The role of psychology capital, knowledge sharing and commitment toward managers’ performance in manufacturing company

Abstract

The performance of the manufacturing industry lies in the managers who hold crucial roles. In the revolution industry, data or knowledge holds an important role besides managers’ commitment to work optimally. As intrinsic factors, psychological capital is fundamental for managers’ behavior such as commitment and initiative to share knowledge that simultaneously enables managers’ performance. This research aimed to find the psychology capital’s effect on managers’ performance in manufacturing companies by taking into account sharing knowledge and organization commitment as moderation. Hypothesis testing was done by using data measured with a Likert Scale from 208 managers of a manufacturing company as a representative from each company stationed in the Indonesia Stock Exchange. The results of empirical testing using SEM Lisrel shows that psychological capital affects performance moderated by a variable such as managers’ commitment and knowledge sharing. Based on affected value, the initiative to share knowledge gives greater value to the correlation between psychological capital and managers’ performance in manufacturing companies; compared to commitment. Manufacturing practitioners should be able to facilitate a conducive climate to encourage their managers to share knowledge voluntarily so that the decision-making process and performance are better.