Mediating Effect of Job Satisfaction on Relation between Power Distance and Collectivism toward Employee Performance in Indonesia

This study aims to analyse the mediating effect of job satisfaction on the relations between cultural dimensions of power distance and collectivism toward employee performance in a public insurance company in Indonesia. The study uses associative and quantitative approach, where data is collected by distributing questionnaires to 153 employees of this company. The data is later analysed using simple regression and path analysis. The findings showed that job satisfaction plays a mediating role between Power Distance, Collectivism and Employee performance. In addition, this study confirmed that Job Satisfaction is important for enhancing employee performance. The Power Distance has both direct and indirect (due to effect on job satisfaction) effects on employee performance.