International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR DYNAMICS OF WORK ETHIC, WORK ENVIRONMENT, AND ORGANIZATIONAL CULTURE IN ENCOURAGING EMPLOYEE PERFORMANCE Budi Waluyo1, Sutianingsih2 Management Study Program, Atma Bhakti Institute of Economis, Surakarta1 Management Study Program, Atma Bhakti Institute of Economis, Surakarta2 E-mail: budibkd7@gmail.com, sutianingsih.ab@gmail.com Abstract: This study aims to analyze the influence of work ethic, work environment, and organizational culture on employee performance at the Regional Finance Agency (BKD) of Boyolali Regency. This quantitative research uses a census approach by involving the entire population of Boyolali BKD employees totaling 110 people as respondents. Data were collected through questionnaires using a Likert scale of 1-5 and analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) method with the help of SmartPLS software. The results of the study show that work ethic, work environment, and organizational culture significantly and positively affect employee performance. Based on these findings, it is concluded that these three variables are important factors in improving employee performance at BKD Boyolali. Therefore, it is recommended to all employees to continue to strengthen their work ethic, create a conducive work environment, and internalize a positive organizational culture to achieve optimal performance. Keywords: employee performance, organizational culture, work environment, work ethic Submitted: 2025-08-26; Revised: 2025-09-18; Accepted: 2025-09-20 1. Introduction The ability to generate high performance from one's workforce is an objective that any firm should pursue. Achieving one's goals in the workplace is what we call "performance" (Rastana et al., 2021). Work outcomes or accomplishments are evaluated for quality and quantity according to organizational requirements; this is known as employee performance (Rani & Mayasari, 2015). Amanda et al. (2017) stated that performance is the amount and quality of work done by individuals or groups in the organization to carry out the main tasks and functions. This work is guided by established or applicable norms, operational standards, procedures, criteria, and measures. The Regional Finance Agency (BKD) of Boyolali Regency, like any other government agency, relies on its employees' work ethic, work environment, and organizational culture to gauge their effectiveness. The capacity of BKD to administer regional finances and deliver top-notch public services is dependent on the effectiveness and efficiency of its employees. Therefore, this study aims to evaluate the impact of these three variables on the productivity and efficiency of the BKD Boyolali Regency staff. Work ethic, which includes a set of positive values, attitudes, and behaviors, is the main driver for individuals in completing their work (Sutianingsih & Karina, 2024) Crucial aspects International Journal of Economics, Business and Accounting Research (IJEBAR) Page 573 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR of a work ethic include discipline, responsibility, initiative, and commitment to work. Employees with a strong work ethic tend to show high intrinsic motivation, be proactive, and persistent in facing challenges (Mulyani, 2021) This is directly correlated with increased productivity, efficiency, and quality of their work (Saleh & Utomo, 2018) This solid performance not only benefits the individual, but also contributes significantly to the achievement of the organization's strategic goals. Conversely, a low work ethic can be a serious obstacle to the progress of the organization. This condition is often characterized by stagnant performance, lack of innovation, and decreased service quality. This phenomenon can lead to a decline in company competitiveness and an unconducive work environment. One of the most important variables influencing worker productivity is the workplace itself. A supportive and pleasant atmosphere may be created by creating an environment that is both physically and mentally favorable (Sutianingsih & Yuliyana, 2023). Physical aspects, such as ergonomic layout, adequate lighting, and well-equipped facilities, directly contribute to employees' comfort and ability to fully concentrate (Sunardi & Sutianingsih, 2023). Conversely, the non-physical environment is just as crucial (Gunastri & Pradnyana, 2018). Harmonious relationships between employees, open communication, and supportive leadership can build a strong sense of community, minimize stress, and increase job satisfaction. When employees feel valued and supported, their motivation to perform at their best will increase. Therefore, creating an integrated work environment between physical and non-physical elements is key to driving productivity and optimal performance (Suhartono & Amalia, 2024). A company's culture consists of its employees' shared understanding of and adherence to a set of fundamental principles, practices, and assumptions. A person's identity is formed, their conduct is directed, and their everyday decision-making is filtered by this system (Dirga & Sutianingsih, 2024). A strong and positive organizational culture, characterized by values such as service-orientation, innovation, and collaboration, acts as a moral compass for employees (Muluk, 2015). When employees internalize these values, they not only work according to procedures, but also have a strong sense of ownership and commitment to a common goal. This synchronization of understanding creates synergy, where each individual feels part of a greater unity. This directly contributes to increased work effectiveness and efficiency. Employees who are in a supportive and growth-oriented cultural environment tend to be more motivated, adaptive to change, and proactive in finding solutions, which ultimately drives the achievement of overall organizational performance (Kowawin, 2024). 2. Literature Review 2.1 Work Ethic According to Busro (2018) work ethic is a positive behavior rooted in fundamental beliefs and commitment to the work paradigm. This then forms a typical attitude and work behavior in an individual, organization, or community. In line with that, Priansa (2016) defines work ethic as the fundamental attitude or view that employees have to assess work as a positive thing in improving the quality of life, which ultimately affects their work behavior in the organization. Meanwhile, Nst et al. (2022) describes work ethic as the unique response of an individual, group, or society to life. The response that arises from this accepted belief then becomes habit or character. Hadiansyah and Yanwar (2017) expand the definition of ethos to include the guiding principles, standards, attitudes, goals, motivations, basic spirit, code of ethics, moral codes, codes of conduct, and the typical behavior of an organization or community. As such, work ethic encompasses a broader spectrum than just behavior, but also the underlying value foundation. International Journal of Economics, Business and Accounting Research (IJEBAR) Page 574 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR 2.2 Work Environment Employees and their work environment are inseparable as the former provides the setting in which the latter performs its functions (Candra & Sutianingsih, 2025). Improving one's performance is possible in an ideal workplace. Workers' immediate surroundings and the factors that influence their productivity make up their work environment Muraweni & Rasyid (2017). When workers are in a good setting, they are able to give their all on the job. This is a clear correlation between workplace quality and productivity. Time and workload modifications, as mentioned by Kadaryat (2020), can have an impact on how quickly or slowly tasks are completed. Therefore, businesses will reap the rewards if they are successful in making the workplace pleasant and productive. Employees are more likely to put out their best effort and produce better results when they are in an environment that inspires them to do so. 2.3 Organizational Culture These values serve as guidelines for behavior and decision-making, distinguishing between actions that are considered right or wrong, as well as behaviors that are recommended or not (Faturahman, 2018) More deeply, organizational culture can be seen as the result of interactions between individuals within it. According to some experts, such as Deby (2024) organizational culture is formed from the fusion of individual styles and behaviors into new norms and philosophies that foster a sense of pride and togetherness in achieving common goals. As Samuel et al. (2020) points out, long-standing practices, assumptions, beliefs, values, and conventions are all part of an organization's culture. Typically, these components are developed by the organization's founders, leaders, and members; they are subsequently disseminated to new members and incorporated into all organizational endeavors in order to accomplish the predetermined objectives. 2.4 Employee Performance The outcomes of an organization's workers' efforts, according to a number of experts, are what constitute employee performance. The importance of the work's outcomes to the growth and improvement of the business was highlighted by Alkadri (2024). Budiningsih et al. (2020) backs this up by saying that performance on the job is when employees successfully do their assigned tasks. At the same time, Krisnawati & Bagia (2021) emphasized that this success is due to the completion of certain tasks within a given time frame. Moreover, according to Wartono (2017), performance is defined as the quantitative and qualitative outcomes of work done in conformity with one's authority, responsibilities, and responsibilities, while also adhering to relevant laws, morals, and ethics in order to accomplish organizational objectives. Thus, employee performance includes measurable work outcomes, is relevant to responsibilities, and is aligned with organizational goals. Hypothesis Work ethic towards employee performance How a person feels about their job is influenced by their work ethic, which is a collection of values and beliefs. A positive work ethic, such as discipline, responsibility, initiative, and high commitment, is essential for employee performance. Individuals who have a strong work ethic will tend to be more proactive, persistent in completing tasks, and have internal motivation to achieve the best results. Low work ethic, on the other side, is associated with carelessness, chronic procrastination, and a general lack of initiative. Workplace productivity and effectiveness might take a hit due to this illness, which could potentially hurt the company. Risma & Arwiah (2022) and Lamere et al. (2021) found that employees' work ethic had a beneficial effect on their performance. Work ethic is a key factor in determining how well an International Journal of Economics, Business and Accounting Research (IJEBAR) Page 575 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR employee performs. An employee's output is directly proportional to the strength of their work ethic. Nevertheless, this connection is just one-way. Hypothesis (H1): Work ethic has a positive and significant influence on employee performance. Work environment on employee performance What surrounds employees at work and has the potential to influence their productivity is called the work environment. The comfort, motivation, and output of workers can be enhanced by creating an atmosphere that is favorable to their job. Poor working conditions, on the other hand, can cause stress, pain, and a loss of motivation, all of which contribute to subpar output. Both Nurhandayani (2022) and Estiana et al. (2023) came to the same conclusion: that elements in the workplace affect productivity. As a result, the following are some possible theories: Hypothesis 2: There is a positive and significant influence between the work environment on employee performance. Organizational culture towards employee performance All employees adhere to the same set of rules and have the same set of views that make up the organization's culture. A strong and positive organizational culture will shape employee behavior, attitudes, and ways of working. If an organizational culture supports innovation, collaboration, and high performance, then employees will be motivated to act in accordance with those values, which will ultimately improve their performance. On the flip side, productivity could take a hit in an unfriendly work environment. Oktavia & Fernos (2023) and Jufri & Marimin (2022) found that company culture has an effect on workers' productivity, lending credence to this idea. The following theory is put out in light of this: Hypothesis 3: There is a positive and significant influence between organizational culture on employee performance. 3. Research Method Research of this quantitative kind aims to demonstrate how the Boyolali Regional Finance Agency's work ethic, work environment, and organizational culture impact employee performance. This study's population includes all 110 workers of the Boyolali Regional Finance Agency. Nonprobability sampling, namely saturation sampling (census), is employed in this case. With the use of the Likert Scale for Likert Appraisal, Items 1–5. For this study, we rely on Smart PLS as it works well with variant-based Structural Equation Modeling (SEM) and lets us test several models of latent variable relationships all at once. 4. Results and Discussion 4.1. Results Evaluation Measurement Model (Outer Model) 1) Convergent Validity We ensure convergent validity with every concept indicator. To be considered valid, an indicator's value must be more than 0.70, whereas a loading factor between 0.50 and 0.60 is considered sufficient (Ghozali 2018). If the loading factor is less than 0.50, it will be removed from the model according to this criterion. International Journal of Economics, Business and Accounting Research (IJEBAR) Page 576 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR Figure 1. Convergent Validity Test Results Table 1. Convergent Validity Test Results Variable Work Ethic Work Environment Organizational Culture Employee Performance Indicator X1.1 X1.2 X1.3 X1.4 X1.5 X2.1 X2.2 X2.3 X2.4 X2.5 X3.1 X3.2 X3.3 X3.4 X3.5 Y.1 Y.2 Y.3 Y.4 Y.5 Outer Loading 0,794 0,792 0,843 0,789 0,856 0,738 0,799 0,830 0,771 0,702 0,728 0,726 0,852 0,745 0,677 0,846 0,779 0,718 0,715 0,864 By analyzing the outer loading value of every indicator, convergent validity testing was conducted in Figure 1 and Table 1. The SmartPLS analysis yielded an outer loading value for each indication between 0.677 and 0.864. Because all of these values exceed the minimum criterion of 0.50, it can be concluded that the indicators used are proven to be valid convergently in measuring the research construct. 2) Discriminant Validity The cross-loading value of each variable is used to measure discriminant validity. An indicator is considered to have acceptable discriminant validity if its correlation with the International Journal of Economics, Business and Accounting Research (IJEBAR) Page 577 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR concept is larger than that of the other construct. Each indicator's cross loading value is as follows. Table 2 Discriminant Validity (Cross Loadings) X1.1 X1.2 X1.3 X1.4 X1.5 X2.1 X2.2 X2.3 X2.4 X2.5 X3.1 X3.2 X3.3 X3.4 X3.5 Y.1 Y.2 Y.3 Y.4 Y.5 Work ethic 0.794 0.792 0.843 0.789 0.856 0.590 0.760 0.571 0.536 0.386 0.476 0.612 0.570 0.534 0.516 0.508 0.531 0.788 0.692 0.531 Work environment 0.533 0.602 0.605 0.626 0.665 0.738 0.799 0.830 0.771 0.702 0.512 0.537 0.561 0.515 0.442 0.661 0.598 0.673 0.600 0.685 Organizational culture 0.515 0.581 0.629 0.637 0.608 0.544 0.637 0.629 0.467 0.363 0.728 0.726 0.825 0.745 0.677 0.599 0.589 0.551 0.671 0.622 Employee performance 0.587 0.678 0.627 0.642 0.660 0.533 0.695 0.727 0.624 0.556 0.596 0.577 0.609 0.574 0.511 0.846 0.779 0.718 0.715 0.864 The table's data makes it quite evident that the loading factors for some indicators of latent variables are greater than those for other latent variables. Whereas certain latent variables have a highly correlated measure with other constructs, this indicates that all latent variables possess strong discriminant validity. 3) Composite Reliability dan Average Variance Extracted (AVE) The predicted values for composite reliability and average variance extracted (AVE) are more than 0.7 and 0.5, respectively. Table 3. Composite Reliability and Average Variance Extracted (AVE) Composite Reliability Average Variance Extracted (AVE) Work ethic 0.908 0.665 Employee performance 0.890 0.619 Work environment 0.878 0.592 Organizational culture 0.859 0.550 It is clear from looking at table 3 that all of the constructions are quite reliable. This is demonstrated by the fact that the AVE value for the suggested work ethic, employee performance, work environment, and organizational culture variables is more than 0.5. All of International Journal of Economics, Business and Accounting Research (IJEBAR) Page 578 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR the components also meet the criteria for high dependability in composite reliability, with values over 0.70. Structural Model or Inner Model To examine the correlation between the research model's concept, significant value, and R-squared, structural model testing, also known as Inner Model, is conducted. We use t-tests, significance of the coefficient of structural path parameters, and R-square for dependent constructs to assess the structural model. Figure 2. Structural Models All of the indications in figure 2 are still there after passing the convergent validity test, therefore they are all part of the structural model. 1) Evaluasi Goodness Of Fit Model One way to begin evaluating a model, or a model evaluated using SmartPLS, is to check the R-squared value of each dependent latent variable. Table 4 displays the outcome of the Rsquared estimation performed using SmartPLS. Tabel 4. R-Square R Square R Square Adjusted Employee performance 0.779 0.773 According to Table 4, the performance variable's R-squared value is 0.779, which means that the model accounts for 77.9% (0.779 x 100%) of the variation in employee performance as a result of work ethic, work environment, and organizational culture. The remaining 22.1% (100%-77.9%) is explained by variables outside the research model. 2) Hypothesis Testing It is essential that the structural model's predicted value for the path connections be statistically significant. The bootstrapping method can yield this statistically significant result. International Journal of Economics, Business and Accounting Research (IJEBAR) Page 579 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR Take a look at the bootstrapping report algorithm's parameter coefficient and t-statistics values to see how significant the hypothesis is. In order to ascertain the significance of the result, one must examine the t-table at alpha 0.05 (5%), which produces 1.659. The next step is to compare the t-table with the t-count (t-statistic). Table 5. Hypothesis Testing Original Sample T Statistics P (O) (|O/STDEV|) Values Organizational culture -> Employee performance 0.291 3.578 0.000 Work ethic -> Employee performance 0.248 2.986 0.003 Work environment -> Employee performance 0.436 6.044 0.000 A T-Statistics value of 2.986, which is more than the t-table value of 1.658, and an original sample value of 0.248, support the initial hypothesis that there is a link between work ethic characteristics and employee performance. If the first hypothesis is correct, then these findings support the idea that work ethic is positively and significantly related to employee performance. A T-Statistics value of 6.044, which is more than the t-table value of 1.658, supports the second hypothesis that there is a link between factors related to the work environment and employee performance. The original sample value for this association is 0.436. These findings provide support for the second hypothesis, which states that there is a positive and statistically significant association between the factors of the work environment and employee performance. In support of the third hypothesis, we find that there is a positive correlation between organizational culture factors and employee performance; this correlation is statistically significant (T-Statistics = 3.578, p > 1.658). According to the third hypothesis, these findings support the idea that organizational culture characteristics are positively and significantly related to employee performance. 4.2. Discussion 1. The results of the test on the influence of work ethic on employee performance show that it has a significant effect on performance. The original sample value was 0.248, and the tstatistical value was 2.986, which is greater than the t-table value of 1,658, so we can accept the first hypothesis (H1). Confirming the findings of this study, prior research by Risma & Arwiah (2022) and Lamere et al. (2021) found that work ethic significantly impacts employee performance. 2. The second hypothesis (H2) is accepted, meaning that the work environment has a significant effect on employee performance, according to the results of the test on the influence of the work environment on performance. The original sample value was 0.436, and the t-statistical value was greater than the t-table value (6.044 > 1.658). Background research by Nurhandayani (2022) and Estiana et al. (2023) supports the idea that the workplace significantly affects employee productivity, lending credence to the findings of the current study. 3. The findings of the tests showing that company culture has an effect on workers' productivity lead us to accept the third hypothesis (H3). Thus, it may be concluded that company culture does impact productivity. The t-statistical value of 3.578 is higher than the t-table value of 1,658; the original sample value was 0.291. Supporting the premise International Journal of Economics, Business and Accounting Research (IJEBAR) Page 580 International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-9, Issue-3, 2025 (IJEBAR) E-ISSN: 2614-1280 P-ISSN 2622-4771 https://jurnal.stie-aas.ac.id/index.php/IJEBAR that corporate culture greatly influences employee performance, this study's conclusions are bolstered by prior studies by Oktavia & Fernos (2023) and Jufri & Marimin (2022). 5. Conclusion The findings and testing of hypotheses in this study indicated that the work ethic, work environment, and organizational culture of the Boyolali Regional Finance Agency (BKD) personnel significantly influenced their job performance. As shown by the T-Statistics value of 2,986, there is a positive and statistically significant correlation between work ethic and employee performance. In other words, the key drivers for enhancing performance are the passion and commitment of individuals towards their work. Similarly, a T-Statistics value of 6,044 indicates that the workplace significantly and positively affects employee performance. The importance of a pleasant, encouraging, and productive work environment in boosting output is so reinforced. Lastly, the T-Statistics score of 3,578 demonstrates that corporate culture has a favorable and large impact on employee performance. The good conduct and performance of BKD Boyolali employees are influenced by the company's values, conventions, and habits. In order to increase employee performance in the institution, all three criteria must be considered together, as shown by the overall findings. Several recommendations can be made in light of the above findings. 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