THE EFFECT OF AFFECTIVE ORGANIZATIONAL COMMITMENT TOWARDS INNOVATION CAPABILITY AND ITS IMPACT TO JOB PERFORMANCE IN FAMILY BUSINESS

Abstract

PWC (PricewaterhouseCoopers) stated that family businesses growth in Indonesia has increased from 2016 to 2018 (PWC, 2018). According to the survey from PWC (2018), Family Business is in healthy condition with the growth at the highest level since 2007. With that growth data, there are a lot of advantages of running Family Businesses. The purpose of this research is to find out about the effect of affective organizational commitment towards innovation capability and its impact to job performance in Family Business. This research uses quantitative approach.The original data was taken through an online questionnaire with 100 respondents who are members of Family Business Community in Universitas Ciputra along with the non-members. Online questionnaire are distributed to the samples using 5-point Likert-scale questionnaire, and the data collection is analyzed using SEM-PLS.The SmartPLS 3.0 Statistics Program was used to test the proposed model. Result shows that affective organizational commitment significantly affects innovation capability, affective organizational commitment significantly affects job performance and innovation capability significantly affects job performance.