EXAMINING THE INFLUENCE OF PATERNALISTIC LEADERSHIP ON ORGANIZATIONAL COMMITMENT THROUGH JOB SATISFACTION AND REWARDS: A CASE STUDY OF THE COURTIERS OF THE YOGYAKARTA SULTANATE

Abstract

This study was motivated by the remarkably low turnover rate among Abdi Dalem within the Yogyakarta Sultanate, despite the relatively minimal financial
compensation they receive. This phenomenon suggests the presence of non-material factors that strengthen organizational commitment, particularly the
implementation of paternalistic leadership within the Sultanate. However, previous studies have provided limited empirical evidence regarding the relationship
between paternalistic leadership and organizational commitment, especially in non-profit and traditional cultural institutions. This study aims to examine the direct
and indirect effects of paternalistic leadership on organizational commitment through job satisfaction and rewards as mediating variables. The population of this
study consisted of approximately 1,300 Abdi Dalem serving under four Kawedanan Hageng within the Yogyakarta Sultanate. Using purposive sampling, 229
respondents were selected, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that paternalistic
leadership does not directly influence organizational commitment. However, paternalistic leadership significantly affects job satisfaction, although job satisfaction
itself does not significantly influence organizational commitment. In contrast, paternalistic leadership has a positive and significant effect on rewards, which
subsequently exert a significant influence on organizational commitment. Furthermore, rewards were found to significantly mediate the relationship between
paternalistic leadership and organizational commitment. The findings of this study provide several important insights. First, paternalistic leadership was found to
have no significant direct effect on organizational commitment. Second, paternalistic leadership significantly influenced job satisfaction; however, job satisfaction
did not significantly affect organizational commitment. Third, paternalistic leadership demonstrated a positive and significant effect on rewards, while rewards
significantly influenced organizational commitment. Moreover, rewards were found to significantly mediate the relationship between paternalistic leadership and
organizational commitment. These findings contribute to the existing literature in two important ways. First, they reinforce previous studies emphasizing the
positive influence of paternalistic leadership on job satisfaction, particularly within non-profit organizational settings. Second, the results indicate that the effect of
paternalistic leadership on organizational commitment becomes more meaningful when supported by rewards as a mediating mechanism.