Performance-Based Compensation, Green Reward, and Green Productivity: The Mediating Role of Person–Organization Fit in an Organic Coconut Processing Company
Abstract
This study aims to examine the effects of Performance-based Compensation and Green Reward on Green Productivity and to analyze the mediating role of Person–Organization Fit in an organic coconut processing company. A quantitative approach was employed using data from 240 employees of PT Natural Indococonut Organik. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the direct and indirect relationships among the variables. The results show that Performance-based Compensation and Green Reward do not have significant direct effects on Green Productivity. However, both variables have significant positive effects on Person–Organization Fit, which in turn has a positive and significant effect on Green Productivity. The mediation analysis further indicates that Person–Organization Fit significantly mediates the relationships between Performance-based Compensation and Green Reward and Green Productivity. These findings indicate that performance-based compensation and environmental rewards do not automatically improve green productivity; their contribution becomes more meaningful when employees perceive compatibility between their values, goals, needs, and abilities and those of the organization. The study highlights the importance of aligning reward systems with organizational values and sustainability objectives to support green productivity.
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