The Influence of Competence and Intrinsic Rewards on Ethical Behavior and Their Impact on Organizational Performance: A Study of Local Government Agencies Partnering with Commission D Of the Gayo Lues Regional House of Representatives

This study investigates the mediating role of ethical behavior in the relationship between employee competence, intrinsic rewards, and organizational performance within remote public sector agencies. Focusing on the Regional Work Units (SKPK) partnering with Commission D of the Gayo Lues Regional House of Representatives, a cross-sectional survey was conducted among 129 civil servants. Data analysis utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) reveals that both competence and intrinsic rewards significantly foster ethical behavior. Notably, while intrinsic rewards and ethical behavior directly enhance organizational performance, employee competence shows no significant direct effect. Furthermore, mediation analysis confirms that ethical behavior fully mediates the impact of competence on performance, and partially mediates the effect of intrinsic rewards. These findings highlight that technical competence and intrinsic motivation are insufficient for achieving optimal public sector performance unless they are strictly channeled through a strong, internalized ethical culture.

competence; intrinsic rewards; ethical behavior; organizational performance.

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