The Effect of Core Values Internalization on Employee Performance Through Work Culture at a Mining Contracting Company

Abstract

Employee performance is a crucial factor in achieving organizational goals, particularly in mining service contractor companies that operate under high demands for productivity, safety, and operational efficiency. The internalization of organizational core values is considered an important approach to fostering a positive work culture that supports employee performance improvement. However, empirical studies examining this relationship within the mining contractor industry remain limited. This study aims to analyze the effect of core value internalization on employee performance and to examine the mediating role of work culture in this relationship. A quantitative research approach was employed using a survey method. Data were collected through structured questionnaires distributed to 100 employees of a mining service contractor company selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that the internalization of core values has a positive and significant effect on both work culture and employee performance. Furthermore, work culture has a positive and significant effect on employee performance and serves as a mediator in the relationship between core value internalization and employee performance. These findings suggest that strengthening the internalization of organizational core values contributes to the development of a positive work culture, which in turn enhances employee performance. This study provides empirical evidence regarding the importance of implementing organizational values to improve employee performance in mining contractor companies.