The Effect of Motivation, Commitment and Work Discipline to Optimize the Regional Income: Mediating Role of Organizational Behavior

Abstract

Recently, income inequality in urban areas has increased sharply compared to rural areas, which is closely related to the economic downturn in the Riau Islands caused by the decline in the manufacturing industry sector which is generally located in urban areas. In the Regional Tax and Levy Management Agency of the Riau Islands Province, Indonesia. A total of 330 respondents representing the Riau Islands Provincial Government. Slovin formula is used to get the requirements to be sampled as many as 180 respondents. Data analysis was carried out using the Structural Equation Model (SEM) method. The software used for structural analysis is AMOS-24. The results indicated that commitment, motivation and work discipline have a significant positive effect on organizational behavior. Also, commitment and motivation have a significant positive effect on optimizing regional income. Besides that, work discipline does not affect optimizing regional income. In addition, organizational behavior has a significant positive effect on the optimizing regional income. This study also found that studied variables (exogenous) have contributed in explaining its relationship on organizational behavior is 91.18 percent and regional original income is 99.9 percent. It means that changes in regional original income is influenced by motivation, commitment, work discipline, and organizational behavior. In this study, we prove that there is a problem with the effect of the work discipline variable on the optimizing regional income variable is significantly positive.