beta | t | Sig. | |
|---|---|---|---|---|---|
| B | Std. Error | ||||
| (Constant) | 9,642 | 2,383 | 4,047 | 0,000 | |
| Work environment | 0,987 | 0,230 | 0,547 | 4,282 | 0,000 |
From this hypothesis, two sub-structures of the equation are formulated:
The data analysis utilized SPSS 25.0 for Windows, and the outcomes are shown in Table 6. This application was applied to assess the effects of the work environment and job satisfaction on organizational commitment.
The results of the Second Sub-Structural calculation are presented in Table 7.
R2 : 0,536
| Model | Unstandardized Coefficients | Standardized Coefficients Beta | t | Sig. | |
|---|---|---|---|---|---|
| B | Std. Error | ||||
| (Constant) | 1.992 | 1.184 | 1.682 | 0.100 | |
| Work environment | 0.300 | 0.116 | 0.323 | 2.577 | 0.014 |
| Job satisfaction | 0.259 | 0.064 | 0.504 | 4.013 | 0.000 |
Based on the results of the path analysis, Sub-Structural equation 2 was obtained as follows:
The equation Y = 0.323X + 0.504M + e₂ demonstrates that both the work environment (X) and job satisfaction (M) positively affect organizational commitment (Y). A coefficient of 0.323 indicates that a better work environment enhances organizational commitment, while a coefficient of 0.504 signifies that greater job satisfaction also leads to stronger employee commitment.
Direct impact: work environment on organizational commitment was 0.323; work environment to job satisfaction was 0.547; job satisfaction to organizational commitment stood at 0.504.
Indirect influence: work environment on organizational commitment through job satisfaction of 0.276 (0.547 × 0.504).
Total influence: by 0.599, a combination of direct and indirect influences.
Additionally, The coefficient of determination (R²m) of 0.675 shows that 67.5% of the variation in organizational commitment is explained by the work environment and job satisfaction, while the remaining 32.5% is due to other factors not covered in this study.
Based on the above calculations, the direct, indirect, and total influences of each variable in the model can be summarized and presented systematically in Table 8.
Table 8. Direct Influences, Indirect Influences of the Work Environment, on Job Satisfaction and Organizational Commitment.
| Influence of variables | Direct influence | Indirect influence | Total Impact | Std. Error | Itself. | Result |
|---|---|---|---|---|---|---|
| through M | ||||||
| X→Y | 0.323 | 0.276 | 0.599 | 0.116 | 0.014 | Significant |
| X→M | 0.547 | 0.547 | 0.230 | 0.000 | Significant | |
| M→Y | 0.504 | 0.504 | 0.064 | 0.000 | Significant |
Table 8 summarizes the results of the path analysis which includes the direct and indirect influences, as well as error values in Sub-Structures 1 and 2. The brief explanation of each path is as follows:
The work environment on organizational commitment has a direct influence of 0.323 with a significance of 0.014.
The work environment on job satisfaction showed a direct influence of
0.547 with a significance of 0.000.
Job satisfaction with organizational commitment showed a direct influence of 0.504 with a significance of 0.000.
The influence of the work environment on organizational commitment through job satisfaction included a direct effect of 0.323, an indirect effect of 0.276, and a total effect of 0.599.
The influence of the work environment on organizational commitment, with the mediation of job satisfaction, showed a direct influence of 0.323 and an indirect influence of 0.276, so that the total influence produced was 0.599.
The study results indicate that the work environment positively and significantly affects the organizational commitment of employees at the Bali Regional Development Bank Badung Branch. A pleasant, supportive, and harmonious atmosphere among coworkers has been shown to strengthen employees' attachment to the organization. These findings support the core idea of Social Exchange Theory, which suggests that when employees are treated fairly and receive support from the organization, they respond with greater loyalty and commitment.
These findings also align with previous studies by Brox Arsenio (2023), Nursia et al. (2023), and Ahakwa et al. (2021), which concluded that a supportive work environment positively influences organizational commitment.
The work environment has also been shown to positively and significantly influence job satisfaction. Employees who experience comfort, support from colleagues, and sufficient workplace facilities tend to feel more
satisfied in performing their responsibilities. The more favorable the work environment, the greater the level of job satisfaction employees experience. These results are in line with the studies of Khairunisa et al. (2024), Kusumadewi et al. (2018), and Jasmine & Endalmen (2020), which found that a work environment that is supportive both physically and psychologically has a positive effect on job satisfaction.
Job satisfaction has a direct, positive, and significant impact on organizational commitment.Employees who are content with their work— covering elements such as job fit, recognition, and interpersonal relationships— are more likely to demonstrate stronger commitment to the organization. These findings are consistent with studies by Mahalaksmi & Suwandana (2024), Nurkama (2023), and Martini & Susanto (2021), which confirm that job satisfaction is a key factor in enhancing organizational commitment.
Job satisfaction is identified as a partial mediator in the relationship between the work environment and organizational commitment. A conducive work environment enhances job satisfaction, which in turn fosters greater organizational commitment. This mediating effect is validated by the Sobel Test and the VAF Test, where the VAF score of 46.08% confirms partial mediation. These findings are consistent with research by Vigazi & Rino (2023), Fahlefi (2023), and Anton et al. (2023), all of which emphasize the crucial role of job satisfaction in reinforcing the influence of the work environment on organizational commitment.
The results of the second hypothesis test show that the work environment has a positive and significant effect on employee job satisfaction at the Bali Regional Development Bank, Badung Branch. This means that the more conducive the work environment is perceived by employees, the greater their level of job satisfaction, and conversely, a less favorable environment corresponds to lower satisfaction. Therefore, the second hypothesis is supported. The work environment comprises both physical and non-physical components within the organization. This study reveals that employees working in a positive, comfortable, enthusiastic, and harmonious setting, accompanied by sufficient facilities and infrastructure, tend to experience greater job satisfaction.
In relation to Social Exchange Theory, a good work environment is perceived as a form of organizational concern for employees. In return, employees demonstrate positive attitudes in the form of increased job satisfaction because they feel their needs are met fairly and humanely. This finding is supported by research by Khairunisa et al. (2024), Nurazyka &
Mubarok (2024), Mukson & Rosima (2022), Manik & Yunior (2021), Prasetiyo et al. (2020), Endalmen (2020), and Yuliantini & Reza (2020) which states that a conducive and harmonious work environment significantly increases employee job satisfaction.
The findings from the third hypothesis test indicate that job satisfaction positively and significantly affects organizational commitment among employees at the Bali Regional Development Bank, Badung Branch. This implies that greater job satisfaction leads to higher organizational commitment, while lower satisfaction corresponds with reduced commitment. Thus, the third hypothesis is supported. Job satisfaction reflects a favorable emotional response toward work, and this study finds that employees whose jobs align with their skills tend to develop a stronger bond with the organization and are less inclined to leave due to a sense of duty and attachment.
In relation to Social Exchange Theory, when employees feel treated fairly, experience job satisfaction, and feel psychologically and professionally supported, they will reciprocate with positive attitudes, such as increased organizational commitment. This theory also emphasizes the importance of trust and norms of reciprocity, where job satisfaction fosters loyalty because employees believe the organization has good intentions for their well-being. These findings are consistent with studies by Mahalaksmi & Suwandana (2024), Nurkama (2023), Nickita (2022), Nahita & Saragih (2021), and Martini & Susanto (2021), all of which demonstrate that job satisfaction positively and significantly influences employee organizational commitment.
The results of the fourth hypothesis test reveal that the work environment has a significant impact on organizational commitment, with job satisfaction serving as a partial mediator. This implies that the work environment influences organizational commitment both directly and indirectly through enhanced job satisfaction. As such, the fourth hypothesis is confirmed. A supportive and positive work environment—characterized by comfort, enthusiasm, harmonious relationships among employees, and adequate facilities—leads to increased job satisfaction. Employees who are satisfied are more inclined to remain with the organization out of a sense of loyalty and attachment.
Social Exchange Theory explains that the relationship between employees and organizations is based on reciprocal interactions, involving not only material rewards but also emotional and social exchanges. A supportive work environment is viewed as an organizational investment, which employees respond to with higher satisfaction and stronger commitment to the organization. These conclusions are reinforced by research from Vigazi and Rino (2023), Risyani and Rino (2023), Fahlefi (2023), Anton et al. (2023), Kartini
and Bagus (2021), Martini and Nugroho (2021), as well as Krisna and Adnyani (2021), all of them concluded that job satisfaction serves as a significant mediating factor in the relationship between the work environment and organizational commitment.